As Reported by the House Alternative Energy Committee

128th General Assembly Regular Session 2009-2010

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 

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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

wind, geothermal, or solar 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	234
of the Revised Code, shall not exceed one per cent of the	235
district's 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	511
as 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 solar-sourced electricity or	514
electricity produced from wind energy or geothermal energy.	515

(B)(1) There is hereby established the renewable energy	516
schools pilot program. Under the pilot program, within three	517
years after the effective date of this section, school districts	518
in the state with student enrollment of five thousand or more	519
shall install one or more renewable energy systems on district	520
property in accordance with the following:	521

(a) School districts with student enrollment of five thousand	522
to ten thousand students shall install a renewable energy system	523
equal to a minimum total of two hundred fifty kilowatts for the	524
district.	525

(b) School districts with student enrollment of more than ten	526
thousand students shall install a renewable energy system equal to	527
a minimum total of five hundred kilowatts for the district.	528

To meet this requirement, a renewable energy system may be	529
installed on or proximate to schools or other buildings or	530
facilities belonging to the district. The board of education of	531
each district participating in the pilot program shall designate	532
the particular schools, buildings, or other facilities that shall	533
install renewable energy systems.	534

(2) For use in the schools' curriculum, each district	535
participating in the pilot program shall set up a renewable energy	536
educational installation or demonstration module at every school	537
at which a renewable energy system is installed. Provision for	538
such installation or module shall be included as a condition of	539
the contract the district enters into pursuant to division (C) of	540
this section. If the district installs a renewable energy system	541
on a district building or facility other than a school, then the	542
district shall determine the location for the installation or	543
module.	544

(3)(a) In order to meet the electricity requirement of	545
division (B)(1) of this section, the board shall submit a request	546
for proposals to be published in a newspaper of general	547
circulation in the district once each week for a period of at	548
least two consecutive weeks prior to the date specified by the	549
board for receiving proposals. The request for proposal shall	550
include a general description of the district's proposed contract	551
to install renewable energy systems at one or more schools in the	552
district. In addition, the proposal shall indicate whether the	553
district intends to meet the electricity requirement of division	554
(B)(1) of this section through direct ownership of a renewable	555
energy system pursuant to an installment payment contract under	556
section 3313.372 of the Revised Code or through hosting a system	557
through a third-party provider contract pursuant to division (C)	558
of this section. Respondents to the proposal shall be among those	559
listed as eligible renewable energy installers by the Ohio energy	560
office within the department of development for the advanced	561
energy program and shall describe how their proposal meets the	562
electricity requirement of division (B)(1) of this section in a	563
manner that would be economic for the district regarding the	564
reasonably forecasted retail rate of electricity payable by the	565
district over a thirty-year period.	566

(b) When selecting a proposal for the district's pilot	567
program contract, the district shall take into consideration the	568
amount of the system components that would be manufactured in the	569
state and give preference to the proposal that includes the most	570
components manufactured in the state.	571

(c) If, within ninety days, no proposals have been received	572
that allow the district to enter into a contract so that	573
compliance with the electricity requirement of this section would	574
be economic as described in division (B)(3)(a) of this section,	575
with the result that the district is unable to comply with the	576
electricity requirement in division (B)(1) of this section, the	577
district may comply as close as possible to the requirement of	578
division (B)(1) of this section or may withdraw the request for	579
proposal and elect not to participate in the program.	580

(C)(1) To comply with division (B) of this section, the board	581
of education of a district participating in the pilot program	582
pursuant to this section shall provide for the installation,	583
operation, and maintenance of a renewable energy system on the	584
property of each designated school, building, or other facility.	585
The board may provide for such system either by its direct	586
ownership of the system or by hosting the system pursuant to a	587
contract with a third-party provider, other than the school, that	588
shall own the system and install, operate, and maintain the	589
system. In the case of direct ownership of the system, the board	590
may enter into an installment payment contract for renewable	591
energy generation measures pursuant to section 3313.372 of the	592
Revised Code. In the case of a board hosting the system pursuant	593
to a contract with a third-party provider, the board shall enter	594
into a power purchase agreement with the third-party provider to	595
supply the designated school, building, or other facility with the	596
electricity generated by the renewable energy system installed at	597
the school, building, or other facility.	598

(2) No board shall enter into a contract pursuant to this	599
section if the contract is in force for a period that is longer	600
than the period for which a renewable energy system installed in	601
the district is under written warranty of the manufacturer or	602
distributor of the system.	603

(3) If a board enters into a contract pursuant to this	604
section, the contract shall include a provision for the	605
termination of the contract.	606

(4) If a board enters into a contract with a third-party	607
provider pursuant to this section, the contract shall include a	608
provision describing the terms under which a district may purchase	609
the renewable energy system from the third-party provider.	610

(D) No school district shall purchase renewable energy	611
resource credits to meet the electricity requirement of division	612
(B)(1) of this section.	613

(E) Not later than the thirtieth day of June in the years	614
2010, 2011, and 2012, each third-party provider that has	615
contracted with a district pursuant to division (C) of this	616
section shall submit to the Ohio energy office within the	617
department of development an annual status report of its	618
participation in the pilot program. Not later than the	619
thirty-first day of December in the years 2010, 2011, and 2012,	620
the office shall submit a report that provides the status of the	621
pilot program to the speaker of the house of representatives, the	622
minority leader of the house of representatives, the president of	623
the senate, and the minority leader of the senate. At a minimum	624
the report shall include the following:	625

(1) The number of school districts in the state that are	626
participating in the pilot program;	627

(2) The number of renewable energy systems installed within	628
each district;	629

(3) The total nameplate generating capacity of the renewable	630
energy systems installed within each district;	631

(4) Each district's estimated energy savings for the report	632
year.	633

The office may include in its report recommendations	634
regarding the pilot program, including recommendations as to	635
whether the pilot program should be expanded to permit more	636
districts to participate.	637

The general assembly shall conduct an evaluation of the pilot	638
program at the end of the three-year period. When conducting the	639
evaluation, the general assembly shall consider the office's	640
annual reports and the recommendations, if any, made by the	641
office.	642

Sec. 3313.46.  (A) In addition to any other law governing	643
the bidding for contracts by the board of education of any school	644
district, when any such board determines to build, repair,	645
enlarge, improve, or demolish any school building, the cost of	646
which will exceed twenty-five thousand dollars, except in cases of	647
urgent necessity, or for the security and protection of school	648
property, and except as otherwise provided in division (D) of	649
section 713.23 and in section 125.04 of the Revised Code, all of	650
the following shall apply:	651

(1) The board shall cause to be prepared the plans,	652
specifications, and related information as required in divisions	653
(A), (B), and (D) of section 153.01 of the Revised Code unless the	654
board determines that other information is sufficient to inform	655
any bidders of the board's requirements. However, if the board	656
determines that such other information is sufficient for bidding a	657
project, the board shall not engage in the construction of any	658
such project involving the practice of professional engineering,	659
professional surveying, or architecture, for which plans,	660
specifications, and estimates have not been made by, and the	661
construction thereof inspected by, a licensed professional	662
engineer, licensed professional surveyor, or registered architect.	663

(2) The board shall advertise for bids once each week for a	664
period of not less than two consecutive weeks in a newspaper of	665
general circulation in the district before the date specified by	666
the board for receiving bids. The board may also cause notice to	667
be inserted in trade papers or other publications designated by	668
it or to be distributed by electronic means, including posting	669
the notice on the board's internet web site. If the board posts	670
the notice on its web site, it may eliminate the second notice	671
otherwise required to be published in a newspaper of general	672
circulation within the school district, provided that the first	673
notice published in such newspaper meets all of the following	674
requirements:	675

(a) It is published at least two weeks before the opening of	676
bids.	677

(b) It includes a statement that the notice is posted on the	678
board of education's internet web site.	679

(c) It includes the internet address of the board's internet	680
web site.	681

(d) It includes instructions describing how the notice may be	682
accessed on the board's internet web site.	683

(3) Unless the board extends the time for the opening of bids	684
they shall be opened at the time and place specified by the board	685
in the advertisement for the bids.	686

(4) Each bid shall contain the name of every person	687
interested therein. Each bid shall meet the requirements of	688
section 153.54 of the Revised Code.	689

(5) When both labor and materials are embraced in the work	690
bid for, the board may require that each be separately stated in	691
the bid, with the price thereof, or may require that bids be	692
submitted without such separation.	693

(6) None but the lowest responsible bid shall be accepted.	694
The board may reject all the bids, or accept any bid for both	695
labor and material for such improvement or repair, which is the	696
lowest in the aggregate. In all other respects, the award of	697
contracts for improvement or repair, but not for purchases made	698
under section 3327.08 of the Revised Code, shall be pursuant to	699
section 153.12 of the Revised Code.	700

(7) The contract shall be between the board and the bidders.	701
The board shall pay the contract price for the work pursuant to	702
sections 153.13 and 153.14 of the Revised Code. The board shall	703
approve and retain the estimates referred to in section 153.13 of	704
the Revised Code and make them available to the auditor of state	705
upon request.	706

(8) When two or more bids are equal, in the whole, or in any	707
part thereof, and are lower than any others, either may be	708
accepted, but in no case shall the work be divided between such	709
bidders.	710

(9) When there is reason to believe there is collusion or	711
combination among the bidders, or any number of them, the bids of	712
those concerned therein shall be rejected.	713

(B) Division (A) of this section does not apply to the board	714
of education of any school district in any of the following	715
situations:	716

(1) The acquisition of educational materials used in	717
teaching.	718

(2) If the board determines and declares by resolution	719
adopted by two-thirds of all its members that any item is	720
available and can be acquired only from a single source.	721

(3) If the board declares by resolution adopted by two-thirds	722
of all its members that division (A) of this section does not	723
apply to any installation, modification, or remodeling involved in	724
anyof either of the following:	725

(a) An energy conservation measure undertaken through an	726
installment payment contract under section 3313.372 of the	727
Revised Code or undertaken pursuant to division (G)(1) of section	728
133.06 of the Revised Code;	729

(b) A renewable energy generation measure, including a	730
renewable energy system under section 3313.377 of the Revised	731
Code, undertaken through an installment payment contract under	732
section 3313.372 of the Revised Code or undertaken pursuant to	733
division (G)(2) of section 133.06 of the Revised Code.	734

(4) The acquisition of computer software for instructional	735
purposes and computer hardware for instructional purposes pursuant	736
to division (B)(4) of section 3313.37 of the Revised Code.	737

(C) No resolution adopted pursuant to division (B)(2) or (3)	738
of this section shall have any effect on whether sections 153.12	739
to 153.14 and 153.54 of the Revised Code apply to the board of	740
education of any school district with regard to any item.	741

Sec. 4928.62.  (A) There is hereby created the advanced	742
energy program, which shall be administered by the director of	743
development. Under the program, the director may authorize the use	744
of moneys in the advanced energy fund for financial, technical,	745
and related assistance for advanced energy projects in this state	746
or for economic development assistance, in furtherance of the	747
purposes set forth in section 4928.63 of the Revised Code. To the	748
extent feasible given approved applications for assistance, the	749
assistance shall be distributed among the certified territories of	750
electric distribution utilities and participating electric	751
cooperatives, and among the service areas of participating	752
municipal electric utilities, in amounts proportionate to the	753
remittances of each utility and cooperative under divisions (B)(1)	754
and (3) of section 4928.61 of the Revised Code.	755

The director shall not authorize financial assistance for an	756
advanced energy project under the program unless the director	757
first determines that the project will create new jobs or preserve	758
existing jobs in this state or use innovative technologies or	759
materials.	760

(B) In carrying out sections 4928.61 to 4928.63 of the	761
Revised Code, the director may do all of the following to further	762
the public interest in advanced energy projects and economic	763
development:	764

(1) Award grants, contracts, loans, loan participation	765
agreements, linked deposits, and energy production incentives;	766

(2) Acquire in the name of the director any property of any	767
kind or character in accordance with this section, by purchase,	768
purchase at foreclosure, or exchange, on such terms and in such	769
manner as the director considers proper;	770

(3) Make and enter into all contracts and agreements	771
necessary or incidental to the performance of the director's	772
duties and the exercise of the director's powers under sections	773
4928.61 to 4928.63 of the Revised Code;	774

(4) Employ or enter into contracts with financial	775
consultants, marketing consultants, consulting engineers,	776
architects, managers, construction experts, attorneys, technical	777
monitors, energy evaluators, or other employees or agents as the	778
director considers necessary, and fix their compensation;	779

(5) Adopt rules prescribing the application procedures for	780
financial assistance under the advanced energy program; the terms	781
and conditions of any grants, contracts, loans, loan participation	782
agreements, linked deposits, and energy production incentives;	783
criteria pertaining to the eligibility of participating lending	784
institutions; and any other matters necessary for the	785
implementation of the program;	786

(6) Do all things necessary and appropriate for the operation	787
of the program.	788

(C) The department of development may hold ownership to any	789
unclaimed energy efficiency and renewable energy emission	790
allowances provided for in Chapter 3745-14 of the Administrative	791
Code or otherwise, that result from advanced energy projects that	792
receive funding from the advanced energy fund, and it may use the	793
allowances to further the public interest in advanced energy	794
projects or for economic development.	795

(D) Financial statements, financial data, and trade secrets	796
submitted to or received by the director from an applicant or	797
recipient of financial assistance under sections 4928.61 to	798
4928.63 of the Revised Code, or any information taken from those	799
statements, data, or trade secrets for any purpose, are not public	800
records for the purpose of section 149.43 of the Revised Code.	801

(E) Nothing in the amendments of sections 4928.61, 4928.62,	802
and 4928.63 of the Revised Code by Sub. H.B. 251 of the 126th	803
general assembly shall affect any pending or effected assistance,	804
pending or effected purchases or exchanges of property made, or	805
pending or effected contracts or agreements entered into pursuant	806
to division (A) or (B) of this section as the section existed	807
prior to the effective date of those amendments, January 4, 2007,	808
or shall affect the exemption provided under division (C) of this	809
section as the section existed prior to that effective date.	810

(F) Any assistance a school district receives for an advanced	811
energy project, including a geothermal heating, ventilating, and	812
air conditioning system, and renewable energy generation measures	813
under sections 3313.372 and 3313.377 of the Revised Code, shall be	814
in addition to any assistance provided under Chapter 3318. of the	815
Revised Code and. Any assistance for an advanced energy project	816
under this division shall not be included as part of the district	817
or state portion of the basic project cost under that chapter	818
Chapter 3318. of the Revised Code.	819

Section 2. That existing sections 133.06, 133.20, 3313.372,	820
3313.46, and 4928.62 of the Revised Code are hereby repealed.	821