As Introduced

129th General Assembly Regular Session 2011-2012

H. B. No. 204

Representative Foley 

Cosponsors: Representatives Hagan, R., Yuko, Antonio, Ramos, Letson, Williams, Pillich, Milkovich, Garland, Murray, Fedor 

---

A BILL

To amend sections 4928.58, 4928.61, and 4928.62, and

1

to enact sections 4928.611 and 4928.612 of the

2

Revised Code to reimpose the Advanced Energy Fund

3

revenue rider on retail electric distribution

4

service rates and to clarify how Advanced Energy

5

Fund grant amounts are to be determined.

6

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

Section 1. That sections 4928.58, 4928.61, and 4928.62 be	7
amended and sections 4928.611 and 4928.612 of the Revised Code be	8
enacted to read as follows:	9

Sec. 4928.58.  (A) There is hereby created the public	10
benefits advisory board, which has the purpose of ensuring that	11
energy services be provided to low-income consumers in this state	12
in an affordable manner consistent with the policy specified in	13
section 4928.02 of the Revised Code. The advisory board shall	14
consist of twenty-one members as follows: the director of	15
development, the chairperson of the public utilities commission,	16
the consumers' counsel, and the director of the air quality	17
development authority, each serving ex officio and represented by	18
a designee at the official's discretion; two members of the house	19
of representatives appointed by the speaker of the house of	20
representatives, neither of the same political party, and two	21
members of the senate appointed by the president of the senate,	22
neither of the same political party; and thirteen members	23
appointed by the governor with the advice and consent of the	24
senate, consisting of one representative of suppliers of	25
competitive retail electric service; one representative of the	26
residential class of electric utility customers; one	27
representative of the industrial class of electric utility	28
customers; one representative of the commercial class of electric	29
utility customers; one representative of agricultural or rural	30
customers of an electric utility; two customers receiving	31
assistance under one or more of the low-income customer assistance	32
programs, to represent customers eligible for any such assistance,	33
including senior citizens; one representative of the general	34
public; one representative of local intake agencies; one	35
representative of a community-based organization serving	36
low-income customers; one representative of environmental	37
protection interests; one representative of lending institutions;	38
and one person considered an expert in energy efficiency or	39
renewables technology. Initial appointments shall be made not	40
later than November 1, 1999.	41

(B) Initial terms of six of the appointed members shall end	42
on June 30, 2003, and initial terms of the remaining seven	43
appointed members shall end on June 30, 2004. Thereafter, terms of	44
appointed members shall be for three years, with each term ending	45
on the same day of the same month as the term it succeeds. Each	46
member shall hold office from the date of the member's appointment	47
until the end of the term for which the member was appointed.	48
Members may be reappointed.	49

Vacancies shall be filled in the manner provided for original	50
appointments. Any member appointed to fill a vacancy occurring	51
prior to the expiration date of the term for which the member's	52
predecessor was appointed shall hold office as a member for the	53
remainder of that term. A member shall continue in office after	54
the expiration date of the member's term until the member's	55
successor takes office or until a period of sixty days has	56
elapsed, whichever occurs first.	57

(C) Board members shall be reimbursed for their actual and	58
necessary expenses incurred in the performance of board duties.	59
The reimbursements constitute, as applicable, administrative costs	60
of the low-income customer assistance programs for the purpose of	61
division (A) of section 4928.51 of the Revised Code or	62
administrative costs of the advanced energy program for the	63
purpose of division (A) of section 4528.61 of the Revised Code.	64

(D) The advisory board shall select a chairperson from among	65
its members. Only board members appointed by the governor with the	66
advice and consent of the senate shall be voting members of the	67
board; each shall have one vote in all deliberations of the board.	68
A majority of the voting members constitute a quorum.	69

(E) The duties of the advisory board shall be as follows:

70

(1) Advise the director in the administration of the	71
universal service fund and the low-income customer assistance	72
programs and advise the director on the director's recommendation	73
to the commission regarding the appropriate level of the universal	74
service rider;	75

(2) Advise the director on the administration of the advanced	76
energy program and the advanced energy fund under sections 4928.61	77
to 4928.63 of the Revised Code, including grant award levels under	78
section 4928.62 of the Revised Code;	79

(3) Hold public hearings to carry out the requirements of	80
division (E)(2) of this section.	81

(F) The advisory board is not an agency for purposes of	82
sections 101.82 to 101.87 of the Revised Code.	83

Sec. 4928.61.  (A) There is hereby established in the state	84
treasury the advanced energy fund, into which shall be deposited	85
all advanced energy revenues remitted to the director of	86
development under division (B) of this section, for the exclusive	87
purposes of funding the advanced energy program created under	88
section 4928.62 of the Revised Code and paying the program's	89
administrative costs. Interest on the fund shall be credited to	90
the fund.	91

(B) Advanced energy revenues shall include all of the	92
following:	93

(1) Revenues remitted to the director after collection by	94
each electric distribution utility in this state of aThe	95
temporary rider on retail electric distribution service rates as	96
such rates are determined by the public utilities commission	97
pursuant to this chapter. The rider shall be a uniform amount	98
statewide, determined by the director of development, after	99
consultation with the public benefits advisory board created by	100
section 4928.58 of the Revised Code. The amount shall be	101
determined by dividing an aggregate revenue target for a given	102
year as determined by the director, after consultation with the	103
advisory board, by the number of customers of electric	104
distribution utilities in this state in the prior year. Such	105
aggregate revenue target shall not exceed more than fifteen	106
million dollars in any year through 2005 and shall not exceed more	107
than five million dollars in any year after 2005. The rider shall	108
be imposed beginning on the effective date of the amendment of	109
this section by Sub. H.B. 251 of the 126th general assembly,	110
January 4, 2007, and shall terminateat the end of tenyears	111
following the starting date of competitive retailelectric service	112
oruntilthe advanced energy fund, including interest, reaches one	113
hundredmillion dollars, whichever is firstimposed under section	114
4928.611 of the Revised Code.	115

(2) Revenues from payments, repayments, and collections under	116
the advanced energy program and from program income;	117

(3) Revenues remitted to the director after collection by a	118
municipal electric utility or electric cooperative in this state	119
upon the utility's or cooperative's decision to participate in the	120
advanced energy fund;	121

(4) Revenues from renewable energy compliance payments as	122
provided under division (C)(2) of section 4928.64 of the Revised	123
Code;	124

(5)(4) Revenue from forfeitures under division (C) of section	125
4928.66 of the Revised Code;	126

(6)(5) Interest earnings on the advanced energy fund.

127

(C)(1) Each electric distribution utility in this state shall	128
remit to the director on a quarterly basis the revenues described	129
in divisions (B)(1) and (2) of this section. Such remittances	130
shall occur within thirty days after the end of each calendar	131
quarter.	132

(2) Each participating electric cooperative and participating	133
municipal electric utility shall remit to the director on a	134
quarterly basis the revenues described in division (B)(3) of this	135
section. Such remittances shall occur within thirty days after the	136
end of each calendar quarter. For the purpose of division (B)(3)	137
of this section, the participation of an electric cooperative or	138
municipal electric utility in the energy efficiency revolving loan	139
program as it existed immediately prior to the effective date of	140
the amendment of this section by Sub. H.B. 251 of the 126th	141
general assembly, January 4, 2007, does not constitute a decision	142
to participate in the advanced energy fund under this section as	143
so amended.	144

(3) Allremittances under divisions (C)(1) and (2) of this	145
section shall continue only until the end of ten years following	146
the starting date of competitive retail electric service or until	147
the advanced energy fund, including interest, reaches one hundred	148
million dollars, whichever is first.	149

(D) Any moneys collected in rates for non-low-income customer	150
energy efficiency programs, as of October 5, 1999, and not	151
contributed to the energy efficiency revolving loan fund	152
authorized under this section prior to the effective date of its	153
amendment by Sub. H.B. 251 of the 126th general assembly, January	154
4, 2007, shall be used to continue to fund cost-effective,	155
residential energy efficiency programs, be contributed into the	156
universal service fund as a supplement to that required under	157
section 4928.53 of the Revised Code, or be returned to ratepayers	158
in the form of a rate reduction at the option of the affected	159
electric distribution utility.	160

Sec. 4928.611. (A) Each electric distribution utility in this	161
state shall impose a temporary rider on the retail electric	162
distribution service rates of residential, commercial, and	163
industrial customers as defined by rules adopted by the public	164
utilities commission. The amount of the rider shall be as follows:	165

(1) Ten cents per month for residential customers;

166

(2) Twenty-five cents per month for commercial customers;

167

(3) Fifty cents per month for industrial customers.

168

(B) The rider shall be imposed beginning on the effective	169
date of this amendment and shall terminate on January 1, 2025.	170

Sec. 4928.612. Each electric distribution utility in this	171
state shall remit to the director of development on a quarterly	172
basis the rider imposed in section 4928.611 of the Revised Code	173
and the revenues described in division (B)(2) of section 4928.61	174
of the Revised Code. Such remittances shall occur within thirty	175
days after the end of each calendar quarter.	176

Sec. 4928.62.  (A) There is hereby created the advanced	177
energy program, which shall be administered by the director of	178
development. Under the program, the director may authorize the use	179
of moneys in the advanced energy fund for financial, technical,	180
and related assistance for advanced energy projects in this state	181
or for economic development assistance, in furtherance of the	182
purposes set forth in section 4928.63 of the Revised Code. To the	183
extent feasible given approved applications for assistance, the	184
assistance shall be distributed among the certified territories of	185
electric distribution utilities and participating electric	186
cooperatives, and among the service areas of participating	187
municipal electric utilities, in amounts proportionate to the	188
remittances of each utility and cooperative under divisions (B)(1)	189
and (3) of section 4928.614928.612 of the Revised Code.	190

The director shall determine the amount of each grant based	191
on the market price of energy and the advice of the public	192
benefits advisory board under division (E)(2) of section 4928.58	193
of the Revised Code. The amount of each grant shall decrease	194
annually in order to enable the program to fund an increasing	195
number of grants.	196

The director shall not authorize financial assistance for an	197
advanced energy project under the program unless the director	198
first determines that the project will create new jobs or preserve	199
existing jobs in this state or use innovative technologies or	200
materials.	201

(B) In carrying out sections 4928.61 to 4928.63 of the	202
Revised Code, the director may do all of the following to further	203
the public interest in advanced energy projects and economic	204
development:	205

(1) Award grants, contracts, loans, loan participation	206
agreements, linked deposits, and energy production incentives;	207

(2) Acquire in the name of the director any property of any	208
kind or character in accordance with this section, by purchase,	209
purchase at foreclosure, or exchange, on such terms and in such	210
manner as the director considers proper;	211

(3) Make and enter into all contracts and agreements	212
necessary or incidental to the performance of the director's	213
duties and the exercise of the director's powers under sections	214
4928.61 to 4928.63 of the Revised Code;	215

(4) Employ or enter into contracts with financial	216
consultants, marketing consultants, consulting engineers,	217
architects, managers, construction experts, attorneys, technical	218
monitors, energy evaluators, or other employees or agents as the	219
director considers necessary, and fix their compensation;	220

(5) Adopt rules prescribing the application procedures for	221
financial assistance under the advanced energy program; the terms	222
and conditions of any grants, contracts, loans, loan participation	223
agreements, linked deposits, and energy production incentives;	224
criteria pertaining to the eligibility of participating lending	225
institutions; and any other matters necessary for the	226
implementation of the program;	227

(6) Do all things necessary and appropriate for the operation	228
of the program.	229

(C) The department of development may hold ownership to any	230
unclaimed energy efficiency and renewable energy emission	231
allowances provided for in Chapter 3745-14 of the Administrative	232
Code or otherwise, that result from advanced energy projects that	233
receive funding from the advanced energy fund, and it may use the	234
allowances to further the public interest in advanced energy	235
projects or for economic development.	236

(D) Financial statements, financial data, and trade secrets	237
submitted to or received by the director from an applicant or	238
recipient of financial assistance under sections 4928.61 to	239
4928.63 of the Revised Code, or any information taken from those	240
statements, data, or trade secrets for any purpose, are not public	241
records for the purpose of section 149.43 of the Revised Code.	242

(E) Nothing in the amendments of sections 4928.61, 4928.62,	243
and 4928.63 of the Revised Code by Sub. H.B. 251 of the 126th	244
general assembly and nothing in the amendments of sections 4928.61	245
and 4928.62 of the Revised Code by    B.   of the 129th general	246
assembly shall affect any pending or effected assistance, pending	247
or effected purchases or exchanges of property made, or pending or	248
effected contracts or agreements entered into pursuant to division	249
(A) or (B) of this section as the section existed prior to the	250
effective date of thosethe amendments made by Sub. H.B. 251,	251
January 4, 2007, or the amendments made by    B.   of the 129th	252
general assembly, or shall affect the exemption provided under	253
division (C) of this section as the section existed prior to that	254
either effective date.	255

(F) Any assistance a school district receives for an advanced	256
energy project, including a geothermal heating, ventilating, and	257
air conditioning system, shall be in addition to any assistance	258
provided under Chapter 3318. of the Revised Code and shall not be	259
included as part of the district or state portion of the basic	260
project cost under that chapter.	261

Section 2. That existing sections 4928.58, 4928.61, and	262
4928.62 of the Revised Code are hereby repealed.	263