As Passed by the House

128th General Assembly Regular Session 2009-2010

Am. Sub. H. B. No. 113

Representatives Foley, Blessing 

Cosponsors: Representatives Celeste, Skindell, Morgan, Harris, Evans, Snitchler, Pillich, Mecklenborg, Murray, Phillips, Combs, Grossman, Harwood, Newcomb, McGregor, Chandler, Oelslager, Yates, Ujvagi, Weddington, Stewart, Yuko, Stebelton, Adams, J., Bacon, Hagan, Baker, Batchelder, Belcher, Bolon, Boose, Boyd, Brown, Bubp, Carney, DeBose, Domenick, Driehaus, Dyer, Garland, Goodwin, Goyal, Hackett, Heard, Koziura, Lehner, Letson, Luckie, Lundy, Mallory, Patten, Pryor, Szollosi, Uecker, Williams, B., Williams, S., Winburn 

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A BILL

To amend sections 133.06, 133.20, 3313.372, 3313.46,

1

and 4928.62 and to enact section 3313.377 of the

2

Revised Code to authorize school boards, for

3

on-site renewable energy generation measures and

4

in the same manner as for energy conservation

5

measures, to enter into installment contracts

6

subject to specified terms of payment, to provide

7

that energy conservation installment contracts

8

are subject to those same terms, and to establish

9

a two-tiered, three-year renewable energy schools

10

pilot program that creates a process for schools

11

to obtain a supply of electricity generated from

12

renewable energy resources.

13

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

Section 1. That sections 133.06, 133.20, 3313.372, 3313.46,	14
and 4928.62 be amended and section 3313.377 of the Revised Code	15
be enacted to read as follows:	16

Sec. 133.06.  (A) A school district shall not incur, without	17
a vote of the electors, net indebtedness that exceeds an amount	18
equal to one-tenth of one per cent of its tax valuation, except as	19
provided in divisions (G) and (H) of this section and in division	20
(C) of section 3313.372 of the Revised Code, or as prescribed in	21
section 3318.052 of the Revised Code, or as provided in division	22
(J) of this section.	23

(B) Except as provided in divisions (E), (F), and (I) of this	24
section, a school district shall not incur net indebtedness that	25
exceeds an amount equal to nine per cent of its tax valuation.	26

(C) A school district shall not submit to a vote of the	27
electors the question of the issuance of securities in an amount	28
that will make the district's net indebtedness after the issuance	29
of the securities exceed an amount equal to four per cent of its	30
tax valuation, unless the superintendent of public instruction,	31
acting under policies adopted by the state board of education, and	32
the tax commissioner, acting under written policies of the	33
commissioner, consent to the submission. A request for the	34
consents shall be made at least one hundred five days prior to the	35
election at which the question is to be submitted.	36

The superintendent of public instruction shall certify to the	37
district the superintendent's and the tax commissioner's decisions	38
within thirty days after receipt of the request for consents.	39

If the electors do not approve the issuance of securities at	40
the election for which the superintendent of public instruction	41
and tax commissioner consented to the submission of the question,	42
the school district may submit the same question to the electors	43
on the date that the next special election may be held under	44
section 3501.01 of the Revised Code without submitting a new	45
request for consent. If the school district seeks to submit the	46
same question at any other subsequent election, the district shall	47
first submit a new request for consent in accordance with this	48
division.	49

(D) In calculating the net indebtedness of a school district,	50
none of the following shall be considered:	51

(1) Securities issued to acquire school buses and other	52
equipment used in transporting pupils or issued pursuant to	53
division (D) of section 133.10 of the Revised Code;	54

(2) Securities issued under division (F) of this section,	55
under section 133.301 of the Revised Code, and, to the extent in	56
excess of the limitation stated in division (B) of this section,	57
under division (E) of this section;	58

(3) Indebtedness resulting from the dissolution of a joint	59
vocational school district under section 3311.217 of the Revised	60
Code, evidenced by outstanding securities of that joint vocational	61
school district;	62

(4) Loans, evidenced by any securities, received under	63
sections 3313.483, 3317.0210, 3317.0211, and 3317.64 of the	64
Revised Code;	65

(5) Debt incurred under section 3313.374 of the Revised Code;

66

(6) Debt incurred pursuant to division (B)(5) of section	67
3313.37 of the Revised Code to acquire computers and related	68
hardware;	69

(7) Debt incurred under section 3318.042 of the Revised Code.

70

(E) A school district may become a special needs district as	71
to certain securities as provided in division (E) of this section.	72

(1) A board of education, by resolution, may declare its	73
school district to be a special needs district by determining both	74
of the following:	75

(a) The student population is not being adequately serviced	76
by the existing permanent improvements of the district.	77

(b) The district cannot obtain sufficient funds by the	78
issuance of securities within the limitation of division (B) of	79
this section to provide additional or improved needed permanent	80
improvements in time to meet the needs.	81

(2) The board of education shall certify a copy of that	82
resolution to the superintendent of public instruction with a	83
statistical report showing all of the following:	84

(a) A history of and a projection of the growth of the	85
student population;	86

(b) The history of and a projection of the growth of the tax	87
valuation;	88

(c) The projected needs;

89

(d) The estimated cost of permanent improvements proposed to	90
meet such projected needs.	91

(3) The superintendent of public instruction shall certify	92
the district as an approved special needs district if the	93
superintendent finds both of the following:	94

(a) The district does not have available sufficient	95
additional funds from state or federal sources to meet the	96
projected needs.	97

(b) The projection of the potential average growth of tax	98
valuation during the next five years, according to the information	99
certified to the superintendent and any other information the	100
superintendent obtains, indicates a likelihood of potential	101
average growth of tax valuation of the district during the next	102
five years of an average of not less than three per cent per year.	103
The findings and certification of the superintendent shall be	104
conclusive.	105

(4) An approved special needs district may incur net	106
indebtedness by the issuance of securities in accordance with the	107
provisions of this chapter in an amount that does not exceed an	108
amount equal to the greater of the following:	109

(a) Nine per cent of the sum of its tax valuation plus an	110
amount that is the product of multiplying that tax valuation by	111
the percentage by which the tax valuation has increased over the	112
tax valuation on the first day of the sixtieth month preceding the	113
month in which its board determines to submit to the electors the	114
question of issuing the proposed securities;	115

(b) Nine per cent of the sum of its tax valuation plus an	116
amount that is the product of multiplying that tax valuation by	117
the percentage, determined by the superintendent of public	118
instruction, by which that tax valuation is projected to increase	119
during the next ten years.	120

(F) A school district may issue securities for emergency	121
purposes, in a principal amount that does not exceed an amount	122
equal to three per cent of its tax valuation, as provided in this	123
division.	124

(1) A board of education, by resolution, may declare an	125
emergency if it determines both of the following:	126

(a) School buildings or other necessary school facilities in	127
the district have been wholly or partially destroyed, or condemned	128
by a constituted public authority, or that such buildings or	129
facilities are partially constructed, or so constructed or planned	130
as to require additions and improvements to them before the	131
buildings or facilities are usable for their intended purpose, or	132
that corrections to permanent improvements are necessary to remove	133
or prevent health or safety hazards.	134

(b) Existing fiscal and net indebtedness limitations make	135
adequate replacement, additions, or improvements impossible.	136

(2) Upon the declaration of an emergency, the board of	137
education may, by resolution, submit to the electors of the	138
district pursuant to section 133.18 of the Revised Code the	139
question of issuing securities for the purpose of paying the cost,	140
in excess of any insurance or condemnation proceeds received by	141
the district, of permanent improvements to respond to the	142
emergency need.	143

(3) The procedures for the election shall be as provided in	144
section 133.18 of the Revised Code, except that:	145

(a) The form of the ballot shall describe the emergency	146
existing, refer to this division as the authority under which the	147
emergency is declared, and state that the amount of the proposed	148
securities exceeds the limitations prescribed by division (B) of	149
this section;	150

(b) The resolution required by division (B) of section 133.18	151
of the Revised Code shall be certified to the county auditor and	152
the board of elections at least seventy-five days prior to the	153
election;	154

(c) The county auditor shall advise and, not later than	155
sixty-five days before the election, confirm that advice by	156
certification to, the board of education of the information	157
required by division (C) of section 133.18 of the Revised Code;	158

(d) The board of education shall then certify its resolution	159
and the information required by division (D) of section 133.18 of	160
the Revised Code to the board of elections not less than sixty	161
days prior to the election.	162

(4) Notwithstanding division (B) of section 133.21 of the	163
Revised Code, the first principal payment of securities issued	164
under this division may be set at any date not later than sixty	165
months after the earliest possible principal payment otherwise	166
provided for in that division.	167

(G)(1) The board of education may contract with an architect,	168
professional engineer, or other person experienced in the design	169
and implementation of energy conservation measures, as defined in	170
section 3313.372 of the Revised Code, for an analysis and	171
recommendations pertaining to installations, modifications of	172
installations, or remodeling that would significantly reduce	173
energy consumption in buildings owned by the district. The report	174
shall include estimates of all costs of such installations,	175
modifications, or remodeling, including costs of design,	176
engineering, installation, maintenance, repairs, and debt service,	177
and estimates of the amounts by which energy consumption and	178
resultant operational and maintenance costs, as defined by the	179
Ohio school facilities commission, would be reduced.	180

If the board finds after receiving the report that the amount	181
of money the district would spend on such installations,	182
modifications, or remodeling is not likely to exceed the amount of	183
money it would save in energy and resultant operational and	184
maintenance costs over the ensuing fifteen years, the board may	185
submit to the commission a copy of its findings and a request for	186
approval to incur indebtedness to finance the making or	187
modification of installations or the remodeling of buildings for	188
the purpose of significantly reducing energy consumption.	189

If the commission determines that the board's findings are	190
reasonable, it shall approve the board's request. Upon receipt of	191
the commission's approval, the district may issue securities	192
without a vote of the electors in a principal amount not to exceed	193
nine-tenths of one per cent of its tax valuation for the purpose	194
of making such installations, modifications, or remodeling, but	195
the total net indebtedness of the district without a vote of the	196
electors incurred under this and all other sections of the Revised	197
Code, except section 3318.052 of the Revised Code, shall not	198
exceed one per cent of the district's tax valuation.	199

So long as any securities issued under division (G)(1) of	200
this section remain outstanding, the board of education shall	201
monitor the energy consumption and resultant operational and	202
maintenance costs of buildings in which installations or	203
modifications have been made or remodeling has been done pursuant	204
to division (G)(1) of this section and shall maintain and annually	205
update a report documenting the reductions in energy consumption	206
and resultant operational and maintenance cost savings	207
attributable to such installations, modifications, or remodeling.	208
The report shall be certified by an architect or engineer	209
independent of any person that provided goods or services to the	210
board in connection with the energy conservation measures that are	211
the subject of the report. The resultant operational and	212
maintenance cost savings shall be certified by the school district	213
treasurer. The report shall be made available to the commission	214
upon request.	215

(2) If the board determines that the amount of money the	216
district would spend on renewable energy generation measures as	217
defined in section 3313.372 of the Revised Code is not likely to	218
exceed the amount of money it would save in energy and resultant	219
operational and maintenance costs over the ensuing thirty years,	220
the board may choose one of the following options:	221

(a) Elect not to incur indebtedness to finance renewable	222
energy generation measures;	223

(b) Submit to the commission a request for approval to incur	224
indebtedness to finance renewable energy generation measures.	225

If the board elects to submit a request and the commission	226
determines that the request is reasonable, the commission shall	227
approve the board's request. Upon receipt of the commission's	228
approval, the district may issue securities without a vote of the	229
electors in a principal amount not to exceed nine-tenths of one	230
per cent of its tax valuation for the purpose of renewable energy	231
generation measures, but the total net indebtedness of the	232
district without a vote of the electors incurred under this and	233
all other sections of the Revised Code, except section 3318.052 of	234
the Revised Code, shall not exceed one per cent of the district's	235
valuation.	236

(H) With the consent of the superintendent of public	237
instruction, a school district may incur without a vote of the	238
electors net indebtedness that exceeds the amounts stated in	239
divisions (A) and (G) of this section for the purpose of paying	240
costs of permanent improvements, if and to the extent that both of	241
the following conditions are satisfied:	242

(1) The fiscal officer of the school district estimates that	243
receipts of the school district from payments made under or	244
pursuant to agreements entered into pursuant to section 725.02,	245
1728.10, 3735.671, 5709.081, 5709.082, 5709.40, 5709.41, 5709.62,	246
5709.63, 5709.632, 5709.73, 5709.78, or 5709.82 of the Revised	247
Code, or distributions under division (C) of section 5709.43 of	248
the Revised Code, or any combination thereof, are, after	249
accounting for any appropriate coverage requirements, sufficient	250
in time and amount, and are committed by the proceedings, to pay	251
the debt charges on the securities issued to evidence that	252
indebtedness and payable from those receipts, and the taxing	253
authority of the district confirms the fiscal officer's estimate,	254
which confirmation is approved by the superintendent of public	255
instruction;	256

(2) The fiscal officer of the school district certifies, and	257
the taxing authority of the district confirms, that the district,	258
at the time of the certification and confirmation, reasonably	259
expects to have sufficient revenue available for the purpose of	260
operating such permanent improvements for their intended purpose	261
upon acquisition or completion thereof, and the superintendent of	262
public instruction approves the taxing authority's confirmation.	263

The maximum maturity of securities issued under division (H)	264
of this section shall be the lesser of twenty years or the maximum	265
maturity calculated under section 133.20 of the Revised Code.	266

(I) A school district may incur net indebtedness by the	267
issuance of securities in accordance with the provisions of this	268
chapter in excess of the limit specified in division (B) or (C) of	269
this section when necessary to raise the school district portion	270
of the basic project cost and any additional funds necessary to	271
participate in a project under Chapter 3318. of the Revised Code,	272
including the cost of items designated by the Ohio school	273
facilities commission as required locally funded initiatives and	274
the cost for site acquisition. The school facilities commission	275
shall notify the superintendent of public instruction whenever a	276
school district will exceed either limit pursuant to this	277
division.	278

(J) A school district whose portion of the basic project cost	279
of its classroom facilities project under sections 3318.01 to	280
3318.20 of the Revised Code is greater than or equal to one	281
hundred million dollars may incur without a vote of the electors	282
net indebtedness in an amount up to two per cent of its tax	283
valuation through the issuance of general obligation securities in	284
order to generate all or part of the amount of its portion of the	285
basic project cost if the controlling board has approved the	286
school facilities commission's conditional approval of the project	287
under section 3318.04 of the Revised Code. The school district	288
board and the Ohio school facilities commission shall include the	289
dedication of the proceeds of such securities in the agreement	290
entered into under section 3318.08 of the Revised Code. No state	291
moneys shall be released for a project to which this section	292
applies until the proceeds of any bonds issued under this section	293
that are dedicated for the payment of the school district portion	294
of the project are first deposited into the school district's	295
project construction fund.	296

Sec. 133.20.  (A) This section applies to bonds that are	297
general obligation Chapter 133. securities. If the bonds are	298
payable as to principal by provision for annual installments, the	299
period of limitations on their last maturity, referred to as their	300
maximum maturity, shall be measured from a date twelve months	301
prior to the first date on which provision for payment of	302
principal is made. If the bonds are payable as to principal by	303
provision for semiannual installments, the period of limitations	304
on their last maturity shall be measured from a date six months	305
prior to the first date on which provision for payment of	306
principal is made.	307

(B) Bonds issued for the following permanent improvements or	308
for permanent improvements for the following purposes shall have	309
maximum maturities not exceeding the number of years stated:	310

(1) Fifty years:

311

(a) The clearance and preparation of real property for	312
redevelopment as an urban redevelopment project;	313

(b) Acquiring, constructing, widening, relocating, enlarging,	314
extending, and improving a publicly owned railroad or line of	315
railway or a light or heavy rail rapid transit system, including	316
related bridges, overpasses, underpasses, and tunnels, but not	317
including rolling stock or equipment;	318

(c) Pursuant to section 307.675 of the Revised Code,	319
constructing or repairing a bridge using long life expectancy	320
material for the bridge deck, and purchasing, installing, and	321
maintaining any performance equipment to monitor the physical	322
condition of a bridge so constructed or repaired. Additionally,	323
the average maturity of the bonds shall not exceed the expected	324
useful life of the bridge deck as determined by the county	325
engineer under that section.	326

(2) Forty years:

327

(a) General waterworks or water system permanent	328
improvements, including buildings, water mains, or other	329
structures and facilities in connection therewith;	330

(b) Sewers or sewage treatment or disposal works or	331
facilities, including fireproof buildings or other structures in	332
connection therewith;	333

(c) Storm water drainage, surface water, and flood prevention	334
facilities.	335

(3) Thirty-five years:

336

(a) An arena, a convention center, or a combination of an	337
arena and convention center under section 307.695 of the Revised	338
Code;	339

(b) Sports facilities.

340

(4) Thirty years:

341

(a) Municipal recreation, excluding recreational equipment;

342

(b) Urban redevelopment projects;

343

(c) Acquisition of real property;

344

(d) Street or alley lighting purposes or relocating overhead	345
wires, cables, and appurtenant equipment underground;	346

(e) Renewable energy generation measures as authorized by	347
section 133.06 of the Revised Code.	348

(5) Twenty years: constructing, reconstructing, widening,	349
opening, improving, grading, draining, paving, extending, or	350
changing the line of roads, highways, expressways, freeways,	351
streets, sidewalks, alleys, or curbs and gutters, and related	352
bridges, viaducts, overpasses, underpasses, grade crossing	353
eliminations, service and access highways, and tunnels.	354

(6) Fifteen years:

355

(a) Resurfacing roads, highways, streets, or alleys;

356

(b) Alarm, telegraph, or other communications systems for	357
police or fire departments or other emergency services;	358

(c) Passenger buses used for mass transportation;

359

(d) Energy conservation measures as authorized by section	360
133.06 of the Revised Code.	361

(7) Ten years:

362

(a) Water meters;

363

(b) Fire department apparatus and equipment;

364

(c) Road rollers and other road construction and servicing	365
vehicles;	366

(d) Furniture, equipment, and furnishings;

367

(e) Landscape planting and other site improvements;

368

(f) Playground, athletic, and recreational equipment and	369
apparatus;	370

(g) Energy conservation measures as authorized by section	371
505.264 of the Revised Code.	372

(8) Five years: New motor vehicles other than those described	373
in any other division of this section and those for which	374
provision is made in other provisions of the Revised Code.	375

(C) Bonds issued for any permanent improvements not within	376
the categories set forth in division (B) of this section shall	377
have maximum maturities of from five to thirty years as the fiscal	378
officer estimates is the estimated life or period of usefulness of	379
those permanent improvements. Bonds issued under section 133.51 of	380
the Revised Code for purposes other than permanent improvements	381
shall have the maturities, not to exceed forty years, that the	382
taxing authority shall specify. Bonds issued for energy	383
conservation measures under section 307.041 of the Revised Code	384
shall have maximum maturities not exceeding the lesser of the	385
average life of the energy conservation measures as detailed in	386
the energy conservation report prepared under that section or	387
thirty years.	388

(D) Securities issued under section 505.265 of the Revised	389
Code shall mature not later than December 31, 2035.	390

(E) A securities issue for one purpose may include permanent	391
improvements within two or more categories under divisions (B) and	392
(C) of this section. The maximum maturity of such a bond issue	393
shall not exceed the average number of years of life or period of	394
usefulness of the permanent improvements as measured by the	395
weighted average of the amounts expended or proposed to be	396
expended for the categories of permanent improvements.	397

Sec. 3313.372.  (A) As used in this section, "energy:

398

(1) "Energy conservation measure" means an installation or	399
modification of an installation in, or remodeling of, a building,	400
to reduce energy consumption. It includes:	401

(1)(a) Insulation of the building structure and systems	402
within the building;	403

(2)(b) Storm windows and doors, multiglazed windows and	404
doors, heat absorbing or heat reflective glazed and coated window	405
and door systems, additional glazing, reductions in glass area,	406
and other window and door system modifications that reduce energy	407
consumption;	408

(3)(c) Automatic energy control systems;

409

(4)(d) Heating, ventilating, or air conditioning system	410
modifications or replacements;	411

(5)(e) Caulking and weatherstripping;

412

(6)(f) Replacement or modification of lighting fixtures to	413
increase the energy efficiency of the system without increasing	414
the overall illumination of a facility, unless such increase in	415
illumination is necessary to conform to the applicable state or	416
local building code for the proposed lighting system;	417

(7)(g) Energy recovery systems;

418

(8)(h) Cogeneration systems or other systems that produce or	419
generate steam or forms of energy such as heat, as well as	420
electricity, for use primarily within a building or complex of	421
buildingson the premises or in conjunction with a net metering	422
system;	423

(9)(i) Any other modification, installation, or remodeling	424
approved by the Ohio school facilities commission as an energy	425
conservation measure.	426

(2) "Renewable energy generation measure" means an	427
installation or modification of an installation in, or remodeling	428
of, a building, or installation of equipment on, in, or proximate	429
to a building, to generate electricity from renewable energy	430
resources as defined in section 4928.01 of the Revised Code.	431

(B) A board of education of a city, exempted village, local,	432
or joint vocational school district may enter into an installment	433
payment contract for the purchase and installation of energy	434
conservation measures or renewable energy generation measures. The	435
provisions of such installment payment contracts dealing with	436
interest charges and financing terms shall not be subject to the	437
competitive bidding requirements of section 3313.46 of the Revised	438
Code, and shall be on the following terms:	439

(1) NotIn the case of the purchase and installation of	440
energy conservation measures, not less than one-fifteenth of the	441
costs thereof shall be paid within two years from the date of	442
purchase. The remaining balance of the costs thereof shall be paid	443
within fifteen years from the date of purchase.	444

(2) In the case of the purchase and installation of renewable	445
energy generation measures, not less than one-fifteenth	446
one-thirtieth of the costs thereof shall be paid within two years	447
from the date of purchase. The	448

(2) The remaining balance of the costs thereof shall be paid	449
within fifteenthirty years from the date of purchase.	450

An installment payment contract entered into by a board of	451
education under this section shall require the board to contract	452
in accordance with division (A) of section 3313.46 of the Revised	453
Code for the installation, modification, or remodeling of energy	454
conservation measures or purchase and installation of renewable	455
energy generation measures unless division (A) of section 3313.46	456
of the Revised Code does not apply pursuant to division (B)(3) of	457
that section. An installment payment contract entered into under	458
this chapter may provide for the seller to retain title to	459
renewable energy generation equipment for part or all of the term	460
of the contract.	461

(C) The board may issue the notes of the school district	462
signed by the president and the treasurer of the board and	463
specifying the terms of the purchase and securing the deferred	464
payments provided in this section, payable at the times provided	465
and bearing interest at a rate not exceeding the rate determined	466
as provided in section 9.95 of the Revised Code. The notes may	467
contain an option for prepayment and shall not be subject to	468
Chapter 133. of the Revised Code. In the resolution authorizing	469
the notes, the board may provide, without the vote of the electors	470
of the district, for annually levying and collecting taxes in	471
amounts sufficient to pay the interest on and retire the notes,	472
except that the total net indebtedness of the district without a	473
vote of the electors incurred under this and all other sections of	474
the Revised Code, except section 3318.052 of the Revised Code,	475
shall not exceed one per cent of the district's tax valuation.	476
Revenues derived from local taxes or otherwise, for the purpose of	477
conserving or generating energy or for defraying the current	478
operating expenses of the district, may be applied to the payment	479
of interest and the retirement of such notes. The notes may be	480
sold at private sale or given to the contractor under the	481
installment payment contract authorized by division (B) of this	482
section.	483

(D) Debt incurred under this section shall not be included in	484
the calculation of the net indebtedness of a school district under	485
section 133.06 of the Revised Code.	486

(E)(1) No school district board shall enter into an	487
installment payment contract under division (B) of this section	488
for the purchase and installation of energy conservation measures	489
unless it first obtains a report of the costs of the energy	490
conservation measures and the savings thereof as described under	491
division (G)(1) of section 133.06 of the Revised Code as a	492
requirement for issuing energy securities, makes a finding that	493
the amount spent on such measures is not likely to exceed the	494
amount of money it would save in energy costs and resultant	495
operational and maintenance costs as described in that division,	496
except that that finding shall cover the ensuing fifteen years,	497
and the Ohio school facilities commission determines that the	498
district board's findings are reasonable and approves the	499
contract as described in that division.	500

The district board shall monitor the savings and maintain a	501
report of those savings, which shall be available to the	502
commission in the same manner as required by division (G) of	503
section 133.06 of the Revised Code in the case of energy	504
securities.	505

(2) No school district board shall enter into an installment	506
payment contract under division (B) of this section for the	507
purchase and installation of renewable energy generation measures	508
unless the commission, as required by division (G)(2) of section	509
133.06 of the Revised Code, determines that the board's request to	510
enter into the contract is reasonable and approves the contract as	511
described in division (B) of this section.	512

Sec. 3313.377. (A) As used in this section, "renewable energy	513
system" means a system providing electricity produced from	514
renewable energy resources as defined in division (A)(35) of	515
section 4928.01 of the Revised Code.	516

(B)(1) There is hereby established the renewable energy	517
schools pilot program. Under the pilot program, within three years	518
after the effective date of this section, school districts in the	519
state with student enrollment of five thousand or more shall	520
install one or more renewable energy systems on district property	521
in accordance with the following:	522

(a) School districts with student enrollment of five thousand	523
to ten thousand students shall install a renewable energy system	524
equal to a minimum total of two hundred fifty kilowatts for the	525
district.	526

(b) School districts with student enrollment of more than ten	527
thousand students shall install a renewable energy system equal to	528
a minimum total of five hundred kilowatts for the district.	529

To meet this requirement, a renewable energy system may be	530
installed on, in, or proximate to schools or other buildings or	531
facilities belonging to the district. The board of education of	532
each district participating in the pilot program shall designate	533
the particular schools, buildings, or other facilities that shall	534
install renewable energy systems.	535

(2) For use in the schools' curriculum, each district	536
participating in the pilot program shall set up a renewable energy	537
educational installation or demonstration module at every school	538
at which a renewable energy system is installed. Provision for	539
such installation or module shall be included as a condition of	540
the contract the board enters into pursuant to division (C) of	541
this section. If a renewable energy system is installed on, in, or	542
proximate to a district building or facility other than a school,	543
then the board shall determine the location for the installation	544
or module.	545

(3)(a) In order to meet the electricity requirement of	546
division (B)(1) of this section, the board shall submit a request	547
for proposals to be published in a newspaper of general	548
circulation in the district once each week for a period of at	549
least two consecutive weeks prior to the date specified by the	550
board for receiving proposals. The request for proposals shall	551
include a general description of the proposed contract to install	552
one or more renewable energy systems. Respondents to the request	553
for proposals shall be among those listed as eligible renewable	554
energy installers by the Ohio energy office within the department	555
of development for the advanced energy program and shall describe	556
how their proposal meets the electricity requirement of division	557
(B)(1) of this section in a manner that would be economic for the	558
district regarding the reasonably forecasted retail rate of	559
electricity payable by the district over a thirty-year period.	560

(b) When selecting a proposal for the pilot program contract,	561
the board shall take into consideration the amount of the system	562
components that would be manufactured in the state and give	563
preference to the proposal that includes the most components	564
manufactured in the state.	565

(c) If, within ninety days, the board determines that no	566
proposals have been received that allow the board to enter into a	567
contract so that compliance with the electricity requirement of	568
this section would be economic as described in division (B)(3)(a)	569
of this section, with the result that the district is unable to	570
comply with the electricity requirement in division (B)(1) of this	571
section, the district may comply as closely as possible to the	572
requirement of division (B)(1) of this section or may withdraw the	573
request for proposals and elect not to participate in the pilot	574
program.	575

(C)(1) To comply with division (B) of this section, the board	576
of education of a district participating in the pilot program	577
pursuant to this section shall provide for the installation,	578
operation, and maintenance of a renewable energy system on the	579
property of each designated school, building, or other facility.	580
The board may provide for such system either by its direct	581
ownership of the system or by hosting the system pursuant to a	582
contract with a third-party provider, other than the board, that	583
shall own the system and install, operate, and maintain the	584
system. In the case of direct ownership of the system, the board	585
may enter into an installment payment contract for renewable	586
energy generation measures pursuant to section 3313.372 of the	587
Revised Code. In the case of a board hosting the system pursuant	588
to a contract with a third-party provider, the board shall enter	589
into a power purchase agreement with the third-party provider to	590
supply the designated school, building, or other facility with the	591
electricity generated by the renewable energy system installed at	592
the school, building, or other facility.	593

(2) No board shall enter into a contract pursuant to this	594
section if the contract is in force for a period that is longer	595
than the period for which a renewable energy system installed in	596
the district is under written warranty of the manufacturer or	597
distributor of the system.	598

(3) If a board enters into a contract pursuant to this	599
section, the contract shall include a provision for the	600
termination of the contract, including terms under which the board	601
may terminate the contract without being charged a termination fee	602
of any kind if the board determines that the cost the district	603
pays for the electricity generated by the renewable energy system	604
is substantially greater than the retail rate of electricity that	605
would have been payable by the district if the system had not been	606
installed.	607

(4) If a board enters into a contract with a third-party	608
provider pursuant to this section, the contract shall include a	609
provision describing the terms under which the board may purchase	610
the renewable energy system from the third-party provider.	611

(D) No board shall purchase renewable energy resource	612
credits to meet the electricity requirement of division (B)(1) of	613
this section.	614

(E) Not later than the thirtieth day of June in the years	615
2010, 2011, and 2012, each third-party provider that has	616
contracted with a board pursuant to division (C) of this section	617
shall submit to the Ohio energy office within the department of	618
development an annual status report of its participation in the	619
pilot program. Not later than the thirty-first day of December in	620
the years 2010, 2011, and 2012, the office shall submit a report	621
that provides the status of the pilot program to the speaker of	622
the house of representatives, the minority leader of the house of	623
representatives, the president of the senate, and the minority	624
leader of the senate. At a minimum the report shall include the	625
following:	626

(1) The number of school districts in the state that are	627
participating in the pilot program;	628

(2) The number of renewable energy systems installed within	629
each district;	630

(3) The total nameplate generating capacity of the renewable	631
energy systems installed within each district;	632

(4) Each district's estimated energy savings for the report	633
year.	634

The office may include in its report recommendations	635
regarding the pilot program, including recommendations as to	636
whether the pilot program should be expanded to permit more	637
districts to participate.	638

The general assembly shall conduct an evaluation of the pilot	639
program at the end of the three-year period. When conducting the	640
evaluation, the general assembly shall consider the office's	641
annual reports and the recommendations, if any, made by the	642
office.	643

Sec. 3313.46.  (A) In addition to any other law governing	644
the bidding for contracts by the board of education of any school	645
district, when any such board determines to build, repair,	646
enlarge, improve, or demolish any school building, the cost of	647
which will exceed twenty-five thousand dollars, except in cases of	648
urgent necessity, or for the security and protection of school	649
property, and except as otherwise provided in division (D) of	650
section 713.23 and in section 125.04 of the Revised Code, all of	651
the following shall apply:	652

(1) The board shall cause to be prepared the plans,	653
specifications, and related information as required in divisions	654
(A), (B), and (D) of section 153.01 of the Revised Code unless the	655
board determines that other information is sufficient to inform	656
any bidders of the board's requirements. However, if the board	657
determines that such other information is sufficient for bidding a	658
project, the board shall not engage in the construction of any	659
such project involving the practice of professional engineering,	660
professional surveying, or architecture, for which plans,	661
specifications, and estimates have not been made by, and the	662
construction thereof inspected by, a licensed professional	663
engineer, licensed professional surveyor, or registered architect.	664

(2) The board shall advertise for bids once each week for a	665
period of not less than two consecutive weeks in a newspaper of	666
general circulation in the district before the date specified by	667
the board for receiving bids. The board may also cause notice to	668
be inserted in trade papers or other publications designated by	669
it or to be distributed by electronic means, including posting	670
the notice on the board's internet web site. If the board posts	671
the notice on its web site, it may eliminate the second notice	672
otherwise required to be published in a newspaper of general	673
circulation within the school district, provided that the first	674
notice published in such newspaper meets all of the following	675
requirements:	676

(a) It is published at least two weeks before the opening of	677
bids.	678

(b) It includes a statement that the notice is posted on the	679
board of education's internet web site.	680

(c) It includes the internet address of the board's internet	681
web site.	682

(d) It includes instructions describing how the notice may be	683
accessed on the board's internet web site.	684

(3) Unless the board extends the time for the opening of bids	685
they shall be opened at the time and place specified by the board	686
in the advertisement for the bids.	687

(4) Each bid shall contain the name of every person	688
interested therein. Each bid shall meet the requirements of	689
section 153.54 of the Revised Code.	690

(5) When both labor and materials are embraced in the work	691
bid for, the board may require that each be separately stated in	692
the bid, with the price thereof, or may require that bids be	693
submitted without such separation.	694

(6) None but the lowest responsible bid shall be accepted.	695
The board may reject all the bids, or accept any bid for both	696
labor and material for such improvement or repair, which is the	697
lowest in the aggregate. In all other respects, the award of	698
contracts for improvement or repair, but not for purchases made	699
under section 3327.08 of the Revised Code, shall be pursuant to	700
section 153.12 of the Revised Code.	701

(7) The contract shall be between the board and the bidders.	702
The board shall pay the contract price for the work pursuant to	703
sections 153.13 and 153.14 of the Revised Code. The board shall	704
approve and retain the estimates referred to in section 153.13 of	705
the Revised Code and make them available to the auditor of state	706
upon request.	707

(8) When two or more bids are equal, in the whole, or in any	708
part thereof, and are lower than any others, either may be	709
accepted, but in no case shall the work be divided between such	710
bidders.	711

(9) When there is reason to believe there is collusion or	712
combination among the bidders, or any number of them, the bids of	713
those concerned therein shall be rejected.	714

(B) Division (A) of this section does not apply to the board	715
of education of any school district in any of the following	716
situations:	717

(1) The acquisition of educational materials used in	718
teaching.	719

(2) If the board determines and declares by resolution	720
adopted by two-thirds of all its members that any item is	721
available and can be acquired only from a single source.	722

(3) If the board declares by resolution adopted by two-thirds	723
of all its members that division (A) of this section does not	724
apply to any installation, modification, or remodeling involved in	725
anyof either of the following:	726

(a) An energy conservation measure undertaken through an	727
installment payment contract under section 3313.372 of the	728
Revised Code or undertaken pursuant to division (G)(1) of section	729
133.06 of the Revised Code;	730

(b) A renewable energy generation measure, including a	731
renewable energy system under section 3313.377 of the Revised	732
Code, undertaken through an installment payment contract under	733
section 3313.372 of the Revised Code or undertaken pursuant to	734
division (G)(2) of section 133.06 of the Revised Code.	735

(4) The acquisition of computer software for instructional	736
purposes and computer hardware for instructional purposes pursuant	737
to division (B)(4) of section 3313.37 of the Revised Code.	738

(C) No resolution adopted pursuant to division (B)(2) or (3)	739
of this section shall have any effect on whether sections 153.12	740
to 153.14 and 153.54 of the Revised Code apply to the board of	741
education of any school district with regard to any item.	742

Sec. 4928.62.  (A) There is hereby created the advanced	743
energy program, which shall be administered by the director of	744
development. Under the program, the director may authorize the use	745
of moneys in the advanced energy fund for financial, technical,	746
and related assistance for advanced energy projects in this state	747
or for economic development assistance, in furtherance of the	748
purposes set forth in section 4928.63 of the Revised Code. To the	749
extent feasible given approved applications for assistance, the	750
assistance shall be distributed among the certified territories of	751
electric distribution utilities and participating electric	752
cooperatives, and among the service areas of participating	753
municipal electric utilities, in amounts proportionate to the	754
remittances of each utility and cooperative under divisions (B)(1)	755
and (3) of section 4928.61 of the Revised Code.	756

The director shall not authorize financial assistance for an	757
advanced energy project under the program unless the director	758
first determines that the project will create new jobs or preserve	759
existing jobs in this state or use innovative technologies or	760
materials.	761

(B) In carrying out sections 4928.61 to 4928.63 of the	762
Revised Code, the director may do all of the following to further	763
the public interest in advanced energy projects and economic	764
development:	765

(1) Award grants, contracts, loans, loan participation	766
agreements, linked deposits, and energy production incentives;	767

(2) Acquire in the name of the director any property of any	768
kind or character in accordance with this section, by purchase,	769
purchase at foreclosure, or exchange, on such terms and in such	770
manner as the director considers proper;	771

(3) Make and enter into all contracts and agreements	772
necessary or incidental to the performance of the director's	773
duties and the exercise of the director's powers under sections	774
4928.61 to 4928.63 of the Revised Code;	775

(4) Employ or enter into contracts with financial	776
consultants, marketing consultants, consulting engineers,	777
architects, managers, construction experts, attorneys, technical	778
monitors, energy evaluators, or other employees or agents as the	779
director considers necessary, and fix their compensation;	780

(5) Adopt rules prescribing the application procedures for	781
financial assistance under the advanced energy program; the terms	782
and conditions of any grants, contracts, loans, loan participation	783
agreements, linked deposits, and energy production incentives;	784
criteria pertaining to the eligibility of participating lending	785
institutions; and any other matters necessary for the	786
implementation of the program;	787

(6) Do all things necessary and appropriate for the operation	788
of the program.	789

(C) The department of development may hold ownership to any	790
unclaimed energy efficiency and renewable energy emission	791
allowances provided for in Chapter 3745-14 of the Administrative	792
Code or otherwise, that result from advanced energy projects that	793
receive funding from the advanced energy fund, and it may use the	794
allowances to further the public interest in advanced energy	795
projects or for economic development.	796

(D) Financial statements, financial data, and trade secrets	797
submitted to or received by the director from an applicant or	798
recipient of financial assistance under sections 4928.61 to	799
4928.63 of the Revised Code, or any information taken from those	800
statements, data, or trade secrets for any purpose, are not public	801
records for the purpose of section 149.43 of the Revised Code.	802

(E) Nothing in the amendments of sections 4928.61, 4928.62,	803
and 4928.63 of the Revised Code by Sub. H.B. 251 of the 126th	804
general assembly shall affect any pending or effected assistance,	805
pending or effected purchases or exchanges of property made, or	806
pending or effected contracts or agreements entered into pursuant	807
to division (A) or (B) of this section as the section existed	808
prior to the effective date of those amendments, January 4, 2007,	809
or shall affect the exemption provided under division (C) of this	810
section as the section existed prior to that effective date.	811

(F) Any assistance a school district receives for an advanced	812
energy project, including a geothermal heating, ventilating, and	813
air conditioning system, and renewable energy generation measures	814
under sections 3313.372 and 3313.377 of the Revised Code, shall be	815
in addition to any assistance provided under Chapter 3318. of the	816
Revised Code and. Any assistance for an advanced energy project	817
under this division shall not be included as part of the district	818
or state portion of the basic project cost under that chapter	819
Chapter 3318. of the Revised Code.	820

Section 2. That existing sections 133.06, 133.20, 3313.372,	821
3313.46, and 4928.62 of the Revised Code are hereby repealed.	822