As Introduced

129th General Assembly Regular Session 2011-2012

S. B. No. 216

Senator Jordan 

Cosponsors: Senators Patton, Seitz 

---

A BILL

To amend sections 4928.142, 4928.143, 4928.20,

1

4928.61, 5501.311, and 5727.75 and to repeal

2

sections 4928.64 and 4928.65 of the Revised Code

3

to repeal the requirement that electric

4

distribution utilities and electric services

5

companies provide 25% of their retail power

6

supplies from advanced and renewable energy

7

resources by 2025.

8

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

Section 1. That sections 4928.142, 4928.143, 4928.20,	9
4928.61, 5501.311, and 5727.75 be amended to read as follows:	10

Sec. 4928.142. (A) For the purpose of complying with section	11
4928.141 of the Revised Code and subject to division (D) of this	12
section and, as applicable, subject to the rate plan requirement	13
of division (A) of section 4928.141 of the Revised Code, an	14
electric distribution utility may establish a standard service	15
offer price for retail electric generation service that is	16
delivered to the utility under a market-rate offer.	17

(1) The market-rate offer shall be determined through a	18
competitive bidding process that provides for all of the	19
following:	20

(a) Open, fair, and transparent competitive solicitation;

21

(b) Clear product definition;

22

(c) Standardized bid evaluation criteria;

23

(d) Oversight by an independent third party that shall design	24
the solicitation, administer the bidding, and ensure that the	25
criteria specified in division (A)(1)(a) to (c) of this section	26
are met;	27

(e) Evaluation of the submitted bids prior to the selection	28
of the least-cost bid winner or winners.	29

No generation supplier shall be prohibited from participating	30
in the bidding process.	31

(2) The public utilities commission shall modify rules, or	32
adopt new rules as necessary, concerning the conduct of the	33
competitive bidding process and the qualifications of bidders,	34
which rules shall foster supplier participation in the bidding	35
process and shall be consistent with the requirements of division	36
(A)(1) of this section.	37

(B) Prior to initiating a competitive bidding process for a	38
market-rate offer under division (A) of this section, the electric	39
distribution utility shall file an application with the	40
commission. An electric distribution utility may file its	41
application with the commission prior to the effective date of the	42
commission rules required under division (A)(2) of this section,	43
and, as the commission determines necessary, the utility shall	44
immediately conform its filing to the rules upon their taking	45
effect.	46

An application under this division shall detail the electric	47
distribution utility's proposed compliance with the requirements	48
of division (A)(1) of this section and with commission rules under	49
division (A)(2) of this section and demonstrate that all of the	50
following requirements are met:	51

(1) The electric distribution utility or its transmission	52
service affiliate belongs to at least one regional transmission	53
organization that has been approved by the federal energy	54
regulatory commission; or there otherwise is comparable and	55
nondiscriminatory access to the electric transmission grid.	56

(2) Any such regional transmission organization has a	57
market-monitor function and the ability to take actions to	58
identify and mitigate market power or the electric distribution	59
utility's market conduct; or a similar market monitoring function	60
exists with commensurate ability to identify and monitor market	61
conditions and mitigate conduct associated with the exercise of	62
market power.	63

(3) A published source of information is available publicly	64
or through subscription that identifies pricing information for	65
traded electricity on- and off-peak energy products that are	66
contracts for delivery beginning at least two years from the date	67
of the publication and is updated on a regular basis.	68

The commission shall initiate a proceeding and, within ninety	69
days after the application's filing date, shall determine by order	70
whether the electric distribution utility and its market-rate	71
offer meet all of the foregoing requirements. If the finding is	72
positive, the electric distribution utility may initiate its	73
competitive bidding process. If the finding is negative as to one	74
or more requirements, the commission in the order shall direct the	75
electric distribution utility regarding how any deficiency may be	76
remedied in a timely manner to the commission's satisfaction;	77
otherwise, the electric distribution utility shall withdraw the	78
application. However, if such remedy is made and the subsequent	79
finding is positive and also if the electric distribution utility	80
made a simultaneous filing under this section and section 4928.143	81
of the Revised Code, the utility shall not initiate its	82
competitive bid until at least one hundred fifty days after the	83
filing date of those applications.	84

(C) Upon the completion of the competitive bidding process	85
authorized by divisions (A) and (B) of this section, including for	86
the purpose of division (D) of this section, the commission shall	87
select the least-cost bid winner or winners of that process, and	88
such selected bid or bids, as prescribed as retail rates by the	89
commission, shall be the electric distribution utility's standard	90
service offer unless the commission, by order issued before the	91
third calendar day following the conclusion of the competitive	92
bidding process for the market rate offer, determines that one or	93
more of the following criteria were not met:	94

(1) Each portion of the bidding process was oversubscribed,	95
such that the amount of supply bid upon was greater than the	96
amount of the load bid out.	97

(2) There were four or more bidders.

98

(3) At least twenty-five per cent of the load is bid upon by	99
one or more persons other than the electric distribution utility.	100

All costs incurred by the electric distribution utility as a	101
result of or related to the competitive bidding process or to	102
procuring generation service to provide the standard service	103
offer, including the costs of energy and capacity and the costs of	104
all other products and services procured as a result of the	105
competitive bidding process, shall be timely recovered through the	106
standard service offer price, and, for that purpose, the	107
commission shall approve a reconciliation mechanism, other	108
recovery mechanism, or a combination of such mechanisms for the	109
utility.	110

(D) The first application filed under this section by an	111
electric distribution utility that, as of July 31, 2008, directly	112
owns, in whole or in part, operating electric generating	113
facilities that had been used and useful in this state shall	114
require that a portion of that utility's standard service offer	115
load for the first five years of the market rate offer be	116
competitively bid under division (A) of this section as follows:	117
ten per cent of the load in year one, not more than twenty per	118
cent in year two, thirty per cent in year three, forty per cent in	119
year four, and fifty per cent in year five. Consistent with those	120
percentages, the commission shall determine the actual percentages	121
for each year of years one through five. The standard service	122
offer price for retail electric generation service under this	123
first application shall be a proportionate blend of the bid price	124
and the generation service price for the remaining standard	125
service offer load, which latter price shall be equal to the	126
electric distribution utility's most recent standard service offer	127
price, adjusted upward or downward as the commission determines	128
reasonable, relative to the jurisdictional portion of any known	129
and measurable changes from the level of any one or more of the	130
following costs as reflected in that most recent standard service	131
offer price:	132

(1) The electric distribution utility's prudently incurred	133
cost of fuel used to produce electricity;	134

(2) Its prudently incurred purchased power costs;

135

(3) Its prudently incurred costs of satisfying the supply and	136
demand portfolio requirements of this state, including, but not	137
limited to, renewable energy resource and energy efficiency	138
requirements;	139

(4) Its costs prudently incurred to comply with environmental	140
laws and regulations, with consideration of the derating of any	141
facility associated with those costs.	142

In making any adjustment to the most recent standard service	143
offer price on the basis of costs described in division (D) of	144
this section, the commission shall include the benefits that may	145
become available to the electric distribution utility as a result	146
of or in connection with the costs included in the adjustment,	147
including, but not limited to, the utility's receipt of emissions	148
credits or its receipt of tax benefits or of other benefits, and,	149
accordingly, the commission may impose such conditions on the	150
adjustment to ensure that any such benefits are properly aligned	151
with the associated cost responsibility. The commission shall also	152
determine how such adjustments will affect the electric	153
distribution utility's return on common equity that may be	154
achieved by those adjustments. The commission shall not apply its	155
consideration of the return on common equity to reduce any	156
adjustments authorized under this division unless the adjustments	157
will cause the electric distribution utility to earn a return on	158
common equity that is significantly in excess of the return on	159
common equity that is earned by publicly traded companies,	160
including utilities, that face comparable business and financial	161
risk, with such adjustments for capital structure as may be	162
appropriate. The burden of proof for demonstrating that	163
significantly excessive earnings will not occur shall be on the	164
electric distribution utility.	165

Additionally, the commission may adjust the electric	166
distribution utility's most recent standard service offer price by	167
such just and reasonable amount that the commission determines	168
necessary to address any emergency that threatens the utility's	169
financial integrity or to ensure that the resulting revenue	170
available to the utility for providing the standard service offer	171
is not so inadequate as to result, directly or indirectly, in a	172
taking of property without compensation pursuant to Section 19 of	173
Article I, Ohio Constitution. The electric distribution utility	174
has the burden of demonstrating that any adjustment to its most	175
recent standard service offer price is proper in accordance with	176
this division.	177

(E) Beginning in the second year of a blended price under	178
division (D) of this section and notwithstanding any other	179
requirement of this section, the commission may alter	180
prospectively the proportions specified in that division to	181
mitigate any effect of an abrupt or significant change in the	182
electric distribution utility's standard service offer price that	183
would otherwise result in general or with respect to any rate	184
group or rate schedule but for such alteration. Any such	185
alteration shall be made not more often than annually, and the	186
commission shall not, by altering those proportions and in any	187
event, including because of the length of time, as authorized	188
under division (C) of this section, taken to approve the market	189
rate offer, cause the duration of the blending period to exceed	190
ten years as counted from the effective date of the approved	191
market rate offer. Additionally, any such alteration shall be	192
limited to an alteration affecting the prospective proportions	193
used during the blending period and shall not affect any blending	194
proportion previously approved and applied by the commission under	195
this division.	196

(F) An electric distribution utility that has received	197
commission approval of its first application under division (C) of	198
this section shall not, nor ever shall be authorized or required	199
by the commission to, file an application under section 4928.143	200
of the Revised Code.	201

Sec. 4928.143. (A) For the purpose of complying with section	202
4928.141 of the Revised Code, an electric distribution utility may	203
file an application for public utilities commission approval of an	204
electric security plan as prescribed under division (B) of this	205
section. The utility may file that application prior to the	206
effective date of any rules the commission may adopt for the	207
purpose of this section, and, as the commission determines	208
necessary, the utility immediately shall conform its filing to	209
those rules upon their taking effect.	210

(B) Notwithstanding any other provision of Title XLIX of the	211
Revised Code to the contrary except division (D) of this section,	212
divisions (I), (J), and (K) of section 4928.20, division (E) of	213
section 4928.64, and section 4928.69 of the Revised Code:	214

(1) An electric security plan shall include provisions	215
relating to the supply and pricing of electric generation service.	216
In addition, if the proposed electric security plan has a term	217
longer than three years, it may include provisions in the plan to	218
permit the commission to test the plan pursuant to division (E) of	219
this section and any transitional conditions that should be	220
adopted by the commission if the commission terminates the plan as	221
authorized under that division.	222

(2) The plan may provide for or include, without limitation,	223
any of the following:	224

(a) Automatic recovery of any of the following costs of the	225
electric distribution utility, provided the cost is prudently	226
incurred: the cost of fuel used to generate the electricity	227
supplied under the offer; the cost of purchased power supplied	228
under the offer, including the cost of energy and capacity, and	229
including purchased power acquired from an affiliate; the cost of	230
emission allowances; and the cost of federally mandated carbon or	231
energy taxes;	232

(b) A reasonable allowance for construction work in progress	233
for any of the electric distribution utility's cost of	234
constructing an electric generating facility or for an	235
environmental expenditure for any electric generating facility of	236
the electric distribution utility, provided the cost is incurred	237
or the expenditure occurs on or after January 1, 2009. Any such	238
allowance shall be subject to the construction work in progress	239
allowance limitations of division (A) of section 4909.15 of the	240
Revised Code, except that the commission may authorize such an	241
allowance upon the incurrence of the cost or occurrence of the	242
expenditure. No such allowance for generating facility	243
construction shall be authorized, however, unless the commission	244
first determines in the proceeding that there is need for the	245
facility based on resource planning projections submitted by the	246
electric distribution utility. Further, no such allowance shall be	247
authorized unless the facility's construction was sourced through	248
a competitive bid process, regarding which process the commission	249
may adopt rules. An allowance approved under division (B)(2)(b) of	250
this section shall be established as a nonbypassable surcharge for	251
the life of the facility.	252

(c) The establishment of a nonbypassable surcharge for the	253
life of an electric generating facility that is owned or operated	254
by the electric distribution utility, was sourced through a	255
competitive bid process subject to any such rules as the	256
commission adopts under division (B)(2)(b) of this section, and is	257
newly used and useful on or after January 1, 2009, which surcharge	258
shall cover all costs of the utility specified in the application,	259
excluding costs recovered through a surcharge under division	260
(B)(2)(b) of this section. However, no surcharge shall be	261
authorized unless the commission first determines in the	262
proceeding that there is need for the facility based on resource	263
planning projections submitted by the electric distribution	264
utility. Additionally, if a surcharge is authorized for a facility	265
pursuant to plan approval under division (C) of this section and	266
as a condition of the continuation of the surcharge, the electric	267
distribution utility shall dedicate to Ohio consumers the capacity	268
and energy and the rate associated with the cost of that facility.	269
Before the commission authorizes any surcharge pursuant to this	270
division, it may consider, as applicable, the effects of any	271
decommissioning, deratings, and retirements.	272

(d) Terms, conditions, or charges relating to limitations on	273
customer shopping for retail electric generation service,	274
bypassability, standby, back-up, or supplemental power service,	275
default service, carrying costs, amortization periods, and	276
accounting or deferrals, including future recovery of such	277
deferrals, as would have the effect of stabilizing or providing	278
certainty regarding retail electric service;	279

(e) Automatic increases or decreases in any component of the	280
standard service offer price;	281

(f) Provisions for the electric distribution utility to	282
securitize any phase-in, inclusive of carrying charges, of the	283
utility's standard service offer price, which phase-in is	284
authorized in accordance with section 4928.144 of the Revised	285
Code; and provisions for the recovery of the utility's cost of	286
securitization.;	287

(g) Provisions relating to transmission, ancillary,	288
congestion, or any related service required for the standard	289
service offer, including provisions for the recovery of any cost	290
of such service that the electric distribution utility incurs on	291
or after that date pursuant to the standard service offer;	292

(h) Provisions regarding the utility's distribution service,	293
including, without limitation and notwithstanding any provision of	294
Title XLIX of the Revised Code to the contrary, provisions	295
regarding single issue ratemaking, a revenue decoupling mechanism	296
or any other incentive ratemaking, and provisions regarding	297
distribution infrastructure and modernization incentives for the	298
electric distribution utility. The latter may include a long-term	299
energy delivery infrastructure modernization plan for that utility	300
or any plan providing for the utility's recovery of costs,	301
including lost revenue, shared savings, and avoided costs, and a	302
just and reasonable rate of return on such infrastructure	303
modernization. As part of its determination as to whether to allow	304
in an electric distribution utility's electric security plan	305
inclusion of any provision described in division (B)(2)(h) of this	306
section, the commission shall examine the reliability of the	307
electric distribution utility's distribution system and ensure	308
that customers' and the electric distribution utility's	309
expectations are aligned and that the electric distribution	310
utility is placing sufficient emphasis on and dedicating	311
sufficient resources to the reliability of its distribution	312
system.	313

(i) Provisions under which the electric distribution utility	314
may implement economic development, job retention, and energy	315
efficiency programs, which provisions may allocate program costs	316
across all classes of customers of the utility and those of	317
electric distribution utilities in the same holding company	318
system.	319

(C)(1) The burden of proof in the proceeding shall be on the	320
electric distribution utility. The commission shall issue an order	321
under this division for an initial application under this section	322
not later than one hundred fifty days after the application's	323
filing date and, for any subsequent application by the utility	324
under this section, not later than two hundred seventy-five days	325
after the application's filing date. Subject to division (D) of	326
this section, the commission by order shall approve or modify and	327
approve an application filed under division (A) of this section if	328
it finds that the electric security plan so approved, including	329
its pricing and all other terms and conditions, including any	330
deferrals and any future recovery of deferrals, is more favorable	331
in the aggregate as compared to the expected results that would	332
otherwise apply under section 4928.142 of the Revised Code.	333
Additionally, if the commission so approves an application that	334
contains a surcharge under division (B)(2)(b) or (c) of this	335
section, the commission shall ensure that the benefits derived for	336
any purpose for which the surcharge is established are reserved	337
and made available to those that bear the surcharge. Otherwise,	338
the commission by order shall disapprove the application.	339

(2)(a) If the commission modifies and approves an application	340
under division (C)(1) of this section, the electric distribution	341
utility may withdraw the application, thereby terminating it, and	342
may file a new standard service offer under this section or a	343
standard service offer under section 4928.142 of the Revised Code.	344

(b) If the utility terminates an application pursuant to	345
division (C)(2)(a) of this section or if the commission	346
disapproves an application under division (C)(1) of this section,	347
the commission shall issue such order as is necessary to continue	348
the provisions, terms, and conditions of the utility's most recent	349
standard service offer, along with any expected increases or	350
decreases in fuel costs from those contained in that offer, until	351
a subsequent offer is authorized pursuant to this section or	352
section 4928.142 of the Revised Code, respectively.	353

(D) Regarding the rate plan requirement of division (A) of	354
section 4928.141 of the Revised Code, if an electric distribution	355
utility that has a rate plan that extends beyond December 31,	356
2008, files an application under this section for the purpose of	357
its compliance with division (A) of section 4928.141 of the	358
Revised Code, that rate plan and its terms and conditions are	359
hereby incorporated into its proposed electric security plan and	360
shall continue in effect until the date scheduled under the rate	361
plan for its expiration, and that portion of the electric security	362
plan shall not be subject to commission approval or disapproval	363
under division (C) of this section, and the earnings test provided	364
for in division (F) of this section shall not apply until after	365
the expiration of the rate plan. However, that utility may include	366
in its electric security plan under this section, and the	367
commission may approve, modify and approve, or disapprove subject	368
to division (C) of this section, provisions for the incremental	369
recovery or the deferral of any costs that are not being recovered	370
under the rate plan and that the utility incurs during that	371
continuation period to comply with section 4928.141, division (B)	372
of section 4928.64,of the Revised Code or division (A) of section	373
4928.66 of the Revised Code.	374

(E) If an electric security plan approved under division (C)	375
of this section, except one withdrawn by the utility as authorized	376
under that division, has a term, exclusive of phase-ins or	377
deferrals, that exceeds three years from the effective date of the	378
plan, the commission shall test the plan in the fourth year, and	379
if applicable, every fourth year thereafter, to determine whether	380
the plan, including its then-existing pricing and all other terms	381
and conditions, including any deferrals and any future recovery of	382
deferrals, continues to be more favorable in the aggregate and	383
during the remaining term of the plan as compared to the expected	384
results that would otherwise apply under section 4928.142 of the	385
Revised Code. The commission shall also determine the prospective	386
effect of the electric security plan to determine if that effect	387
is substantially likely to provide the electric distribution	388
utility with a return on common equity that is significantly in	389
excess of the return on common equity that is likely to be earned	390
by publicly traded companies, including utilities, that face	391
comparable business and financial risk, with such adjustments for	392
capital structure as may be appropriate. The burden of proof for	393
demonstrating that significantly excessive earnings will not occur	394
shall be on the electric distribution utility. If the test results	395
are in the negative or the commission finds that continuation of	396
the electric security plan will result in a return on equity that	397
is significantly in excess of the return on common equity that is	398
likely to be earned by publicly traded companies, including	399
utilities, that will face comparable business and financial risk,	400
with such adjustments for capital structure as may be appropriate,	401
during the balance of the plan, the commission may terminate the	402
electric security plan, but not until it shall have provided	403
interested parties with notice and an opportunity to be heard. The	404
commission may impose such conditions on the plan's termination as	405
it considers reasonable and necessary to accommodate the	406
transition from an approved plan to the more advantageous	407
alternative. In the event of an electric security plan's	408
termination pursuant to this division, the commission shall permit	409
the continued deferral and phase-in of any amounts that occurred	410
prior to that termination and the recovery of those amounts as	411
contemplated under that electric security plan.	412

(F) With regard to the provisions that are included in an	413
electric security plan under this section, the commission shall	414
consider, following the end of each annual period of the plan, if	415
any such adjustments resulted in excessive earnings as measured by	416
whether the earned return on common equity of the electric	417
distribution utility is significantly in excess of the return on	418
common equity that was earned during the same period by publicly	419
traded companies, including utilities, that face comparable	420
business and financial risk, with such adjustments for capital	421
structure as may be appropriate. Consideration also shall be given	422
to the capital requirements of future committed investments in	423
this state. The burden of proof for demonstrating that	424
significantly excessive earnings did not occur shall be on the	425
electric distribution utility. If the commission finds that such	426
adjustments, in the aggregate, did result in significantly	427
excessive earnings, it shall require the electric distribution	428
utility to return to consumers the amount of the excess by	429
prospective adjustments; provided that, upon making such	430
prospective adjustments, the electric distribution utility shall	431
have the right to terminate the plan and immediately file an	432
application pursuant to section 4928.142 of the Revised Code. Upon	433
termination of a plan under this division, rates shall be set on	434
the same basis as specified in division (C)(2)(b) of this section,	435
and the commission shall permit the continued deferral and	436
phase-in of any amounts that occurred prior to that termination	437
and the recovery of those amounts as contemplated under that	438
electric security plan. In making its determination of	439
significantly excessive earnings under this division, the	440
commission shall not consider, directly or indirectly, the	441
revenue, expenses, or earnings of any affiliate or parent company.	442

Sec. 4928.20.  (A) The legislative authority of a municipal	443
corporation may adopt an ordinance, or the board of township	444
trustees of a township or the board of county commissioners of a	445
county may adopt a resolution, under which, on or after the	446
starting date of competitive retail electric service, it may	447
aggregate in accordance with this section the retail electrical	448
loads located, respectively, within the municipal corporation,	449
township, or unincorporated area of the county and, for that	450
purpose, may enter into service agreements to facilitate for those	451
loads the sale and purchase of electricity. The legislative	452
authority or board also may exercise such authority jointly with	453
any other such legislative authority or board. For customers that	454
are not mercantile customers, an ordinance or resolution under	455
this division shall specify whether the aggregation will occur	456
only with the prior, affirmative consent of each person owning,	457
occupying, controlling, or using an electric load center proposed	458
to be aggregated or will occur automatically for all such persons	459
pursuant to the opt-out requirements of division (D) of this	460
section. The aggregation of mercantile customers shall occur only	461
with the prior, affirmative consent of each such person owning,	462
occupying, controlling, or using an electric load center proposed	463
to be aggregated. Nothing in this division, however, authorizes	464
the aggregation of the retail electric loads of an electric load	465
center, as defined in section 4933.81 of the Revised Code, that is	466
located in the certified territory of a nonprofit electric	467
supplier under sections 4933.81 to 4933.90 of the Revised Code or	468
an electric load center served by transmission or distribution	469
facilities of a municipal electric utility.	470

(B) If an ordinance or resolution adopted under division (A)	471
of this section specifies that aggregation of customers that are	472
not mercantile customers will occur automatically as described in	473
that division, the ordinance or resolution shall direct the board	474
of elections to submit the question of the authority to aggregate	475
to the electors of the respective municipal corporation, township,	476
or unincorporated area of a county at a special election on the	477
day of the next primary or general election in the municipal	478
corporation, township, or county. The legislative authority or	479
board shall certify a copy of the ordinance or resolution to the	480
board of elections not less than ninety days before the day of the	481
special election. No ordinance or resolution adopted under	482
division (A) of this section that provides for an election under	483
this division shall take effect unless approved by a majority of	484
the electors voting upon the ordinance or resolution at the	485
election held pursuant to this division.	486

(C) Upon the applicable requisite authority under divisions	487
(A) and (B) of this section, the legislative authority or board	488
shall develop a plan of operation and governance for the	489
aggregation program so authorized. Before adopting a plan under	490
this division, the legislative authority or board shall hold at	491
least two public hearings on the plan. Before the first hearing,	492
the legislative authority or board shall publish notice of the	493
hearings once a week for two consecutive weeks in a newspaper of	494
general circulation in the jurisdiction. The notice shall	495
summarize the plan and state the date, time, and location of each	496
hearing.	497

(D) No legislative authority or board, pursuant to an	498
ordinance or resolution under divisions (A) and (B) of this	499
section that provides for automatic aggregation of customers that	500
are not mercantile customers as described in division (A) of this	501
section, shall aggregate the electrical load of any electric load	502
center located within its jurisdiction unless it in advance	503
clearly discloses to the person owning, occupying, controlling, or	504
using the load center that the person will be enrolled	505
automatically in the aggregation program and will remain so	506
enrolled unless the person affirmatively elects by a stated	507
procedure not to be so enrolled. The disclosure shall state	508
prominently the rates, charges, and other terms and conditions of	509
enrollment. The stated procedure shall allow any person enrolled	510
in the aggregation program the opportunity to opt out of the	511
program every three years, without paying a switching fee. Any	512
such person that opts out before the commencement of the	513
aggregation program pursuant to the stated procedure shall default	514
to the standard service offer provided under section 4928.14 or	515
division (D) of section 4928.35 of the Revised Code until the	516
person chooses an alternative supplier.	517

(E)(1) With respect to a governmental aggregation for a	518
municipal corporation that is authorized pursuant to divisions (A)	519
to (D) of this section, resolutions may be proposed by initiative	520
or referendum petitions in accordance with sections 731.28 to	521
731.41 of the Revised Code.	522

(2) With respect to a governmental aggregation for a township	523
or the unincorporated area of a county, which aggregation is	524
authorized pursuant to divisions (A) to (D) of this section,	525
resolutions may be proposed by initiative or referendum petitions	526
in accordance with sections 731.28 to 731.40 of the Revised Code,	527
except that:	528

(a) The petitions shall be filed, respectively, with the	529
township fiscal officer or the board of county commissioners, who	530
shall perform those duties imposed under those sections upon the	531
city auditor or village clerk.	532

(b) The petitions shall contain the signatures of not less	533
than ten per cent of the total number of electors in,	534
respectively, the township or the unincorporated area of the	535
county who voted for the office of governor at the preceding	536
general election for that office in that area.	537

(F) A governmental aggregator under division (A) of this	538
section is not a public utility engaging in the wholesale purchase	539
and resale of electricity, and provision of the aggregated service	540
is not a wholesale utility transaction. A governmental aggregator	541
shall be subject to supervision and regulation by the public	542
utilities commission only to the extent of any competitive retail	543
electric service it provides and commission authority under this	544
chapter.	545

(G) This section does not apply in the case of a municipal	546
corporation that supplies such aggregated service to electric load	547
centers to which its municipal electric utility also supplies a	548
noncompetitive retail electric service through transmission or	549
distribution facilities the utility singly or jointly owns or	550
operates.	551

(H) A governmental aggregator shall not include in its	552
aggregation the accounts of any of the following:	553

(1) A customer that has opted out of the aggregation;

554

(2) A customer in contract with a certified electric services	555
company;	556

(3) A customer that has a special contract with an electric	557
distribution utility;	558

(4) A customer that is not located within the governmental	559
aggregator's governmental boundaries;	560

(5) Subject to division (C) of section 4928.21 of the Revised	561
Code, a customer who appears on the "do not aggregate" list	562
maintained under that section.	563

(I) Customers that are part of a governmental aggregation	564
under this section shall be responsible only for such portion of a	565
surcharge under section 4928.144 of the Revised Code that is	566
proportionate to the benefits, as determined by the commission,	567
that electric load centers within the jurisdiction of the	568
governmental aggregation as a group receive. The proportionate	569
surcharge so established shall apply to each customer of the	570
governmental aggregation while the customer is part of that	571
aggregation. If a customer ceases being such a customer, the	572
otherwise applicable surcharge shall apply. Nothing in this	573
section shall result in less than full recovery by an electric	574
distribution utility of any surcharge authorized under section	575
4928.144 of the Revised Code.	576

(J) On behalf of the customers that are part of a	577
governmental aggregation under this section and by filing written	578
notice with the public utilities commission, the legislative	579
authority that formed or is forming that governmental aggregation	580
may elect not to receive standby service within the meaning of	581
division (B)(2)(d) of section 4928.143 of the Revised Code from an	582
electric distribution utility in whose certified territory the	583
governmental aggregation is located and that operates under an	584
approved electric security plan under that section. Upon the	585
filing of that notice, the electric distribution utility shall not	586
charge any such customer to whom competitive retail electric	587
generation service is provided by another supplier under the	588
governmental aggregation for the standby service. Any such	589
consumer that returns to the utility for competitive retail	590
electric service shall pay the market price of power incurred by	591
the utility to serve that consumer plus any amount attributable to	592
the utility's cost of compliance with the alternative energy	593
resource provisions of section 4928.64 of the Revised Code to	594
serve the consumer. Such market price shall include, but not be	595
limited to, capacity and energy charges; all charges associated	596
with the provision of that power supply through the regional	597
transmission organization, including, but not limited to,	598
transmission, ancillary services, congestion, and settlement and	599
administrative charges; and all other costs incurred by the	600
utility that are associated with the procurement, provision, and	601
administration of that power supply, as such costs may be approved	602
by the commission. The period of time during which the market	603
price and alternative energy resource amount shall be so assessed	604
on the consumer shall be from the time the consumer so returns to	605
the electric distribution utility until the expiration of the	606
electric security plan. However, if that period of time is	607
expected to be more than two years, the commission may reduce the	608
time period to a period of not less than two years.	609

(K) The commission shall adopt rules to encourage and promote	610
large-scale governmental aggregation in this state. For that	611
purpose, the commission shall conduct an immediate review of any	612
rules it has adopted for the purpose of this section that are in	613
effect on the effective date of the amendment of this section by	614
S.B. 221 of the 127th general assembly, July 31, 2008. Further,	615
within the context of an electric security plan under section	616
4928.143 of the Revised Code, the commission shall consider the	617
effect on large-scale governmental aggregation of any	618
nonbypassable generation charges, however collected, that would be	619
established under that plan, except any nonbypassable generation	620
charges that relate to any cost incurred by the electric	621
distribution utility, the deferral of which has been authorized by	622
the commission prior to the effective date of the amendment of	623
this section by S.B. 221 of the 127th general assembly, July 31,	624
2008.	625

Sec. 4928.61.  (A) There is hereby established in the state	626
treasury the advanced energy fund, into which shall be deposited	627
all advanced energy revenues remitted to the director of	628
development under division (B) of this section, for the exclusive	629
purposes of funding the advanced energy program created under	630
section 4928.62 of the Revised Code and paying the program's	631
administrative costs. Interest on the fund shall be credited to	632
the fund.	633

(B) Advanced energy revenues shall include all of the	634
following:	635

(1) Revenues remitted to the director after collection by	636
each electric distribution utility in this state of a temporary	637
rider on retail electric distribution service rates as such rates	638
are determined by the public utilities commission pursuant to this	639
chapter. The rider shall be a uniform amount statewide, determined	640
by the director of development, after consultation with the public	641
benefits advisory board created by section 4928.58 of the Revised	642
Code. The amount shall be determined by dividing an aggregate	643
revenue target for a given year as determined by the director,	644
after consultation with the advisory board, by the number of	645
customers of electric distribution utilities in this state in the	646
prior year. Such aggregate revenue target shall not exceed more	647
than fifteen million dollars in any year through 2005 and shall	648
not exceed more than five million dollars in any year after 2005.	649
The rider shall be imposed beginning on the effective date of the	650
amendment of this section by Sub. H.B. 251 of the 126th general	651
assembly, January 4, 2007, and shall terminate at the end of ten	652
years following the starting date of competitive retail electric	653
service or until the advanced energy fund, including interest,	654
reaches one hundred million dollars, whichever is first.	655

(2) Revenues from payments, repayments, and collections under	656
the advanced energy program and from program income;	657

(3) Revenues remitted to the director after collection by a	658
municipal electric utility or electric cooperative in this state	659
upon the utility's or cooperative's decision to participate in the	660
advanced energy fund;	661

(4) Revenues from renewable energy compliance payments as	662
provided under division (C)(2) of section 4928.64 of the Revised	663
Code;	664

(5) Revenue from forfeitures under division (C) of section	665
4928.66 of the Revised Code;	666

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

667

(C)(1) Each electric distribution utility in this state shall	668
remit to the director on a quarterly basis the revenues described	669
in divisions (B)(1) and (2) of this section. Such remittances	670
shall occur within thirty days after the end of each calendar	671
quarter.	672

(2) Each participating electric cooperative and participating	673
municipal electric utility shall remit to the director on a	674
quarterly basis the revenues described in division (B)(3) of this	675
section. Such remittances shall occur within thirty days after the	676
end of each calendar quarter. For the purpose of division (B)(3)	677
of this section, the participation of an electric cooperative or	678
municipal electric utility in the energy efficiency revolving loan	679
program as it existed immediately prior to the effective date of	680
the amendment of this section by Sub. H.B. 251 of the 126th	681
general assembly, January 4, 2007, does not constitute a decision	682
to participate in the advanced energy fund under this section as	683
so amended.	684

(3) All remittances under divisions (C)(1) and (2) of this	685
section shall continue only until the end of ten years following	686
the starting date of competitive retail electric service or until	687
the advanced energy fund, including interest, reaches one hundred	688
million dollars, whichever is first.	689

(D) Any moneys collected in rates for non-low-income customer	690
energy efficiency programs, as of October 5, 1999, and not	691
contributed to the energy efficiency revolving loan fund	692
authorized under this section prior to the effective date of its	693
amendment by Sub. H.B. 251 of the 126th general assembly, January	694
4, 2007, shall be used to continue to fund cost-effective,	695
residential energy efficiency programs, be contributed into the	696
universal service fund as a supplement to that required under	697
section 4928.53 of the Revised Code, or be returned to ratepayers	698
in the form of a rate reduction at the option of the affected	699
electric distribution utility.	700

Sec. 5501.311.  (A) As used in this section, "alternative	701
energy generating facility" means a facility that uses advanced	702
energy or renewable energy resources to produce electricity.	703
"Advanced energy resource" and "renewable energy resources" have	704
the same meaning as in section 4928.01 of the Revised Code.	705

(B) Notwithstanding sections 123.01 and 127.16 of the Revised	706
Code the director of transportation may lease or lease-purchase	707
all or any part of a transportation facility to or from one or	708
more persons, one or more governmental agencies, a transportation	709
improvement district, or any combination thereof, and may grant	710
leases, easements, or licenses for lands under the control of the	711
department of transportation. The director may adopt rules	712
necessary to give effect to this section.	713

(B)(C) Plans and specifications for the construction of a	714
transportation facility under a lease or lease-purchase agreement	715
are subject to approval of the director and must meet or exceed	716
all applicable standards of the department.	717

(C)(D) Any lease or lease-purchase agreement under which the	718
department is the lessee shall be for a period not exceeding the	719
then current two-year period for which appropriations have been	720
made by the general assembly to the department, and such agreement	721
may contain such other terms as the department and the other	722
parties thereto agree, notwithstanding any other provision of law,	723
including provisions that rental payments in amounts sufficient to	724
pay bond service charges payable during the current two-year lease	725
term shall be an absolute and unconditional obligation of the	726
department independent of all other duties under the agreement	727
without set-off or deduction or any other similar rights or	728
defenses. Any such agreement may provide for renewal of the	729
agreement at the end of each term for another term, not exceeding	730
two years, provided that no renewal shall be effective until the	731
effective date of an appropriation enacted by the general assembly	732
from which the department may lawfully pay rentals under such	733
agreement. Any such agreement may include, without limitation, any	734
agreement by the department with respect to any costs of	735
transportation facilities to be included prior to acquisition and	736
construction of such transportation facilities. Any such agreement	737
shall not constitute a debt or pledge of the faith and credit of	738
the state, or of any political subdivision of the state, and the	739
lessor shall have no right to have taxes or excises levied by the	740
general assembly, or the taxing authority of any political	741
subdivision of the state, for the payment of rentals thereunder.	742
Any such agreement shall contain a statement to that effect.	743

(D)(E) A municipal corporation, township, or county may use	744
service payments in lieu of taxes credited to special funds or	745
accounts pursuant to sections 5709.43, 5709.75, and 5709.80 of the	746
Revised Code to provide its contribution to the cost of a	747
transportation facility, provided such facility was among the	748
purposes for which such service payments were authorized. The	749
contribution may be in the form of a lump sum or periodic	750
payments.	751

(E)(F) Pursuant to the "Telecommunications Act of 1996," 110	752
Stat. 152, 47 U.S.C. 332 note, the director may grant a lease,	753
easement, or license in a transportation facility to a	754
telecommunications service provider for construction, placement,	755
or operation of a telecommunications facility. An interest granted	756
under this division is subject to all of the following conditions:	757

(1) The transportation facility is owned in fee simple or	758
easement by this state at the time the lease, easement, or license	759
is granted to the telecommunications provider.	760

(2) The lease, easement, or license shall be granted on a	761
competitive basis in accordance with policies and procedures to be	762
determined by the director. The policies and procedures may	763
include provisions for master leases for multiple sites.	764

(3) The telecommunications facility shall be designed to	765
accommodate the state's multi-agency radio communication system,	766
the intelligent transportation system, and the department's	767
communication system as the director may determine is necessary	768
for highway or other departmental purposes.	769

(4) The telecommunications facility shall be designed to	770
accommodate such additional telecommunications equipment as may	771
feasibly be co-located thereon as determined in the discretion of	772
the director.	773

(5) The telecommunications service providers awarded the	774
lease, easement, or license, agree to permit other	775
telecommunications service providers to co-locate on the	776
telecommunications facility, and agree to the terms and conditions	777
of the co-location as determined in the discretion of the	778
director.	779

(6) The director shall require indemnity agreements in favor	780
of the department as a condition of any lease, easement, or	781
license granted under this division. Each indemnity agreement	782
shall secure this state and its agents from liability for damages	783
arising out of safety hazards, zoning, and any other matter of	784
public interest the director considers necessary.	785

(7) The telecommunications service provider fully complies	786
with any permit issued under section 5515.01 of the Revised Code	787
pertaining to land that is the subject of the lease, easement, or	788
license.	789

(8) All plans and specifications shall meet with the	790
director's approval.	791

(9) Any other conditions the director determines necessary.

792

(F)(G) In accordance with section 5501.031 of the Revised	793
Code, to further efforts to promote energy conservation and energy	794
efficiency, the director may grant a lease, easement, or license	795
in a transportation facility to a utility service provider that	796
has received its certificate from the Ohio power siting board or	797
appropriate local entity for construction, placement, or operation	798
of an alternative energy generating facility service provider as	799
defined in section 4928.64 of the Revised Code. An interest	800
granted under this division is subject to all of the following	801
conditions:	802

(1) The transportation facility is owned in fee simple or in	803
easement by this state at the time the lease, easement, or license	804
is granted to the utility service provider.	805

(2) The lease, easement, or license shall be granted on a	806
competitive basis in accordance with policies and procedures to be	807
determined by the director. The policies and procedures may	808
include provisions for master leases for multiple sites.	809

(3) The alternative energy generating facility shall be	810
designed to provide energy for the department's transportation	811
facilities with the potential for selling excess power on the	812
power grid, as the director may determine is necessary for highway	813
or other departmental purposes.	814

(4) The director shall require indemnity agreements in favor	815
of the department as a condition of any lease, easement, or	816
license granted under this division. Each indemnity agreement	817
shall secure this state from liability for damages arising out of	818
safety hazards, zoning, and any other matter of public interest	819
the director considers necessary.	820

(5) The alternative energy service facility and utility	821
service provider fully compliescomply with any permit issued by	822
the Ohio power siting board under Chapter 4906. of the Revised	823
Code and compliescomply with section 5515.01 of the Revised Code	824
pertaining to land that is the subject of the lease, easement, or	825
license.	826

(6) All plans and specifications shall meet with the	827
director's approval.	828

(7) Any other conditions the director determines necessary.

829

(G)(H) Money the department receives under divisions (E) and	830
(F) and (G) of this section shall be deposited into the state	831
treasury to the credit of the highway operating fund.	832

(H)(I) A lease, easement, or license granted under division	833
(E) or (F) or (G) of this section, and any telecommunications	834
facility or alternative energy generating facility relating to	835
such interest in a transportation facility, is hereby deemed to	836
further the essential highway purpose of building and maintaining	837
a safe, energy-efficient, and accessible transportation system.	838

Sec. 5727.75.  (A) For purposes of this section:

839

(1) "Qualified energy project" means an energy project	840
certified by the director of development pursuant to this section.	841

(2) "Energy project" means a project to provide electric	842
power through the construction, installation, and use of an energy	843
facility.	844

(3) "Alternative energy zone" means a county declared as such	845
by the board of county commissioners under division (E)(1)(b) or	846
(c) of this section.	847

(4) "Full-time equivalent employee" means the total number of	848
employee-hours for which compensation was paid to individuals	849
employed at a qualified energy project for services performed at	850
the project during the calendar year divided by two thousand	851
eighty hours.	852

(5) "Solar energy project" means an energy project composed	853
of an energy facility using solar panels to generate electricity.	854

(B)(1) Tangible personal property of a qualified energy	855
project using renewable energy resources is exempt from taxation	856
for tax years 2011 and 2012 if all of the following conditions are	857
satisfied:	858

(a) On or before December 31, 2011, the owner or a lessee	859
pursuant to a sale and leaseback transaction of the project	860
submits an application to the power siting board for a certificate	861
under section 4906.20 of the Revised Code, or if that section does	862
not apply, submits an application for any approval, consent,	863
permit, or certificate or satisfies any condition required by a	864
public agency or political subdivision of this state for the	865
construction or initial operation of an energy project.	866

(b) Construction or installation of the energy facility	867
begins on or after January 1, 2009, and before January 1, 2012.	868
For the purposes of this division, construction begins on the	869
earlier of the date of application for a certificate or other	870
approval or permit described in division (B)(1)(a) of this	871
section, or the date the contract for the construction or	872
installation of the energy facility is entered into.	873

(c) For a qualified energy project with a nameplate capacity	874
of five megawatts or greater, a board of county commissioners of a	875
county in which property of the project is located has adopted a	876
resolution under division (E)(1)(b) or (c) of this section to	877
approve the application submitted under division (E) of this	878
section to exempt the property located in that county from	879
taxation. A board's adoption of a resolution rejecting an	880
application or its failure to adopt a resolution approving the	881
application does not affect the tax-exempt status of the qualified	882
energy project's property that is located in another county.	883

(2) If tangible personal property of a qualified energy	884
project using renewable energy resources was exempt from taxation	885
under this section for tax years 2011 and 2012 and the	886
certification under division (E)(2) of this section has not been	887
revoked, the tangible personal property of the qualified energy	888
project is exempt from taxation for tax year 2013 and all ensuing	889
tax years if the property was placed into service before January	890
1, 2013, as certified in the construction progress report required	891
under division (F)(2) of this section. Tangible personal property	892
that has not been placed into service before that date is taxable	893
property subject to taxation. An energy project for which	894
certification has been revoked is ineligible for further exemption	895
under this section. Revocation does not affect the tax-exempt	896
status of the project's tangible personal property for the tax	897
year in which revocation occurs or any prior tax year.	898

(C) Tangible personal property of a qualified energy project	899
using clean coal technology, advanced nuclear technology, or	900
cogeneration technology is exempt from taxation for the first tax	901
year that the property would be listed for taxation and all	902
subsequent years if all of the following circumstances are met:	903

(1) The property was placed into service before January 1,	904
2017. Tangible personal property that has not been placed into	905
service before that date is taxable property subject to taxation.	906

(2) For such a qualified energy project with a nameplate	907
capacity of five megawatts or greater, a board of county	908
commissioners of a county in which property of the qualified	909
energy project is located has adopted a resolution under division	910
(E)(1)(b) or (c) of this section to approve the application	911
submitted under division (E) of this section to exempt the	912
property located in that county from taxation. A board's adoption	913
of a resolution rejecting the application or its failure to adopt	914
a resolution approving the application does not affect the	915
tax-exempt status of the qualified energy project's property that	916
is located in another county.	917

(3) The certification for the qualified energy project issued	918
under division (E)(2) of this section has not been revoked. An	919
energy project for which certification has been revoked is	920
ineligible for exemption under this section. Revocation does not	921
affect the tax-exempt status of the project's tangible personal	922
property for the tax year in which revocation occurs or any prior	923
tax year.	924

(D) Except as otherwise provided in this division (E)(1) of	925
this section, real property of a qualified energy project is	926
exempt from taxation for any tax year for which the tangible	927
personal property of the qualified energy project is exempted	928
under this section.	929

(E)(1)(a) A person may apply to the director of development	930
for certification of an energy project as a qualified energy	931
project on or before the following dates:	932

(i) December 31, 2011, for an energy project using renewable	933
energy resources;	934

(ii) December 31, 2013, for an energy project using clean	935
coal technology, advanced nuclear technology, or cogeneration	936
technology.	937

(b) The director shall forward a copy of each application for	938
certification of an energy project with a nameplate capacity of	939
five megawatts or greater to the board of county commissioners of	940
each county in which the project is located and to each taxing	941
unit with territory located in each of the affected counties. Any	942
board that receives from the director a copy of an application	943
submitted under this division shall adopt a resolution approving	944
or rejecting the application unless it has adopted a resolution	945
under division (E)(1)(c) of this section. A resolution adopted	946
under division (E)(1)(b) or (c) of this section may require an	947
annual service payment to be made in addition to the service	948
payment required under division (G) of this section. The sum of	949
the service payment required in the resolution and the service	950
payment required under division (G) of this section shall not	951
exceed nine thousand dollars per megawatt of nameplate capacity	952
located in the county. The resolution shall specify the time and	953
manner in which the payments required by the resolution shall be	954
paid to the county treasurer. The county treasurer shall deposit	955
the payment to the credit of the county's general fund to be used	956
for any purpose for which money credited to that fund may be used.	957

The board shall send copies of the resolution by certified	958
mail to the owner of the facility and the director within thirty	959
days after receipt of the application, or a longer period of time	960
if authorized by the director.	961

(c) A board of county commissioners may adopt a resolution	962
declaring the county to be an alternative energy zone and	963
declaring all applications submitted to the director of	964
development under this division after the adoption of the	965
resolution, and prior to its repeal, to be approved by the board.	966

All tangible personal property and real property of an energy	967
project with a nameplate capacity of five megawatts or greater is	968
taxable if it is located in a county in which the board of county	969
commissioners adopted a resolution rejecting the application	970
submitted under this division or failed to adopt a resolution	971
approving the application under division (E)(1)(b) or (c) of this	972
section.	973

(2) The director shall certify an energy project if all of	974
the following circumstances exist:	975

(a) The application was timely submitted.

976

(b) For an energy project with a nameplate capacity of five	977
megawatts or greater, a board of county commissioners of at least	978
one county in which the project is located has adopted a	979
resolution approving the application under division (E)(1)(b) or	980
(c) of this section.	981

(c) No portion of the project's facility was used to supply	982
electricity before December 31, 2009.	983

(3) The director shall deny a certification application if	984
the director determines the person has failed to comply with any	985
requirement under this section. The director may revoke a	986
certification if the director determines the person, or subsequent	987
owner or lessee pursuant to a sale and leaseback transaction of	988
the qualified energy project, has failed to comply with any	989
requirement under this section. Upon certification or revocation,	990
the director shall notify the person, owner, or lessee, the tax	991
commissioner, and the county auditor of a county in which the	992
project is located of the certification or revocation. Notice	993
shall be provided in a manner convenient to the director.	994

(F) The owner or a lessee pursuant to a sale and leaseback	995
transaction of a qualified energy project shall do each of the	996
following:	997

(1) Comply with all applicable regulations;

998

(2) File with the director of development a certified	999
construction progress report before the first day of March of each	1000
year during the energy facility's construction or installation	1001
indicating the percentage of the project completed, and the	1002
project's nameplate capacity, as of the preceding thirty-first day	1003
of December. Unless otherwise instructed by the director of	1004
development, the owner or lessee of an energy project shall file a	1005
report with the director on or before the first day of March each	1006
year after completion of the energy facility's construction or	1007
installation indicating the project's nameplate capacity as of the	1008
preceding thirty-first day of December. Not later than sixty days	1009
after the effective date of this sectionJune 17, 2010, the owner	1010
or lessee of an energy project, the construction of which was	1011
completed before the effective date of this sectionJune 17,	1012
2010, shall file a certificate indicating the project's nameplate	1013
capacity.	1014

(3) File with the director of development, in a manner	1015
prescribed by the director, a report of the total number of	1016
full-time equivalent employees, and the total number of full-time	1017
equivalent employees domiciled in Ohio, who are employed in the	1018
construction or installation of the energy facility;	1019

(4) For energy projects with a nameplate capacity of five	1020
megawatts or greater, repair all roads, bridges, and culverts	1021
affected by construction as reasonably required to restore them to	1022
their preconstruction condition, as determined by the county	1023
engineer in consultation with the local jurisdiction responsible	1024
for the roads, bridges, and culverts. In the event that the county	1025
engineer deems any road, bridge, or culvert to be inadequate to	1026
support the construction or decommissioning of the energy	1027
facility, the road, bridge, or culvert shall be rebuilt or	1028
reinforced to the specifications established by the county	1029
engineer prior to the construction or decommissioning of the	1030
facility. The owner or lessee of the facility shall post a bond in	1031
an amount established by the county engineer and to be held by the	1032
board of county commissioners to ensure funding for repairs of	1033
roads, bridges, and culverts affected during the construction. The	1034
bond shall be released by the board not later than one year after	1035
the date the repairs are completed. The energy facility owner or	1036
lessee pursuant to a sale and leaseback transaction shall post a	1037
bond, as may be required by the Ohio power siting board in the	1038
certificate authorizing commencement of construction issued	1039
pursuant to section 4906.10 of the Revised Code, to ensure funding	1040
for repairs to roads, bridges, and culverts resulting from	1041
decommissioning of the facility. The energy facility owner or	1042
lessee and the county engineer may enter into an agreement	1043
regarding specific transportation plans, reinforcements,	1044
modifications, use and repair of roads, financial security to be	1045
provided, and any other relevant issue.	1046

(5) Provide or facilitate training for fire and emergency	1047
responders for response to emergency situations related to the	1048
energy project and, for energy projects with a nameplate capacity	1049
of five megawatts or greater, at the person's expense, equip the	1050
fire and emergency responders with proper equipment as reasonably	1051
required to enable them to respond to such emergency situations;	1052

(6) Maintain a ratio of Ohio-domiciled full-time equivalent	1053
employees employed in the construction or installation of the	1054
energy project to total full-time equivalent employees employed in	1055
the construction or installation of the energy project of not less	1056
than eighty per cent in the case of a solar energy project, and	1057
not less than fifty per cent in the case of any other energy	1058
project. In the case of an energy project for which certification	1059
from the power siting board is required under section 4906.20 of	1060
the Revised Code, the number of full-time equivalent employees	1061
employed in the construction or installation of the energy project	1062
equals the number actually employed or the number projected to be	1063
employed in the certificate application, if such projection is	1064
required under regulations adopted pursuant to section 4906.03 of	1065
the Revised Code, whichever is greater. For all other energy	1066
projects, the number of full-time equivalent employees employed in	1067
the construction or installation of the energy project equals the	1068
number actually employed or the number projected to be employed by	1069
the director of development, whichever is greater. To estimate the	1070
number of employees to be employed in the construction or	1071
installation of an energy project, the director shall use a	1072
generally accepted job-estimating model in use for renewable	1073
energy projects, including but not limited to the job and economic	1074
development impact model. The director may adjust an estimate	1075
produced by a model to account for variables not accounted for by	1076
the model.	1077

(7) For energy projects with a nameplate capacity in excess	1078
of two megawatts, establish a relationship with a member of the	1079
university system of Ohio as defined in section 3345.011 of the	1080
Revised Code or with a person offering an apprenticeship program	1081
registered with the employment and training administration within	1082
the United States department of labor or with the apprenticeship	1083
council created by section 4139.02 of the Revised Code, to educate	1084
and train individuals for careers in the wind or solar energy	1085
industry. The relationship may include endowments, cooperative	1086
programs, internships, apprenticeships, research and development	1087
projects, and curriculum development.	1088

(8) Offer to sell power or renewable energy credits from the	1089
energy project to electric distribution utilities or electric	1090
service companies subject to renewable energy resource	1091
requirements under section 4928.64 of the Revised Code that have	1092
issued requests for proposal for such power or renewable energy	1093
credits. If no electric distribution utility or electric service	1094
company issues a request for proposal on or before December 31,	1095
2010, or accepts an offer for power or renewable energy credits	1096
within forty-five days after the offer is submitted, power or	1097
renewable energy credits from the energy project may be sold to	1098
other persons. Division (F)(8) of this section does not apply if:	1099

(a) The owner or lessee is a rural electric company or a	1100
municipal power agency as defined in section 3734.058 of the	1101
Revised Code.	1102

(b) The owner or lessee is a person that, before completion	1103
of the energy project, contracted for the sale of power or	1104
renewable energy credits with a rural electric company or a	1105
municipal power agency.	1106

(c) The owner or lessee contracts for the sale of power or	1107
renewable energy credits from the energy project before the	1108
effective date of this section as enacted by this act.	1109

(9) Make annual service payments as required by division (G)	1110
of this section and as may be required in a resolution adopted by	1111
a board of county commissioners under division (E) of this	1112
section.	1113

(G) The owner or a lessee pursuant to a sale and leaseback	1114
transaction of a qualified energy project shall make annual	1115
service payments in lieu of taxes to the county treasurer on or	1116
before the final dates for payments of taxes on public utility	1117
personal property on the real and public utility personal property	1118
tax list for each tax year for which property of the energy	1119
project is exempt from taxation under this section. The county	1120
treasurer shall allocate the payment on the basis of the project's	1121
physical location. Upon receipt of a payment, or if timely payment	1122
has not been received, the county treasurer shall certify such	1123
receipt or non-receipt to the director of development and tax	1124
commissioner in a form determined by the director and	1125
commissioner, respectively. Each payment shall be in the following	1126
amount:	1127

(1) In the case of a solar energy project, seven thousand	1128
dollars per megawatt of nameplate capacity located in the county	1129
as of December 31, 2010, for tax year 2011,; as of December 31,	1130
2011, for tax year 2012,; and as of December 31, 2012, for tax	1131
year 2013 and each tax year thereafter;	1132

(2) In the case of any other energy project using renewable	1133
energy resources, the following:	1134

(a) If the project maintains during the construction or	1135
installation of the energy facility a ratio of Ohio-domiciled	1136
full-time equivalent employees to total full-time equivalent	1137
employees of not less than seventy-five per cent, six thousand	1138
dollars per megawatt of nameplate capacity located in the county	1139
as of the thirty-first day of December of the preceding tax year;	1140

(b) If the project maintains during the construction or	1141
installation of the energy facility a ratio of Ohio-domiciled	1142
full-time equivalent employees to total full-time equivalent	1143
employees of less than seventy-five per cent but not less than	1144
sixty per cent, seven thousand dollars per megawatt of nameplate	1145
capacity located in the county as of the thirty-first day of	1146
December of the preceding tax year;	1147

(c) If the project maintains during the construction or	1148
installation of the energy facility a ratio of Ohio-domiciled	1149
full-time equivalent employees to total full-time equivalent	1150
employees of less than sixty per cent but not less than fifty per	1151
cent, eight thousand dollars per megawatt of nameplate capacity	1152
located in the county as of the thirty-first day of December of	1153
the preceding tax year.	1154

(3) In the case of an energy project using clean coal	1155
technology, advanced nuclear technology, or cogeneration	1156
technology, the following:	1157

(a) If the project maintains during the construction or	1158
installation of the energy facility a ratio of Ohio-domiciled	1159
full-time equivalent employees to total full-time equivalent	1160
employees of not less than seventy-five per cent, six thousand	1161
dollars per megawatt of nameplate capacity located in the county	1162
as of the thirty-first day of December of the preceding tax year;	1163

(b) If the project maintains during the construction or	1164
installation of the energy facility a ratio of Ohio-domiciled	1165
full-time equivalent employees to total full-time equivalent	1166
employees of less than seventy-five per cent but not less than	1167
sixty per cent, seven thousand dollars per megawatt of nameplate	1168
capacity located in the county as of the thirty-first day of	1169
December of the preceding tax year;	1170

(c) If the project maintains during the construction or	1171
installation of the energy facility a ratio of Ohio-domiciled	1172
full-time equivalent employees to total full-time equivalent	1173
employees of less than sixty per cent but not less than fifty per	1174
cent, eight thousand dollars per megawatt of nameplate capacity	1175
located in the county as of the thirty-first day of December of	1176
the preceding tax year.	1177

(H) The director of development in consultation with the tax	1178
commissioner shall adopt rules pursuant to Chapter 119. of the	1179
Revised Code to implement and enforce this section.	1180

Section 2. That existing sections 4928.142, 4928.143,	1181
4928.20, 4928.61, 5501.311, and 5727.75 and sections 4928.64 and	1182
4928.65 of the Revised Code are hereby repealed.	1183