As Reported by the House Agriculture and Natural Resources Committee

128th General Assembly Regular Session 2009-2010

Sub. S. B. No. 181

Senator Stewart 

Cosponsors: Senators Goodman, Schaffer, Seitz, Niehaus, Faber, Gibbs, Gillmor, Harris, Hughes, Patton, Wagoner, Wilson, Carey 

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A BILL

To amend sections 1501.04, 1517.23, 4928.01, 6109.22,

1

and 6111.036 and to enact sections 1513.372,

2

1517.03, and 1517.04 of the Revised Code to

3

provide immunity from liability for eligible

4

landowners who provide access to abandoned mine

5

land located on their land for purposes of acid

6

mine drainage abatement and to provide immunity

7

from liability for nonprofit organizations that

8

provide funding or services for such acid mine

9

drainage abatement, to designate that methane gas

10

emitted from an abandoned coal mine constitutes a

11

renewable energy resource rather than an advanced

12

energy resource for purposes of the law governing

13

the promotion of renewable energy usage,

14

electricity supplied from renewable energy

15

sources, and renewable energy credits, to

16

reestablish the Ohio Natural Areas Council, and to

17

expand the purposes for which the Water Supply

18

Revolving Loan Account in the Drinking Water

19

Assistance Fund and the Water Pollution Control

20

Loan Fund may be used; to require the Director of

21

Budget and Management, upon the request of the

22

Director of Natural Resources and beginning July

23

1, 2010, and ending January 1, 2012, to transfer

24

an amount not to exceed $1.2 million from the

25

Natural Areas and Preserves Fund to the

26

Departmental Projects Fund for the purpose of

27

supporting permanent employees of the Division of

28

Natural Areas and Preserves through January 1,

29

2012; and to authorize the Administrator of the

30

Bureau of Workers' Compensation, beginning July 1,

31

2010, and ending June 30, 2011, to transfer a

32

portion of the investment earnings of the

33

Coal-Workers Pneumoconiosis Fund to the Strip

34

Mining Administration Fund.

35

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

Section 1.  That sections 1501.04, 1517.23, 4928.01, 6109.22,	36
and 6111.036 be amended and sections 1513.372, 1517.03, and	37
1517.04 of the Revised Code be enacted to read as follows:	38

Sec. 1501.04.  There is hereby created in the department of	39
natural resources a recreation and resources commission composed	40
of the chairperson of the wildlife council created under section	41
1531.03 of the Revised Code, the chairperson of the parks and	42
recreation council created under section 1541.40 of the Revised	43
Code, the chairperson of the waterways safety council created	44
under section 1547.73 of the Revised Code, the chairperson of the	45
technical advisory council on oil and gas created under section	46
1509.38 of the Revised Code, the chairperson of the forestry	47
advisory council created under section 1503.40 of the Revised	48
Code, the chairperson of the Ohio soil and water conservation	49
commission created under section 1515.02 of the Revised Code, the	50
chairperson of the Ohio natural areas council created under	51
section 1517.03 of the Revised Code, the chairperson of the Ohio	52
water advisory council created under section 1521.031 of the	53
Revised Code, the chairperson of the recycling and litter	54
prevention advisory council created under section 1502.04 of the	55
Revised Code, the chairperson of the Ohio geology advisory council	56
created under section 1505.11 of the Revised Code, and five	57
members appointed by the governor with the advice and consent of	58
the senate, not more than three of whom shall belong to the same	59
political party. The director of natural resources shall be an ex	60
officio member of the commission, with a voice in its	61
deliberations, but without the power to vote.	62

Terms of office of members of the commission appointed by the	63
governor shall be for five years, commencing on the second day of	64
February and ending on the first day of February. Each member	65
shall hold office from the date of appointment until the end of	66
the term for which the member was appointed.	67

In the event of the death, removal, resignation, or	68
incapacity of a member of the commission, the governor, with the	69
advice and consent of the senate, shall appoint a successor who	70
shall hold office for the remainder of the term for which the	71
member's predecessor was appointed. Any member shall continue in	72
office subsequent to the expiration date of the member's term	73
until the member's successor takes office, or until a period of	74
sixty days has elapsed, whichever occurs first.	75

The governor may remove any appointed member of the	76
commission for misfeasance, nonfeasance, or malfeasance in office.	77

The commission shall exercise no administrative function, but	78
may do any of the following:	79

(A) Advise with and recommend to the director as to plans and	80
programs for the management, development, utilization, and	81
conservation of the natural resources of the state;	82

(B) Advise with and recommend to the director as to methods	83
of coordinating the work of the divisions of the department;	84

(C) Consider and make recommendations upon any matter that	85
the director may submit to it;	86

(D) Submit to the governor biennially recommendations for	87
amendments to the conservation laws of the state.	88

Each member of the commission, before entering upon the	89
discharge of the member's duties, shall take and subscribe to an	90
oath of office, which oath, in writing, shall be filed in the	91
office of the secretary of state.	92

The members of the commission shall serve without	93
compensation, but shall be entitled to receive their actual and	94
necessary expenses incurred in the performance of their official	95
duties.	96

The commission, by a majority vote of all its members, shall	97
adopt and amend bylaws.	98

To be eligible for appointment, a person shall be a citizen	99
of the United States and an elector of the state and shall possess	100
a knowledge of and have an interest in the natural resources of	101
this state.	102

The commission shall hold at least four regular quarterly	103
meetings each year. Special meetings shall be held at such times	104
as the bylaws of the commission provide. Notices of all meetings	105
shall be given in such manner as the bylaws provide. The	106
commission shall choose annually from among its members a	107
chairperson to preside over its meetings and a secretary to keep a	108
record of its proceedings. A majority of the members of the	109
commission constitutes a quorum. No advice shall be given or	110
recommendation made without a majority of the members of the	111
commission concurring in it.	112

Sec. 1513.372. (A) As used in this section:

113

(1) "Abandoned mine land" means land or water resources	114
adversely affected by coal mining practices to which one of the	115
following applies:	116

(a) The coal mining practices occurred prior to August 3,	117
1977, and there is no continuing reclamation responsibility under	118
state or federal law.	119

(b) The coal mining practices occurred prior to April 10,	120
1972.	121

(c) The coal mining practices were conducted pursuant to a	122
license that was issued prior to April 10, 1972.	123

(2) "Eligible landowner" means a landowner who provides	124
access without charge or other consideration to abandoned mine	125
land that is located on the landowner's property for the purpose	126
of allowing the implementation of a reclamation project on the	127
abandoned mine land. "Eligible landowner" does not include a	128
person that is responsible under state or federal law to reclaim	129
the land or address acid mine drainage existing or emanating from	130
the abandoned mine land.	131

(3) "Landowner" means a person who holds a fee interest in	132
real property.	133

(4) "Nonprofit organization" means a corporation,	134
association, group, institution, society, or other organization	135
that is exempt from federal income taxation under section	136
501(c)(3) of the "Internal Revenue Code of 1986," 100 Stat. 2085,	137
26 U.S.C. 501(c)(3), as amended, that provides funding or services	138
at no cost or at cost for a reclamation project.	139

(5) "Reclamation project" means an acid mine drainage	140
abatement project that is conducted in compliance with this	141
chapter and rules adopted under it on abandoned mine land that is	142
located on property owned by an eligible landowner.	143

(6) "Reclamation project work area" means the portion of a	144
parcel of real property on which a reclamation project is	145
conducted and the roads providing ingress to and egress from the	146
reclamation project.	147

(B) Except as provided in divisions (C) and (D) of this	148
section, an eligible landowner or nonprofit organization is immune	149
from liability as follows:	150

(1) For any injury to or damage suffered by a person working	151
under the direct supervision of the division of mineral resources	152
management while the person is within the reclamation project work	153
area;	154

(2) For any injury to or damage suffered by a third party	155
that arises out of or occurs as a result of an act or omission of	156
the division during the construction, operation, and maintenance	157
of the reclamation project;	158

(3) For any failure of an acid mine drainage abatement	159
facility constructed or installed during a reclamation project	160
that is supervised by the division;	161

(4) For the operation, maintenance, or repair of any acid	162
mine drainage abatement facility constructed or installed during a	163
reclamation project unless the eligible landowner negligently	164
damages or destroys the acid mine drainage abatement facility or	165
denies access to the division of mineral resources management that	166
is responsible for the operation, maintenance, or repair of the	167
acid mine drainage abatement facility.	168

(C) The eligible landowner shall notify the division of a	169
known, latent, dangerous condition located at a reclamation	170
project work area that is not the subject of the reclamation	171
project. The immunity established in division (B) of this section	172
does not apply to any injury, damage, or pollution resulting from	173
the eligible landowner's failure to notify the division of such a	174
known, latent, dangerous condition.	175

(D) The immunity established in division (B) of this section	176
does not apply in both of the following circumstances:	177

(1) An injury to a person within the reclamation project work	178
area that results from an eligible landowner's or nonprofit	179
organization's acts or omissions that are reckless or constitute	180
gross negligence or willful or wanton misconduct;	181

(2) An eligible landowner or nonprofit organization who	182
engages in any unlawful activities with respect to a reclamation	183
project.	184

(E) The chief of the division of mineral resources management	185
shall adopt rules in accordance with Chapter 119. of the Revised	186
Code that are necessary to implement this section.	187

Sec. 1517.03.  There is hereby created the Ohio natural areas	188
council to advise the chief of the division of natural areas and	189
preserves on the administration of nature preserves and the	190
preservation of natural areas.	191

The council shall have no fewer than five members as	192
determined by the director of natural resources. The members shall	193
be appointed by the director.	194

Not later than thirty days after the effective date of this	195
section, the director shall make initial appointments to the	196
council. The director shall establish the terms of office of the	197
members of the council.	198

The council annually shall select from among its members a	199
chairperson and a secretary. Members of the council shall receive	200
no compensation and shall not be reimbursed for expenses incurred	201
as members of the council.	202

The council shall hold at least one regular meeting in each	203
calendar year. Special meetings may be called by the chairperson	204
and shall be called by the chairperson upon written request by two	205
or more members of the council. A written notice of the time and	206
place of each meeting shall be sent to each member and to the	207
director. A majority of the members of the council constitutes a	208
quorum. The council shall keep a record of its proceedings at each	209
meeting and shall send a copy of the record to the director. The	210
record shall be open to the public for inspection.	211

Sec. 1517.04.  The Ohio natural areas council shall do all of	212
the following:	213

(A) Review and make recommendations regarding criteria used	214
by the department of natural resources for acquisition and	215
dedication of nature preserves;	216

(B) Review and make recommendations regarding inventories and	217
registries of natural areas and preserves;	218

(C) Review and make recommendations regarding departmental	219
plans for the selection of particular natural areas for state	220
acquisition;	221

(D) Advise the chief of the division of natural areas and	222
preserves on policies and rules governing the management,	223
protection, and use of nature preserves;	224

(E) Recommend the extent and type of visitation and use to be	225
permitted within each nature preserve;	226

(F) Advise and consult with the chief and with employees of	227
the division of natural areas and preserves on preservation	228
matters;	229

(G) Advise the chief on the program to identify and protect	230
the state's cave resources that is established under this chapter.	231

Sec. 1517.23. TheWith the advice of the Ohio natural areas	232
council created in section 1517.03 of the Revised Code, the chief	233
of the division of natural areas and preserves shall do both of	234
the following:	235

(A) Formulate policies and plans and establish a program	236
incorporating them for the identification and protection of the	237
state's cave resources and adopt, amend, or rescind rules in	238
accordance with Chapter 119. of the Revised Code to implement that	239
program;	240

(B) Provide technical assistance and management advice to	241
owners upon request concerning the protection of caves on their	242
land.	243

Sec. 4928.01.  (A) As used in this chapter:

244

(1) "Ancillary service" means any function necessary to the	245
provision of electric transmission or distribution service to a	246
retail customer and includes, but is not limited to, scheduling,	247
system control, and dispatch services; reactive supply from	248
generation resources and voltage control service; reactive supply	249
from transmission resources service; regulation service; frequency	250
response service; energy imbalance service; operating	251
reserve-spinning reserve service; operating reserve-supplemental	252
reserve service; load following; back-up supply service;	253
real-power loss replacement service; dynamic scheduling; system	254
black start capability; and network stability service.	255

(2) "Billing and collection agent" means a fully independent	256
agent, not affiliated with or otherwise controlled by an electric	257
utility, electric services company, electric cooperative, or	258
governmental aggregator subject to certification under section	259
4928.08 of the Revised Code, to the extent that the agent is under	260
contract with such utility, company, cooperative, or aggregator	261
solely to provide billing and collection for retail electric	262
service on behalf of the utility company, cooperative, or	263
aggregator.	264

(3) "Certified territory" means the certified territory	265
established for an electric supplier under sections 4933.81 to	266
4933.90 of the Revised Code.	267

(4) "Competitive retail electric service" means a component	268
of retail electric service that is competitive as provided under	269
division (B) of this section.	270

(5) "Electric cooperative" means a not-for-profit electric	271
light company that both is or has been financed in whole or in	272
part under the "Rural Electrification Act of 1936," 49 Stat. 1363,	273
7 U.S.C. 901, and owns or operates facilities in this state to	274
generate, transmit, or distribute electricity, or a not-for-profit	275
successor of such company.	276

(6) "Electric distribution utility" means an electric utility	277
that supplies at least retail electric distribution service.	278

(7) "Electric light company" has the same meaning as in	279
section 4905.03 of the Revised Code and includes an electric	280
services company, but excludes any self-generator to the extent	281
that it consumes electricity it so produces, sells that	282
electricity for resale, or obtains electricity from a generating	283
facility it hosts on its premises.	284

(8) "Electric load center" has the same meaning as in section	285
4933.81 of the Revised Code.	286

(9) "Electric services company" means an electric light	287
company that is engaged on a for-profit or not-for-profit basis in	288
the business of supplying or arranging for the supply of only a	289
competitive retail electric service in this state. "Electric	290
services company" includes a power marketer, power broker,	291
aggregator, or independent power producer but excludes an electric	292
cooperative, municipal electric utility, governmental aggregator,	293
or billing and collection agent.	294

(10) "Electric supplier" has the same meaning as in section	295
4933.81 of the Revised Code.	296

(11) "Electric utility" means an electric light company that	297
has a certified territory and is engaged on a for-profit basis	298
either in the business of supplying a noncompetitive retail	299
electric service in this state or in the businesses of supplying	300
both a noncompetitive and a competitive retail electric service in	301
this state. "Electric utility" excludes a municipal electric	302
utility or a billing and collection agent.	303

(12) "Firm electric service" means electric service other	304
than nonfirm electric service.	305

(13) "Governmental aggregator" means a legislative authority	306
of a municipal corporation, a board of township trustees, or a	307
board of county commissioners acting as an aggregator for the	308
provision of a competitive retail electric service under authority	309
conferred under section 4928.20 of the Revised Code.	310

(14) A person acts "knowingly," regardless of the person's	311
purpose, when the person is aware that the person's conduct will	312
probably cause a certain result or will probably be of a certain	313
nature. A person has knowledge of circumstances when the person is	314
aware that such circumstances probably exist.	315

(15) "Level of funding for low-income customer energy	316
efficiency programs provided through electric utility rates" means	317
the level of funds specifically included in an electric utility's	318
rates on October 5, 1999, pursuant to an order of the public	319
utilities commission issued under Chapter 4905. or 4909. of the	320
Revised Code and in effect on October 4, 1999, for the purpose of	321
improving the energy efficiency of housing for the utility's	322
low-income customers. The term excludes the level of any such	323
funds committed to a specific nonprofit organization or	324
organizations pursuant to a stipulation or contract.	325

(16) "Low-income customer assistance programs" means the	326
percentage of income payment plan program, the home energy	327
assistance program, the home weatherization assistance program,	328
and the targeted energy efficiency and weatherization program.	329

(17) "Market development period" for an electric utility	330
means the period of time beginning on the starting date of	331
competitive retail electric service and ending on the applicable	332
date for that utility as specified in section 4928.40 of the	333
Revised Code, irrespective of whether the utility applies to	334
receive transition revenues under this chapter.	335

(18) "Market power" means the ability to impose on customers	336
a sustained price for a product or service above the price that	337
would prevail in a competitive market.	338

(19) "Mercantile customer" means a commercial or industrial	339
customer if the electricity consumed is for nonresidential use and	340
the customer consumes more than seven hundred thousand kilowatt	341
hours per year or is part of a national account involving multiple	342
facilities in one or more states.	343

(20) "Municipal electric utility" means a municipal	344
corporation that owns or operates facilities to generate,	345
transmit, or distribute electricity.	346

(21) "Noncompetitive retail electric service" means a	347
component of retail electric service that is noncompetitive as	348
provided under division (B) of this section.	349

(22) "Nonfirm electric service" means electric service	350
provided pursuant to a schedule filed under section 4905.30 of the	351
Revised Code or pursuant to an arrangement under section 4905.31	352
of the Revised Code, which schedule or arrangement includes	353
conditions that may require the customer to curtail or interrupt	354
electric usage during nonemergency circumstances upon notification	355
by an electric utility.	356

(23) "Percentage of income payment plan arrears" means funds	357
eligible for collection through the percentage of income payment	358
plan rider, but uncollected as of July 1, 2000.	359

(24) "Person" has the same meaning as in section 1.59 of the	360
Revised Code.	361

(25) "Advanced energy project" means any technologies,	362
products, activities, or management practices or strategies that	363
facilitate the generation or use of electricity or energy and that	364
reduce or support the reduction of energy consumption or support	365
the production of clean, renewable energy for industrial,	366
distribution, commercial, institutional, governmental, research,	367
not-for-profit, or residential energy users, including, but not	368
limited to, advanced energy resources and renewable energy	369
resources. "Advanced energy project" also includes any project	370
described in division (A), (B), or (C) of section 4928.621 of the	371
Revised Code.	372

(26) "Regulatory assets" means the unamortized net regulatory	373
assets that are capitalized or deferred on the regulatory books of	374
the electric utility, pursuant to an order or practice of the	375
public utilities commission or pursuant to generally accepted	376
accounting principles as a result of a prior commission	377
rate-making decision, and that would otherwise have been charged	378
to expense as incurred or would not have been capitalized or	379
otherwise deferred for future regulatory consideration absent	380
commission action. "Regulatory assets" includes, but is not	381
limited to, all deferred demand-side management costs; all	382
deferred percentage of income payment plan arrears;	383
post-in-service capitalized charges and assets recognized in	384
connection with statement of financial accounting standards no.	385
109 (receivables from customers for income taxes); future nuclear	386
decommissioning costs and fuel disposal costs as those costs have	387
been determined by the commission in the electric utility's most	388
recent rate or accounting application proceeding addressing such	389
costs; the undepreciated costs of safety and radiation control	390
equipment on nuclear generating plants owned or leased by an	391
electric utility; and fuel costs currently deferred pursuant to	392
the terms of one or more settlement agreements approved by the	393
commission.	394

(27) "Retail electric service" means any service involved in	395
supplying or arranging for the supply of electricity to ultimate	396
consumers in this state, from the point of generation to the point	397
of consumption. For the purposes of this chapter, retail electric	398
service includes one or more of the following "service	399
components": generation service, aggregation service, power	400
marketing service, power brokerage service, transmission service,	401
distribution service, ancillary service, metering service, and	402
billing and collection service.	403

(28) "Starting date of competitive retail electric service"	404
means January 1, 2001.	405

(29) "Customer-generator" means a user of a net metering	406
system.	407

(30) "Net metering" means measuring the difference in an	408
applicable billing period between the electricity supplied by an	409
electric service provider and the electricity generated by a	410
customer-generator that is fed back to the electric service	411
provider.	412

(31) "Net metering system" means a facility for the	413
production of electrical energy that does all of the following:	414

(a) Uses as its fuel either solar, wind, biomass, landfill	415
gas, or hydropower, or uses a microturbine or a fuel cell;	416

(b) Is located on a customer-generator's premises;

417

(c) Operates in parallel with the electric utility's	418
transmission and distribution facilities;	419

(d) Is intended primarily to offset part or all of the	420
customer-generator's requirements for electricity.	421

(32) "Self-generator" means an entity in this state that owns	422
or hosts on its premises an electric generation facility that	423
produces electricity primarily for the owner's consumption and	424
that may provide any such excess electricity to another entity,	425
whether the facility is installed or operated by the owner or by	426
an agent under a contract.	427

(33) "Rate plan" means the standard service offer in effect	428
on the effective date of the amendment of this section by S.B. 221	429
of the 127th general assembly, July 31, 2008.	430

(34) "Advanced energy resource" means any of the following:

431

(a) Any method or any modification or replacement of any	432
property, process, device, structure, or equipment that increases	433
the generation output of an electric generating facility to the	434
extent such efficiency is achieved without additional carbon	435
dioxide emissions by that facility;	436

(b) Any distributed generation system consisting of customer	437
cogeneration of electricity and thermal output simultaneously,	438
primarily to meet the energy needs of the customer's facilities;	439

(c) Clean coal technology that includes a carbon-based	440
product that is chemically altered before combustion to	441
demonstrate a reduction, as expressed as ash, in emissions of	442
nitrous oxide, mercury, arsenic, chlorine, sulfur dioxide, or	443
sulfur trioxide in accordance with the American society of testing	444
and materials standard D1757A or a reduction of metal oxide	445
emissions in accordance with standard D5142 of that society, or	446
clean coal technology that includes the design capability to	447
control or prevent the emission of carbon dioxide, which design	448
capability the commission shall adopt by rule and shall be based	449
on economically feasible best available technology or, in the	450
absence of a determined best available technology, shall be of the	451
highest level of economically feasible design capability for which	452
there exists generally accepted scientific opinion;	453

(d) Advanced nuclear energy technology consisting of	454
generation III technology as defined by the nuclear regulatory	455
commission; other, later technology; or significant improvements	456
to existing facilities;	457

(e) Any fuel cell used in the generation of electricity,	458
including, but not limited to, a proton exchange membrane fuel	459
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or	460
solid oxide fuel cell;	461

(f) Advanced solid waste or construction and demolition	462
debris conversion technology, including, but not limited to,	463
advanced stoker technology, and advanced fluidized bed	464
gasification technology, that results in measurable greenhouse gas	465
emissions reductions as calculated pursuant to the United States	466
environmental protection agency's waste reduction model (WARM).	467

(g) Demand-side management and any energy efficiency	468
improvement;	469

(h) Methane gas emitted from an operating or abandoned coal	470
mine.	471

(35) "Renewable energy resource" means solar photovoltaic or	472
solar thermal energy, wind energy, power produced by a	473
hydroelectric facility, geothermal energy, fuel derived from solid	474
wastes, as defined in section 3734.01 of the Revised Code, through	475
fractionation, biological decomposition, or other process that	476
does not principally involve combustion, biomass energy,	477
biologically derived methane gas, or energy derived from	478
nontreated by-products of the pulping process or wood	479
manufacturing process, including bark, wood chips, sawdust, and	480
lignin in spent pulping liquors. "Renewable energy resource"	481
includes, but is not limited to, any fuel cell used in the	482
generation of electricity, including, but not limited to, a proton	483
exchange membrane fuel cell, phosphoric acid fuel cell, molten	484
carbonate fuel cell, or solid oxide fuel cell; wind turbine	485
located in the state's territorial waters of Lake Erie; methane	486
gas emitted from an abandoned coal mine; storage facility that	487
will promote the better utilization of a renewable energy resource	488
that primarily generates off peak; or distributed generation	489
system used by a customer to generate electricity from any such	490
energy. As used in division (A)(35) of this section,	491
"hydroelectric facility" means a hydroelectric generating facility	492
that is located at a dam on a river, or on any water discharged to	493
a river, that is within or bordering this state or within or	494
bordering an adjoining state and meets all of the following	495
standards:	496

(a) The facility provides for river flows that are not	497
detrimental for fish, wildlife, and water quality, including	498
seasonal flow fluctuations as defined by the applicable licensing	499
agency for the facility.	500

(b) The facility demonstrates that it complies with the water	501
quality standards of this state, which compliance may consist of	502
certification under Section 401 of the "Clean Water Act of 1977,"	503
91 Stat. 1598, 1599, 33 U.S.C. 1341, and demonstrates that it has	504
not contributed to a finding by this state that the river has	505
impaired water quality under Section 303(d) of the "Clean Water	506
Act of 1977," 114 Stat. 870, 33 U.S.C. 1313.	507

(c) The facility complies with mandatory prescriptions	508
regarding fish passage as required by the federal energy	509
regulatory commission license issued for the project, regarding	510
fish protection for riverine, anadromous, and catadromus	511
catadromous fish.	512

(d) The facility complies with the recommendations of the	513
Ohio environmental protection agency and with the terms of its	514
federal energy regulatory commission license regarding watershed	515
protection, mitigation, or enhancement, to the extent of each	516
agency's respective jurisdiction over the facility.	517

(e) The facility complies with provisions of the "Endangered	518
Species Act of 1973," 87 Stat. 884, 16 U.S.C. 1531 to 1544, as	519
amended.	520

(f) The facility does not harm cultural resources of the	521
area. This can be shown through compliance with the terms of its	522
federal energy regulatory commission license or, if the facility	523
is not regulated by that commission, through development of a plan	524
approved by the Ohio historic preservation office, to the extent	525
it has jurisdiction over the facility.	526

(g) The facility complies with the terms of its federal	527
energy regulatory commission license or exemption that are related	528
to recreational access, accommodation, and facilities or, if the	529
facility is not regulated by that commission, the facility	530
complies with similar requirements as are recommended by resource	531
agencies, to the extent they have jurisdiction over the facility;	532
and the facility provides access to water to the public without	533
fee or charge.	534

(h) The facility is not recommended for removal by any	535
federal agency or agency of any state, to the extent the	536
particular agency has jurisdiction over the facility.	537

(B) For the purposes of this chapter, a retail electric	538
service component shall be deemed a competitive retail electric	539
service if the service component is competitive pursuant to a	540
declaration by a provision of the Revised Code or pursuant to an	541
order of the public utilities commission authorized under division	542
(A) of section 4928.04 of the Revised Code. Otherwise, the service	543
component shall be deemed a noncompetitive retail electric	544
service.	545

Sec. 6109.22.  (A) There is hereby created the drinking water	546
assistance fund to provide financial and technical assistance for	547
the purposes of protecting public health and achieving and	548
maintaining compliance with the Safe Drinking Water Act and this	549
chapter. In addition to the accounts created under divisions (G)	550
and (H) of this section, the drinking water assistance fund may	551
include any other accounts established by the director of	552
environmental protection. The fund shall be administered by the	553
director consistent with the Safe Drinking Water Act, this	554
section, and rules adopted under division (M) of this section.	555

(B) The drinking water assistance fund shall consist of the	556
moneys credited to it from all capitalization grants received	557
under the Safe Drinking Water Act except for moneys reserved by	558
the governor pursuant to titleTitle III, section 302 of that act,	559
all moneys credited to the fund from nonfederal sources,	560
including, without limitation, the proceeds of state bonds or	561
notes issued for the benefit of the fund, all payments of	562
principal and interest on loans made from the fund, and all	563
investment earnings on moneys held in the fund. On or before the	564
date that a capitalization grant payment made under the authority	565
of the Safe Drinking Water Act is credited to the fund, required	566
matching moneys shall be credited to the fund. Any moneys	567
transferred to or reserved from the drinking water assistance fund	568
pursuant to titleTitle III, section 302 of the Safe Drinking	569
Water Act shall be accounted for separately.	570

(C) In a manner consistent with the Safe Drinking Water Act	571
and the applicable drinking water assistance management plan	572
prepared in accordance with this section, the director may reserve	573
and award for assistance moneys allotted to the state under	574
section 1452 of the Safe Drinking Water Act, provided that the	575
director makes a determination that the use of the moneys will	576
accomplish the state's objectives and the objectives established	577
for capitalization grants under the Safe Drinking Water Act. The	578
director may use a portion of the reserved moneys to enter into	579
contracts with qualified organizations, including private	580
nonprofit organizations, to provide statewide on-site technical	581
assistance to small public water systems.	582

(D) Subject to the terms of the agreements provided for in	583
division (E) of this section, moneys in the drinking water	584
assistance fund shall be held in trust by the Ohio water	585
development authority for the purposes of this section, shall be	586
kept in the same manner that funds of the authority are kept under	587
section 6121.11 of the Revised Code, and may be invested in the	588
same manner that funds of the authority are invested under section	589
6121.12 of the Revised Code. Moneys in the drinking water	590
assistance fund shall be separate and apart from and not a part of	591
the state treasury or of the other funds of the authority. No	592
withdrawals or disbursements shall be made from the drinking water	593
assistance fund without the written authorization of the director.	594

(E) The director shall adopt written criteria to ensure that	595
fiscal controls are established for prudent administration of the	596
drinking water assistance fund. For that purpose, the director and	597
the authority shall enter into any necessary and appropriate	598
agreements under which the authority may perform or provide any of	599
the following:	600

(1) Fiscal controls and accounting procedures governing fund	601
balances, receipts, and disbursements;	602

(2) Administration of loan accounts;

603

(3) Maintenance, management, and investment of moneys in the	604
fund.	605

Any agreement entered into under division (E) of this section	606
shall provide for the payment of reasonable fees to the authority	607
for any services it performs under the agreement and may provide	608
for reasonable fees for the assistance of financial or accounting	609
advisors. Payment of any of the fees to the authority may be made	610
from the drinking water assistance administrative account	611
established under division (G) of this section.	612

(F) The authority may make moneys available to the director	613
for the purpose of providing matching moneys required to be	614
credited to the drinking water assistance fund under division (B)	615
of this section, subject to any terms that the director and the	616
authority consider appropriate, and may pledge moneys that are	617
held by the authority to secure the payment of bonds or notes	618
issued by the authority to provide those matching moneys.	619

The director and the authority may enter into trust	620
agreements to enable the authority to issue and refund bonds or	621
notes for the sole benefit of the drinking water assistance fund,	622
including, without limitation, the raising of matching moneys	623
required to be credited to the fund in accordance with division	624
(B) of this section. The agreements may authorize the pledge of	625
moneys accruing to the fund from payments of principal or interest	626
or both on loans made from the fund to secure bonds or notes, the	627
proceeds of which bonds or notes shall be for the sole benefit of	628
the drinking water assistance fund. The agreements may contain any	629
terms that the director and the authority consider reasonable and	630
proper for the payment and security of the bondholders or	631
noteholders.	632

(G) There is hereby established within the drinking water	633
assistance fund the drinking water assistance administrative	634
account. No state matching moneys deposited into the fund under	635
this section shall be used for the purpose of paying for or	636
defraying the costs of administering this section. The director	637
may establish and collect fees from applicants for assistance	638
provided under this section. The total fees charged to an	639
applicant under this division for assistance under this section	640
shall not exceed the following:	641

(1) For the environmental protection agency, one per cent of	642
the principal amount of the assistance awarded to the applicant;	643

(2) For the authority, thirty-five one-hundredths of one per	644
cent of the principal amount of the assistance awarded to the	645
applicant.	646

All moneys from the fees shall be credited to the drinking	647
water assistance administrative account in the fund. The moneys	648
shall be used solely to defray the costs of administrating this	649
section.	650

(H) There is hereby established within the drinking water	651
assistance fund the water supply revolving loan account. The	652
director may provide financial assistance from the water supply	653
revolving loan account for improvements to community water systems	654
and to nonprofit noncommunity public water systems.	655

(I) All moneys from the fund credited to the water supply	656
revolving loan account, all interest earned on moneys credited to	657
the account, and all payments of principal and interest on loans	658
made from the account shall be dedicated in perpetuity and used	659
and reused solely for the following purposes, except as otherwise	660
provided in this section:	661

(1) To make loans to community water systems and nonprofit	662
noncommunity public water systems, subject to all of the following	663
conditions:	664

(a) The loans are made at or below market rates of interest,	665
including, without limitation, interest-free loans;	666

(b) Each recipient of a loan shall establish a dedicated	667
source of security or revenue for repayment of the loan;	668

(c) All payments of principal and interest on the loans shall	669
be credited to the water supply revolving loan account.	670

(2) To purchase or refinance at or below market rates	671
interest debt obligations incurred after July 1, 1993, by	672
municipal corporations, other political subdivisions, and	673
interstate agencies having territory in the state;	674

(3) To guarantee or purchase insurance for debt obligations	675
when the guarantee or insurance would improve the borrower's	676
access to credit markets or would reduce the interest paid on	677
those obligations;	678

(4) As a source of revenue or security for the payment of	679
principal and interest on general obligation or revenue bonds or	680
notes issued by this state if the proceeds of the sale of the	681
bonds or notes are or will be deposited into the account;	682

(5) To provide subsidies in addition to any other financial	683
assistance afforded disadvantaged communities under this section;	684

(6) To earn interest on moneys credited to the account;

685

(7) To provide any other assistance authorized by the Safe	686
Drinking Water Act or any other federal law related to the use of	687
federal funds administered under the Safe Drinking Water Act.	688

(J) The director may provide financial assistance from the	689
water supply revolving loan account after determining all of the	690
following:	691

(1) The applicant for financial assistance has the legal,	692
institutional, managerial, and financial capability to construct,	693
operate, and maintain its public water system and the proposed	694
improvements to it;	695

(2) The applicant will implement a financial management plan	696
that includes, without limitation, provisions for satisfactory	697
repayment of the financial assistance;	698

(3) The public water system of which the project for which	699
assistance is proposed is a part is economically and nonmonetarily	700
cost-effective, based on an evaluation of feasible alternatives	701
that meet the drinking water treatment needs of the planning area	702
in which the proposed project is located;	703

(4) Based on a comprehensive environmental review approved by	704
the director, there are no significant adverse environmental	705
effects resulting from all necessary improvements to the public	706
water system of which the project proposed for assistance is a	707
part;	708

(5) Public participation has occurred during the process of	709
planning the project in compliance with applicable requirements	710
under the Safe Drinking Water Act;	711

(6) The application meets the requirements of this section	712
and rules adopted under division (M) of this section and is	713
consistent with section 1452 of the Safe Drinking Water Act and	714
regulations adopted under it;	715

(7) If the applicant for assistance is a water district	716
formed under Chapter 6119. of the Revised Code that operates a	717
public water system and that water district seeks to extend the	718
distribution facilities, increase the number of service	719
connections to its system, or provide for any other expansion of	720
its system, the water district has consulted with the board of	721
county commissioners from each county in which is located the	722
proposed extension of distribution facilities, increase in the	723
number of service connections, or other expansion of the public	724
water system;	725

(8) The application meets any other requirements that the	726
director considers necessary or appropriate to protect public	727
health and the environment and to ensure the financial integrity	728
of the water supply revolving loan account.	729

Upon approval by the director of an application for financial	730
assistance, the Ohio water development authority shall disburse	731
the appropriate financial assistance from the water supply	732
revolving loan account. If the proposed financial assistance is a	733
loan, and if the payments of the principal or interest on the loan	734
are or are expected to be pledged to secure payment of bonds	735
issued or expected to be issued by the authority, the director	736
shall submit the application for the loan to the authority for	737
review and approval with respect to any matters pertaining to	738
security for and the marketability of authority bonds. Review and	739
approval by the authority shall be required prior to the making of	740
such a loan.	741

(K) In accordance with rules adopted under division (M) of	742
this section, the director periodically shall prepare a drinking	743
water assistance management plan establishing the short-term and	744
long-term goals for the assistance provided under this section,	745
the allocation of available resources for the purposes of this	746
section, the environmental, financial, and administrative terms,	747
conditions, and criteria for the award of financial and technical	748
assistance under this section, and the intended uses of	749
capitalization grants and available moneys from the drinking water	750
assistance fund. Criteria for awarding financial or technical	751
assistance under this section shall not favor or disfavor any	752
otherwise qualified nonprofit noncommunity public water system	753
because it is owned by, operated by, or services a religious	754
organization or a facility used for religious purposes. Prior to	755
its adoption, the director shall make the drinking water	756
assistance management plan available for public review and comment	757
at a minimum of two public meetings and shall take adequate steps	758
to ensure that reasonable public notice of each public meeting is	759
given at least thirty days prior to the meeting.	760

The plan shall include, without limitation, a system that	761
prioritizes projects funded by the water supply revolving loan	762
account based on the relative risk to human health being	763
addressed, their necessity for ensuring compliance with	764
requirements of the Safe Drinking Water Act, and their	765
affordability to the applicants, as determined by the director.	766
Financial assistance for projects from the water supply revolving	767
loan account shall be limited to projects that are included in	768
that prioritization and shall be awarded based upon their priority	769
position and the applicants' readiness to proceed with their	770
proposed activities as determined by the director. The drinking	771
water assistance management plan shall include terms, conditions,	772
amounts of moneys, and qualifying criteria, in addition to any	773
other criteria established under this section, governing the	774
financial assistance to be awarded to applicants from the water	775
supply revolving loan account. The director shall determine the	776
most effective use of the moneys in that account to achieve the	777
state's drinking water assistance goals and objectives.	778

(L) The director, consistent with this section and applicable	779
rules adopted under division (M) of this section, may enter into	780
an agreement with an applicant for assistance from the drinking	781
water assistance fund. Based on the director's review and approval	782
of the project plans submitted under section 6109.07 of the	783
Revised Code, any determinations made under division (J) of this	784
section if an applicant seeks funding from the water supply	785
revolving loan account, and any other requirements of this section	786
and rules adopted under it, the director may establish in the	787
agreement environmental and financial terms and conditions of the	788
financial assistance to be offered to the applicant. If the	789
recipient of financial assistance under this section defaults on	790
any payment required in the agreement for financial assistance or	791
otherwise violates a term or condition of the agreement or of the	792
plan approval for the project under section 6109.07 of the Revised	793
Code, the director, in addition to any other available remedies,	794
may terminate, suspend, or require immediate repayment of the	795
financial assistance. The director also may take any enforcement	796
action available under this chapter.	797

(M) The director may adopt rules in accordance with Chapter	798
119. of the Revised Code for the implementation and administration	799
of this section. The rules shall be consistent with section 1452	800
of the Safe Drinking Water Act.	801

(N)(1) For the purposes of this section, appealable actions	802
of the director pursuant to section 3745.04 of the Revised Code	803
are limited to the following:	804

(a) Adoption of the drinking water assistance management plan	805
prepared under division (K) of this section;	806

(b) Approval of priority systems, priority lists, and written	807
program administration policies;	808

(c) Approval or disapproval under this section of applicants'	809
project plans submitted under section 6109.07 of the Revised Code;	810

(d) Approval or disapproval of an application for assistance.

811

(2) Notwithstanding section 119.06 of the Revised Code, the	812
director may take the final actions described in divisions	813
(N)(1)(a) to (d) of this section without holding an adjudication	814
hearing in connection with the action and without first issuing a	815
proposed action under section 3745.07 of the Revised Code.	816

(3) Each action described in divisions (N)(1)(a) to (d) of	817
this section and each approval of a plan under section 6109.07 of	818
the Revised Code is a separate and discrete action of the	819
director. Appeals are limited to the issues concerning the	820
specific action appealed. Any appeal shall not include issues	821
determined under the scope of any prior action.	822

(O) The failure or inability of a public water system to	823
obtain assistance under this section does not alter the obligation	824
of the public water system to comply with all applicable	825
requirements of this chapter and rules adopted under it.	826

Sec. 6111.036.  (A) There is hereby created the water	827
pollution control loan fund to provide financial, technical, and	828
administrative assistance for the following purposes:	829

(1) Construction of publicly owned wastewater treatment	830
works, as "construction" and "treatment works" are defined in	831
section 212 of the "Federal Water Pollution Control Act," by	832
municipal corporations, other political subdivisions, and	833
interstate agencies having territory in this state;	834

(2) Implementation of nonpoint source pollution management	835
programs under section 319 of that act;	836

(3) Development and implementation of estuary conservation	837
and management programs under section 320 of that act.	838

To the extent they are otherwise allowable as determined by	839
the director of environmental protection, the purposes identified	840
under division (A) of this section are intended to include	841
activities benefiting the waters of the state that are authorized	842
under Chapter 3746. of the Revised Code.	843

The fund shall be administered by the director consistent	844
with the "Federal Water Pollution Control Act"; regulations	845
adopted under it, including, without limitation, regulations	846
establishing public participation requirements applicable to the	847
providing of financial assistance; this section; and rules adopted	848
under division (O) of this section.	849

Moneys in the water pollution control loan fund shall be	850
separate and apart from and not a part of the state treasury or of	851
the other funds of the Ohio water development authority. Subject	852
to the terms of the agreements provided for in divisions (B), (C),	853
(D), and (F) of this section, moneys in the fund shall be held in	854
trust by the Ohio water development authority for the purposes of	855
this section, shall be kept in the same manner that funds of the	856
authority are kept under section 6121.11 of the Revised Code, and	857
may be invested in the same manner that funds of the authority are	858
invested under section 6121.12 of the Revised Code. No withdrawals	859
or disbursements shall be made from the water pollution control	860
loan fund without the written authorization of the director or his	861
the director's designated representative. The manner of	862
authorization for any withdrawals or disbursements from the fund	863
to be made by the authority shall be established in the agreements	864
authorized under division (C) of this section.	865

(B) The director may enter into agreements to receive and	866
assign moneys credited or to be credited to the water pollution	867
control loan fund. The director may reserve capitalization grant	868
moneys allotted to the state under sections 601 and 604(c)(2) of	869
the "Federal Water Pollution Control Act" for the other purposes	870
authorized for the use of capitalization grant moneys under	871
sections 603(d)(7) and 604(b) of that act.	872

(C) The director shall ensure that fiscal controls are	873
established for prudent administration of the water pollution	874
control loan fund. For that purpose, the director and the Ohio	875
water development authority shall enter into any necessary and	876
appropriate agreements under which the authority may perform or	877
provide any of the following:	878

(1) Fiscal controls and accounting procedures governing fund	879
balances, receipts, and disbursements;	880

(2) Administration of loan accounts;

881

(3) Maintaining, managing, and investing moneys in the fund.

882

Any agreement entered into under this division shall provide	883
for the payment of reasonable fees to the Ohio water development	884
authority for any services it performs under the agreement and may	885
provide for reasonable fees for the assistance of financial or	886
accounting advisors. Payments of any such fees to the authority	887
may be made from the water pollution control loan fund to the	888
extent authorized by division (H)(7) of this section or from the	889
water pollution control loan administrative fund created in	890
division (E) of this section. The authority may enter into loan	891
agreements with the director and recipients of financial	892
assistance from the fund as provided in this section.	893

(D) The water pollution control loan fund shall consist of	894
the moneys credited to it from all capitalization grants received	895
under sections 601 and 604(c)(2) of the "Federal Water Pollution	896
Control Act," all moneys received as capitalization grants under	897
section 205(m) of that act, all matching moneys credited to the	898
fund arising from nonfederal sources, all payments of principal	899
and interest for loans made from the fund, and all investment	900
earnings on moneys held in the fund. On or before the date on	901
which a quarterly capitalization grant payment will be received	902
under that act, matching moneys equal to at least twenty per cent	903
of the quarterly capitalization grant payment shall be credited to	904
the fund. The Ohio water development authority may make moneys	905
available to the director for the purpose of providing the	906
matching moneys required by this division, subject to such terms	907
as the director and the authority consider appropriate, and may	908
pledge moneys that are held by the authority to secure the payment	909
of bonds or notes issued by the authority to provide those	910
matching moneys. The authority may make moneys available to the	911
director for that purpose from any funds now or hereafter	912
available to the authority from any source, including, without	913
limitation, the proceeds of bonds or notes heretofore or hereafter	914
issued by the authority under Chapter 6121. of the Revised Code.	915
Matching moneys made available to the director by the authority	916
from the proceeds of any such bonds or notes shall be made	917
available subject to the terms of the trust agreements relating to	918
the bonds or notes. Any such matching moneys shall be made	919
available to the director pursuant to a written agreement between	920
the director and the authority that contains such terms as the	921
director and the authority consider appropriate, including,	922
without limitation, a provision providing for repayment to the	923
authority of those matching moneys from moneys deposited in the	924
water pollution control loan fund, including, without limitation,	925
the proceeds of bonds or notes issued by the authority for the	926
benefit of the fund and payments of principal and interest on	927
loans made from the fund, or from any other sources now or	928
hereafter available to the director for the repayment of those	929
matching moneys.	930

(E) All moneys credited to the water pollution control loan	931
fund, all interest earned on moneys in the fund, and all payments	932
of principal and interest for loans made from the fund shall be	933
dedicated in perpetuity and used and reused solely for the	934
purposes set forth in division (A) of this section, except as	935
otherwise provided in division (D) or (F) of this section. The	936
director may establish and collect fees to be paid by recipients	937
of financial assistance under this section, and all moneys arising	938
from the fees shall be credited to the water pollution control	939
loan administrative fund, which is hereby created in the state	940
treasury, and shall be used to defray the costs of administering	941
this section.	942

(F) The director and the Ohio water development authority	943
shall enter into trust agreements to enable the authority to issue	944
and refund bonds or notes for the sole benefit of the water	945
pollution control loan fund, including, without limitation, the	946
raising of the matching moneys required by division (D) of this	947
section. These agreements may authorize the pledge of moneys	948
accruing to the fund from payments of principal and interest on	949
loans made from the fund adequate to secure bonds or notes, the	950
proceeds of which bonds or notes shall be for the sole benefit of	951
the water pollution control loan fund. The agreements may contain	952
such terms as the director and the authority consider reasonable	953
and proper for the security of the bondholders or noteholders.	954

(G) The director shall enter into binding commitments to	955
provide financial assistance from the water pollution control loan	956
fund in an amount equal to one hundred twenty per cent of the	957
amount of each capitalization grant payment received, within one	958
year after receiving each such grant payment. The director shall	959
provide the financial assistance in compliance with this section	960
and rules adopted under division (O) of this section. The director	961
shall ensure that all moneys credited to the fund are disbursed in	962
an expeditious and timely manner. During the second year of	963
operation of the water pollution control loan program, the	964
director also shall ensure that not less than twenty-five per cent	965
of the financial assistance provided under this section during	966
that year is provided for the purpose of division (H)(2) of this	967
section for the purchase or refinancing of debt obligations	968
incurred after March 7, 1985, but not later than July 1, 1988,	969
except that if the amount of money reserved during the second year	970
of operation of the program for the purchase or refinancing of	971
those debt obligations exceeds the amount required for the	972
projects that are eligible to receive financial assistance for	973
that purpose, the director shall distribute the excess moneys in	974
accordance with the current priority system and list prepared	975
under division (I) of this section to provide financial assistance	976
for projects that otherwise would not receive assistance in that	977
year.	978

(H) Moneys credited to the water pollution control loan fund	979
shall be used only for the following purposes:	980

(1) To make loans, subject to all of the following	981
conditions:	982

(a) The loans are made at or below market rates of interest,	983
including, without limitation, interest free loans;	984

(b) Periodic payments of principal and interest shall	985
commence not later than one year after completion of the project,	986
and all loans shall be fully amortized not later than twenty years	987
after project completion;	988

(c) Each recipient of a loan shall establish a dedicated	989
source of revenue for repayment of the loan;	990

(d) All payments of principal and interest on the loans shall	991
be credited to the fund, except as otherwise provided in division	992
(D) or (F) of this section.	993

(2) To purchase or refinance at or below market rates of	994
interest debt obligations incurred after March 7, 1985, by	995
municipal corporations, other political subdivisions, and	996
interstate agencies having territory in the state;	997

(3) To guarantee or purchase insurance for debt obligations	998
of municipal corporations, other political subdivisions, and	999
interstate agencies having territory within the state when the	1000
guarantee or insurance would improve the borrower's access to	1001
credit markets or would reduce the interest rate paid on those	1002
obligations;	1003

(4) As a source of revenue or security for the payment of	1004
principal and interest on general obligation or revenue bonds or	1005
notes issued by this state if the proceeds of the sale of the	1006
bonds or notes will be deposited in the fund;	1007

(5) To provide loan guarantees for revolving loan funds	1008
established by municipal corporations and other political	1009
subdivisions that are similar to the water pollution control loan	1010
fund;	1011

(6) To earn interest on moneys credited to the fund;

1012

(7) To pay the reasonable costs of administering the fund and	1013
this section, except that cumulative expenditures from the fund	1014
for administrative costs shall not at any time exceed four per	1015
cent of the total amount of the capitalization grants received;	1016

(8) To provide assistance in any manner or for any purpose	1017
that is consistent with Title VI of the Federal Water Pollution	1018
Control Act or with any other federal law related to the use of	1019
federal funds administered under Title VI of the Federal Water	1020
Pollution Control Act.	1021

(I) The director periodically shall prepare in accordance	1022
with rules adopted under division (O) of this section a state	1023
priority system and list ranking assistance proposals principally	1024
on the basis of their relative water quality and public health	1025
benefits and the financial need of the applicants for assistance.	1026
Assistance for proposed activities from the water pollution	1027
control loan fund shall be limited to those activities appearing	1028
on that priority list and shall be awarded based upon their	1029
priority sequence on the list and the applicants' readiness to	1030
proceed with their proposed activities. The director annually	1031
shall prepare and circulate for public review and comment a plan	1032
that defines the goals and intended uses of the fund, as required	1033
by section 606(c) of the "Federal Water Pollution Control Act."	1034

(J) Financial assistance from the water pollution control	1035
loan fund first shall be used to ensure maintenance of progress,	1036
as determined by the governor, toward compliance with enforceable	1037
deadlines, goals, and requirements under the "Federal Water	1038
Pollution Control Act" that are pertinent to the purposes of the	1039
fund set forth in divisions (A)(1) to (3) of this section,	1040
including, without limitation, the municipal compliance deadline	1041
under that act.	1042

(K) The director may provide financial assistance from the	1043
water pollution control loan fund for a publicly owned treatment	1044
works project only after determining that:	1045

(1) Sewerage systems tributary to the treatment works are not	1046
subject to excessive infiltration and inflow;	1047

(2) The applicant for financial assistance has the legal,	1048
institutional, managerial, and financial capability to construct,	1049
operate, and maintain its publicly owned treatment works;	1050

(3) The applicant will implement a financial management plan	1051
that includes, without limitation, provisions for satisfactory	1052
repayment of the financial assistance, a proportional user charge	1053
system to pay the operation, maintenance, and replacement expenses	1054
of the project, and, if appropriate in the director's judgment, an	1055
adequate capital improvements fund;	1056

(4) The proposed disposal system of which the project is a	1057
part is economically and nonmonetarily cost-effective, based upon	1058
an evaluation of feasible alternatives that meet the waste water	1059
treatment needs of the planning area in which the proposed project	1060
is located;	1061

(5) Based upon the environmental review conducted by the	1062
director under division (L) of this section, there are no	1063
significant adverse environmental effects resulting from the	1064
proposed disposal system and the system has been selected from	1065
among environmentally sound alternatives;	1066

(6) Public participation has occurred during the process of	1067
planning the project in compliance with applicable requirements	1068
under the "Federal Water Pollution Control Act";	1069

(7) The applicant has submitted a facilities plan for the	1070
project that meets the applicable program requirements and that	1071
has been approved by the director;	1072

(8) The application meets the requirements of this section	1073
and rules adopted under division (O) of this section and is	1074
consistent with the intent of Title VI of the "Federal Water	1075
Pollution Control Act" and regulations adopted under it;	1076

(9) The application meets such other requirements as the	1077
director considers necessary or appropriate to protect the	1078
environment or ensure the financial integrity of the fund while	1079
implementing this section.	1080

(L) The director shall perform and document for public review	1081
an independent, comprehensive environmental review of the	1082
assistance proposal for each activity receiving financial	1083
assistance under this section. The review shall serve as the basis	1084
for the determinations to be made under division (K)(5) or (Q)(4)	1085
of this section, as applicable, and may include, without	1086
limitation, an environmental assessment, any necessary	1087
supplemental studies, and an enforceable mitigation plan. The	1088
director may establish environmental impact mitigation terms or	1089
conditions for the implementation of an assistance proposal,	1090
including, without limitation, the installation or modification of	1091
a disposal system, in histhe director's approval of the plans for	1092
the installation or modification as authorized by section 6111.44	1093
of the Revised Code or through other legally enforceable means.	1094
The review shall be conducted in accordance with applicable rules	1095
adopted under division (O) of this section.	1096

(M) The director, consistent with this section and applicable	1097
rules adopted under division (O) of this section, may enter into	1098
any agreement with an applicant that is necessary or appropriate	1099
to provide assistance from the water pollution control loan fund.	1100
Based upon histhe director's review of an assistance proposal,	1101
including, without limitation, approval for the project under	1102
section 6111.44 of the Revised Code, the environmental review	1103
conducted under division (L) of this section, and the other	1104
requirements of this section and rules adopted under it, the	1105
director may establish in the agreement terms and conditions of	1106
the assistance to be offered to an applicant. In addition to any	1107
other available remedies, the director may terminate, suspend, or	1108
require immediate repayment of financial assistance provided under	1109
this section to, or take any other enforcement action available	1110
under this chapter against, a recipient of financial assistance	1111
under this section who defaults on any payment required in the	1112
agreement for financial assistance or otherwise violates a term or	1113
condition of the agreement or of the plan approval for the project	1114
under section 6111.44 of the Revised Code.	1115

(N) Based upon the director's judgment as to the financial	1116
need of the applicant and as to what constitutes the most	1117
effective allocation of funds to achieve statewide water pollution	1118
control objectives, the director may establish the terms,	1119
conditions, and amount of financial assistance to be offered to an	1120
applicant from the water pollution control loan fund. The	1121
director, to the extent consistent with the water quality	1122
improvement priorities reflected in the current priority system	1123
and list prepared under division (I) of this section and with the	1124
long-term financial integrity of the fund, shall ensure each year	1125
that financial assistance in an amount equal to the cost of the	1126
assistance proposals of applicants having a high level of economic	1127
need that are on the current priority list and for which funding	1128
is available in that year is made available from the fund to those	1129
applicants at an interest rate that is lower than that offered to	1130
other applicants for financial assistance from the fund for	1131
assistance proposals that are on the current priority list and for	1132
which funding is available in that year.	1133

The director shall determine the economic need of applicants	1134
for financial assistance in accordance with uniform criteria	1135
established in rules adopted under division (O) of this section.	1136

(O) The director may adopt rules in accordance with Chapter	1137
119. of the Revised Code for the implementation and administration	1138
of this section and section 6111.037 of the Revised Code. Any such	1139
rules governing the planning, design, and construction of water	1140
pollution control projects, establishing an environmental review	1141
process, establishing requirements for the preparation of	1142
environmental impact reports and mitigation plans, governing the	1143
establishment of priority systems for providing financial	1144
assistance under this section and section 6111.037 of the Revised	1145
Code, and governing the terms and conditions of assistance, shall	1146
be consistent with the intent of Titles II and VI and sections 319	1147
and 320 of the "Federal Water Pollution Control Act." The rules	1148
governing the establishment of priority systems for financial	1149
assistance and governing terms and conditions of assistance shall	1150
provide for the most effective allocation of moneys from the water	1151
pollution control loan fund to achieve water quality and public	1152
health objectives throughout the state as determined by the	1153
director.	1154

(P)(1) For the purpose of this section, appealable actions of	1155
the director pursuant to section 3745.04 of the Revised Code are	1156
limited to the following:	1157

(a) Approval of draft priority systems, draft priority lists,	1158
and draft written program administration policies;	1159

(b) Approval or disapproval of project facility plans under	1160
division (K)(7) of this section;	1161

(c) Approval or disapproval of plans and specifications for a	1162
project under section 6111.44 of the Revised Code and issuance of	1163
a permit to install in connection with a project pursuant to rules	1164
adopted under section 6111.03 of the Revised Code;	1165

(d) Approval or disapproval of an application for assistance.

1166

(2) Notwithstanding section 119.06 of the Revised Code, the	1167
director may take final action described in division (P)(1)(a),	1168
(b), (c), or (d) of this section without holding an adjudication	1169
hearing in connection with the action and without first issuing a	1170
proposed action under section 3745.07 of the Revised Code.	1171

(3) Each action described in divisions (P)(1)(a), (b), (c),	1172
and (d) of this section is a separate and discrete action of the	1173
director. Appeals of any such action are limited to the issues	1174
concerning the specific action appealed, and the appeal shall not	1175
include issues determined under the scope of any prior action.	1176

(Q) The director may provide financial assistance for the	1177
implementation of a nonpoint source management program activity	1178
only after determining all of the following:	1179

(1) The activity is consistent with the state's nonpoint	1180
source management program;	1181

(2) The applicant has the legal, institutional, managerial,	1182
and financial capability to implement, operate, and maintain the	1183
activity;	1184

(3) The cost of the activity is reasonable considering	1185
monetary and nonmonetary factors;	1186

(4) Based on the environmental review conducted by the	1187
director under division (L) of this section, the activity will not	1188
result in significant adverse environmental impacts;	1189

(5) The application meets the requirements of this section	1190
and rules adopted under division (O) of this section and is	1191
consistent with the intent of Title VI of the "Federal Water	1192
Pollution Control Act" and regulations adopted under it;	1193

(6) The applicant will implement a financial management plan,	1194
including, without limitation, provisions for satisfactory	1195
repayment of the financial assistance;	1196

(7) The application meets such other requirements as the	1197
director considers necessary or appropriate to protect the	1198
environment and ensure the financial integrity of the fund while	1199
implementing this section.	1200

(R) As used in this section, "Federal Water Pollution Control	1201
Act" means the "Federal Water Pollution Control Act Amendments of	1202
1972," 86 Stat. 886, 33 U.S.C.A. 1251, as amended by the "Clean	1203
Water Act of 1977," 91 Stat. 1566, 33 U.S.C.A. 1251, the "Act of	1204
October 21, 1980," 94 Stat. 2360, 33 U.S.C.A. 1254, the "Municipal	1205
Wastewater Treatment Construction Grant Amendments of 1981," 95	1206
Stat. 1623, 33 U.S.C.A. 1281, and the "Water Quality Act of 1987,"	1207
101 Stat. 7, 33 U.S.C.A. 1251.	1208

Section 2. That existing sections 1501.04, 1517.23, 4928.01,	1209
6109.22, and 6111.036 of the Revised Code are hereby repealed.	1210

Section 3. (A) Beginning July 1, 2010, and ending January 1,	1211
2012, the Director of Budget and Management, upon the request of	1212
the Director of Natural Resources, shall transfer an amount not to	1213
exceed $1.2 million from the Natural Areas and Preserves Fund	1214
created in section 1517.11 of the Revised Code (Fund 5220) to the	1215
Departmental Projects Fund (Fund 1550) for the purpose of paying	1216
the salaries of permanent employees of the Division of Natural	1217
Areas and Preserves through January 1, 2012. If such an amount is	1218
so transferred, the Director of Natural Resources, not later than	1219
March 1, 2011, shall submit to the Speaker of the House of	1220
Representatives and the President of the Senate a detailed report	1221
of expenditures from the Departmental Projects Fund (Fund 1550)	1222
for payment of salaries of permanent employees of the Division of	1223
Natural Areas and Preserves.	1224

(B) If an amount is transferred pursuant to division (A) of	1225
this section and if the main operating appropriations act of the	1226
129th General Assembly does not contain an appropriation for the	1227
Division of Natural Areas and Preserves, it is the intent of the	1228
128th General Assembly that a portion of the amount transferred	1229
pursuant to division (A) of this section may be used by the	1230
Department of Natural Resources to pay unemployment compensation	1231
costs of former permanent employees of the Division of Natural	1232
Areas and Preserves.	1233

Section 4. Beginning July 1, 2010, and ending June 30, 2011,	1234
the Administrator of the Bureau of Workers' Compensation may	1235
transfer a portion of the investment earnings credited to the	1236
Coal-Workers Pneumoconiosis Fund created in section 4131.03 of the	1237
Revised Code in an amount not to exceed $2.28 million to the Strip	1238
Mining Administration Fund (Fund 5260) for the purposes specified	1239
in section 1513.181 of the Revised Code. No transfer from the	1240
Coal-Workers Pneumoconiosis Fund to the Strip Mining	1241
Administration Fund (Fund 5260) shall be made after June 30, 2011.	1242