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| To amend sections 717.25, 1710.01, 1710.02, 1710.06, | 1 |
| 1710.07, 4928.01, 4928.64, 5709.53, 5713.30, | 2 |
| 5713.34, 5727.01, 5727.02, 5727.06, 5727.11, | 3 |
| 5727.111, 5727.15, 5727.30, and 5739.02 and to | 4 |
| enact sections 1710.061, 4935.10, and 5727.75 of | 5 |
| the Revised Code to exempt qualifying energy | 6 |
| facilities from property taxation upon county | 7 |
| approval, to require payments in lieu of taxes on | 8 |
| the basis of each megawatt of production capacity | 9 |
| of such facilities, to expand special improvement | 10 |
| district energy improvement projects and the | 11 |
| municipal solar energy revolving loan program law | 12 |
| to include alternative energy, to address the | 13 |
| treatment of energy efficiency savings and | 14 |
| reductions in demand regarding certain energy | 15 |
| projects, to prohibit the use of the exemption to | 16 |
| determine the cost of compliance for the state's | 17 |
| alternative energy portfolio standard, to clarify | 18 |
| the sales and use tax treatment of related energy | 19 |
| conversion equipment purchases, to specify that | 20 |
| operators of such facilities are subject to the | 21 |
| commercial activity tax, and to require the Public | 22 |
| Utilities Commission to study reactive power in | 23 |
| the state. | 24 |
| Section 1. That sections 717.25, 1710.01, 1710.02, 1710.06, | 25 |
| 1710.07, 4928.01, 4928.64, 5709.53, 5713.30, 5713.34, 5727.01, | 26 |
| 5727.02, 5727.06, 5727.11, 5727.111, 5727.15, 5727.30, and 5739.02 | 27 |
| be amended and sections 1710.061, 4935.10, and 5727.75 of the | 28 |
| Revised Code be enacted to read as follows: | 29 |
| Sec. 717.25. (A) As used in this section: | 30 |
| (1) "Customer-generated energy project" means a wind, | 31 |
| biomass, or gasification facility for the generation of | 32 |
| electricity that meets either of the following requirements: | 33 |
| (a) The facility is designed to have a generating capacity of | 34 |
| two hundred fifty kilowatts of electricity or less. | 35 |
| (b) The facility is: | 36 |
| (i) Designed to have a generating capacity of more than two | 37 |
| hundred fifty kilowatts of electricity; | 38 |
| (ii) Operated in parallel with electric transmission and | 39 |
| distribution facilities serving the real property at the site of | 40 |
| the customer-generated energy project; | 41 |
| (iii) Intended primarily to offset part or all of the | 42 |
| facility owner's requirements for electricity at the site of the | 43 |
| customer-generated energy project and is located on the facility | 44 |
| owner's real property; and | 45 |
| (iv) Not producing energy for direct sale by the facility | 46 |
| owner to the public. | 47 |
| (2) "Electric distribution utility" and "mercantile customer" | 48 |
| have the same meanings as in section 4928.01 of the Revised Code. | 49 |
| (3) "Reduction in demand" has the same meaning as in section | 50 |
| 1710.01 of the Revised Code. | 51 |
| (B) The legislative authority of a municipal corporation may | 52 |
|
establish a low-cost | 53 |
|
program to assist | 54 |
|
municipal corporation | 55 |
| 56 | |
| their real property: | 57 |
| (1) Alternative energy technologies limited to solar | 58 |
| photovoltaic projects, solar thermal energy projects, geothermal | 59 |
| energy projects, and customer-generated energy projects; | 60 |
| (2) Energy efficiency technologies, products, and activities | 61 |
| that reduce or support the reduction of energy consumption, allow | 62 |
| for the reduction in demand, or support the production of clean, | 63 |
| renewable energy. | 64 |
| (C) If the legislative authority decides to establish such a | 65 |
| program, the legislative authority shall adopt an ordinance that | 66 |
| provides for the following: | 67 |
| | 68 |
| 69 |
| | 70 |
| property assessments, or federal subsidies, to seed the | 71 |
| 72 |
| | 73 |
| 74 | |
|
explanation of how
| 75 |
| the municipal corporation may qualify for loans from the fund, a | 76 |
|
description of the | 77 |
| efficiency technologies and related equipment for which a loan can | 78 |
| be made from the fund, authorization of a municipal agency to | 79 |
| process applications for loans and otherwise to administer the | 80 |
|
low-cost | 81 |
| procedure whereby loans can be applied for, criteria for reviewing | 82 |
| and accepting or denying applications for loans, criteria for | 83 |
| determining the appropriate amount of a loan, the interest rate to | 84 |
| be charged, the repayment schedule, and other terms and conditions | 85 |
| of a loan, and procedures for collecting loans that are not repaid | 86 |
| according to the repayment schedule; | 87 |
| | 88 |
| 89 | |
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be made in installments and, at the option of the | 90 |
| property owner repaying the loan, the installments may be paid and | 91 |
| collected as if they were special assessments paid and collected | 92 |
| in the manner specified in Chapter 727. of the Revised Code and as | 93 |
| specified in the ordinance; | 94 |
| | 95 |
| 96 | |
| to be credited to the fund, that the money in the fund is to be | 97 |
| invested pending its being lent out, and that investment earnings | 98 |
|
on the money in the fund | 99 |
| | 100 |
|
operation of the low-cost | 101 |
|
loan program as a means of encouraging use of | 102 |
| alternative energy and energy efficiency technologies. | 103 |
| The interest rate charged on a loan from the | 104 |
| 105 | |
| prevailing market rates. The legislative authority may specify the | 106 |
| interest rate in the ordinance or may, after establishing a | 107 |
| standard in the ordinance whereby the interest rate can be | 108 |
| specified, delegate authority to specify the interest rate to the | 109 |
|
administrator of loans from the | 110 |
| alternative energy revolving loan fund. | 111 |
| The | 112 |
| fund shall be seeded with sufficient money to enable loans to be | 113 |
| made until the fund accumulates sufficient reserves through | 114 |
| investment and repayment of loans for revolving operation. | 115 |
| (D) Except as provided in division (E) of this section, an | 116 |
| electric distribution utility may count toward its compliance with | 117 |
| the energy efficiency and peak demand reduction requirements of | 118 |
| section 4928.66 of the Revised Code any energy efficiency savings | 119 |
| or any reduction in demand that is produced by projects utilizing | 120 |
| alternative energy technologies or energy efficiency technologies, | 121 |
| products, and activities that are located in its certified | 122 |
| territory and for which a loan has been made under this section. | 123 |
| (E) A mercantile customer that realizes energy efficiency | 124 |
| savings or reduction in demand produced by alternative energy | 125 |
| technologies or energy efficiency technologies, products, or | 126 |
| activities that it owns and for which a loan has been made under | 127 |
| this section may elect to commit the savings or reduction to the | 128 |
| electric distribution utility in exchange for an exemption from an | 129 |
| energy efficiency cost recovery mechanism permitted under section | 130 |
| 4928.66 of the Revised Code, approved by the public utilities | 131 |
| commission. | 132 |
| (F) The legislative authority shall submit a quarterly report | 133 |
| to the electric distribution utility that includes, but is not | 134 |
| limited to, both of the following: | 135 |
| (1) The number and a description of each new and ongoing | 136 |
| project utilizing alternative energy technologies or energy | 137 |
| efficiency technologies, products, or activities located in the | 138 |
| utility's certified territory that produces energy efficiency | 139 |
| savings or reduction in demand and for which a loan has been made | 140 |
| under this section; | 141 |
| (2) Any additional information that the electric distribution | 142 |
| utility needs in order to obtain credit under section 4928.66 of | 143 |
| the Revised Code for energy efficiency savings or reduction in | 144 |
| demand from such projects. | 145 |
| Sec. 1710.01. As used in this chapter: | 146 |
| (A) "Special improvement district" means a special | 147 |
| improvement district organized under this chapter. | 148 |
| (B) "Church" means a fellowship of believers, congregation, | 149 |
| society, corporation, convention, or association that is formed | 150 |
| primarily or exclusively for religious purposes and that is not | 151 |
| formed for the private profit of any person. | 152 |
| (C) "Church property" means property that is described as | 153 |
| being exempt from taxation under division (A)(2) of section | 154 |
| 5709.07 of the Revised Code and that the county auditor has | 155 |
| entered on the exempt list compiled under section 5713.07 of the | 156 |
| Revised Code. | 157 |
| (D) "Municipal executive" means the mayor, city manager, or | 158 |
| other chief executive officer of the municipal corporation in | 159 |
| which a special improvement district is located. | 160 |
| (E) "Participating political subdivision" means the municipal | 161 |
| corporation or township, or each of the municipal corporations or | 162 |
| townships, that has territory within the boundaries of a special | 163 |
| improvement district created under this chapter. | 164 |
| (F) "Legislative authority of a participating political | 165 |
| subdivision" means, with reference to a township, the board of | 166 |
| township trustees. | 167 |
| (G) "Public improvement" means the planning, design, | 168 |
| construction, reconstruction, enlargement, or alteration of any | 169 |
| facility or improvement, including the acquisition of land, for | 170 |
| which a special assessment may be levied under Chapter 727. of the | 171 |
| Revised Code, and includes any special energy improvement project. | 172 |
| (H) "Public service" means any service that can be provided | 173 |
| by a municipal corporation or any service for which a special | 174 |
| assessment may be levied under Chapter 727. of the Revised Code. | 175 |
| (I) "Special energy improvement project" means any property, | 176 |
| device, structure, or equipment necessary for the acquisition, | 177 |
| installation, equipping, and improvement of any real or personal | 178 |
|
property used for the purpose of creating a solar | 179 |
| photovoltaic project | 180 |
| geothermal energy project, a customer-generated energy project, or | 181 |
| an energy efficiency improvement, whether such real or personal | 182 |
| property is publicly or privately owned. | 183 |
| (J) "Existing qualified nonprofit corporation" means a | 184 |
| nonprofit corporation that existed before the creation of the | 185 |
| corresponding district under this chapter, that is composed of | 186 |
| members located within or adjacent to the district, that has | 187 |
| established a police department under section 1702.80 of the | 188 |
| Revised Code, and that is organized for purposes that include | 189 |
| acquisition of real property within an area specified by its | 190 |
| articles for the subsequent transfer of such property to its | 191 |
| members exclusively for charitable, scientific, literary, or | 192 |
| educational purposes, or holding and maintaining and leasing such | 193 |
| property; planning for and assisting in the development of its | 194 |
| members; providing for the relief of the poor and distressed or | 195 |
| underprivileged in the area and adjacent areas; combating | 196 |
| community deterioration and lessening the burdens of government; | 197 |
| providing or assisting others in providing housing for low- or | 198 |
| moderate-income persons; and assisting its members by the | 199 |
| provision of public safety and security services, parking | 200 |
| facilities, transit service, landscaping, and parks. | 201 |
| (K) "Energy efficiency improvement" means energy efficiency | 202 |
| technologies, products, and activities that reduce or support the | 203 |
| reduction of energy consumption, allow for the reduction in | 204 |
| demand, or support the production of clean, renewable energy and | 205 |
| that are or will be permanently fixed to real property. | 206 |
| (L) "Customer-generated energy project" means a wind, | 207 |
| biomass, or gasification facility for the production of | 208 |
| electricity that meets either of the following requirements: | 209 |
| (1) The facility is designed to have a generating capacity of | 210 |
| two hundred fifty kilowatts of electricity or less. | 211 |
| (2) The facility is: | 212 |
| (a) Designed to have a generating capacity of more than two | 213 |
| hundred fifty kilowatts of electricity; | 214 |
| (b) Operated in parallel with electric transmission and | 215 |
| distribution facilities serving the real property at the site of | 216 |
| the customer-generated energy project; | 217 |
| (c) Intended primarily to offset part or all of the facility | 218 |
| owner's requirements for electricity at the site of the | 219 |
| customer-generated energy project and is located on the facility | 220 |
| owner's real property; and | 221 |
| (d) Not producing energy for direct sale by the facility | 222 |
| owner to the public. | 223 |
| (M) "Reduction in demand" means a change in customer behavior | 224 |
| or a change in customer-owned or operated assets that reduces or | 225 |
| has the capability to reduce the demand for electricity as a | 226 |
| result of price signals or other incentives. | 227 |
| (N) "Electric distribution utility" and "mercantile customer" | 228 |
| have the same meanings as in section 4928.01 of the Revised Code. | 229 |
| Sec. 1710.02. (A) A special improvement district may be | 230 |
| created within the boundaries of any one municipal corporation, | 231 |
| any one township, or any combination of contiguous municipal | 232 |
| corporations and townships for the purpose of developing and | 233 |
| implementing plans for public improvements and public services | 234 |
| that benefit the district. A district may be created by petition | 235 |
| of the owners of real property within the proposed district, or by | 236 |
| an existing qualified nonprofit corporation. If the district is | 237 |
| created by an existing qualified nonprofit corporation, the | 238 |
| purposes for which the district is created may be supplemental to | 239 |
| the other purposes for which the corporation is organized. All | 240 |
| territory in a special improvement district shall be contiguous; | 241 |
| except that the territory in a special improvement district may be | 242 |
| noncontiguous if at least one special energy improvement project | 243 |
| is designated for each parcel of real property included within the | 244 |
| special improvement district. Additional territory may be added to | 245 |
| a special improvement district created under this chapter for the | 246 |
| purpose of developing and implementing plans for special energy | 247 |
| improvement projects if at least one special energy improvement | 248 |
| project is designated for each parcel of real property included | 249 |
| within such additional territory and the addition of territory is | 250 |
| authorized by the initial plan proposed under division (F) of this | 251 |
| section or a plan adopted by the board of directors of the special | 252 |
| improvement district under section 1710.06 of the Revised Code. | 253 |
| The district shall be governed by the board of trustees of a | 254 |
| nonprofit corporation. This board shall be known as the board of | 255 |
| directors of the special improvement district. No special | 256 |
| improvement district shall include any church property, or | 257 |
| property of the federal or state government or a county, township, | 258 |
| or municipal corporation, unless the church or the county, | 259 |
| township, or municipal corporation specifically requests in | 260 |
| writing that the property be included within the district, or | 261 |
| unless the church is a member of the existing qualified nonprofit | 262 |
| corporation creating the district at the time the district is | 263 |
| created. More than one district may be created within a | 264 |
| participating political subdivision, but no real property may be | 265 |
| included within more than one district unless the owner of the | 266 |
| property files a written consent with the clerk of the legislative | 267 |
| authority, the township fiscal officer, or the village clerk, as | 268 |
| appropriate. The area of each district shall be contiguous; except | 269 |
| that the area of a special improvement district may be | 270 |
| noncontiguous if all parcels of real property included within such | 271 |
| area contain at least one special energy improvement thereon. | 272 |
| (B) Except as provided in division (C) of this section, a | 273 |
| district created under this chapter is not a political | 274 |
| subdivision. A district created under this chapter shall be | 275 |
| considered a public agency under section 102.01 and a public | 276 |
| authority under section 4115.03 of the Revised Code. Each member | 277 |
| of the board of directors of a district, each member's designee or | 278 |
| proxy, and each officer and employee of a district shall be | 279 |
| considered a public official or employee under section 102.01 of | 280 |
| the Revised Code and a public official and public servant under | 281 |
| section 2921.42 of the Revised Code. Districts created under this | 282 |
| chapter are not subject to section 121.251 of the Revised Code. | 283 |
| Districts created under this chapter are subject to sections | 284 |
| 121.22 and 121.23 of the Revised Code. | 285 |
| (C) Each district created under this chapter shall be | 286 |
| considered a political subdivision for purposes of section 4905.34 | 287 |
| of the Revised Code. | 288 |
| Membership on the board of directors of the district shall | 289 |
| not be considered as holding a public office. Directors and their | 290 |
| designees shall be entitled to the immunities provided by Chapter | 291 |
| 1702. and to the same immunity as an employee under division | 292 |
| (A)(6) of section 2744.03 of the Revised Code, except that | 293 |
| directors and their designees shall not be entitled to the | 294 |
| indemnification provided in section 2744.07 of the Revised Code | 295 |
| unless the director or designee is an employee or official of a | 296 |
| participating political subdivision of the district and is acting | 297 |
| within the scope of the director's or designee's employment or | 298 |
| official responsibilities. | 299 |
| District officers and district members and directors and | 300 |
| their designees or proxies shall not be required to file a | 301 |
| statement with the Ohio ethics commission under section 102.02 of | 302 |
| the Revised Code. All records of the district shall be treated as | 303 |
| public records under section 149.43 of the Revised Code, except | 304 |
| that records of organizations contracting with a district shall | 305 |
| not be considered to be public records under section 149.43 or | 306 |
| section 149.431 of the Revised Code solely by reason of any | 307 |
| contract with a district. | 308 |
| (D) Except as otherwise provided in this section, the | 309 |
| nonprofit corporation that governs a district shall be organized | 310 |
| in the manner described in Chapter 1702. of the Revised Code. | 311 |
| Except in the case of a district created by an existing qualified | 312 |
| nonprofit corporation, the corporation's articles of incorporation | 313 |
| are required to be approved, as provided in division (E) of this | 314 |
| section, by resolution of the legislative authority of each | 315 |
| participating political subdivision of the district. A copy of | 316 |
| that resolution shall be filed along with the articles of | 317 |
| incorporation in the secretary of state's office. | 318 |
| In addition to meeting the requirements for articles of | 319 |
| incorporation set forth in Chapter 1702. of the Revised Code, the | 320 |
| articles of incorporation for the nonprofit corporation governing | 321 |
| a district formed under this chapter shall provide all the | 322 |
| following: | 323 |
| (1) The name for the district, which shall include the name | 324 |
| of each participating political subdivision of the district; | 325 |
| (2) A description of the territory within the district, which | 326 |
| may be all or part of each participating political subdivision. | 327 |
| The description shall be specific enough to enable real property | 328 |
| owners to determine if their property is located within the | 329 |
| district. | 330 |
| (3) A description of the procedure by which the articles of | 331 |
| incorporation may be amended. The procedure shall include | 332 |
| receiving approval of the amendment, by resolution, from the | 333 |
| legislative authority of each participating political subdivision | 334 |
| and filing the approved amendment and resolution with the | 335 |
| secretary of state. | 336 |
| (4) The reasons for creating the district, plus an | 337 |
| explanation of how the district will be conducive to the public | 338 |
| health, safety, peace, convenience, and welfare of the district. | 339 |
| (E) The articles of incorporation for a nonprofit corporation | 340 |
| governing a district created under this chapter and amendments to | 341 |
| them shall be submitted to the municipal executive, if any, and | 342 |
| the legislative authority of each municipal corporation or | 343 |
| township in which the proposed district is to be located. Except | 344 |
| in the case of a district created by an existing qualified | 345 |
| nonprofit corporation, the articles or amendments shall be | 346 |
| accompanied by a petition signed either by the owners of at least | 347 |
| sixty per cent of the front footage of all real property located | 348 |
| in the proposed district that abuts upon any street, alley, public | 349 |
| road, place, boulevard, parkway, park entrance, easement, or other | 350 |
| existing public improvement within the proposed district, | 351 |
| excluding church property or property owned by the state, county, | 352 |
| township, municipal, or federal government, unless a church, | 353 |
| county, township, or municipal corporation has specifically | 354 |
| requested in writing that the property be included in the | 355 |
| district, or by the owners of at least seventy-five per cent of | 356 |
| the area of all real property located within the proposed | 357 |
| district, excluding church property or property owned by the | 358 |
| state, county, township, municipal, or federal government, unless | 359 |
| a church, county, township, or municipal corporation has | 360 |
| specifically requested in writing that the property be included in | 361 |
| the district. Pursuant to Section 2o of Article VIII, Ohio | 362 |
| Constitution, the petition required under this division may be for | 363 |
| the purpose of developing and implementing plans for special | 364 |
| energy improvement projects, and, in such case, is determined to | 365 |
| be in furtherance of the purposes set forth in Section 2o of | 366 |
| Article VIII, Ohio Constitution. If a special improvement district | 367 |
| is being created under this chapter for the purpose of developing | 368 |
| and implementing plans for special energy improvement projects, | 369 |
| the petition required under this division shall be signed by one | 370 |
| hundred per cent of the owners of the area of all real property | 371 |
| located within the proposed special improvement district, at least | 372 |
| one special energy improvement project shall be designated for | 373 |
| each parcel of real property within the special improvement | 374 |
| district, and the special improvement district may include any | 375 |
| number of parcels of real property as determined by the | 376 |
| legislative authority of each participating political subdivision | 377 |
| in which the proposed special improvement district is to be | 378 |
| located. For purposes of determining compliance with these | 379 |
| requirements, the area of the district, or the front footage and | 380 |
| ownership of property, shall be as shown in the most current | 381 |
| records available at the county recorder's office and the county | 382 |
| engineer's office sixty days prior to the date on which the | 383 |
| petition is filed. | 384 |
| Each municipal corporation or township with which the | 385 |
| petition is filed has sixty days to approve or disapprove, by | 386 |
| resolution, the petition, including the articles of incorporation. | 387 |
| In the case of a district created by an existing qualified | 388 |
| nonprofit corporation, each municipal corporation or township has | 389 |
| sixty days to approve or disapprove the creation of the district | 390 |
| after the corporation submits the articles of incorporation or | 391 |
| amendments thereto. This chapter does not prohibit or restrict the | 392 |
| rights of municipal corporations under Article XVIII of the Ohio | 393 |
| Constitution or the right of the municipal legislative authority | 394 |
| to impose reasonable conditions in a resolution of approval. The | 395 |
| acquisition, installation, equipping, and improvement of a special | 396 |
| energy improvement project under this chapter shall not supersede | 397 |
| any local zoning, environmental, or similar law or regulation. | 398 |
| (F) Persons proposing creation and operation of the district | 399 |
| may propose an initial plan for public services or public | 400 |
| improvements that benefit all or any part of the district. Any | 401 |
| initial plan shall be submitted as part of the petition proposing | 402 |
| creation of the district or, in the case of a district created by | 403 |
| an existing qualified nonprofit corporation, shall be submitted | 404 |
| with the articles of incorporation or amendments thereto. | 405 |
| An initial plan may include provisions for the following: | 406 |
| (1) Creation and operation of the district and of the | 407 |
| nonprofit corporation to govern the district under this chapter; | 408 |
| (2) Hiring employees and professional services; | 409 |
| (3) Contracting for insurance; | 410 |
| (4) Purchasing or leasing office space and office equipment; | 411 |
| (5) Other actions necessary initially to form, operate, or | 412 |
| organize the district and the nonprofit corporation to govern the | 413 |
| district; | 414 |
| (6) A plan for public improvements or public services that | 415 |
| benefit all or part of the district, which plan shall comply with | 416 |
| the requirements of division (A) of section 1710.06 of the Revised | 417 |
| Code and may include, but is not limited to, any of the permissive | 418 |
| provisions described in the fourth sentence of that division or | 419 |
|
listed in divisions (A)(1) to | 420 |
| (7) If the special improvement district is being created | 421 |
| under this chapter for the purpose of developing and implementing | 422 |
| plans for special energy improvement projects, provision for the | 423 |
| addition of territory to the special improvement district. | 424 |
| After the initial plan is approved by all municipal | 425 |
| corporations and townships to which it is submitted for approval | 426 |
| and the district is created, each participating subdivision shall | 427 |
| levy a special assessment within its boundaries to pay for the | 428 |
| costs of the initial plan. The levy shall be for no more than ten | 429 |
| years from the date of the approval of the initial plan; except | 430 |
| that if the proceeds of the levy are to be used to pay the costs | 431 |
| of a special energy improvement project, the levy of a special | 432 |
|
assessment shall be for no more than | 433 |
| the date of approval of the initial plan. In the event that | 434 |
| additional territory is added to a special improvement district, | 435 |
| the special assessment to be levied with respect to such | 436 |
| additional territory shall commence not earlier than the date such | 437 |
|
territory is added and shall be for no more than | 438 |
| thirty years from such date. For purposes of levying an assessment | 439 |
| for this initial plan, the services or improvements included in | 440 |
| the initial plan shall be deemed a special benefit to property | 441 |
| owners within the district. | 442 |
| (G) Each nonprofit corporation governing a district under | 443 |
| this chapter may do the following: | 444 |
| (1) Exercise all powers of nonprofit corporations granted | 445 |
| under Chapter 1702. of the Revised Code that do not conflict with | 446 |
| this chapter; | 447 |
| (2) Develop, adopt, revise, implement, and repeal plans for | 448 |
| public improvements and public services for all or any part of the | 449 |
| district; | 450 |
| (3) Contract with any person, political subdivision as | 451 |
| defined in section 2744.01 of the Revised Code, or state agency as | 452 |
| defined in section 1.60 of the Revised Code to develop and | 453 |
| implement plans for public improvements or public services within | 454 |
| the district; | 455 |
| (4) Contract and pay for insurance for the district and for | 456 |
| directors, officers, agents, contractors, employees, or members of | 457 |
| the district for any consequences of the implementation of any | 458 |
| plan adopted by the district or any actions of the district. | 459 |
| The board of directors of a special improvement district may, | 460 |
| acting as agent and on behalf of a participating political | 461 |
| subdivision, sell, transfer, lease, or convey any special energy | 462 |
| improvement project owned by the participating political | 463 |
| subdivision upon a determination by the legislative authority | 464 |
| thereof that the project is not required to be owned exclusively | 465 |
| by the participating political subdivision for its purposes, for | 466 |
| uses determined by the legislative authority thereof as those that | 467 |
| will promote the welfare of the people of such participating | 468 |
| political subdivision; to improve the quality of life and the | 469 |
| general and economic well-being of the people of the participating | 470 |
| political subdivision; better ensure the public health, safety, | 471 |
| and welfare; protect water and other natural resources; provide | 472 |
| for the conservation and preservation of natural and open areas | 473 |
| and farmlands, including by making urban areas more desirable or | 474 |
| suitable for development and revitalization; control, prevent, | 475 |
| minimize, clean up, or mediate certain contamination of or | 476 |
| pollution from lands in the state and water contamination or | 477 |
| pollution; or provide for safe and natural areas and resources. | 478 |
| The legislative authority of each participating political | 479 |
| subdivision shall specify the consideration for such sale, | 480 |
| transfer, lease, or conveyance and any other terms thereof. Any | 481 |
| determinations made by a legislative authority of a participating | 482 |
| political subdivision under this division shall be conclusive. | 483 |
| Any sale, transfer, lease, or conveyance of a special energy | 484 |
| improvement project by a participating political subdivision or | 485 |
| the board of directors of the special improvement district may be | 486 |
| made without advertising, receipt of bids, or other competitive | 487 |
| bidding procedures applicable to the participating political | 488 |
| subdivision or the special improvement district under Chapter 153. | 489 |
| or 735. or section 1710.11 of the Revised Code or other | 490 |
| representative provisions of the Revised Code. | 491 |
| Sec. 1710.06. (A) The board of directors of a special | 492 |
| improvement district may develop and adopt one or more written | 493 |
| plans for public improvements or public services that benefit all | 494 |
| or any part of the district. Each plan shall set forth the | 495 |
| specific public improvements or public services that are to be | 496 |
| provided, identify the area in which they will be provided, and | 497 |
| specify the method of assessment to be used. Each plan for public | 498 |
| improvements or public services shall indicate the period of time | 499 |
| the assessments are to be levied for the improvements and services | 500 |
| and, if public services are included in the plan, the period of | 501 |
| time the services are to remain in effect. Plans for public | 502 |
| improvements may include the planning, design, construction, | 503 |
| reconstruction, enlargement, or alteration of any public | 504 |
| improvements and the acquisition of land for the improvements. | 505 |
| Plans for public improvements or public services may also include, | 506 |
| but are not limited to, provisions for the following: | 507 |
| (1) Creating and operating the district and the nonprofit | 508 |
| corporation under this chapter, including hiring employees and | 509 |
| professional services, contracting for insurance, and purchasing | 510 |
| or leasing office space and office equipment and other | 511 |
| requirements of the district; | 512 |
| (2) Planning, designing, and implementing a public | 513 |
| improvements or public services plan, including hiring | 514 |
| architectural, engineering, legal, appraisal, insurance, | 515 |
| consulting, energy auditing, and planning services, and, for | 516 |
| public services, managing, protecting, and maintaining public and | 517 |
| private facilities, including public improvements; | 518 |
| (3) Conducting court proceedings to carry out this chapter; | 519 |
| (4) Paying damages resulting from the provision of public | 520 |
| improvements or public services and implementing the plans; | 521 |
| (5) Paying the costs of issuing, paying interest on, and | 522 |
| redeeming notes and bonds issued for funding public improvements | 523 |
|
and public services plans; | 524 |
| (6) Sale, lease, lease with an option to purchase, conveyance | 525 |
| of other interests in, or other contracts for the acquisition, | 526 |
| construction, maintenance, repair, furnishing, equipping, | 527 |
| operation, or improvement of any special energy improvement | 528 |
| project by the special improvement district, between a | 529 |
| participating political subdivision and the special improvement | 530 |
| district, and between the special improvement district and any | 531 |
| owner of real property in the special improvement district on | 532 |
| which a special energy improvement project has been acquired, | 533 |
| installed, equipped, or improved; and | 534 |
| (7) Aggregating the renewable energy credits generated by one | 535 |
| or more special energy improvement projects within a special | 536 |
| improvement district, upon the consent of the owners of the | 537 |
| credits and for the purpose of negotiating and completing the sale | 538 |
| of such credits. | 539 |
| (B) Once the board of directors of the special improvement | 540 |
| district adopts a plan, it shall submit the plan to the | 541 |
| legislative authority of each participating political subdivision | 542 |
| and the municipal executive of each municipal corporation in which | 543 |
| the district is located, if any. The legislative authorities and | 544 |
| municipal executives shall review the plan and, within sixty days | 545 |
| after receiving it, may submit their comments and recommendations | 546 |
| about it to the district. After reviewing these comments and | 547 |
| recommendations, the board of directors may amend the plan. It may | 548 |
| then submit the plan, amended or otherwise, in the form of a | 549 |
| petition to members of the district whose property may be assessed | 550 |
| for the plan. Once the petition is signed by those members who own | 551 |
| at least sixty per cent of the front footage of property that is | 552 |
| to be assessed and that abuts upon a street, alley, public road, | 553 |
| place, boulevard, parkway, park entrance, easement, or other | 554 |
| public improvement, or those members who own at least seventy-five | 555 |
| per cent of the area to be assessed for the improvement or | 556 |
| service, the petition may be submitted to each legislative | 557 |
| authority for approval. If the special improvement district was | 558 |
| created for the purpose of developing and implementing plans for | 559 |
| special energy improvement projects, the petition required under | 560 |
| this division shall be signed by one hundred per cent of the | 561 |
| owners of the area of all real property located within the area to | 562 |
| be assessed for the special energy improvement project. | 563 |
| Each legislative authority shall, by resolution, approve or | 564 |
| reject the petition within sixty days after receiving it. If the | 565 |
| petition is approved by the legislative authority of each | 566 |
| participating political subdivision, the plan contained in the | 567 |
| petition shall be effective at the earliest date on which a | 568 |
| nonemergency resolution of the legislative authority with the | 569 |
| latest effective date may become effective. A plan may not be | 570 |
| resubmitted to the legislative authorities and municipal | 571 |
| executives more than three times in any twelve-month period. | 572 |
| (C) Each participating political subdivision shall levy, by | 573 |
| special assessment upon specially benefited property located | 574 |
| within the district, the costs of any public improvements or | 575 |
| public services plan contained in a petition approved by the | 576 |
| participating political subdivisions under this section or | 577 |
| division (F) of section 1710.02 of the Revised Code. The levy | 578 |
| shall be made in accordance with the procedures set forth in | 579 |
| Chapter 727. of the Revised Code, except that: | 580 |
| (1) The assessment for each improvements or services plan may | 581 |
| be levied by any one or any combination of the methods of | 582 |
| assessment listed in section 727.01 of the Revised Code, provided | 583 |
| that the assessment is uniformly applied. | 584 |
| (2) For the purpose of levying an assessment, the board of | 585 |
| directors may combine one or more improvements or services plans | 586 |
| or parts of plans and levy a single assessment against specially | 587 |
| benefited property. | 588 |
| (3) For purposes of special assessments levied by a township | 589 |
| pursuant to this chapter, references in Chapter 727. of the | 590 |
| Revised Code to the municipal corporation shall be deemed to refer | 591 |
| to the township, and references to the legislative authority of | 592 |
| the municipal corporation shall be deemed to refer to the board of | 593 |
| township trustees. | 594 |
| Church property or property owned by a political subdivision, | 595 |
| including any participating political subdivision in which a | 596 |
| special improvement district is located, shall be included in and | 597 |
| be subject to special assessments made pursuant to a plan adopted | 598 |
| under this section or division (F) of section 1710.02 of the | 599 |
| Revised Code, if the church or political subdivision has | 600 |
| specifically requested in writing that its property be included | 601 |
| within the special improvement district and the church or | 602 |
| political subdivision is a member of the district or, in the case | 603 |
| of a district created by an existing qualified nonprofit | 604 |
| corporation, if the church is a member of the corporation. | 605 |
| (D) All rights and privileges of property owners who are | 606 |
| assessed under Chapter 727. of the Revised Code shall be granted | 607 |
| to property owners assessed under this chapter, including those | 608 |
| rights and privileges specified in sections 727.15 to 727.17 and | 609 |
| 727.18 to 727.22 of the Revised Code and the right to notice of | 610 |
| the resolution of necessity and the filing of the estimated | 611 |
| assessment under section 727.13 of the Revised Code. Property | 612 |
| owners assessed for public services under this chapter shall have | 613 |
| the same rights and privileges as property owners assessed for | 614 |
| public improvements under this chapter. | 615 |
| Sec. 1710.061. (A) Except as provided in division (B) of | 616 |
| this section, an electric distribution utility may count toward | 617 |
| its compliance with the energy efficiency and peak demand | 618 |
| reduction requirements of section 4928.66 of the Revised Code any | 619 |
| efficiency savings or reduction in demand produced by a special | 620 |
| energy improvement project located in its certified territory. | 621 |
| (B) A mercantile customer that realizes energy efficiency | 622 |
| savings or reduction in demand produced by a special energy | 623 |
| improvement project that it owns may elect to commit the savings | 624 |
| or reduction to the electric distribution utility in exchange for | 625 |
| an exemption from an energy efficiency cost recovery mechanism | 626 |
| permitted under section 4928.66 of the Revised Code, approved by | 627 |
| the public utilities commission. | 628 |
| (C) The board of directors of a special improvement district | 629 |
| shall submit a quarterly report to the electric distribution | 630 |
| utility that includes, but is not limited to, both of the | 631 |
| following: | 632 |
| (1) The total number and a description of each new and | 633 |
| ongoing special energy improvement project located within the | 634 |
| special improvement district that produces energy efficiency | 635 |
| savings or reduction in demand; | 636 |
| (2) Any additional information that the electric distribution | 637 |
| utility needs in order to obtain credit under section 4928.66 of | 638 |
| the Revised Code for energy efficiency savings or reduction in | 639 |
| demand from such projects. | 640 |
| Sec. 1710.07. The cost of any public improvements or public | 641 |
| services plan of a special improvement district may include, but | 642 |
| is not limited to, the following: | 643 |
| (A) The cost of creating and operating the district under | 644 |
| this chapter, including creating and operating a nonprofit | 645 |
| organization organized under this chapter, hiring employees and | 646 |
| professional services, contracting for insurance, and purchasing | 647 |
| or leasing office space or office equipment; | 648 |
| (B) The cost of planning, designing, and implementing the | 649 |
| public improvements or public services plan, including payment of | 650 |
| architectural, engineering, legal, appraisal, insurance, | 651 |
| consulting, energy auditing, and planning fees and expenses, and, | 652 |
| for public services, the management, protection, and maintenance | 653 |
| costs of public or private facilities; | 654 |
| (C) Any court costs incurred by the district in implementing | 655 |
| the public improvements or public services plan; | 656 |
| (D) Any damages resulting from implementing the public | 657 |
| improvements or public services plan; | 658 |
| (E) The costs of issuing, paying interest on, and redeeming | 659 |
| notes and bonds issued for funding the public improvements or | 660 |
| public services plan; and | 661 |
| (F) The costs associated with the sale, lease, lease with an | 662 |
| option to purchase, conveyance of other interests in, or other | 663 |
| contracts for the acquisition, construction, maintenance, repair, | 664 |
| furnishing, equipping, operation, or improvement of any special | 665 |
| energy improvement project by the district, between a | 666 |
| participating political subdivision and the special improvement | 667 |
| district, or between the special improvement district and any | 668 |
| owner of real property in the special improvement district on | 669 |
| which a special energy improvement project has been acquired, | 670 |
| installed, equipped, or improved. | 671 |
| Sec. 4928.01. (A) As used in this chapter: | 672 |
| (1) "Ancillary service" means any function necessary to the | 673 |
| provision of electric transmission or distribution service to a | 674 |
| retail customer and includes, but is not limited to, scheduling, | 675 |
| system control, and dispatch services; reactive supply from | 676 |
| generation resources and voltage control service; reactive supply | 677 |
| from transmission resources service; regulation service; frequency | 678 |
| response service; energy imbalance service; operating | 679 |
| reserve-spinning reserve service; operating reserve-supplemental | 680 |
| reserve service; load following; back-up supply service; | 681 |
| real-power loss replacement service; dynamic scheduling; system | 682 |
| black start capability; and network stability service. | 683 |
| (2) "Billing and collection agent" means a fully independent | 684 |
| agent, not affiliated with or otherwise controlled by an electric | 685 |
| utility, electric services company, electric cooperative, or | 686 |
| governmental aggregator subject to certification under section | 687 |
| 4928.08 of the Revised Code, to the extent that the agent is under | 688 |
| contract with such utility, company, cooperative, or aggregator | 689 |
| solely to provide billing and collection for retail electric | 690 |
| service on behalf of the utility company, cooperative, or | 691 |
| aggregator. | 692 |
| (3) "Certified territory" means the certified territory | 693 |
| established for an electric supplier under sections 4933.81 to | 694 |
| 4933.90 of the Revised Code. | 695 |
| (4) "Competitive retail electric service" means a component | 696 |
| of retail electric service that is competitive as provided under | 697 |
| division (B) of this section. | 698 |
| (5) "Electric cooperative" means a not-for-profit electric | 699 |
| light company that both is or has been financed in whole or in | 700 |
| part under the "Rural Electrification Act of 1936," 49 Stat. 1363, | 701 |
| 7 U.S.C. 901, and owns or operates facilities in this state to | 702 |
| generate, transmit, or distribute electricity, or a not-for-profit | 703 |
| successor of such company. | 704 |
| (6) "Electric distribution utility" means an electric utility | 705 |
| that supplies at least retail electric distribution service. | 706 |
| (7) "Electric light company" has the same meaning as in | 707 |
| section 4905.03 of the Revised Code and includes an electric | 708 |
| services company, but excludes any self-generator to the extent | 709 |
| that it consumes electricity it so produces, sells that | 710 |
| electricity for resale, or obtains electricity from a generating | 711 |
| facility it hosts on its premises. | 712 |
| (8) "Electric load center" has the same meaning as in section | 713 |
| 4933.81 of the Revised Code. | 714 |
| (9) "Electric services company" means an electric light | 715 |
| company that is engaged on a for-profit or not-for-profit basis in | 716 |
| the business of supplying or arranging for the supply of only a | 717 |
| competitive retail electric service in this state. "Electric | 718 |
| services company" includes a power marketer, power broker, | 719 |
| aggregator, or independent power producer but excludes an electric | 720 |
| cooperative, municipal electric utility, governmental aggregator, | 721 |
| or billing and collection agent. | 722 |
| (10) "Electric supplier" has the same meaning as in section | 723 |
| 4933.81 of the Revised Code. | 724 |
| (11) "Electric utility" means an electric light company that | 725 |
| has a certified territory and is engaged on a for-profit basis | 726 |
| either in the business of supplying a noncompetitive retail | 727 |
| electric service in this state or in the businesses of supplying | 728 |
| both a noncompetitive and a competitive retail electric service in | 729 |
| this state. "Electric utility" excludes a municipal electric | 730 |
| utility or a billing and collection agent. | 731 |
| (12) "Firm electric service" means electric service other | 732 |
| than nonfirm electric service. | 733 |
| (13) "Governmental aggregator" means a legislative authority | 734 |
| of a municipal corporation, a board of township trustees, or a | 735 |
| board of county commissioners acting as an aggregator for the | 736 |
| provision of a competitive retail electric service under authority | 737 |
| conferred under section 4928.20 of the Revised Code. | 738 |
| (14) A person acts "knowingly," regardless of the person's | 739 |
| purpose, when the person is aware that the person's conduct will | 740 |
| probably cause a certain result or will probably be of a certain | 741 |
| nature. A person has knowledge of circumstances when the person is | 742 |
| aware that such circumstances probably exist. | 743 |
| (15) "Level of funding for low-income customer energy | 744 |
| efficiency programs provided through electric utility rates" means | 745 |
| the level of funds specifically included in an electric utility's | 746 |
| rates on October 5, 1999, pursuant to an order of the public | 747 |
| utilities commission issued under Chapter 4905. or 4909. of the | 748 |
| Revised Code and in effect on October 4, 1999, for the purpose of | 749 |
| improving the energy efficiency of housing for the utility's | 750 |
| low-income customers. The term excludes the level of any such | 751 |
| funds committed to a specific nonprofit organization or | 752 |
| organizations pursuant to a stipulation or contract. | 753 |
| (16) "Low-income customer assistance programs" means the | 754 |
| percentage of income payment plan program, the home energy | 755 |
| assistance program, the home weatherization assistance program, | 756 |
| and the targeted energy efficiency and weatherization program. | 757 |
| (17) "Market development period" for an electric utility | 758 |
| means the period of time beginning on the starting date of | 759 |
| competitive retail electric service and ending on the applicable | 760 |
| date for that utility as specified in section 4928.40 of the | 761 |
| Revised Code, irrespective of whether the utility applies to | 762 |
| receive transition revenues under this chapter. | 763 |
| (18) "Market power" means the ability to impose on customers | 764 |
| a sustained price for a product or service above the price that | 765 |
| would prevail in a competitive market. | 766 |
| (19) "Mercantile customer" means a commercial or industrial | 767 |
| customer if the electricity consumed is for nonresidential use and | 768 |
| the customer consumes more than seven hundred thousand kilowatt | 769 |
| hours per year or is part of a national account involving multiple | 770 |
| facilities in one or more states. | 771 |
| (20) "Municipal electric utility" means a municipal | 772 |
| corporation that owns or operates facilities to generate, | 773 |
| transmit, or distribute electricity. | 774 |
| (21) "Noncompetitive retail electric service" means a | 775 |
| component of retail electric service that is noncompetitive as | 776 |
| provided under division (B) of this section. | 777 |
| (22) "Nonfirm electric service" means electric service | 778 |
| provided pursuant to a schedule filed under section 4905.30 of the | 779 |
| Revised Code or pursuant to an arrangement under section 4905.31 | 780 |
| of the Revised Code, which schedule or arrangement includes | 781 |
| conditions that may require the customer to curtail or interrupt | 782 |
| electric usage during nonemergency circumstances upon notification | 783 |
| by an electric utility. | 784 |
| (23) "Percentage of income payment plan arrears" means funds | 785 |
| eligible for collection through the percentage of income payment | 786 |
| plan rider, but uncollected as of July 1, 2000. | 787 |
| (24) "Person" has the same meaning as in section 1.59 of the | 788 |
| Revised Code. | 789 |
| (25) "Advanced energy project" means any technologies, | 790 |
| products, activities, or management practices or strategies that | 791 |
| facilitate the generation or use of electricity or energy and that | 792 |
| reduce or support the reduction of energy consumption or support | 793 |
| the production of clean, renewable energy for industrial, | 794 |
| distribution, commercial, institutional, governmental, research, | 795 |
| not-for-profit, or residential energy users, including, but not | 796 |
| limited to, advanced energy resources and renewable energy | 797 |
| resources. "Advanced energy project" also includes any project | 798 |
| described in division (A), (B), or (C) of section 4928.621 of the | 799 |
| Revised Code. | 800 |
| (26) "Regulatory assets" means the unamortized net regulatory | 801 |
| assets that are capitalized or deferred on the regulatory books of | 802 |
| the electric utility, pursuant to an order or practice of the | 803 |
| public utilities commission or pursuant to generally accepted | 804 |
| accounting principles as a result of a prior commission | 805 |
| rate-making decision, and that would otherwise have been charged | 806 |
| to expense as incurred or would not have been capitalized or | 807 |
| otherwise deferred for future regulatory consideration absent | 808 |
| commission action. "Regulatory assets" includes, but is not | 809 |
| limited to, all deferred demand-side management costs; all | 810 |
| deferred percentage of income payment plan arrears; | 811 |
| post-in-service capitalized charges and assets recognized in | 812 |
| connection with statement of financial accounting standards no. | 813 |
| 109 (receivables from customers for income taxes); future nuclear | 814 |
| decommissioning costs and fuel disposal costs as those costs have | 815 |
| been determined by the commission in the electric utility's most | 816 |
| recent rate or accounting application proceeding addressing such | 817 |
| costs; the undepreciated costs of safety and radiation control | 818 |
| equipment on nuclear generating plants owned or leased by an | 819 |
| electric utility; and fuel costs currently deferred pursuant to | 820 |
| the terms of one or more settlement agreements approved by the | 821 |
| commission. | 822 |
| (27) "Retail electric service" means any service involved in | 823 |
| supplying or arranging for the supply of electricity to ultimate | 824 |
| consumers in this state, from the point of generation to the point | 825 |
| of consumption. For the purposes of this chapter, retail electric | 826 |
| service includes one or more of the following "service | 827 |
| components": generation service, aggregation service, power | 828 |
| marketing service, power brokerage service, transmission service, | 829 |
| distribution service, ancillary service, metering service, and | 830 |
| billing and collection service. | 831 |
| (28) "Starting date of competitive retail electric service" | 832 |
| means January 1, 2001. | 833 |
| (29) "Customer-generator" means a user of a net metering | 834 |
| system. | 835 |
| (30) "Net metering" means measuring the difference in an | 836 |
| applicable billing period between the electricity supplied by an | 837 |
| electric service provider and the electricity generated by a | 838 |
| customer-generator that is fed back to the electric service | 839 |
| provider. | 840 |
| (31) "Net metering system" means a facility for the | 841 |
| production of electrical energy that does all of the following: | 842 |
| (a) Uses as its fuel either solar, wind, biomass, landfill | 843 |
| gas, or hydropower, or uses a microturbine or a fuel cell; | 844 |
| (b) Is located on a customer-generator's premises; | 845 |
| (c) Operates in parallel with the electric utility's | 846 |
| transmission and distribution facilities; | 847 |
| (d) Is intended primarily to offset part or all of the | 848 |
| customer-generator's requirements for electricity. | 849 |
| (32) "Self-generator" means an entity in this state that owns | 850 |
| or hosts on its premises an electric generation facility that | 851 |
| produces electricity primarily for the owner's consumption and | 852 |
| that may provide any such excess electricity to another entity, | 853 |
| whether the facility is installed or operated by the owner or by | 854 |
| an agent under a contract. | 855 |
| (33) "Rate plan" means the standard service offer in effect | 856 |
| on the effective date of the amendment of this section by S.B. 221 | 857 |
| of the 127th general assembly, July 31, 2008. | 858 |
| (34) "Advanced energy resource" means any of the following: | 859 |
| (a) Any method or any modification or replacement of any | 860 |
| property, process, device, structure, or equipment that increases | 861 |
| the generation output of an electric generating facility to the | 862 |
| extent such efficiency is achieved without additional carbon | 863 |
| dioxide emissions by that facility; | 864 |
| (b) Any distributed generation system consisting of customer | 865 |
|
cogeneration of electricity and thermal output simultaneously | 866 |
| 867 |
| (c) Clean coal technology that includes a carbon-based | 868 |
| product that is chemically altered before combustion to | 869 |
| demonstrate a reduction, as expressed as ash, in emissions of | 870 |
| nitrous oxide, mercury, arsenic, chlorine, sulfur dioxide, or | 871 |
| sulfur trioxide in accordance with the American society of testing | 872 |
| and materials standard D1757A or a reduction of metal oxide | 873 |
| emissions in accordance with standard D5142 of that society, or | 874 |
| clean coal technology that includes the design capability to | 875 |
| control or prevent the emission of carbon dioxide, which design | 876 |
| capability the commission shall adopt by rule and shall be based | 877 |
| on economically feasible best available technology or, in the | 878 |
| absence of a determined best available technology, shall be of the | 879 |
| highest level of economically feasible design capability for which | 880 |
| there exists generally accepted scientific opinion; | 881 |
| (d) Advanced nuclear energy technology consisting of | 882 |
| generation III technology as defined by the nuclear regulatory | 883 |
| commission; other, later technology; or significant improvements | 884 |
| to existing facilities; | 885 |
| (e) Any fuel cell used in the generation of electricity, | 886 |
| including, but not limited to, a proton exchange membrane fuel | 887 |
| cell, phosphoric acid fuel cell, molten carbonate fuel cell, or | 888 |
| solid oxide fuel cell; | 889 |
| (f) Advanced solid waste or construction and demolition | 890 |
| debris conversion technology, including, but not limited to, | 891 |
| advanced stoker technology, and advanced fluidized bed | 892 |
| gasification technology, that results in measurable greenhouse gas | 893 |
| emissions reductions as calculated pursuant to the United States | 894 |
| environmental protection agency's waste reduction model (WARM). | 895 |
| (g) Demand-side management and any energy efficiency | 896 |
| improvement; | 897 |
| (h) Methane gas emitted from an operating or abandoned coal | 898 |
| mine. | 899 |
| (35) "Renewable energy resource" means solar photovoltaic or | 900 |
| solar thermal energy, wind energy, power produced by a | 901 |
| hydroelectric facility, geothermal energy, fuel derived from solid | 902 |
| wastes, as defined in section 3734.01 of the Revised Code, through | 903 |
| fractionation, biological decomposition, or other process that | 904 |
| does not principally involve combustion, biomass energy, | 905 |
| biologically derived methane gas, or energy derived from | 906 |
| nontreated by-products of the pulping process or wood | 907 |
| manufacturing process, including bark, wood chips, sawdust, and | 908 |
| lignin in spent pulping liquors. "Renewable energy resource" | 909 |
| includes, but is not limited to, any fuel cell used in the | 910 |
| generation of electricity, including, but not limited to, a proton | 911 |
| exchange membrane fuel cell, phosphoric acid fuel cell, molten | 912 |
| carbonate fuel cell, or solid oxide fuel cell; wind turbine | 913 |
| located in the state's territorial waters of Lake Erie; storage | 914 |
| facility that will promote the better utilization of a renewable | 915 |
| energy resource that primarily generates off peak; or distributed | 916 |
| generation system used by a customer to generate electricity from | 917 |
| any such energy. As used in division (A)(35) of this section, | 918 |
| "hydroelectric facility" means a hydroelectric generating facility | 919 |
| that is located at a dam on a river, or on any water discharged to | 920 |
| a river, that is within or bordering this state or within or | 921 |
| bordering an adjoining state and meets all of the following | 922 |
| standards: | 923 |
| (a) The facility provides for river flows that are not | 924 |
| detrimental for fish, wildlife, and water quality, including | 925 |
| seasonal flow fluctuations as defined by the applicable licensing | 926 |
| agency for the facility. | 927 |
| (b) The facility demonstrates that it complies with the water | 928 |
| quality standards of this state, which compliance may consist of | 929 |
| certification under Section 401 of the "Clean Water Act of 1977," | 930 |
| 91 Stat. 1598, 1599, 33 U.S.C. 1341, and demonstrates that it has | 931 |
| not contributed to a finding by this state that the river has | 932 |
| impaired water quality under Section 303(d) of the "Clean Water | 933 |
| Act of 1977," 114 Stat. 870, 33 U.S.C. 1313. | 934 |
| (c) The facility complies with mandatory prescriptions | 935 |
| regarding fish passage as required by the federal energy | 936 |
| regulatory commission license issued for the project, regarding | 937 |
|
fish protection for riverine, anadromous, and | 938 |
| catadromous fish. | 939 |
| (d) The facility complies with the recommendations of the | 940 |
| Ohio environmental protection agency and with the terms of its | 941 |
| federal energy regulatory commission license regarding watershed | 942 |
| protection, mitigation, or enhancement, to the extent of each | 943 |
| agency's respective jurisdiction over the facility. | 944 |
| (e) The facility complies with provisions of the "Endangered | 945 |
| Species Act of 1973," 87 Stat. 884, 16 U.S.C. 1531 to 1544, as | 946 |
| amended. | 947 |
| (f) The facility does not harm cultural resources of the | 948 |
| area. This can be shown through compliance with the terms of its | 949 |
| federal energy regulatory commission license or, if the facility | 950 |
| is not regulated by that commission, through development of a plan | 951 |
| approved by the Ohio historic preservation office, to the extent | 952 |
| it has jurisdiction over the facility. | 953 |
| (g) The facility complies with the terms of its federal | 954 |
| energy regulatory commission license or exemption that are related | 955 |
| to recreational access, accommodation, and facilities or, if the | 956 |
| facility is not regulated by that commission, the facility | 957 |
| complies with similar requirements as are recommended by resource | 958 |
| agencies, to the extent they have jurisdiction over the facility; | 959 |
| and the facility provides access to water to the public without | 960 |
| fee or charge. | 961 |
| (h) The facility is not recommended for removal by any | 962 |
| federal agency or agency of any state, to the extent the | 963 |
| particular agency has jurisdiction over the facility. | 964 |
| (B) For the purposes of this chapter, a retail electric | 965 |
| service component shall be deemed a competitive retail electric | 966 |
| service if the service component is competitive pursuant to a | 967 |
| declaration by a provision of the Revised Code or pursuant to an | 968 |
| order of the public utilities commission authorized under division | 969 |
| (A) of section 4928.04 of the Revised Code. Otherwise, the service | 970 |
| component shall be deemed a noncompetitive retail electric | 971 |
| service. | 972 |
| Sec. 4928.64. (A)(1) As used in sections 4928.64 and 4928.65 | 973 |
| of the Revised Code, "alternative energy resource" means an | 974 |
| advanced energy resource or renewable energy resource, as defined | 975 |
| in section 4928.01 of the Revised Code that has a | 976 |
| placed-in-service date of January 1, 1998, or after; a renewable | 977 |
| energy resource created on or after January 1, 1998, by the | 978 |
| modification or retrofit of any facility placed in service prior | 979 |
| to January 1, 1998; or a mercantile customer-sited advanced energy | 980 |
| resource or renewable energy resource, whether new or existing, | 981 |
| that the mercantile customer commits for integration into the | 982 |
| electric distribution utility's demand-response, energy | 983 |
| efficiency, or peak demand reduction programs as provided under | 984 |
| division (A)(2)(c) of section 4928.66 of the Revised Code, | 985 |
| including, but not limited to, any of the following: | 986 |
| (a) A resource that has the effect of improving the | 987 |
| relationship between real and reactive power; | 988 |
| (b) A resource that makes efficient use of waste heat or | 989 |
| other thermal capabilities owned or controlled by a mercantile | 990 |
| customer; | 991 |
| (c) Storage technology that allows a mercantile customer more | 992 |
| flexibility to modify its demand or load and usage | 993 |
| characteristics; | 994 |
| (d) Electric generation equipment owned or controlled by a | 995 |
| mercantile customer that uses an advanced energy resource or | 996 |
| renewable energy resource; | 997 |
| (e) Any advanced energy resource or renewable energy resource | 998 |
| of the mercantile customer that can be utilized effectively as | 999 |
| part of any advanced energy resource plan of an electric | 1000 |
| distribution utility and would otherwise qualify as an alternative | 1001 |
| energy resource if it were utilized directly by an electric | 1002 |
| distribution utility. | 1003 |
| (2) For the purpose of this section and as it considers | 1004 |
| appropriate, the public utilities commission may classify any new | 1005 |
| technology as such an advanced energy resource or a renewable | 1006 |
| energy resource. | 1007 |
| (B) By 2025 and thereafter, an electric distribution utility | 1008 |
| shall provide from alternative energy resources, including, at its | 1009 |
| discretion, alternative energy resources obtained pursuant to an | 1010 |
| electricity supply contract, a portion of the electricity supply | 1011 |
| required for its standard service offer under section 4928.141 of | 1012 |
| the Revised Code, and an electric services company shall provide a | 1013 |
| portion of its electricity supply for retail consumers in this | 1014 |
| state from alternative energy resources, including, at its | 1015 |
| discretion, alternative energy resources obtained pursuant to an | 1016 |
| electricity supply contract. That portion shall equal twenty-five | 1017 |
| per cent of the total number of kilowatt hours of electricity sold | 1018 |
| by the subject utility or company to any and all retail electric | 1019 |
| consumers whose electric load centers are served by that utility | 1020 |
| and are located within the utility's certified territory or, in | 1021 |
| the case of an electric services company, are served by the | 1022 |
| company and are located within this state. However, nothing in | 1023 |
| this section precludes a utility or company from providing a | 1024 |
| greater percentage. The baseline for a utility's or company's | 1025 |
| compliance with the alternative energy resource requirements of | 1026 |
| this section shall be the average of such total kilowatt hours it | 1027 |
| sold in the preceding three calendar years, except that the | 1028 |
| commission may reduce a utility's or company's baseline to adjust | 1029 |
| for new economic growth in the utility's certified territory or, | 1030 |
| in the case of an electric services company, in the company's | 1031 |
| service area in this state. | 1032 |
| Of the alternative energy resources implemented by the | 1033 |
| subject utility or company by 2025 and thereafter: | 1034 |
| (1) Half may be generated from advanced energy resources; | 1035 |
| (2) At least half shall be generated from renewable energy | 1036 |
| resources, including one-half per cent from solar energy | 1037 |
| resources, in accordance with the following benchmarks: | 1038 |
| By end of year | Renewable energy resources | Solar energy resources | 1039 | |
| 2009 | 0.25% | 0.004% | 1040 | |
| 2010 | 0.50% | 0.010% | 1041 | |
| 2011 | 1% | 0.030% | 1042 | |
| 2012 | 1.5% | 0.060% | 1043 | |
| 2013 | 2% | 0.090% | 1044 | |
| 2014 | 2.5% | 0.12% | 1045 | |
| 2015 | 3.5% | 0.15% | 1046 | |
| 2016 | 4.5% | 0.18% | 1047 | |
| 2017 | 5.5% | 0.22% | 1048 | |
| 2018 | 6.5% | 0.26% | 1049 | |
| 2019 | 7.5% | 0.3% | 1050 | |
| 2020 | 8.5% | 0.34% | 1051 | |
| 2021 | 9.5% | 0.38% | 1052 | |
| 2022 | 10.5% | 0.42% | 1053 | |
| 2023 | 11.5% | 0.46% | 1054 | |
| 2024 and each calendar year thereafter | 12.5% | 0.5% | 1055 |
| (3) At least one-half of the renewable energy resources | 1056 |
| implemented by the utility or company shall be met through | 1057 |
| facilities located in this state; the remainder shall be met with | 1058 |
| resources that can be shown to be deliverable into this state. | 1059 |
| (C)(1) The commission annually shall review an electric | 1060 |
| distribution utility's or electric services company's compliance | 1061 |
| with the most recent applicable benchmark under division (B)(2) of | 1062 |
| this section and, in the course of that review, shall identify any | 1063 |
| undercompliance or noncompliance of the utility or company that it | 1064 |
| determines is weather-related, related to equipment or resource | 1065 |
| shortages for advanced energy or renewable energy resources as | 1066 |
| applicable, or is otherwise outside the utility's or company's | 1067 |
| control. | 1068 |
| (2) Subject to the cost cap provisions of division (C)(3) of | 1069 |
| this section, if the commission determines, after notice and | 1070 |
| opportunity for hearing, and based upon its findings in that | 1071 |
| review regarding avoidable undercompliance or noncompliance, but | 1072 |
| subject to division (C)(4) of this section, that the utility or | 1073 |
| company has failed to comply with any such benchmark, the | 1074 |
| commission shall impose a renewable energy compliance payment on | 1075 |
| the utility or company. | 1076 |
| (a) The compliance payment pertaining to the solar energy | 1077 |
| resource benchmarks under division (B)(2) of this section shall be | 1078 |
| an amount per megawatt hour of undercompliance or noncompliance in | 1079 |
| the period under review, starting at four hundred fifty dollars | 1080 |
| for 2009, four hundred dollars for 2010 and 2011, and similarly | 1081 |
| reduced every two years thereafter through 2024 by fifty dollars, | 1082 |
| to a minimum of fifty dollars. | 1083 |
| (b) The compliance payment pertaining to the renewable energy | 1084 |
| resource benchmarks under division (B)(2) of this section shall | 1085 |
| equal the number of additional renewable energy credits that the | 1086 |
| electric distribution utility or electric services company would | 1087 |
| have needed to comply with the applicable benchmark in the period | 1088 |
| under review times an amount that shall begin at forty-five | 1089 |
| dollars and shall be adjusted annually by the commission to | 1090 |
| reflect any change in the consumer price index as defined in | 1091 |
| section 101.27 of the Revised Code, but shall not be less than | 1092 |
| forty-five dollars. | 1093 |
| (c) The compliance payment shall not be passed through by the | 1094 |
| electric distribution utility or electric services company to | 1095 |
| consumers. The compliance payment shall be remitted to the | 1096 |
| commission, for deposit to the credit of the advanced energy fund | 1097 |
| created under section 4928.61 of the Revised Code. Payment of the | 1098 |
| compliance payment shall be subject to such collection and | 1099 |
| enforcement procedures as apply to the collection of a forfeiture | 1100 |
| under sections 4905.55 to 4905.60 and 4905.64 of the Revised Code. | 1101 |
| (3) An electric distribution utility or an electric services | 1102 |
| company need not comply with a benchmark under division (B)(1) or | 1103 |
| (2) of this section to the extent that its reasonably expected | 1104 |
| cost of that compliance exceeds its reasonably expected cost of | 1105 |
| otherwise producing or acquiring the requisite electricity by | 1106 |
| three per cent or more. The cost of compliance shall be | 1107 |
| calculated as though any exemption from taxes and assessments | 1108 |
| had not been granted under section 5727.75 of the Revised Code. | 1109 |
| (4)(a) An electric distribution utility or electric services | 1110 |
| company may request the commission to make a force majeure | 1111 |
| determination pursuant to this division regarding all or part of | 1112 |
| the utility's or company's compliance with any minimum benchmark | 1113 |
| under division (B)(2) of this section during the period of review | 1114 |
| occurring pursuant to division (C)(2) of this section. The | 1115 |
| commission may require the electric distribution utility or | 1116 |
| electric services company to make solicitations for renewable | 1117 |
| energy resource credits as part of its default service before the | 1118 |
| utility's or company's request of force majeure under this | 1119 |
| division can be made. | 1120 |
| (b) Within ninety days after the filing of a request by an | 1121 |
| electric distribution utility or electric services company under | 1122 |
| division (C)(4)(a) of this section, the commission shall determine | 1123 |
| if renewable energy resources are reasonably available in the | 1124 |
| marketplace in sufficient quantities for the utility or company to | 1125 |
| comply with the subject minimum benchmark during the review | 1126 |
| period. In making this determination, the commission shall | 1127 |
| consider whether the electric distribution utility or electric | 1128 |
| services company has made a good faith effort to acquire | 1129 |
| sufficient renewable energy or, as applicable, solar energy | 1130 |
| resources to so comply, including, but not limited to, by banking | 1131 |
| or seeking renewable energy resource credits or by seeking the | 1132 |
| resources through long-term contracts. Additionally, the | 1133 |
| commission shall consider the availability of renewable energy or | 1134 |
| solar energy resources in this state and other jurisdictions in | 1135 |
| the PJM interconnection regional transmission organization or its | 1136 |
| successor and the midwest system operator or its successor. | 1137 |
| (c) If, pursuant to division (C)(4)(b) of this section, the | 1138 |
| commission determines that renewable energy or solar energy | 1139 |
| resources are not reasonably available to permit the electric | 1140 |
| distribution utility or electric services company to comply, | 1141 |
| during the period of review, with the subject minimum benchmark | 1142 |
| prescribed under division (B)(2) of this section, the commission | 1143 |
| shall modify that compliance obligation of the utility or company | 1144 |
| as it determines appropriate to accommodate the finding. | 1145 |
| Commission modification shall not automatically reduce the | 1146 |
| obligation for the electric distribution utility's or electric | 1147 |
| services company's compliance in subsequent years. If it modifies | 1148 |
| the electric distribution utility or electric services company | 1149 |
| obligation under division (C)(4)(c) of this section, the | 1150 |
| commission may require the utility or company, if sufficient | 1151 |
| renewable energy resource credits exist in the marketplace, to | 1152 |
| acquire additional renewable energy resource credits in subsequent | 1153 |
| years equivalent to the utility's or company's modified obligation | 1154 |
| under division (C)(4)(c) of this section. | 1155 |
| (5) The commission shall establish a process to provide for | 1156 |
| at least an annual review of the alternative energy resource | 1157 |
| market in this state and in the service territories of the | 1158 |
| regional transmission organizations that manage transmission | 1159 |
| systems located in this state. The commission shall use the | 1160 |
| results of this study to identify any needed changes to the amount | 1161 |
| of the renewable energy compliance payment specified under | 1162 |
| divisions (C)(2)(a) and (b) of this section. Specifically, the | 1163 |
| commission may increase the amount to ensure that payment of | 1164 |
| compliance payments is not used to achieve compliance with this | 1165 |
| section in lieu of actually acquiring or realizing energy derived | 1166 |
| from renewable energy resources. However, if the commission finds | 1167 |
| that the amount of the compliance payment should be otherwise | 1168 |
| changed, the commission shall present this finding to the general | 1169 |
| assembly for legislative enactment. | 1170 |
| (D)(1) The commission annually shall submit to the general | 1171 |
| assembly in accordance with section 101.68 of the Revised Code a | 1172 |
| report describing the compliance of electric distribution | 1173 |
| utilities and electric services companies with division (B) of | 1174 |
| this section and any strategy for utility and company compliance | 1175 |
| or for encouraging the use of alternative energy resources in | 1176 |
| supplying this state's electricity needs in a manner that | 1177 |
| considers available technology, costs, job creation, and economic | 1178 |
| impacts. The commission shall allow and consider public comments | 1179 |
| on the report prior to its submission to the general assembly. | 1180 |
| Nothing in the report shall be binding on any person, including | 1181 |
| any utility or company for the purpose of its compliance with any | 1182 |
| benchmark under division (B) of this section, or the enforcement | 1183 |
| of that provision under division (C) of this section. | 1184 |
| (2) The governor, in consultation with the commission | 1185 |
| chairperson, shall appoint an alternative energy advisory | 1186 |
| committee. The committee shall examine available technology for | 1187 |
| and related timetables, goals, and costs of the alternative energy | 1188 |
| resource requirements under division (B) of this section and shall | 1189 |
| submit to the commission a semiannual report of its | 1190 |
| recommendations. | 1191 |
| (E) All costs incurred by an electric distribution utility in | 1192 |
| complying with the requirements of this section shall be | 1193 |
| bypassable by any consumer that has exercised choice of supplier | 1194 |
| under section 4928.03 of the Revised Code. | 1195 |
| Sec. 4935.10. The public utilities commission shall conduct | 1196 |
| a study to review the condition of reactive power in the state. | 1197 |
| The commission shall issue a report of its findings to the general | 1198 |
| assembly not later than one year after the effective date of this | 1199 |
| section. | 1200 |
| Sec. 5709.53. (A) A solar, wind, or hydrothermal energy | 1201 |
| system on which construction or installation is completed during | 1202 |
| the period from the effective date of this section through | 1203 |
| December 31, 1985, that meets the guidelines established under | 1204 |
| division (B) of section 1551.20 of the Revised Code is exempt from | 1205 |
| real property taxation. | 1206 |
| (B) Any fixture or other real property included in an energy | 1207 |
| facility with an aggregate nameplate capacity of two hundred fifty | 1208 |
| kilowatts or less is exempt from taxation if construction or | 1209 |
| installation is completed on or after January 1, 2010. | 1210 |
| As used in division (B) of this section, "energy facility" | 1211 |
| and "nameplate capacity" have the same meanings as in section | 1212 |
| 5727.01 of the Revised Code. | 1213 |
| Sec. 5713.30. As used in sections 5713.31 to 5713.37 and | 1214 |
| 5715.01 of the Revised Code: | 1215 |
| (A) "Land devoted exclusively to agricultural use" means: | 1216 |
| (1) Tracts, lots, or parcels of land totaling not less than | 1217 |
| ten acres that, during the three calendar years prior to the year | 1218 |
| in which application is filed under section 5713.31 of the Revised | 1219 |
| Code, and through the last day of May of such year, were devoted | 1220 |
| exclusively to commercial animal or poultry husbandry, | 1221 |
| aquaculture, apiculture, the production for a commercial purpose | 1222 |
| of timber, field crops, tobacco, fruits, vegetables, nursery | 1223 |
| stock, ornamental trees, sod, or flowers, or the growth of timber | 1224 |
| for a noncommercial purpose, if the land on which the timber is | 1225 |
| grown is contiguous to or part of a parcel of land under common | 1226 |
| ownership that is otherwise devoted exclusively to agricultural | 1227 |
| use, or were devoted to and qualified for payments or other | 1228 |
| compensation under a land retirement or conservation program under | 1229 |
| an agreement with an agency of the federal government; | 1230 |
| (2) Tracts, lots, or parcels of land totaling less than ten | 1231 |
| acres that, during the three calendar years prior to the year in | 1232 |
| which application is filed under section 5713.31 of the Revised | 1233 |
| Code and through the last day of May of such year, were devoted | 1234 |
| exclusively to commercial animal or poultry husbandry, | 1235 |
| aquaculture, apiculture, the production for a commercial purpose | 1236 |
| of field crops, tobacco, fruits, vegetables, timber, nursery | 1237 |
| stock, ornamental trees, sod, or flowers where such activities | 1238 |
| produced an average yearly gross income of at least twenty-five | 1239 |
| hundred dollars during such three-year period or where there is | 1240 |
| evidence of an anticipated gross income of such amount from such | 1241 |
| activities during the tax year in which application is made, or | 1242 |
| were devoted to and qualified for payments or other compensation | 1243 |
| under a land retirement or conservation program under an agreement | 1244 |
| with an agency of the federal government; | 1245 |
| (3) A tract, lot, or parcel of land taxed under sections | 1246 |
| 5713.22 to 5713.26 of the Revised Code is not land devoted | 1247 |
| exclusively to agricultural use; | 1248 |
| (4) Tracts, lots, or parcels of land, or portions thereof | 1249 |
| that, during the previous three consecutive calendar years have | 1250 |
| been designated as land devoted exclusively to agricultural use, | 1251 |
| but such land has been lying idle or fallow for up to one year and | 1252 |
| no action has occurred to such land that is either inconsistent | 1253 |
| with the return of it to agricultural production or converts the | 1254 |
| land devoted exclusively to agricultural use as defined in this | 1255 |
| section. Such land shall remain designated as land devoted | 1256 |
| exclusively to agricultural use provided that beyond one year, but | 1257 |
| less than three years, the landowner proves good cause as | 1258 |
| determined by the board of revision. | 1259 |
| "Land devoted exclusively to agricultural use" includes | 1260 |
| tracts, lots, or parcels of land or portions thereof that are used | 1261 |
| for conservation practices, provided that the tracts, lots, or | 1262 |
| parcels of land or portions thereof comprise twenty-five per cent | 1263 |
| or less of the total of the tracts, lots, or parcels of land that | 1264 |
| satisfy the criteria established in division (A)(1), (2), or (4) | 1265 |
| of this section together with the tracts, lots, or parcels of land | 1266 |
| or portions thereof that are used for conservation practices. | 1267 |
| (B) "Conversion of land devoted exclusively to agricultural | 1268 |
| use" means any of the following: | 1269 |
| (1) The failure of the owner of land devoted exclusively to | 1270 |
| agricultural use during the next preceding calendar year to file a | 1271 |
| renewal application under section 5713.31 of the Revised Code | 1272 |
| without good cause as determined by the board of revision; | 1273 |
| (2) The failure of the new owner of such land to file an | 1274 |
| initial application under that section without good cause as | 1275 |
| determined by the board of revision; | 1276 |
| (3) The failure of such land or portion thereof to qualify as | 1277 |
| land devoted exclusively to agricultural use for the current | 1278 |
| calendar year as requested by an application filed under such | 1279 |
| section; | 1280 |
| (4) The failure of the owner of the land described in | 1281 |
| division (A)(4) of this section to act on such land in a manner | 1282 |
| that is consistent with the return of the land to agricultural | 1283 |
| production after three years. | 1284 |
| The construction or installation of an energy facility, as | 1285 |
| defined in section 5727.01 of the Revised Code, on a portion of a | 1286 |
| tract, lot, or parcel of land devoted exclusively to agricultural | 1287 |
| use shall not cause the remaining portion of the tract, lot, or | 1288 |
| parcel to be regarded as a conversion of land devoted exclusively | 1289 |
| to agricultural use if the remaining portion of the tract, lot, or | 1290 |
| parcel continues to be devoted exclusively to agricultural use. | 1291 |
| (C) "Tax savings" means the difference between the dollar | 1292 |
| amount of real property taxes levied in any year on land valued | 1293 |
| and assessed in accordance with its current agricultural use value | 1294 |
| and the dollar amount of real property taxes that would have been | 1295 |
| levied upon such land if it had been valued and assessed for such | 1296 |
| year in accordance with Section 2 of Article XII, Ohio | 1297 |
| Constitution. | 1298 |
| (D) "Owner" includes, but is not limited to, any person | 1299 |
| owning a fee simple, fee tail, or life estate or a buyer on a land | 1300 |
| installment contract. | 1301 |
| (E) "Conservation practices" are practices used to abate soil | 1302 |
| erosion as required in the management of the farming operation, | 1303 |
| and include, but are not limited to, the installation, | 1304 |
| construction, development, planting, or use of grass waterways, | 1305 |
| terraces, diversions, filter strips, field borders, windbreaks, | 1306 |
| riparian buffers, wetlands, ponds, and cover crops for that | 1307 |
| purpose. | 1308 |
| (F) "Wetlands" has the same meaning as in section 6111.02 of | 1309 |
| the Revised Code. | 1310 |
| Sec. 5713.34. (A)(1) Upon the conversion of all or any | 1311 |
| portion of a tract, lot, or parcel of land devoted exclusively to | 1312 |
| agricultural use a portion of the tax savings upon such converted | 1313 |
| land shall be recouped as provided for by Section 36, Article II, | 1314 |
| Ohio Constitution by levying a charge on such land in an amount | 1315 |
| equal to the amount of the tax savings on the converted land | 1316 |
| during the three tax years immediately preceding the year in which | 1317 |
| the conversion occurs. The charge shall constitute a lien of the | 1318 |
| state upon such converted land as of the first day of January of | 1319 |
| the tax year in which the charge is levied and shall continue | 1320 |
| until discharged as provided by law. | 1321 |
| (2) Upon the conversion of an adequately described portion of | 1322 |
| a tract, lot, or parcel of land, the county auditor shall divide | 1323 |
| any numbered permanent parcel into economic units and value each | 1324 |
| unit individually for the purpose of levying the charge under | 1325 |
| division (A)(1) of this section against only the converted | 1326 |
| portion. | 1327 |
| (3) A charge shall not be levied under this section for the | 1328 |
| conversion of a portion of a tract, lot, or parcel of land devoted | 1329 |
| exclusively to agricultural use if the conversion is incident to | 1330 |
| the construction or installation of an energy facility, as defined | 1331 |
| in section 5727.01 of the Revised Code, and if the remaining | 1332 |
| portion of the tract, lot, or parcel continues to be devoted | 1333 |
| exclusively to agricultural use. | 1334 |
| (B) Except as otherwise provided in division (C) or (D) of | 1335 |
| this section, a public entity that acquires by any means and | 1336 |
| converts land devoted exclusively to agricultural use and a | 1337 |
| private entity granted the power of eminent domain that acquires | 1338 |
| by any means and converts land devoted exclusively to agricultural | 1339 |
| use shall pay the charge levied by division (A) of this section | 1340 |
| and shall not, directly or indirectly, transfer the charge to the | 1341 |
| person from whom the land is acquired. A person injured by a | 1342 |
| violation of this division may recover, in a civil action, any | 1343 |
| damages resulting from the violation. | 1344 |
| (C) The charge levied by division (A)(1) of this section does | 1345 |
| not apply to the conversion of land acquired by a public entity by | 1346 |
| means other than eminent domain and thereafter used exclusively | 1347 |
| for a public purpose that leaves the land principally undeveloped | 1348 |
| when either of the following conditions applies: | 1349 |
| (1) In the case of land so acquired and converted by a park | 1350 |
| district created under Chapter 1545. of the Revised Code, the land | 1351 |
| is located within the boundaries of the park district. | 1352 |
| (2) In the case of land so acquired and converted by a public | 1353 |
| entity other than a park district created under Chapter 1545. of | 1354 |
| the Revised Code, the land is located within the boundaries of any | 1355 |
| city, local, exempted village, or joint vocational school district | 1356 |
| that is wholly or partially located within the boundaries of the | 1357 |
| public entity that so acquired and converted the land. | 1358 |
| If all or any portion of a tract, lot, or parcel of such land | 1359 |
| is later developed or otherwise converted to a purpose other than | 1360 |
| one of the purposes enumerated under division (E)(1) of this | 1361 |
| section, the charge levied by division (A)(1) of this section | 1362 |
| shall be levied against such developed or converted land as | 1363 |
| otherwise required by that division. | 1364 |
| The county auditor of the county in which the land is located | 1365 |
| shall determine annually whether all or any portion of a tract, | 1366 |
| lot, or parcel of land formerly converted to a purpose enumerated | 1367 |
| under division (E)(1) of this section has been developed in such a | 1368 |
| way or converted to such a purpose as to require the charge levied | 1369 |
| by division (A)(1) of this section to be levied against the land | 1370 |
| so developed or converted. | 1371 |
| (D) Division (B) of this section does not apply to a public | 1372 |
| entity that acquires by means other than eminent domain and | 1373 |
| converts land devoted exclusively to agricultural use to use for | 1374 |
| public, active or passive, outdoor education, recreation, or | 1375 |
| similar open space uses when either of the following conditions | 1376 |
| applies: | 1377 |
| (1) In the case of land so acquired and converted by a park | 1378 |
| district created under Chapter 1545. of the Revised Code, the land | 1379 |
| is located outside the boundaries of the park district. | 1380 |
| (2) In the case of land so acquired and converted by a public | 1381 |
| entity other than a park district created under Chapter 1545. of | 1382 |
| the Revised Code, the land is located outside the boundaries of | 1383 |
| any city, local, exempted village, or joint vocational school | 1384 |
| district that is wholly or partially located within the boundaries | 1385 |
| of the public entity that so acquired and converted the land. | 1386 |
| (E) As used in divisions (C) and (D) of this section: | 1387 |
| (1) "Principally undeveloped" means a parcel of real property | 1388 |
| that is used for public, active or passive, outdoor education, | 1389 |
| recreation, or similar open space uses and contains only the | 1390 |
| structures, roadways, and other facilities that are necessary for | 1391 |
| such uses. | 1392 |
| (2) "Public entity" means any political subdivision of this | 1393 |
| state or any agency or instrumentality of a political subdivision. | 1394 |
| Sec. 5727.01. As used in this chapter: | 1395 |
| (A) "Public utility" means each person referred to as a | 1396 |
| telephone company, telegraph company, electric company, natural | 1397 |
| gas company, pipe-line company, water-works company, water | 1398 |
| transportation company, heating company, rural electric company, | 1399 |
|
railroad company, | 1400 |
| (B) "Gross receipts" means the entire receipts for business | 1401 |
| done by any person from operations as a public utility, or | 1402 |
| incidental thereto, or in connection therewith, including any | 1403 |
| receipts received under Chapter 4928. of the Revised Code. The | 1404 |
| gross receipts for business done by an incorporated company | 1405 |
| engaged in operation as a public utility includes the entire | 1406 |
| receipts for business done by such company under the exercise of | 1407 |
| its corporate powers, whether from the operation as a public | 1408 |
| utility or from any other business. | 1409 |
| (C) "Rural electric company" means any nonprofit corporation, | 1410 |
| organization, association, or cooperative engaged in the business | 1411 |
| of supplying electricity to its members or persons owning an | 1412 |
| interest therein in an area the major portion of which is rural. | 1413 |
| "Rural electric company" excludes an energy company. | 1414 |
| (D) Any person: | 1415 |
| (1) Is a telegraph company when engaged in the business of | 1416 |
| transmitting telegraphic messages to, from, through, or in this | 1417 |
| state; | 1418 |
| (2) Is a telephone company when primarily engaged in the | 1419 |
| business of providing local exchange telephone service, excluding | 1420 |
| cellular radio service, in this state; | 1421 |
| (3) Is an electric company when engaged in the business of | 1422 |
| generating, transmitting, or distributing electricity within this | 1423 |
| state for use by others, but excludes a rural electric company or | 1424 |
| an energy company; | 1425 |
| (4) Is a natural gas company when engaged in the business of | 1426 |
| supplying or distributing natural gas for lighting, power, or | 1427 |
| heating purposes to consumers within this state, excluding a | 1428 |
| person that is a governmental aggregator or retail natural gas | 1429 |
| supplier as defined in section 4929.01 of the Revised Code; | 1430 |
| (5) Is a pipe-line company when engaged in the business of | 1431 |
| transporting natural gas, oil, or coal or its derivatives through | 1432 |
| pipes or tubing, either wholly or partially within this state; | 1433 |
| (6) Is a water-works company when engaged in the business of | 1434 |
| supplying water through pipes or tubing, or in a similar manner, | 1435 |
| to consumers within this state; | 1436 |
| (7) Is a water transportation company when engaged in the | 1437 |
| transportation of passengers or property, by boat or other | 1438 |
| watercraft, over any waterway, whether natural or artificial, from | 1439 |
| one point within this state to another point within this state, or | 1440 |
| between points within this state and points without this state; | 1441 |
| (8) Is a heating company when engaged in the business of | 1442 |
| supplying water, steam, or air through pipes or tubing to | 1443 |
| consumers within this state for heating purposes; | 1444 |
| (9) Is a railroad company when engaged in the business of | 1445 |
| owning or operating a railroad either wholly or partially within | 1446 |
| this state on rights-of-way acquired and held exclusively by such | 1447 |
| company, or otherwise, and includes a passenger, street, suburban, | 1448 |
| or interurban railroad company; | 1449 |
| (10) Is an energy company when engaged in the business of | 1450 |
| generating, transmitting, or distributing electricity within this | 1451 |
| state for use by others solely from an energy facility with an | 1452 |
| aggregate nameplate capacity in excess of two hundred fifty | 1453 |
| kilowatts. | 1454 |
| As used in division (D)(2) of this section, "local exchange | 1455 |
| telephone service" means making available or furnishing access and | 1456 |
| a dial tone to all persons within a local calling area for use in | 1457 |
| originating and receiving voice grade communications over a | 1458 |
| switched network operated by the provider of the service within | 1459 |
| the area and for gaining access to other telecommunication | 1460 |
| services. | 1461 |
| (E) "Taxable property" means the property required by section | 1462 |
| 5727.06 of the Revised Code to be assessed by the tax | 1463 |
| commissioner, but does not include either of the following: | 1464 |
| (1) An item of tangible personal property that for the period | 1465 |
| subsequent to the effective date of an air, water, or noise | 1466 |
| pollution control certificate and continuing so long as the | 1467 |
| certificate is in force, has been certified as part of the | 1468 |
| pollution control facility with respect to which the certificate | 1469 |
| has been issued; | 1470 |
| (2) An item of tangible personal property that during the | 1471 |
| construction of a plant or facility and until the item is first | 1472 |
| capable of operation, whether actually used in operation or not, | 1473 |
| is incorporated in or being held exclusively for incorporation in | 1474 |
| that plant or facility. | 1475 |
| Notwithstanding section 5701.03 of the Revised Code, for tax | 1476 |
| year 2006 and thereafter, "taxable property" includes patterns, | 1477 |
| jigs, dies, and drawings of an electric company or a combined | 1478 |
| company for use in the activity of an electric company. | 1479 |
| (F) "Taxing district" means a municipal corporation | 1480 |
| township, or part thereof, in which the aggregate rate of taxation | 1481 |
| is uniform. | 1482 |
| (G) "Telecommunications service" has the same meaning as in | 1483 |
| division (AA) of section 5739.01 of the Revised Code. | 1484 |
| (H) "Interexchange telecommunications company" means a person | 1485 |
| that is engaged in the business of transmitting telephonic | 1486 |
| messages to, from, through, or in this state, but that is not a | 1487 |
| telephone company. | 1488 |
| (I) "Sale and leaseback transaction" means a transaction in | 1489 |
| which a public utility or interexchange telecommunications company | 1490 |
| sells any tangible personal property to a person other than a | 1491 |
| public utility or interexchange telecommunications company and | 1492 |
| leases that property back from the buyer. | 1493 |
| (J) "Production equipment" means all taxable steam, nuclear, | 1494 |
| hydraulic, renewable resource, clean coal technology, and other | 1495 |
| production plant equipment used to generate electricity. For tax | 1496 |
| years prior to 2001, "production equipment" includes taxable | 1497 |
| station equipment that is located at a production plant. | 1498 |
| (K) "Tax year" means the year for which property or gross | 1499 |
| receipts are subject to assessment under this chapter. This | 1500 |
| division does not limit the tax commissioner's ability to assess | 1501 |
| and value property or gross receipts outside the tax year. | 1502 |
| (L) "Combined company" means any person engaged in the | 1503 |
| activity of an electric company or rural electric company that is | 1504 |
| also engaged in the activity of a heating company or a natural gas | 1505 |
| company, or any combination thereof. | 1506 |
| (M) "Public utility property lessor" means any person, other | 1507 |
| than a public utility or an interexchange telecommunications | 1508 |
| company, that leases personal property, other than in a sale and | 1509 |
| leaseback transaction, to a public utility, other than a railroad, | 1510 |
| water transportation, telephone, or telegraph company if the | 1511 |
| property would be taxable property if owned by the public utility. | 1512 |
| A public utility property lessor is subject to this chapter only | 1513 |
| for the purposes of reporting and paying tax on taxable property | 1514 |
| it leases to a public utility other than a telephone or telegraph | 1515 |
| company. A public utility property lessor that leases property to | 1516 |
| a public utility other than a telephone or telegraph company is | 1517 |
| not a public utility, but it shall report its property and be | 1518 |
| assessed in the same manner as the utility to which it leases the | 1519 |
| property. | 1520 |
| (N) "Energy resource" means any of the following: | 1521 |
| (1) "Renewable energy resource" as defined in section 4928.01 | 1522 |
| of the Revised Code; | 1523 |
| (2) "Clean coal technology" as described in division | 1524 |
| (A)(34)(c) of section 4928.01 of the Revised Code; | 1525 |
| (3) "Advanced nuclear technology" as described in division | 1526 |
| (A)(34)(d) of section 4928.01 of the Revised Code; | 1527 |
| (4) "Cogeneration technology" as described in division | 1528 |
| (A)(34)(b) of section 4928.01 of the Revised Code. | 1529 |
| (O) "Energy conversion equipment" means tangible personal | 1530 |
| property connected to a wind turbine tower, connected to and | 1531 |
| behind solar radiation collector areas and designed to convert the | 1532 |
| radiant energy of the sun into electricity or heat, or connected | 1533 |
| to any other property used to generate electricity from an energy | 1534 |
| resource, through which electricity is transferred to controls, | 1535 |
| transformers, or power electronics and to the transmission | 1536 |
| interconnection point. | 1537 |
| "Energy conversion equipment" includes, but is not limited | 1538 |
| to, inverters, batteries, switch gears, wiring, collection lines, | 1539 |
| substations, ancillary tangible personal property, or any lines | 1540 |
| and associated tangible personal property located between | 1541 |
| substations and the transmission interconnection point. | 1542 |
| (P) "Energy facility" means one or more interconnected wind | 1543 |
| turbines, solar panels, or other tangible personal property used | 1544 |
| to generate electricity from an energy resource owned by the same | 1545 |
| person, including: | 1546 |
| (1) All interconnection equipment, devices, and related | 1547 |
| apparatus connected to such tangible personal property; | 1548 |
| (2) All cables, equipment, devices, and related apparatus | 1549 |
| that connect the generators to an electricity grid or to a | 1550 |
| building or facility that directly consumes the electricity | 1551 |
| produced, that facilitate the transmission of electrical energy | 1552 |
| from the generators to the grid, building, or facility, and, where | 1553 |
| applicable, that transform voltage before ultimate delivery of | 1554 |
| electricity to the grid, building, or facility. | 1555 |
| "Energy facility" includes buildings, structures, | 1556 |
| improvements, or fixtures exclusively used to house, support, or | 1557 |
| stabilize tangible personal property constituting the facility or | 1558 |
| that are otherwise necessary for the operation of that property; | 1559 |
| and so much of the land on which such tangible personal property | 1560 |
| is situated as is required for operation of the facility and is | 1561 |
| not devoted to some other use, not to exceed, in the case of wind | 1562 |
| turbines, one-half acre for each wind turbine, and regardless of | 1563 |
| whether the land is owned by the owner or lessee of the tangible | 1564 |
| personal property or by another person. | 1565 |
| (Q) "Nameplate capacity" means the original interconnected | 1566 |
| maximum rated alternating current output of a generator or other | 1567 |
| electric production equipment under specific conditions designated | 1568 |
| by the manufacturer, expressed in the number of kilowatts or | 1569 |
| megawatts. | 1570 |
| Sec. 5727.02. As used in this chapter, "public utility," | 1571 |
| "electric company," "natural gas company," "pipe-line company," | 1572 |
| "water-works company," "water transportation company" or "heating | 1573 |
| company" does not include any of the following: | 1574 |
| (A)(1) Except as provided in division (A)(2) of this section, | 1575 |
| any person that is engaged in some other primary business to which | 1576 |
| the supplying of electricity, heat, natural gas, water, water | 1577 |
|
transportation, steam, or air to others is incidental. | 1578 |
| 1579 | |
| 1580 | |
| 1581 |
| (2) For tax year 2009 and each tax year thereafter, a person | 1582 |
| that is engaged in some other primary business to which the | 1583 |
| supplying of electricity to others is incidental shall be treated | 1584 |
| as an "electric company" and a "public utility" for purposes of | 1585 |
| this chapter solely to the extent required by section 5727.031 of | 1586 |
| the Revised Code. | 1587 |
| (3) For purposes of division (A) of this section and section | 1588 |
| 5727.031 of the Revised Code: | 1589 |
| (a) "Supplying of electricity" means generating, | 1590 |
| transmitting, or distributing electricity. | 1591 |
| (b) A person that leases to others energy facilities with an | 1592 |
| aggregate nameplate capacity in this state of two hundred fifty | 1593 |
| kilowatts or less per lease is not supplying electricity to | 1594 |
| others. | 1595 |
| (c) A person that owns, or leases from another person, energy | 1596 |
| facilities with an aggregate nameplate capacity in this state of | 1597 |
| two hundred fifty kilowatts or less is not supplying electricity | 1598 |
| to others, regardless of whether the owner or lessee engages in | 1599 |
| net metering as defined in section 4928.01 of the Revised Code. | 1600 |
| (d) A political subdivision of this state that owns an energy | 1601 |
| facility is not supplying electricity to others regardless of the | 1602 |
| nameplate capacity of the facility if the primary purpose of the | 1603 |
| facility is to supply electricity for the political subdivision's | 1604 |
| own use. As used in this division, "political subdivision" means a | 1605 |
| county, township, municipal corporation, or any other body | 1606 |
| corporate and politic that is responsible for government | 1607 |
| activities in a geographic area smaller than that of the state. | 1608 |
| (B) Any person that supplies electricity, natural gas, water, | 1609 |
| water transportation, steam, or air to its tenants, whether for a | 1610 |
| separate charge or otherwise; | 1611 |
| (C) Any person whose primary business in this state consists | 1612 |
| of producing, refining, or marketing petroleum or its products. | 1613 |
| (D) Any person whose primary business in this state consists | 1614 |
| of producing or gathering natural gas rather than supplying or | 1615 |
| distributing natural gas to consumers. | 1616 |
| Sec. 5727.06. (A) Except as otherwise provided by law, the | 1617 |
| following constitutes the taxable property of a public utility, | 1618 |
| interexchange telecommunications company, or public utility | 1619 |
| property lessor that shall be assessed by the tax commissioner: | 1620 |
| (1) For tax years before tax year 2006: | 1621 |
| (a) In the case of a railroad company, all real property and | 1622 |
| tangible personal property owned or operated by the railroad | 1623 |
| company in this state on the thirty-first day of December of the | 1624 |
| preceding year; | 1625 |
| (b) In the case of a water transportation company, all | 1626 |
| tangible personal property, except watercraft, owned or operated | 1627 |
| by the water transportation company in this state on the | 1628 |
| thirty-first day of December of the preceding year and all | 1629 |
| watercraft owned or operated by the water transportation company | 1630 |
| in this state during the preceding calendar year; | 1631 |
| (c) In the case of all other public utilities and | 1632 |
| interexchange telecommunications companies, all tangible personal | 1633 |
| property that on the thirty-first day of December of the preceding | 1634 |
| year was both located in this state and: | 1635 |
| (i) Owned by the public utility or interexchange | 1636 |
| telecommunications company; or | 1637 |
| (ii) Leased by the public utility or interexchange | 1638 |
| telecommunications company under a sale and leaseback transaction. | 1639 |
| (2) For tax years 2006, 2007, and 2008: | 1640 |
| (a) In the case of a railroad company, all real property used | 1641 |
| in railroad operations and tangible personal property owned or | 1642 |
| operated by the railroad company in this state on the thirty-first | 1643 |
| day of December of the preceding year; | 1644 |
| (b) In the case of a water transportation company, all | 1645 |
| tangible personal property, except watercraft, owned or operated | 1646 |
| by the water transportation company in this state on the | 1647 |
| thirty-first day of December of the preceding year and all | 1648 |
| watercraft owned or operated by the water transportation company | 1649 |
| in this state during the preceding calendar year; | 1650 |
| (c) In the case of all other public utilities except | 1651 |
| telephone and telegraph companies, all tangible personal property | 1652 |
| that on the thirty-first day of December of the preceding year was | 1653 |
| both located in this state and either owned by the public utility | 1654 |
| or leased by the public utility under a sale and leaseback | 1655 |
| transaction. | 1656 |
| (3) For tax year 2009 and each tax year thereafter: | 1657 |
| (a) In the case of a railroad company, all real property used | 1658 |
| in railroad operations and tangible personal property owned or | 1659 |
| operated by the railroad company in this state on the thirty-first | 1660 |
| day of December of the preceding year; | 1661 |
| (b) In the case of a water transportation company, all | 1662 |
| tangible personal property, except watercraft, owned or operated | 1663 |
| by the water transportation company in this state on the | 1664 |
| thirty-first day of December of the preceding year and all | 1665 |
| watercraft owned or operated by the water transportation company | 1666 |
| in this state during the preceding calendar year; | 1667 |
| (c) In the case of all other public utilities except | 1668 |
| telephone and telegraph companies, all tangible personal property | 1669 |
| that on the thirty-first day of December of the preceding year was | 1670 |
| both located in this state and either owned by the public utility | 1671 |
| or leased by the public utility under a sale and leaseback | 1672 |
| transaction, and that is not exempted from taxation under section | 1673 |
| 5727.75 of the Revised Code; | 1674 |
| (d) In the case of a public utility property lessor, all | 1675 |
| personal property that on the thirty-first day of December of the | 1676 |
| preceding year was both located in this state and leased, in other | 1677 |
| than a sale and leaseback transaction, to a public utility other | 1678 |
| than a railroad, telephone, telegraph, or water transportation | 1679 |
| company. The assessment rate used under section 5727.111 of the | 1680 |
| Revised Code shall be based on the assessment rate that would | 1681 |
| apply if the public utility owned the property, and that is not | 1682 |
| exempted from taxation under section 5727.75 of the Revised Code. | 1683 |
| (4) For tax years 2005 and 2006, in the case of telephone, | 1684 |
| telegraph, or interexchange telecommunications companies, all | 1685 |
| tangible personal property that on the thirty-first day of | 1686 |
| December of the preceding year was both located in this state and | 1687 |
| either owned by the telephone, telegraph, or interexchange | 1688 |
| telecommunications company or leased by the telephone, telegraph, | 1689 |
| or interexchange telecommunications company under a sale and | 1690 |
| leaseback transaction. | 1691 |
| (5)(a) For tax year 2007 and thereafter, in the case of | 1692 |
| telephone, telegraph, or interexchange telecommunications | 1693 |
| companies, all tangible personal property shall be listed and | 1694 |
| assessed for taxation under Chapter 5711. of the Revised Code, but | 1695 |
| the tangible personal property shall be valued in accordance with | 1696 |
| this chapter using the composite annual allowances and other | 1697 |
| valuation procedures prescribed under section 5727.11 of the | 1698 |
| Revised Code by the tax commissioner for such property for tax | 1699 |
| year 2006, notwithstanding any section of Chapter 5711. of the | 1700 |
| Revised Code to the contrary. | 1701 |
| (b) A telephone, telegraph, or interexchange | 1702 |
| telecommunications company subject to division (A)(5)(a) of this | 1703 |
| section shall file a combined return with the tax commissioner in | 1704 |
| accordance with section 5711.13 of the Revised Code even if the | 1705 |
| company has tangible personal property in only one county. Such a | 1706 |
| company also is subject to the issuance of a preliminary | 1707 |
| assessment certificate by the tax commissioner under section | 1708 |
| 5711.25 of the Revised Code. Such a company is not required to | 1709 |
| file a county supplemental return under section 5711.131 of the | 1710 |
| Revised Code. | 1711 |
| (6) In the case of an energy company, for tax year 2011 and | 1712 |
| each tax year thereafter, all tangible personal property that on | 1713 |
| the thirty-first day of December of the preceding year was both | 1714 |
| located in this state and either owned by the company or leased by | 1715 |
| the company under a sale and leaseback transaction, and that is | 1716 |
| not exempted from taxation under section 5727.75 of the Revised | 1717 |
| Code. | 1718 |
| (B) This division applies to tax years before tax year 2007. | 1719 |
| In the case of an interexchange telecommunications company, | 1720 |
| all taxable property shall be subject to the provisions of this | 1721 |
| chapter and shall be valued by the commissioner in accordance with | 1722 |
| division (A) of section 5727.11 of the Revised Code. A person | 1723 |
| described by this division shall file the report required by | 1724 |
| section 5727.08 of the Revised Code. Persons described in this | 1725 |
| division shall not be considered taxpayers, as defined in division | 1726 |
| (B) of section 5711.01 of the Revised Code, and shall not be | 1727 |
| required to file a return and list their taxable property under | 1728 |
| any provision of Chapter 5711. of the Revised Code. | 1729 |
| (C) The lien of the state for taxes levied each year on the | 1730 |
| real and personal property of public utilities and interexchange | 1731 |
| telecommunications companies and on the personal property of | 1732 |
| public utility property lessors shall attach thereto on the | 1733 |
| thirty-first day of December of the preceding year. | 1734 |
| (D) Property that is required by division (A)(3)(b) of this | 1735 |
| section to be assessed by the tax commissioner under this chapter | 1736 |
| shall not be listed by the owner of the property under Chapter | 1737 |
| 5711. of the Revised Code. | 1738 |
| (E) The ten-thousand-dollar exemption provided for in | 1739 |
| division (C)(3) of section 5709.01 of the Revised Code does not | 1740 |
| apply to any personal property that is valued under this chapter. | 1741 |
| (F) The tax commissioner may adopt rules governing the | 1742 |
| listing of the taxable property of public utilities and | 1743 |
| interexchange telecommunications companies and the determination | 1744 |
| of true value. | 1745 |
| Sec. 5727.11. (A) Except as otherwise provided in this | 1746 |
| section, the true value of all taxable property, except property | 1747 |
| of a railroad company, required by section 5727.06 of the Revised | 1748 |
| Code to be assessed by the tax commissioner shall be determined by | 1749 |
| a method of valuation using cost as capitalized on the public | 1750 |
| utility's books and records less composite annual allowances as | 1751 |
| prescribed by the commissioner. If the commissioner finds that | 1752 |
| application of this method will not result in the determination of | 1753 |
| true value of the public utility's taxable property, the | 1754 |
| commissioner may use another method of valuation. | 1755 |
| (B)(1) Except as provided in division (B)(2) of this section, | 1756 |
| the true value of current gas stored underground is the cost of | 1757 |
| that gas shown on the books and records of the public utility on | 1758 |
| the thirty-first day of December of the preceding year. | 1759 |
| (2) For tax year 2001 and thereafter, the true value of | 1760 |
| current gas stored underground is the quotient obtained by | 1761 |
| dividing (a) the average value of the current gas stored | 1762 |
| underground, which shall be determined by adding the value of the | 1763 |
| gas on hand at the end of each calendar month in the calendar year | 1764 |
| preceding the tax year, or, if applicable, the last day of | 1765 |
| business of each month for a partial month, divided by (b) the | 1766 |
| total number of months the natural gas company was in business | 1767 |
| during the calendar year prior to the beginning of the tax year. | 1768 |
| with the approval of the tax commissioner, a natural gas company | 1769 |
| may use a date other than the end of a calendar month to value its | 1770 |
| current gas stored underground. | 1771 |
| (C) The true value of noncurrent gas stored underground is | 1772 |
| thirty-five per cent of the cost of that gas shown on the books | 1773 |
| and records of the public utility on the thirty-first day of | 1774 |
| December of the preceding year. | 1775 |
| (D)(1) Except as provided in division (D)(2) of this section, | 1776 |
| the true value of the production equipment of an electric company | 1777 |
| and the true value of all taxable property of a rural electric | 1778 |
| company is the equipment's or property's cost as capitalized on | 1779 |
| the company's books and records less fifty per cent of that cost | 1780 |
| as an allowance for depreciation and obsolescence. | 1781 |
| (2) The true value of the production equipment or energy | 1782 |
|
conversion equipment of an electric company | 1783 |
| company, or energy company purchased, transferred, or placed into | 1784 |
|
service after | 1785 |
| 1999, is the purchase price of the equipment as capitalized on the | 1786 |
| company's books and records less composite annual allowances as | 1787 |
| prescribed by the tax commissioner. | 1788 |
| (E) The true value of taxable property, except property of a | 1789 |
| railroad company, required by section 5727.06 of the Revised Code | 1790 |
| to be assessed by the tax commissioner shall not include the | 1791 |
| allowance for funds used during construction or interest during | 1792 |
| construction that has been capitalized on the public utility's | 1793 |
| books and records as part of the total cost of the taxable | 1794 |
| property. This division shall not apply to the taxable property of | 1795 |
| an electric company or a rural electric company, excluding | 1796 |
| transmission and distribution property, first placed into service | 1797 |
| after December 31, 2000, or to the taxable property a person | 1798 |
| purchases, which includes transfers, if that property was used in | 1799 |
| business by the seller prior to the purchase. | 1800 |
| (F) The true value of watercraft owned or operated by a water | 1801 |
| transportation company shall be determined by multiplying the true | 1802 |
| value of the watercraft as determined under division (A) of this | 1803 |
| section by a fraction, the numerator of which is the number of | 1804 |
| revenue-earning miles traveled by the watercraft in the waters of | 1805 |
| this state and the denominator of which is the number of | 1806 |
| revenue-earning miles traveled by the watercraft in all waters. | 1807 |
| (G) The cost of property subject to a sale and leaseback | 1808 |
| transaction is the cost of the property as capitalized on the | 1809 |
| books and records of the public utility owning the property | 1810 |
| immediately prior to the sale and leaseback transaction. | 1811 |
| (H) The cost as capitalized on the books and records of a | 1812 |
| public utility includes amounts capitalized that represent | 1813 |
| regulatory assets, if such amounts previously were included on the | 1814 |
| company's books and records as capitalized costs of taxable | 1815 |
| personal property. | 1816 |
| (I) Any change in the composite annual allowances as | 1817 |
| prescribed by the commissioner on a prospective basis shall not be | 1818 |
| admissible in any judicial or administrative action or proceeding | 1819 |
| as evidence of value with regard to prior years' taxes. | 1820 |
| Information about the business, property, or transactions of any | 1821 |
| taxpayer obtained by the commissioner for the purpose of adopting | 1822 |
| or modifying the composite annual allowances shall not be subject | 1823 |
| to discovery or disclosure. | 1824 |
| Sec. 5727.111. The taxable property of each public utility, | 1825 |
| except a railroad company, and of each interexchange | 1826 |
| telecommunications company shall be assessed at the following | 1827 |
| percentages of true value: | 1828 |
| (A) | 1829 |
|
cent in the case of
| 1830 |
|
property | 1831 |
| equipment, and twenty-five per cent for all its other taxable | 1832 |
| property; | 1833 |
| (B) In the case of a telephone or telegraph company, | 1834 |
| twenty-five per cent for taxable property first subject to | 1835 |
| taxation in this state for tax year 1995 or thereafter for tax | 1836 |
| years before tax year 2007, and pursuant to division (H) of | 1837 |
| section 5711.22 of the Revised Code for tax year 2007 and | 1838 |
| thereafter, and the following for all other taxable property: | 1839 |
| (1) For tax years prior to 2005, eighty-eight per cent; | 1840 |
| (2) For tax year 2005, sixty-seven per cent; | 1841 |
| (3) For tax year 2006, forty-six per cent; | 1842 |
| (4) For tax year 2007 and thereafter, pursuant to division | 1843 |
| (H) of section 5711.22 of the Revised Code. | 1844 |
| (C) Twenty-five per cent in the case of a natural gas | 1845 |
| company. | 1846 |
| (D) Eighty-eight per cent in the case of a pipe-line, | 1847 |
| water-works, or heating company; | 1848 |
| (E)(1) For tax year 2005, eighty-eight per cent in the case | 1849 |
| of the taxable transmission and distribution property of an | 1850 |
| electric company, and twenty-five per cent for all its other | 1851 |
| taxable property; | 1852 |
| (2) For tax year 2006 and each tax year thereafter, in the | 1853 |
| case of an electric company, eighty-five per cent in the case of | 1854 |
| 1855 | |
| 1856 | |
| twenty-four per cent for all its other taxable property. | 1857 |
| (F)(1) Twenty-five per cent in the case of an interexchange | 1858 |
| telecommunications company for tax years before tax year 2007; | 1859 |
| (2) Pursuant to division (H) of section 5711.22 of the | 1860 |
| Revised Code for tax year 2007 and thereafter. | 1861 |
| (G) Twenty-five per cent in the case of a water | 1862 |
| transportation company; | 1863 |
| (H) For tax year 2011 and each tax year thereafter in the | 1864 |
| case of an energy company, twenty-four per cent in the case of its | 1865 |
| taxable production equipment, and eighty-five per cent for all its | 1866 |
| other taxable property. | 1867 |
| Sec. 5727.15. When all the taxable property of a public | 1868 |
| utility is located in one taxing district, the tax commissioner | 1869 |
| shall apportion the total taxable value thereof to that taxing | 1870 |
| district. | 1871 |
| When taxable property of a public utility is located in more | 1872 |
| than one taxing district, the commissioner shall apportion the | 1873 |
| total taxable value thereof among the taxing districts as follows: | 1874 |
| (A)(1) In the case of a telegraph, interexchange | 1875 |
| telecommunications, or telephone company that owns miles of wire | 1876 |
| in this state, the value apportioned to each taxing district shall | 1877 |
| be the same percentage of the total value apportioned to all | 1878 |
| taxing districts as the miles of wire owned by the company within | 1879 |
| the taxing district are to the total miles of wire owned by the | 1880 |
| company within this state; | 1881 |
| (2) In the case of a telegraph, interexchange | 1882 |
| telecommunications, or telephone company that does not own miles | 1883 |
| of wire in this state, the value apportioned to each taxing | 1884 |
| district shall be the same percentage of the total value | 1885 |
| apportioned to all taxing districts as the cost of the taxable | 1886 |
| property physically located in the taxing district is of the total | 1887 |
| cost of all taxable property physically located in this state. | 1888 |
| (B) In the case of a railroad company: | 1889 |
| (1) The taxable value of real and personal property not used | 1890 |
| in railroad operations shall be apportioned according to its | 1891 |
| situs; | 1892 |
| (2) The taxable value of personal property used in railroad | 1893 |
| operations shall be apportioned to each taxing district in | 1894 |
| proportion to the miles of track and trackage rights, weighted to | 1895 |
| reflect the relative use of such personal property in each taxing | 1896 |
| district; | 1897 |
| (3) The taxable value of real property used in railroad | 1898 |
| operations shall be apportioned to each taxing district in | 1899 |
| proportion to its relative value in each taxing district. | 1900 |
| (C)(1) Prior to tax year 2001, in the case of an electric | 1901 |
| company: | 1902 |
| (a) Seventy per cent of the taxable value of all production | 1903 |
| equipment and of all station equipment that is not production | 1904 |
| equipment shall be apportioned to the taxing district in which | 1905 |
| such property is physically located; and | 1906 |
| (b) The remaining value of such property, together with the | 1907 |
| value of all other taxable personal property, shall be apportioned | 1908 |
| to each taxing district in the per cent that the cost of all | 1909 |
| transmission and distribution property physically located in the | 1910 |
| taxing district is of the total cost of all transmission and | 1911 |
| distribution property physically located in this state. | 1912 |
| (c) If an electric company's taxable value for the current | 1913 |
| year includes the value of any production equipment at a plant at | 1914 |
| which the initial cost of the plant's production equipment | 1915 |
| exceeded one billion dollars, then prior to making the | 1916 |
| apportionments required for that company by division (C)(1)(a) and | 1917 |
| (b) of this section, the tax commissioner shall do the following: | 1918 |
| (i) Subtract four hundred twenty million dollars from the | 1919 |
| total taxable value of the production equipment at that plant for | 1920 |
| the current tax year. | 1921 |
| (ii) Multiply the difference thus obtained by a fraction, the | 1922 |
| numerator of which is the portion of the taxable value of that | 1923 |
| plant's production equipment included in the company's total value | 1924 |
| for the current tax year, and the denominator of which is the | 1925 |
| total taxable value of such equipment included in the total | 1926 |
| taxable value of all electric companies for such year; | 1927 |
| (iii) Apportion the product thus obtained to taxing districts | 1928 |
| in the manner prescribed in division (C)(1)(b) of this section. | 1929 |
| (iv) Deduct the amounts so apportioned from the taxable value | 1930 |
| of the company's production equipment at the plant, prior to | 1931 |
| making the apportionments required by divisions (C)(1)(a) and (b) | 1932 |
| of this section. | 1933 |
| For purposes of division (C)(1)(c) of this section, "initial | 1934 |
| cost" applies only to production equipment of plants placed in | 1935 |
| commercial operation on or after January 1, 1987, and means the | 1936 |
| cost of all production equipment at a plant for the first year the | 1937 |
| plant's equipment was subject to taxation. | 1938 |
| (2) For tax year 2001 and thereafter, in the case of an | 1939 |
| electric company: | 1940 |
| (a) The taxable value of all production equipment shall be | 1941 |
| apportioned to the taxing district in which such property is | 1942 |
| physically located; and | 1943 |
| (b) The value of taxable personal property, | 1944 |
| including energy conversion equipment but excluding production | 1945 |
| equipment, shall be apportioned to each taxing district in the | 1946 |
| proportion that the cost of such other taxable personal property | 1947 |
| physically located in each taxing district is of the total cost of | 1948 |
| such other taxable personal property physically located in this | 1949 |
| state. | 1950 |
| (D) For tax year 2011 and thereafter, in the case of the | 1951 |
| taxable property of an energy company: | 1952 |
| (1) The taxable value of all production equipment shall be | 1953 |
| apportioned to the taxing district in which such property is | 1954 |
| physically located. | 1955 |
| (2) The taxable value of all other taxable property, | 1956 |
| including energy conversion equipment, shall be apportioned to | 1957 |
| each taxing district in the proportion that the cost of such other | 1958 |
| taxable property physically located in each taxing district is of | 1959 |
| the total cost of such other taxable property physically located | 1960 |
| in this state. | 1961 |
| (E) In the case of all other public utilities, the taxable | 1962 |
| value of the property to be apportioned shall be apportioned to | 1963 |
|
each taxing district in proportion to the entire | 1964 |
| such property within this state. | 1965 |
| Sec. 5727.30. (A) Except as provided in divisions (B), (C), | 1966 |
| and (D) of this section, each public utility, except railroad | 1967 |
| companies, shall be subject to an annual excise tax, as provided | 1968 |
| by sections 5727.31 to 5727.62 of the Revised Code, for the | 1969 |
| privilege of owning property in this state or doing business in | 1970 |
| this state during the twelve-month period next succeeding the | 1971 |
| period upon which the tax is based. The tax shall be imposed | 1972 |
| against each such public utility that, on the first day of such | 1973 |
| twelve-month period, owns property in this state or is doing | 1974 |
| business in this state, and the lien for the tax, including any | 1975 |
| penalties and interest accruing thereon, shall attach on such day | 1976 |
| to the property of the public utility in this state. | 1977 |
| (B) | 1978 |
| Gross receipts of an electric company, rural electric company, or | 1979 |
| energy company received after April 30, 2001, are not subject to | 1980 |
| the annual excise tax imposed by this section. | 1981 |
| (C) A natural gas company's gross receipts received after | 1982 |
| April 30, 2000, are not subject to the annual excise tax imposed | 1983 |
| by this section. | 1984 |
| (D) A telephone company's gross receipts derived from amounts | 1985 |
| billed to customers after June 30, 2004, are not subject to the | 1986 |
| annual excise tax imposed by this section. Notwithstanding any | 1987 |
| other provision of law, gross receipts derived from amounts billed | 1988 |
| by a telephone company to customers prior to July 1, 2004, shall | 1989 |
| be included in the telephone company's annual statement filed on | 1990 |
| or before August 1, 2004, which shall be the last statement or | 1991 |
| report filed under section 5727.31 of the Revised Code by a | 1992 |
| telephone company. A telephone company shall not deduct from its | 1993 |
| gross receipts included in that last statement any receipts it was | 1994 |
| unable to collect from its customers for the period of July 1, | 1995 |
| 2003, to June 30, 2004. | 1996 |
| Sec. 5727.75. (A) For purposes of this section: | 1997 |
| (1) "Qualified energy project" means an energy project | 1998 |
| certified by the director of development pursuant to this section. | 1999 |
| (2) "Energy project" means a project to provide electric | 2000 |
| power through the construction, installation, and use of an energy | 2001 |
| facility. | 2002 |
| (3) "Alternative energy zone" means a county declared as such | 2003 |
| by the board of county commissioners under division (E)(1)(b) or | 2004 |
| (c) of this section. | 2005 |
| (4) "Full-time equivalent employee" means the total number of | 2006 |
| employee-hours for which compensation was paid to individuals | 2007 |
| employed at a qualified energy project for services performed at | 2008 |
| the project during the calendar year divided by two thousand | 2009 |
| eighty hours. | 2010 |
| (5) "Solar energy project" means an energy project composed | 2011 |
| of an energy facility using solar panels to generate electricity. | 2012 |
| (B)(1) Tangible personal property of a qualified energy | 2013 |
| project using renewable energy resources is exempt from taxation | 2014 |
| for tax years 2011 and 2012 if all of the following conditions are | 2015 |
| satisfied: | 2016 |
| (a) On or before December 31, 2011, the owner or a lessee | 2017 |
| pursuant to a sale and leaseback transaction of the project | 2018 |
| submits an application to the power siting board for a certificate | 2019 |
| under section 4906.20 of the Revised Code, or if that section does | 2020 |
| not apply, submits an application for any approval, consent, | 2021 |
| permit, or certificate or satisfies any condition required by a | 2022 |
| public agency or political subdivision of this state for the | 2023 |
| construction or initial operation of an energy project. | 2024 |
| (b) Construction or installation of the energy facility | 2025 |
| begins on or after January 1, 2009, and before January 1, 2012. | 2026 |
| For the purposes of this division, construction begins on the | 2027 |
| earlier of the date of application for a certificate or other | 2028 |
| approval or permit described in division (B)(1)(a) of this | 2029 |
| section, or the date the contract for the construction or | 2030 |
| installation of the energy facility is entered into. | 2031 |
| (c) For a qualified energy project with a nameplate capacity | 2032 |
| of five megawatts or greater, a board of county commissioners of a | 2033 |
| county in which property of the project is located has adopted a | 2034 |
| resolution under division (E)(1)(b) or (c) of this section to | 2035 |
| approve the application submitted under division (E) of this | 2036 |
| section to exempt the property located in that county from | 2037 |
| taxation. A board's adoption of a resolution rejecting an | 2038 |
| application or its failure to adopt a resolution approving the | 2039 |
| application does not affect the tax-exempt status of the qualified | 2040 |
| energy project's property that is located in another county. | 2041 |
| (2) If tangible personal property of a qualified energy | 2042 |
| project using renewable energy resources was exempt from taxation | 2043 |
| under this section for tax years 2011 and 2012 and the | 2044 |
| certification under division (E)(2) of this section has not been | 2045 |
| revoked, the tangible personal property of the qualified energy | 2046 |
| project is exempt from taxation for tax year 2013 and all ensuing | 2047 |
| tax years if the property was placed into service before January | 2048 |
| 1, 2013, as certified in the construction progress report required | 2049 |
| under division (F)(2) of this section. Tangible personal property | 2050 |
| that has not been placed into service before that date is taxable | 2051 |
| property subject to taxation. An energy project for which | 2052 |
| certification has been revoked is ineligible for further exemption | 2053 |
| under this section. Revocation does not affect the tax-exempt | 2054 |
| status of the project's tangible personal property for the tax | 2055 |
| year in which revocation occurs or any prior tax year. | 2056 |
| (C) Tangible personal property of a qualified energy project | 2057 |
| using clean coal technology, advanced nuclear technology, or | 2058 |
| cogeneration technology is exempt from taxation for the first tax | 2059 |
| year that the property would be listed for taxation and all | 2060 |
| subsequent years if all of the following circumstances are met: | 2061 |
| (1) The property was placed into service before January 1, | 2062 |
| 2017. Tangible personal property that has not been placed into | 2063 |
| service before that date is taxable property subject to taxation. | 2064 |
| (2) For such a qualified energy project with a nameplate | 2065 |
| capacity of five megawatts or greater, a board of county | 2066 |
| commissioners of a county in which property of the qualified | 2067 |
| energy project is located has adopted a resolution under division | 2068 |
| (E)(1)(b) or (c) of this section to approve the application | 2069 |
| submitted under division (E) of this section to exempt the | 2070 |
| property located in that county from taxation. A board's adoption | 2071 |
| of a resolution rejecting the application or its failure to adopt | 2072 |
| a resolution approving the application does not affect the | 2073 |
| tax-exempt status of the qualified energy project's property that | 2074 |
| is located in another county. | 2075 |
| (3) The certification for the qualified energy project issued | 2076 |
| under division (E)(2) of this section has not been revoked. An | 2077 |
| energy project for which certification has been revoked is | 2078 |
| ineligible for exemption under this section. Revocation does not | 2079 |
| affect the tax-exempt status of the project's tangible personal | 2080 |
| property for the tax year in which revocation occurs or any prior | 2081 |
| tax year. | 2082 |
| (D) Except as otherwise provided in this division, real | 2083 |
| property of a qualified energy project is exempt from taxation for | 2084 |
| any tax year for which the tangible personal property of the | 2085 |
| qualified energy project is exempted under this section. | 2086 |
| (E)(1)(a) A person may apply to the director of development | 2087 |
| for certification of an energy project as a qualified energy | 2088 |
| project on or before the following dates: | 2089 |
| (i) December 31, 2011, for an energy project using renewable | 2090 |
| energy resources; | 2091 |
| (ii) December 31, 2013, for an energy project using clean | 2092 |
| coal technology, advanced nuclear technology, or cogeneration | 2093 |
| technology. | 2094 |
| (b) The director shall forward a copy of each application for | 2095 |
| certification of an energy project with a nameplate capacity of | 2096 |
| five megawatts or greater to the board of county commissioners of | 2097 |
| each county in which the project is located and to each taxing | 2098 |
| unit with territory located in each of the affected counties. Any | 2099 |
| board that receives from the director a copy of an application | 2100 |
| submitted under this division shall adopt a resolution approving | 2101 |
| or rejecting the application unless it has adopted a resolution | 2102 |
| under division (E)(1)(c) of this section. A resolution adopted | 2103 |
| under division (E)(1)(b) or (c) of this section may require an | 2104 |
| annual service payment to be made in addition to the service | 2105 |
| payment required under division (G) of this section. The sum of | 2106 |
| the service payment required in the resolution and the service | 2107 |
| payment required under division (G) of this section shall not | 2108 |
| exceed nine thousand dollars per megawatt of nameplate capacity | 2109 |
| located in the county. The resolution shall specify the time and | 2110 |
| manner in which the payments required by the resolution shall be | 2111 |
| paid to the county treasurer. The county treasurer shall deposit | 2112 |
| the payment to the credit of the county's general fund to be used | 2113 |
| for any purpose for which money credited to that fund may be used. | 2114 |
| The board shall send copies of the resolution by certified | 2115 |
| mail to the owner of the facility and the director within thirty | 2116 |
| days after receipt of the application, or a longer period of time | 2117 |
| if authorized by the director. | 2118 |
| (c) A board of county commissioners may adopt a resolution | 2119 |
| declaring the county to be an alternative energy zone and | 2120 |
| declaring all applications submitted to the director of | 2121 |
| development under this division after the adoption of the | 2122 |
| resolution, and prior to its repeal, to be approved by the board. | 2123 |
| All tangible personal property and real property of an energy | 2124 |
| project with a nameplate capacity of five megawatts or greater is | 2125 |
| taxable if it is located in a county in which the board of county | 2126 |
| commissioners adopted a resolution rejecting the application | 2127 |
| submitted under this division or failed to adopt a resolution | 2128 |
| approving the application under division (E)(1)(b) or (c) of this | 2129 |
| section. | 2130 |
| (2) The director shall certify an energy project if all of | 2131 |
| the following circumstances exist: | 2132 |
| (a) The application was timely submitted. | 2133 |
| (b) For an energy project with a nameplate capacity of five | 2134 |
| megawatts or greater, a board of county commissioners of at least | 2135 |
| one county in which the project is located has adopted a | 2136 |
| resolution approving the application under division (E)(1)(b) or | 2137 |
| (c) of this section. | 2138 |
| (c) No portion of the project's facility was used to supply | 2139 |
| electricity before December 31, 2009. | 2140 |
| (3) The director shall deny a certification application if | 2141 |
| the director determines the person has failed to comply with any | 2142 |
| requirement under this section. The director may revoke a | 2143 |
| certification if the director determines the person, or subsequent | 2144 |
| owner or lessee pursuant to a sale and leaseback transaction of | 2145 |
| the qualified energy project, has failed to comply with any | 2146 |
| requirement under this section. Upon certification or revocation, | 2147 |
| the director shall notify the person, owner, or lessee, the tax | 2148 |
| commissioner, and the county auditor of a county in which the | 2149 |
| project is located of the certification or revocation. Notice | 2150 |
| shall be provided in a manner convenient to the director. | 2151 |
| (F) The owner or a lessee pursuant to a sale and leaseback | 2152 |
| transaction of a qualified energy project shall do each of the | 2153 |
| following: | 2154 |
| (1) Comply with all applicable regulations; | 2155 |
| (2) File with the director of development a certified | 2156 |
| construction progress report before the first day of March of each | 2157 |
| year during the energy facility's construction or installation | 2158 |
| indicating the percentage of the project completed, and the | 2159 |
| project's nameplate capacity, as of the preceding thirty-first day | 2160 |
| of December. Unless otherwise instructed by the director of | 2161 |
| development, the owner or lessee of an energy project shall file a | 2162 |
| report with the director on or before the first day of March each | 2163 |
| year after completion of the energy facility's construction or | 2164 |
| installation indicating the project's nameplate capacity as of the | 2165 |
| preceding thirty-first day of December. Not later than sixty days | 2166 |
| after the effective date of this section, the owner or lessee of | 2167 |
| an energy project, the construction of which was completed before | 2168 |
| the effective date of this section, shall file a certificate | 2169 |
| indicating the project's nameplate capacity. | 2170 |
| (3) File with the director of development, in a manner | 2171 |
| prescribed by the director, a report of the total number of | 2172 |
| full-time equivalent employees, and the total number of full-time | 2173 |
| equivalent employees domiciled in Ohio, who are employed in the | 2174 |
| construction or installation of the energy facility; | 2175 |
| (4) For energy projects with a nameplate capacity of five | 2176 |
| megawatts or greater, repair all roads, bridges, and culverts | 2177 |
| affected by construction as reasonably required to restore them to | 2178 |
| their preconstruction condition, as determined by the county | 2179 |
| engineer in consultation with the local jurisdiction responsible | 2180 |
| for the roads, bridges, and culverts. In the event that the county | 2181 |
| engineer deems any road, bridge, or culvert to be inadequate to | 2182 |
| support the construction or decommissioning of the energy | 2183 |
| facility, the road, bridge, or culvert shall be rebuilt or | 2184 |
| reinforced to the specifications established by the county | 2185 |
| engineer prior to the construction or decommissioning of the | 2186 |
| facility. The owner or lessee of the facility shall post a bond in | 2187 |
| an amount established by the county engineer and to be held by the | 2188 |
| board of county commissioners to ensure funding for repairs of | 2189 |
| roads, bridges, and culverts affected during the construction. The | 2190 |
| bond shall be released by the board not later than one year after | 2191 |
| the date the repairs are completed. The energy facility owner or | 2192 |
| lessee pursuant to a sale and leaseback transaction shall post a | 2193 |
| bond, as may be required by the Ohio power siting board in the | 2194 |
| certificate authorizing commencement of construction issued | 2195 |
| pursuant to section 4906.10 of the Revised Code, to ensure funding | 2196 |
| for repairs to roads, bridges, and culverts resulting from | 2197 |
| decommissioning of the facility. The energy facility owner or | 2198 |
| lessee and the county engineer may enter into an agreement | 2199 |
| regarding specific transportation plans, reinforcements, | 2200 |
| modifications, use and repair of roads, financial security to be | 2201 |
| provided, and any other relevant issue. | 2202 |
| (5) Provide or facilitate training for fire and emergency | 2203 |
| responders for response to emergency situations related to the | 2204 |
| energy project and, for energy projects with a nameplate capacity | 2205 |
| of five megawatts or greater, at the person's expense, equip the | 2206 |
| fire and emergency responders with proper equipment as reasonably | 2207 |
| required to enable them to respond to such emergency situations; | 2208 |
| (6) Maintain a ratio of Ohio-domiciled full-time equivalent | 2209 |
| employees employed in the construction or installation of the | 2210 |
| energy project to total full-time equivalent employees employed | 2211 |
| in the construction or installation of the energy project of not | 2212 |
| less than eighty per cent in the case of a solar energy project, | 2213 |
| and not less than fifty per cent in the case of any other energy | 2214 |
| project. In the case of an energy project for which certification | 2215 |
| from the power siting board is required under section 4906.20 of | 2216 |
| the Revised Code, the number of full-time equivalent employees | 2217 |
| employed in the construction or installation of the energy project | 2218 |
| equals the number actually employed or the number projected to be | 2219 |
| employed in the certificate application, if such projection is | 2220 |
| required under regulations adopted pursuant to section 4906.03 of | 2221 |
| the Revised Code, whichever is greater. For all other energy | 2222 |
| projects, the number of full-time equivalent employees employed | 2223 |
| in the construction or installation of the energy project equals | 2224 |
| the number actually employed or the number projected to be | 2225 |
| employed by the director of development, whichever is greater. To | 2226 |
| estimate the number of employees to be employed in the | 2227 |
| construction or installation of an energy project, the director | 2228 |
| shall use a generally accepted job-estimating model in use for | 2229 |
| renewable energy projects, including but not limited to the job | 2230 |
| and economic development impact model. The director may adjust an | 2231 |
| estimate produced by a model to account for variables not | 2232 |
| accounted for by the model. | 2233 |
| (7) For energy projects with a nameplate capacity in excess | 2234 |
| of two megawatts, establish a relationship with a member of the | 2235 |
| university system of Ohio as defined in section 3345.011 of the | 2236 |
| Revised Code or with a person offering an apprenticeship program | 2237 |
| registered with the employment and training administration within | 2238 |
| the United States department of labor or with the apprenticeship | 2239 |
| council created by section 4139.02 of the Revised Code, to educate | 2240 |
| and train individuals for careers in the wind or solar energy | 2241 |
| industry. The relationship may include endowments, cooperative | 2242 |
| programs, internships, apprenticeships, research and development | 2243 |
| projects, and curriculum development. | 2244 |
| (8) Offer to sell power or renewable energy credits from the | 2245 |
| energy project to electric distribution utilities or electric | 2246 |
| service companies subject to renewable energy resource | 2247 |
| requirements under section 4928.64 of the Revised Code that have | 2248 |
| issued requests for proposal for such power or renewable energy | 2249 |
| credits. If no electric distribution utility or electric service | 2250 |
| company issues a request for proposal on or before December 31, | 2251 |
| 2010, or accepts an offer for power or renewable energy credits | 2252 |
| within forty-five days after the offer is submitted, power or | 2253 |
| renewable energy credits from the energy project may be sold to | 2254 |
| other persons. Division (F)(8) of this section does not apply if: | 2255 |
| (a) The owner or lessee is a rural electric company or a | 2256 |
| municipal power agency as defined in section 3734.058 of the | 2257 |
| Revised Code. | 2258 |
| (b) The owner or lessee is a person that, before completion | 2259 |
| of the energy project, contracted for the sale of power or | 2260 |
| renewable energy credits with a rural electric company or a | 2261 |
| municipal power agency. | 2262 |
| (c) The owner or lessee contracts for the sale of power or | 2263 |
| renewable energy credits from the energy project before the | 2264 |
| effective date of this section as enacted by this act. | 2265 |
| (9) Make annual service payments as required by division (G) | 2266 |
| of this section and as may be required in a resolution adopted by | 2267 |
| a board of county commissioners under division (E) of this | 2268 |
| section. | 2269 |
| (G) The owner or a lessee pursuant to a sale and leaseback | 2270 |
| transaction of a qualified energy project shall make annual | 2271 |
| service payments in lieu of taxes to the county treasurer on or | 2272 |
| before the final dates for payments of taxes on public utility | 2273 |
| personal property on the real and public utility personal property | 2274 |
| tax list for each tax year for which property of the energy | 2275 |
| project is exempt from taxation under this section. The county | 2276 |
| treasurer shall allocate the payment on the basis of the project's | 2277 |
| physical location. Upon receipt of a payment, or if timely payment | 2278 |
| has not been received, the county treasurer shall certify such | 2279 |
| receipt or non-receipt to the director of development and tax | 2280 |
| commissioner in a form determined by the director and | 2281 |
| commissioner, respectively. Each payment shall be in the following | 2282 |
| amount: | 2283 |
| (1) In the case of a solar energy project, seven thousand | 2284 |
| dollars per megawatt of nameplate capacity located in the county | 2285 |
| as of December 31, 2010, for tax year 2011, as of December 31, | 2286 |
| 2011, for tax year 2012, and as of December 31, 2012, for tax year | 2287 |
| 2013 and each tax year thereafter; | 2288 |
| (2) In the case of any other energy project using renewable | 2289 |
| energy resources, the following: | 2290 |
| (a) If the project maintains during the construction or | 2291 |
| installation of the energy facility a ratio of Ohio-domiciled | 2292 |
| full-time equivalent employees to total full-time equivalent | 2293 |
| employees of not less than seventy-five per cent, six thousand | 2294 |
| dollars per megawatt of nameplate capacity located in the county | 2295 |
| as of the thirty-first day of December of the preceding tax year; | 2296 |
| (b) If the project maintains during the construction or | 2297 |
| installation of the energy facility a ratio of Ohio-domiciled | 2298 |
| full-time equivalent employees to total full-time equivalent | 2299 |
| employees of less than seventy-five per cent but not less than | 2300 |
| sixty per cent, seven thousand dollars per megawatt of nameplate | 2301 |
| capacity located in the county as of the thirty-first day of | 2302 |
| December of the preceding tax year; | 2303 |
| (c) If the project maintains during the construction or | 2304 |
| installation of the energy facility a ratio of Ohio-domiciled | 2305 |
| full-time equivalent employees to total full-time equivalent | 2306 |
| employees of less than sixty per cent but not less than fifty per | 2307 |
| cent, eight thousand dollars per megawatt of nameplate capacity | 2308 |
| located in the county as of the thirty-first day of December of | 2309 |
| the preceding tax year. | 2310 |
| (3) In the case of an energy project using clean coal | 2311 |
| technology, advanced nuclear technology, or cogeneration | 2312 |
| technology, the following: | 2313 |
| (a) If the project maintains during the construction or | 2314 |
| installation of the energy facility a ratio of Ohio-domiciled | 2315 |
| full-time equivalent employees to total full-time equivalent | 2316 |
| employees of not less than seventy-five per cent, six thousand | 2317 |
| dollars per megawatt of nameplate capacity located in the county | 2318 |
| as of the thirty-first day of December of the preceding tax year; | 2319 |
| (b) If the project maintains during the construction or | 2320 |
| installation of the energy facility a ratio of Ohio-domiciled | 2321 |
| full-time equivalent employees to total full-time equivalent | 2322 |
| employees of less than seventy-five per cent but not less than | 2323 |
| sixty per cent, seven thousand dollars per megawatt of nameplate | 2324 |
| capacity located in the county as of the thirty-first day of | 2325 |
| December of the preceding tax year; | 2326 |
| (c) If the project maintains during the construction or | 2327 |
| installation of the energy facility a ratio of Ohio-domiciled | 2328 |
| full-time equivalent employees to total full-time equivalent | 2329 |
| employees of less than sixty per cent but not less than fifty per | 2330 |
| cent, eight thousand dollars per megawatt of nameplate capacity | 2331 |
| located in the county as of the thirty-first day of December of | 2332 |
| the preceding tax year. | 2333 |
| (H) The director of development in consultation with the tax | 2334 |
| commissioner shall adopt rules pursuant to Chapter 119. of the | 2335 |
| Revised Code to implement and enforce this section. | 2336 |
| Sec. 5739.02. For the purpose of providing revenue with | 2337 |
| which to meet the needs of the state, for the use of the general | 2338 |
| revenue fund of the state, for the purpose of securing a thorough | 2339 |
| and efficient system of common schools throughout the state, for | 2340 |
| the purpose of affording revenues, in addition to those from | 2341 |
| general property taxes, permitted under constitutional | 2342 |
| limitations, and from other sources, for the support of local | 2343 |
| governmental functions, and for the purpose of reimbursing the | 2344 |
| state for the expense of administering this chapter, an excise tax | 2345 |
| is hereby levied on each retail sale made in this state. | 2346 |
| (A)(1) The tax shall be collected as provided in section | 2347 |
| 5739.025 of the Revised Code. The rate of the tax shall be five | 2348 |
| and one-half per cent. The tax applies and is collectible when the | 2349 |
| sale is made, regardless of the time when the price is paid or | 2350 |
| delivered. | 2351 |
| (2) In the case of the lease or rental, with a fixed term of | 2352 |
| more than thirty days or an indefinite term with a minimum period | 2353 |
| of more than thirty days, of any motor vehicles designed by the | 2354 |
| manufacturer to carry a load of not more than one ton, watercraft, | 2355 |
| outboard motor, or aircraft, or of any tangible personal property, | 2356 |
| other than motor vehicles designed by the manufacturer to carry a | 2357 |
| load of more than one ton, to be used by the lessee or renter | 2358 |
| primarily for business purposes, the tax shall be collected by the | 2359 |
| vendor at the time the lease or rental is consummated and shall be | 2360 |
| calculated by the vendor on the basis of the total amount to be | 2361 |
| paid by the lessee or renter under the lease agreement. If the | 2362 |
| total amount of the consideration for the lease or rental includes | 2363 |
| amounts that are not calculated at the time the lease or rental is | 2364 |
| executed, the tax shall be calculated and collected by the vendor | 2365 |
| at the time such amounts are billed to the lessee or renter. In | 2366 |
| the case of an open-end lease or rental, the tax shall be | 2367 |
| calculated by the vendor on the basis of the total amount to be | 2368 |
| paid during the initial fixed term of the lease or rental, and for | 2369 |
| each subsequent renewal period as it comes due. As used in this | 2370 |
| division, "motor vehicle" has the same meaning as in section | 2371 |
| 4501.01 of the Revised Code, and "watercraft" includes an outdrive | 2372 |
| unit attached to the watercraft. | 2373 |
| A lease with a renewal clause and a termination penalty or | 2374 |
| similar provision that applies if the renewal clause is not | 2375 |
| exercised is presumed to be a sham transaction. In such a case, | 2376 |
| the tax shall be calculated and paid on the basis of the entire | 2377 |
| length of the lease period, including any renewal periods, until | 2378 |
| the termination penalty or similar provision no longer applies. | 2379 |
| The taxpayer shall bear the burden, by a preponderance of the | 2380 |
| evidence, that the transaction or series of transactions is not a | 2381 |
| sham transaction. | 2382 |
| (3) Except as provided in division (A)(2) of this section, in | 2383 |
| the case of a sale, the price of which consists in whole or in | 2384 |
| part of the lease or rental of tangible personal property, the tax | 2385 |
| shall be measured by the installments of that lease or rental. | 2386 |
| (4) In the case of a sale of a physical fitness facility | 2387 |
| service or recreation and sports club service, the price of which | 2388 |
| consists in whole or in part of a membership for the receipt of | 2389 |
| the benefit of the service, the tax applicable to the sale shall | 2390 |
| be measured by the installments thereof. | 2391 |
| (B) The tax does not apply to the following: | 2392 |
| (1) Sales to the state or any of its political subdivisions, | 2393 |
| or to any other state or its political subdivisions if the laws of | 2394 |
| that state exempt from taxation sales made to this state and its | 2395 |
| political subdivisions; | 2396 |
| (2) Sales of food for human consumption off the premises | 2397 |
| where sold; | 2398 |
| (3) Sales of food sold to students only in a cafeteria, | 2399 |
| dormitory, fraternity, or sorority maintained in a private, | 2400 |
| public, or parochial school, college, or university; | 2401 |
| (4) Sales of newspapers and of magazine subscriptions and | 2402 |
| sales or transfers of magazines distributed as controlled | 2403 |
| circulation publications; | 2404 |
| (5) The furnishing, preparing, or serving of meals without | 2405 |
| charge by an employer to an employee provided the employer records | 2406 |
| the meals as part compensation for services performed or work | 2407 |
| done; | 2408 |
| (6) Sales of motor fuel upon receipt, use, distribution, or | 2409 |
| sale of which in this state a tax is imposed by the law of this | 2410 |
| state, but this exemption shall not apply to the sale of motor | 2411 |
| fuel on which a refund of the tax is allowable under division (A) | 2412 |
| of section 5735.14 of the Revised Code; and the tax commissioner | 2413 |
| may deduct the amount of tax levied by this section applicable to | 2414 |
| the price of motor fuel when granting a refund of motor fuel tax | 2415 |
| pursuant to division (A) of section 5735.14 of the Revised Code | 2416 |
| and shall cause the amount deducted to be paid into the general | 2417 |
| revenue fund of this state; | 2418 |
| (7) Sales of natural gas by a natural gas company, of water | 2419 |
| by a water-works company, or of steam by a heating company, if in | 2420 |
| each case the thing sold is delivered to consumers through pipes | 2421 |
| or conduits, and all sales of communications services by a | 2422 |
| telegraph company, all terms as defined in section 5727.01 of the | 2423 |
| Revised Code, and sales of electricity delivered through wires; | 2424 |
| (8) Casual sales by a person, or auctioneer employed directly | 2425 |
| by the person to conduct such sales, except as to such sales of | 2426 |
| motor vehicles, watercraft or outboard motors required to be | 2427 |
| titled under section 1548.06 of the Revised Code, watercraft | 2428 |
| documented with the United States coast guard, snowmobiles, and | 2429 |
| all-purpose vehicles as defined in section 4519.01 of the Revised | 2430 |
| Code; | 2431 |
| (9)(a) Sales of services or tangible personal property, other | 2432 |
| than motor vehicles, mobile homes, and manufactured homes, by | 2433 |
| churches, organizations exempt from taxation under section | 2434 |
| 501(c)(3) of the Internal Revenue Code of 1986, or nonprofit | 2435 |
| organizations operated exclusively for charitable purposes as | 2436 |
| defined in division (B)(12) of this section, provided that the | 2437 |
| number of days on which such tangible personal property or | 2438 |
| services, other than items never subject to the tax, are sold does | 2439 |
| not exceed six in any calendar year, except as otherwise provided | 2440 |
| in division (B)(9)(b) of this section. If the number of days on | 2441 |
| which such sales are made exceeds six in any calendar year, the | 2442 |
| church or organization shall be considered to be engaged in | 2443 |
| business and all subsequent sales by it shall be subject to the | 2444 |
| tax. In counting the number of days, all sales by groups within a | 2445 |
| church or within an organization shall be considered to be sales | 2446 |
| of that church or organization. | 2447 |
| (b) The limitation on the number of days on which tax-exempt | 2448 |
| sales may be made by a church or organization under division | 2449 |
| (B)(9)(a) of this section does not apply to sales made by student | 2450 |
| clubs and other groups of students of a primary or secondary | 2451 |
| school, or a parent-teacher association, booster group, or similar | 2452 |
| organization that raises money to support or fund curricular or | 2453 |
| extracurricular activities of a primary or secondary school. | 2454 |
| (c) Divisions (B)(9)(a) and (b) of this section do not apply | 2455 |
| to sales by a noncommercial educational radio or television | 2456 |
| broadcasting station. | 2457 |
| (10) Sales not within the taxing power of this state under | 2458 |
| the Constitution of the United States; | 2459 |
| (11) Except for transactions that are sales under division | 2460 |
| (B)(3)(r) of section 5739.01 of the Revised Code, the | 2461 |
| transportation of persons or property, unless the transportation | 2462 |
| is by a private investigation and security service; | 2463 |
| (12) Sales of tangible personal property or services to | 2464 |
| churches, to organizations exempt from taxation under section | 2465 |
| 501(c)(3) of the Internal Revenue Code of 1986, and to any other | 2466 |
| nonprofit organizations operated exclusively for charitable | 2467 |
| purposes in this state, no part of the net income of which inures | 2468 |
| to the benefit of any private shareholder or individual, and no | 2469 |
| substantial part of the activities of which consists of carrying | 2470 |
| on propaganda or otherwise attempting to influence legislation; | 2471 |
| sales to offices administering one or more homes for the aged or | 2472 |
| one or more hospital facilities exempt under section 140.08 of the | 2473 |
| Revised Code; and sales to organizations described in division (D) | 2474 |
| of section 5709.12 of the Revised Code. | 2475 |
| "Charitable purposes" means the relief of poverty; the | 2476 |
| improvement of health through the alleviation of illness, disease, | 2477 |
| or injury; the operation of an organization exclusively for the | 2478 |
| provision of professional, laundry, printing, and purchasing | 2479 |
| services to hospitals or charitable institutions; the operation of | 2480 |
| a home for the aged, as defined in section 5701.13 of the Revised | 2481 |
| Code; the operation of a radio or television broadcasting station | 2482 |
| that is licensed by the federal communications commission as a | 2483 |
| noncommercial educational radio or television station; the | 2484 |
| operation of a nonprofit animal adoption service or a county | 2485 |
| humane society; the promotion of education by an institution of | 2486 |
| learning that maintains a faculty of qualified instructors, | 2487 |
| teaches regular continuous courses of study, and confers a | 2488 |
| recognized diploma upon completion of a specific curriculum; the | 2489 |
| operation of a parent-teacher association, booster group, or | 2490 |
| similar organization primarily engaged in the promotion and | 2491 |
| support of the curricular or extracurricular activities of a | 2492 |
| primary or secondary school; the operation of a community or area | 2493 |
| center in which presentations in music, dramatics, the arts, and | 2494 |
| related fields are made in order to foster public interest and | 2495 |
| education therein; the production of performances in music, | 2496 |
| dramatics, and the arts; or the promotion of education by an | 2497 |
| organization engaged in carrying on research in, or the | 2498 |
| dissemination of, scientific and technological knowledge and | 2499 |
| information primarily for the public. | 2500 |
| Nothing in this division shall be deemed to exempt sales to | 2501 |
| any organization for use in the operation or carrying on of a | 2502 |
| trade or business, or sales to a home for the aged for use in the | 2503 |
| operation of independent living facilities as defined in division | 2504 |
| (A) of section 5709.12 of the Revised Code. | 2505 |
| (13) Building and construction materials and services sold to | 2506 |
| construction contractors for incorporation into a structure or | 2507 |
| improvement to real property under a construction contract with | 2508 |
| this state or a political subdivision of this state, or with the | 2509 |
| United States government or any of its agencies; building and | 2510 |
| construction materials and services sold to construction | 2511 |
| contractors for incorporation into a structure or improvement to | 2512 |
| real property that are accepted for ownership by this state or any | 2513 |
| of its political subdivisions, or by the United States government | 2514 |
| or any of its agencies at the time of completion of the structures | 2515 |
| or improvements; building and construction materials sold to | 2516 |
| construction contractors for incorporation into a horticulture | 2517 |
| structure or livestock structure for a person engaged in the | 2518 |
| business of horticulture or producing livestock; building | 2519 |
| materials and services sold to a construction contractor for | 2520 |
| incorporation into a house of public worship or religious | 2521 |
| education, or a building used exclusively for charitable purposes | 2522 |
| under a construction contract with an organization whose purpose | 2523 |
| is as described in division (B)(12) of this section; building | 2524 |
| materials and services sold to a construction contractor for | 2525 |
| incorporation into a building under a construction contract with | 2526 |
| an organization exempt from taxation under section 501(c)(3) of | 2527 |
| the Internal Revenue Code of 1986 when the building is to be used | 2528 |
| exclusively for the organization's exempt purposes; building and | 2529 |
| construction materials sold for incorporation into the original | 2530 |
| construction of a sports facility under section 307.696 of the | 2531 |
| Revised Code; and building and construction materials and services | 2532 |
| sold to a construction contractor for incorporation into real | 2533 |
| property outside this state if such materials and services, when | 2534 |
| sold to a construction contractor in the state in which the real | 2535 |
| property is located for incorporation into real property in that | 2536 |
| state, would be exempt from a tax on sales levied by that state; | 2537 |
| (14) Sales of ships or vessels or rail rolling stock used or | 2538 |
| to be used principally in interstate or foreign commerce, and | 2539 |
| repairs, alterations, fuel, and lubricants for such ships or | 2540 |
| vessels or rail rolling stock; | 2541 |
| (15) Sales to persons primarily engaged in any of the | 2542 |
| activities mentioned in division (B)(42)(a) or (g) of this | 2543 |
| section, to persons engaged in making retail sales, or to persons | 2544 |
| who purchase for sale from a manufacturer tangible personal | 2545 |
| property that was produced by the manufacturer in accordance with | 2546 |
| specific designs provided by the purchaser, of packages, including | 2547 |
| material, labels, and parts for packages, and of machinery, | 2548 |
| equipment, and material for use primarily in packaging tangible | 2549 |
| personal property produced for sale, including any machinery, | 2550 |
| equipment, and supplies used to make labels or packages, to | 2551 |
| prepare packages or products for labeling, or to label packages or | 2552 |
| products, by or on the order of the person doing the packaging, or | 2553 |
| sold at retail. "Packages" includes bags, baskets, cartons, | 2554 |
| crates, boxes, cans, bottles, bindings, wrappings, and other | 2555 |
| similar devices and containers, but does not include motor | 2556 |
| vehicles or bulk tanks, trailers, or similar devices attached to | 2557 |
| motor vehicles. "Packaging" means placing in a package. Division | 2558 |
| (B)(15) of this section does not apply to persons engaged in | 2559 |
| highway transportation for hire. | 2560 |
| (16) Sales of food to persons using supplemental nutrition | 2561 |
| assistance program benefits to purchase the food. As used in this | 2562 |
| division, "food" has the same meaning as in 7 U.S.C. 2012 and | 2563 |
| federal regulations adopted pursuant to the Food and Nutrition Act | 2564 |
| of 2008. | 2565 |
| (17) Sales to persons engaged in farming, agriculture, | 2566 |
| horticulture, or floriculture, of tangible personal property for | 2567 |
| use or consumption directly in the production by farming, | 2568 |
| agriculture, horticulture, or floriculture of other tangible | 2569 |
| personal property for use or consumption directly in the | 2570 |
| production of tangible personal property for sale by farming, | 2571 |
| agriculture, horticulture, or floriculture; or material and parts | 2572 |
| for incorporation into any such tangible personal property for use | 2573 |
| or consumption in production; and of tangible personal property | 2574 |
| for such use or consumption in the conditioning or holding of | 2575 |
| products produced by and for such use, consumption, or sale by | 2576 |
| persons engaged in farming, agriculture, horticulture, or | 2577 |
| floriculture, except where such property is incorporated into real | 2578 |
| property; | 2579 |
| (18) Sales of drugs for a human being that may be dispensed | 2580 |
| only pursuant to a prescription; insulin as recognized in the | 2581 |
| official United States pharmacopoeia; urine and blood testing | 2582 |
| materials when used by diabetics or persons with hypoglycemia to | 2583 |
| test for glucose or acetone; hypodermic syringes and needles when | 2584 |
| used by diabetics for insulin injections; epoetin alfa when | 2585 |
| purchased for use in the treatment of persons with medical | 2586 |
| disease; hospital beds when purchased by hospitals, nursing homes, | 2587 |
| or other medical facilities; and medical oxygen and medical | 2588 |
| oxygen-dispensing equipment when purchased by hospitals, nursing | 2589 |
| homes, or other medical facilities; | 2590 |
| (19) Sales of prosthetic devices, durable medical equipment | 2591 |
| for home use, or mobility enhancing equipment, when made pursuant | 2592 |
| to a prescription and when such devices or equipment are for use | 2593 |
| by a human being. | 2594 |
| (20) Sales of emergency and fire protection vehicles and | 2595 |
| equipment to nonprofit organizations for use solely in providing | 2596 |
| fire protection and emergency services, including trauma care and | 2597 |
| emergency medical services, for political subdivisions of the | 2598 |
| state; | 2599 |
| (21) Sales of tangible personal property manufactured in this | 2600 |
| state, if sold by the manufacturer in this state to a retailer for | 2601 |
| use in the retail business of the retailer outside of this state | 2602 |
| and if possession is taken from the manufacturer by the purchaser | 2603 |
| within this state for the sole purpose of immediately removing the | 2604 |
| same from this state in a vehicle owned by the purchaser; | 2605 |
| (22) Sales of services provided by the state or any of its | 2606 |
| political subdivisions, agencies, instrumentalities, institutions, | 2607 |
| or authorities, or by governmental entities of the state or any of | 2608 |
| its political subdivisions, agencies, instrumentalities, | 2609 |
| institutions, or authorities; | 2610 |
| (23) Sales of motor vehicles to nonresidents of this state | 2611 |
| under the circumstances described in division (B) of section | 2612 |
| 5739.029 of the Revised Code; | 2613 |
| (24) Sales to persons engaged in the preparation of eggs for | 2614 |
| sale of tangible personal property used or consumed directly in | 2615 |
| such preparation, including such tangible personal property used | 2616 |
| for cleaning, sanitizing, preserving, grading, sorting, and | 2617 |
| classifying by size; packages, including material and parts for | 2618 |
| packages, and machinery, equipment, and material for use in | 2619 |
| packaging eggs for sale; and handling and transportation equipment | 2620 |
| and parts therefor, except motor vehicles licensed to operate on | 2621 |
| public highways, used in intraplant or interplant transfers or | 2622 |
| shipment of eggs in the process of preparation for sale, when the | 2623 |
| plant or plants within or between which such transfers or | 2624 |
| shipments occur are operated by the same person. "Packages" | 2625 |
| includes containers, cases, baskets, flats, fillers, filler flats, | 2626 |
| cartons, closure materials, labels, and labeling materials, and | 2627 |
| "packaging" means placing therein. | 2628 |
| (25)(a) Sales of water to a consumer for residential use, | 2629 |
| except the sale of bottled water, distilled water, mineral water, | 2630 |
| carbonated water, or ice; | 2631 |
| (b) Sales of water by a nonprofit corporation engaged | 2632 |
| exclusively in the treatment, distribution, and sale of water to | 2633 |
| consumers, if such water is delivered to consumers through pipes | 2634 |
| or tubing. | 2635 |
| (26) Fees charged for inspection or reinspection of motor | 2636 |
| vehicles under section 3704.14 of the Revised Code; | 2637 |
| (27) Sales to persons licensed to conduct a food service | 2638 |
| operation pursuant to section 3717.43 of the Revised Code, of | 2639 |
| tangible personal property primarily used directly for the | 2640 |
| following: | 2641 |
| (a) To prepare food for human consumption for sale; | 2642 |
| (b) To preserve food that has been or will be prepared for | 2643 |
| human consumption for sale by the food service operator, not | 2644 |
| including tangible personal property used to display food for | 2645 |
| selection by the consumer; | 2646 |
| (c) To clean tangible personal property used to prepare or | 2647 |
| serve food for human consumption for sale. | 2648 |
| (28) Sales of animals by nonprofit animal adoption services | 2649 |
| or county humane societies; | 2650 |
| (29) Sales of services to a corporation described in division | 2651 |
| (A) of section 5709.72 of the Revised Code, and sales of tangible | 2652 |
| personal property that qualifies for exemption from taxation under | 2653 |
| section 5709.72 of the Revised Code; | 2654 |
| (30) Sales and installation of agricultural land tile, as | 2655 |
| defined in division (B)(5)(a) of section 5739.01 of the Revised | 2656 |
| Code; | 2657 |
| (31) Sales and erection or installation of portable grain | 2658 |
| bins, as defined in division (B)(5)(b) of section 5739.01 of the | 2659 |
| Revised Code; | 2660 |
| (32) The sale, lease, repair, and maintenance of, parts for, | 2661 |
| or items attached to or incorporated in, motor vehicles that are | 2662 |
| primarily used for transporting tangible personal property | 2663 |
| belonging to others by a person engaged in highway transportation | 2664 |
| for hire, except for packages and packaging used for the | 2665 |
| transportation of tangible personal property; | 2666 |
| (33) Sales to the state headquarters of any veterans' | 2667 |
| organization in this state that is either incorporated and issued | 2668 |
| a charter by the congress of the United States or is recognized by | 2669 |
| the United States veterans administration, for use by the | 2670 |
| headquarters; | 2671 |
| (34) Sales to a telecommunications service vendor, mobile | 2672 |
| telecommunications service vendor, or satellite broadcasting | 2673 |
| service vendor of tangible personal property and services used | 2674 |
| directly and primarily in transmitting, receiving, switching, or | 2675 |
| recording any interactive, one- or two-way electromagnetic | 2676 |
| communications, including voice, image, data, and information, | 2677 |
| through the use of any medium, including, but not limited to, | 2678 |
| poles, wires, cables, switching equipment, computers, and record | 2679 |
| storage devices and media, and component parts for the tangible | 2680 |
| personal property. The exemption provided in this division shall | 2681 |
| be in lieu of all other exemptions under division (B)(42)(a) of | 2682 |
| this section to which the vendor may otherwise be entitled, based | 2683 |
| upon the use of the thing purchased in providing the | 2684 |
| telecommunications, mobile telecommunications, or satellite | 2685 |
| broadcasting service. | 2686 |
| (35)(a) Sales where the purpose of the consumer is to use or | 2687 |
| consume the things transferred in making retail sales and | 2688 |
| consisting of newspaper inserts, catalogues, coupons, flyers, gift | 2689 |
| certificates, or other advertising material that prices and | 2690 |
| describes tangible personal property offered for retail sale. | 2691 |
| (b) Sales to direct marketing vendors of preliminary | 2692 |
| materials such as photographs, artwork, and typesetting that will | 2693 |
| be used in printing advertising material; of printed matter that | 2694 |
| offers free merchandise or chances to win sweepstake prizes and | 2695 |
| that is mailed to potential customers with advertising material | 2696 |
| described in division (B)(35)(a) of this section; and of equipment | 2697 |
| such as telephones, computers, facsimile machines, and similar | 2698 |
| tangible personal property primarily used to accept orders for | 2699 |
| direct marketing retail sales. | 2700 |
| (c) Sales of automatic food vending machines that preserve | 2701 |
| food with a shelf life of forty-five days or less by refrigeration | 2702 |
| and dispense it to the consumer. | 2703 |
| For purposes of division (B)(35) of this section, "direct | 2704 |
| marketing" means the method of selling where consumers order | 2705 |
| tangible personal property by United States mail, delivery | 2706 |
| service, or telecommunication and the vendor delivers or ships the | 2707 |
| tangible personal property sold to the consumer from a warehouse, | 2708 |
| catalogue distribution center, or similar fulfillment facility by | 2709 |
| means of the United States mail, delivery service, or common | 2710 |
| carrier. | 2711 |
| (36) Sales to a person engaged in the business of | 2712 |
| horticulture or producing livestock of materials to be | 2713 |
| incorporated into a horticulture structure or livestock structure; | 2714 |
| (37) Sales of personal computers, computer monitors, computer | 2715 |
| keyboards, modems, and other peripheral computer equipment to an | 2716 |
| individual who is licensed or certified to teach in an elementary | 2717 |
| or a secondary school in this state for use by that individual in | 2718 |
| preparation for teaching elementary or secondary school students; | 2719 |
| (38) Sales to a professional racing team of any of the | 2720 |
| following: | 2721 |
| (a) Motor racing vehicles; | 2722 |
| (b) Repair services for motor racing vehicles; | 2723 |
| (c) Items of property that are attached to or incorporated in | 2724 |
| motor racing vehicles, including engines, chassis, and all other | 2725 |
| components of the vehicles, and all spare, replacement, and | 2726 |
| rebuilt parts or components of the vehicles; except not including | 2727 |
| tires, consumable fluids, paint, and accessories consisting of | 2728 |
| instrumentation sensors and related items added to the vehicle to | 2729 |
| collect and transmit data by means of telemetry and other forms of | 2730 |
| communication. | 2731 |
| (39) Sales of used manufactured homes and used mobile homes, | 2732 |
| as defined in section 5739.0210 of the Revised Code, made on or | 2733 |
| after January 1, 2000; | 2734 |
| (40) Sales of tangible personal property and services to a | 2735 |
| provider of electricity used or consumed directly and primarily in | 2736 |
| generating, transmitting, or distributing electricity for use by | 2737 |
| others, including property that is or is to be incorporated into | 2738 |
| and will become a part of the consumer's production, transmission, | 2739 |
| or distribution system and that retains its classification as | 2740 |
| tangible personal property after incorporation; fuel or power used | 2741 |
| in the production, transmission, or distribution of electricity; | 2742 |
| energy conversion equipment as defined in section 5727.01 of the | 2743 |
| Revised Code; and tangible personal property and services used in | 2744 |
| the repair and maintenance of the production, transmission, or | 2745 |
| distribution system, including only those motor vehicles as are | 2746 |
| specially designed and equipped for such use. The exemption | 2747 |
| provided in this division shall be in lieu of all other exemptions | 2748 |
| in division (B)(42)(a) of this section to which a provider of | 2749 |
| electricity may otherwise be entitled based on the use of the | 2750 |
| tangible personal property or service purchased in generating, | 2751 |
| transmitting, or distributing electricity. | 2752 |
| (41) Sales to a person providing services under division | 2753 |
| (B)(3)(r) of section 5739.01 of the Revised Code of tangible | 2754 |
| personal property and services used directly and primarily in | 2755 |
| providing taxable services under that section. | 2756 |
| (42) Sales where the purpose of the purchaser is to do any of | 2757 |
| the following: | 2758 |
| (a) To incorporate the thing transferred as a material or a | 2759 |
| part into tangible personal property to be produced for sale by | 2760 |
| manufacturing, assembling, processing, or refining; or to use or | 2761 |
| consume the thing transferred directly in producing tangible | 2762 |
| personal property for sale by mining, including, without | 2763 |
| limitation, the extraction from the earth of all substances that | 2764 |
| are classed geologically as minerals, production of crude oil and | 2765 |
| natural gas, farming, agriculture, horticulture, or floriculture, | 2766 |
| or directly in the rendition of a public utility service, except | 2767 |
| that the sales tax levied by this section shall be collected upon | 2768 |
| all meals, drinks, and food for human consumption sold when | 2769 |
| transporting persons. Persons engaged in rendering farming, | 2770 |
| agricultural, horticultural, or floricultural services, and | 2771 |
| services in the exploration for, and production of, crude oil and | 2772 |
| natural gas, for others are deemed engaged directly in farming, | 2773 |
| agriculture, horticulture, and floriculture, or exploration for, | 2774 |
| and production of, crude oil and natural gas. This paragraph does | 2775 |
| not exempt from "retail sale" or "sales at retail" the sale of | 2776 |
| tangible personal property that is to be incorporated into a | 2777 |
| structure or improvement to real property. | 2778 |
| (b) To hold the thing transferred as security for the | 2779 |
| performance of an obligation of the vendor; | 2780 |
| (c) To resell, hold, use, or consume the thing transferred as | 2781 |
| evidence of a contract of insurance; | 2782 |
| (d) To use or consume the thing directly in commercial | 2783 |
| fishing; | 2784 |
| (e) To incorporate the thing transferred as a material or a | 2785 |
| part into, or to use or consume the thing transferred directly in | 2786 |
| the production of, magazines distributed as controlled circulation | 2787 |
| publications; | 2788 |
| (f) To use or consume the thing transferred in the production | 2789 |
| and preparation in suitable condition for market and sale of | 2790 |
| printed, imprinted, overprinted, lithographic, multilithic, | 2791 |
| blueprinted, photostatic, or other productions or reproductions of | 2792 |
| written or graphic matter; | 2793 |
| (g) To use the thing transferred, as described in section | 2794 |
| 5739.011 of the Revised Code, primarily in a manufacturing | 2795 |
| operation to produce tangible personal property for sale; | 2796 |
| (h) To use the benefit of a warranty, maintenance or service | 2797 |
| contract, or similar agreement, as described in division (B)(7) of | 2798 |
| section 5739.01 of the Revised Code, to repair or maintain | 2799 |
| tangible personal property, if all of the property that is the | 2800 |
| subject of the warranty, contract, or agreement would not be | 2801 |
| subject to the tax imposed by this section; | 2802 |
| (i) To use the thing transferred as qualified research and | 2803 |
| development equipment; | 2804 |
| (j) To use or consume the thing transferred primarily in | 2805 |
| storing, transporting, mailing, or otherwise handling purchased | 2806 |
| sales inventory in a warehouse, distribution center, or similar | 2807 |
| facility when the inventory is primarily distributed outside this | 2808 |
| state to retail stores of the person who owns or controls the | 2809 |
| warehouse, distribution center, or similar facility, to retail | 2810 |
| stores of an affiliated group of which that person is a member, or | 2811 |
| by means of direct marketing. This division does not apply to | 2812 |
| motor vehicles registered for operation on the public highways. As | 2813 |
| used in this division, "affiliated group" has the same meaning as | 2814 |
| in division (B)(3)(e) of section 5739.01 of the Revised Code and | 2815 |
| "direct marketing" has the same meaning as in division (B)(35) of | 2816 |
| this section. | 2817 |
| (k) To use or consume the thing transferred to fulfill a | 2818 |
| contractual obligation incurred by a warrantor pursuant to a | 2819 |
| warranty provided as a part of the price of the tangible personal | 2820 |
| property sold or by a vendor of a warranty, maintenance or service | 2821 |
| contract, or similar agreement the provision of which is defined | 2822 |
| as a sale under division (B)(7) of section 5739.01 of the Revised | 2823 |
| Code; | 2824 |
| (l) To use or consume the thing transferred in the production | 2825 |
| of a newspaper for distribution to the public; | 2826 |
| (m) To use tangible personal property to perform a service | 2827 |
| listed in division (B)(3) of section 5739.01 of the Revised Code, | 2828 |
| if the property is or is to be permanently transferred to the | 2829 |
| consumer of the service as an integral part of the performance of | 2830 |
| the service; | 2831 |
| (n) To use or consume the thing transferred in acquiring, | 2832 |
| formatting, editing, storing, and disseminating data or | 2833 |
| information by electronic publishing. | 2834 |
| As used in division (B)(42) of this section, "thing" includes | 2835 |
| all transactions included in divisions (B)(3)(a), (b), and (e) of | 2836 |
| section 5739.01 of the Revised Code. | 2837 |
| (43) Sales conducted through a coin operated device that | 2838 |
| activates vacuum equipment or equipment that dispenses water, | 2839 |
| whether or not in combination with soap or other cleaning agents | 2840 |
| or wax, to the consumer for the consumer's use on the premises in | 2841 |
| washing, cleaning, or waxing a motor vehicle, provided no other | 2842 |
| personal property or personal service is provided as part of the | 2843 |
| transaction. | 2844 |
| (44) Sales of replacement and modification parts for engines, | 2845 |
| airframes, instruments, and interiors in, and paint for, aircraft | 2846 |
| used primarily in a fractional aircraft ownership program, and | 2847 |
| sales of services for the repair, modification, and maintenance of | 2848 |
| such aircraft, and machinery, equipment, and supplies primarily | 2849 |
| used to provide those services. | 2850 |
| (45) Sales of telecommunications service that is used | 2851 |
| directly and primarily to perform the functions of a call center. | 2852 |
| As used in this division, "call center" means any physical | 2853 |
| location where telephone calls are placed or received in high | 2854 |
| volume for the purpose of making sales, marketing, customer | 2855 |
| service, technical support, or other specialized business | 2856 |
| activity, and that employs at least fifty individuals that engage | 2857 |
| in call center activities on a full-time basis, or sufficient | 2858 |
| individuals to fill fifty full-time equivalent positions. | 2859 |
| (46) Sales by a telecommunications service vendor of 900 | 2860 |
| service to a subscriber. This division does not apply to | 2861 |
| information services, as defined in division (FF) of section | 2862 |
| 5739.01 of the Revised Code. | 2863 |
| (47) Sales of value-added non-voice data service. This | 2864 |
| division does not apply to any similar service that is not | 2865 |
| otherwise a telecommunications service. | 2866 |
| (48)(a) Sales of machinery, equipment, and software to a | 2867 |
| qualified direct selling entity for use in a warehouse or | 2868 |
| distribution center primarily for storing, transporting, or | 2869 |
| otherwise handling inventory that is held for sale to independent | 2870 |
| salespersons who operate as direct sellers and that is held | 2871 |
| primarily for distribution outside this state; | 2872 |
| (b) As used in division (B)(48)(a) of this section: | 2873 |
| (i) "Direct seller" means a person selling consumer products | 2874 |
| to individuals for personal or household use and not from a fixed | 2875 |
| retail location, including selling such product at in-home product | 2876 |
| demonstrations, parties, and other one-on-one selling. | 2877 |
| (ii) "Qualified direct selling entity" means an entity | 2878 |
| selling to direct sellers at the time the entity enters into a tax | 2879 |
| credit agreement with the tax credit authority pursuant to section | 2880 |
| 122.17 of the Revised Code, provided that the agreement was | 2881 |
| entered into on or after January 1, 2007. Neither contingencies | 2882 |
| relevant to the granting of, nor later developments with respect | 2883 |
| to, the tax credit shall impair the status of the qualified direct | 2884 |
| selling entity under division (B)(48) of this section after | 2885 |
| execution of the tax credit agreement by the tax credit authority. | 2886 |
| (c) Division (B)(48) of this section is limited to machinery, | 2887 |
| equipment, and software first stored, used, or consumed in this | 2888 |
| state within the period commencing June 24, 2008, and ending on | 2889 |
| the date that is five years after that date. | 2890 |
| (49) Sales of materials, parts, equipment, or engines used in | 2891 |
| the repair or maintenance of aircraft or avionics systems of such | 2892 |
| aircraft, and sales of repair, remodeling, replacement, or | 2893 |
| maintenance services in this state performed on aircraft or on an | 2894 |
| aircraft's avionics, engine, or component materials or parts. As | 2895 |
| used in division (B)(49) of this section, "aircraft" means | 2896 |
| aircraft of more than six thousand pounds maximum certified | 2897 |
| takeoff weight or used exclusively in general aviation. | 2898 |
| (50) Sales of full flight simulators that are used for pilot | 2899 |
| or flight-crew training, sales of repair or replacement parts or | 2900 |
| components, and sales of repair or maintenance services for such | 2901 |
| full flight simulators. "Full flight simulator" means a replica of | 2902 |
| a specific type, or make, model, and series of aircraft cockpit. | 2903 |
| It includes the assemblage of equipment and computer programs | 2904 |
| necessary to represent aircraft operations in ground and flight | 2905 |
| conditions, a visual system providing an out-of-the-cockpit view, | 2906 |
| and a system that provides cues at least equivalent to those of a | 2907 |
| three-degree-of-freedom motion system, and has the full range of | 2908 |
| capabilities of the systems installed in the device as described | 2909 |
| in appendices A and B of part 60 of chapter 1 of title 14 of the | 2910 |
| Code of Federal Regulations. | 2911 |
| (C) For the purpose of the proper administration of this | 2912 |
| chapter, and to prevent the evasion of the tax, it is presumed | 2913 |
| that all sales made in this state are subject to the tax until the | 2914 |
| contrary is established. | 2915 |
| (D) The levy of this tax on retail sales of recreation and | 2916 |
| sports club service shall not prevent a municipal corporation from | 2917 |
| levying any tax on recreation and sports club dues or on any | 2918 |
| income generated by recreation and sports club dues. | 2919 |
| (E) The tax collected by the vendor from the consumer under | 2920 |
| this chapter is not part of the price, but is a tax collection for | 2921 |
| the benefit of the state, and of counties levying an additional | 2922 |
| sales tax pursuant to section 5739.021 or 5739.026 of the Revised | 2923 |
| Code and of transit authorities levying an additional sales tax | 2924 |
| pursuant to section 5739.023 of the Revised Code. Except for the | 2925 |
| discount authorized under section 5739.12 of the Revised Code and | 2926 |
| the effects of any rounding pursuant to section 5703.055 of the | 2927 |
| Revised Code, no person other than the state or such a county or | 2928 |
| transit authority shall derive any benefit from the collection or | 2929 |
| payment of the tax levied by this section or section 5739.021, | 2930 |
| 5739.023, or 5739.026 of the Revised Code. | 2931 |
| Section 2. That existing sections 717.25, 1710.01, 1710.02, | 2932 |
| 1710.06, 1710.07, 4928.01, 4928.64, 5709.53, 5713.30, 5713.34, | 2933 |
| 5727.01, 5727.02, 5727.06, 5727.11, 5727.111, 5727.15, 5727.30, | 2934 |
| and 5739.02 of the Revised Code are hereby repealed. | 2935 |