As Introduced

129th General Assembly Regular Session 2011-2012

S. B. No. 315

Senator Jones  

(by request)

---

A BILL

To amend sections 122.075, 123.011, 125.836, 133.06,

1

156.01, 156.02, 156.03, 156.04, 303.213, 1505.09,

2

1509.01, 1509.02, 1509.03, 1509.06, 1509.07,

3

1509.10, 1509.11, 1509.22, 1509.221, 1509.222,

4

1509.223, 1509.23, 1509.31, 1509.50, 1514.01,

5

1514.02, 1514.021, 1514.03, 1514.05, 3706.27,

6

4905.90, 4905.91, 4905.95, 4906.01, 4906.03,

7

4906.05, 4906.06, 4906.07, 4906.10, 4906.20,

8

4906.99, 4928.01, 4928.02, 4928.143, 4928.61,

9

4928.62, 4928.66, 4935.04, and 6111.30 and to

10

enact sections 4905.911, 4928.111, 4928.70,

11

4928.71, 4928.72, and 6111.32 of the Revised Code

12

to make changes to the energy and natural

13

resources laws and related programs of the state.

14

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

Section 101.01. That sections 122.075, 123.011, 125.836,	15
133.06, 156.01, 156.02, 156.03, 156.04, 303.213, 1505.09, 1509.01,	16
1509.02, 1509.03, 1509.06, 1509.07, 1509.10, 1509.11, 1509.22,	17
1509.221, 1509.222, 1509.223, 1509.23, 1509.31, 1509.50, 1514.01,	18
1514.02, 1514.021, 1514.03, 1514.05, 3706.27, 4905.90, 4905.91,	19
4905.95, 4906.01, 4906.03, 4906.05, 4906.06, 4906.07, 4906.10,	20
4906.20, 4906.99, 4928.01, 4928.02, 4928.143, 4928.61, 4928.62,	21
4928.66, 4935.04, and 6111.30 be amended and sections 4905.911,	22
4928.111, 4928.70, 4928.71, 4928.72, and 6111.32 of the Revised	23
Code be enacted to read as follows:	24

Sec. 122.075. (A) As used in this section:

25

(1) "Alternative fuel" has the same meaning as in section	26
125.831 of the Revised Code.	27

(2) "Biodiesel" means a mono-alkyl ester combustible liquid	28
fuel that is derived from vegetable oils or animal fats, or any	29
combination of those reagents, and that meets American society for	30
testing and materials specification D6751-03a for biodiesel fuel	31
(B100) blend stock distillate fuels.	32

(3) "Diesel fuel" and "gasoline" have the same meanings as in	33
section 5735.01 of the Revised Code.	34

(4) "Ethanol" has the same meaning as in section 5733.46 of	35
the Revised Code.	36

(5) "Blended biodiesel" means diesel fuel containing at least	37
twenty per cent biodiesel by volume.	38

(6) "Blended gasoline" means gasoline containing at least	39
eighty-five per cent ethanol by volume.	40

(7) "Incremental cost" means either of the following:

41

(a) The difference in cost between blended gasoline and	42
gasoline containing ten per cent or less ethanol at the time that	43
the blended gasoline is purchased;	44

(b) The difference in cost between blended biodiesel and	45
diesel fuel containing two per cent or less biodiesel at the time	46
that the blended biodiesel is purchased.	47

(B) For the purpose of improving the air quality in this	48
state, the director of development shall establish an alternative	49
fuel transportation grant program under which the director may	50
make grants and loans to businesses, nonprofit organizations,	51
public school systems, or local governments for the purchase and	52
installation of alternative fuel refueling or distribution	53
facilities and terminals, for the purchase and use of alternative	54
fuel, and to pay the costs of educational and promotional	55
materials and activities intended for prospective alternative fuel	56
consumers, fuel marketers, and others in order to increase the	57
availability and use of alternative fuel.	58

(C) The director, in consultation with the director of	59
agriculture, shall adopt rules in accordance with Chapter 119. of	60
the Revised Code that are necessary for the administration of the	61
alternative fuel transportation grant program. The rules shall	62
establish at least all of the following:	63

(1) An application form and procedures governing the	64
application process for a grantreceiving funds under the program;	65

(2) A procedure for prioritizing the award of grants and	66
loans under the program. The procedures shall give preference to	67
all of the following:	68

(a) Publicly accessible refueling facilities;

69

(b) Entities seeking grantsapplying to the program that have	70
secured funding from other sources, including, but not limited to,	71
private or federal grantsincentives;	72

(c) Entities that have presented compelling evidence of	73
demand in the market in which the facilities or terminals will be	74
located;	75

(d) Entities that have committed to utilizing purchased or	76
installed facilities or terminals for the greatest number of	77
years;	78

(e) Entities that will be purchasing or installing facilities	79
or terminals for any type of alternative fuel.	80

(3) A requirement that the maximum grantincentive for the	81
purchase and installation of an alternative fuel refueling or	82
distribution facility or terminal be eighty per cent of the cost	83
of the facility or terminal, except that at least twenty per cent	84
of the total net cost of the facility or terminal shall be	85
incurred by the grant recipient and not compensated for by any	86
other source;	87

(4) A requirement that the maximum grantincentive for the	88
purchase of alternative fuel be eighty per cent of the cost of the	89
fuel or, in the case of blended biodiesel or blended gasoline,	90
eighty per cent of the incremental cost of the blended biodiesel	91
or blended gasoline;	92

(5) Any other criteria, procedures, or guidelines that the	93
director determines are necessary to administer the program,	94
including fees, charges, interest rates, and payment schedules.	95

(D) An applicant for a grant or loan under this section that	96
sells motor vehicle fuel at retail shall agree that if the	97
applicant receives a grantfunding, the applicant will report to	98
the director the gallon or gallon equivalent amounts of	99
alternative fuel the applicant sells at retail in this state for a	100
period of three years after the grant is awardedproject is	101
completed.	102

The director shall enter into a written confidentiality	103
agreement with the applicant regarding the gallon or gallon	104
equivalent amounts sold as described in this division, and upon	105
execution of the agreement this information is not a public	106
record.	107

(E) There is hereby created in the state treasury the	108
alternative fuel transportation grant fund. The fund shall consist	109
of money transferred to the fund under division (C) of section	110
125.836 and under division (B)(2) of section 3706.27 of the	111
Revised Code, money that is appropriated to it by the general	112
assembly, and money as may be specified by the general assembly	113
from the advanced energy fund created by section 4928.61 of the	114
Revised Code. Money in the fund shall be used to make grants and	115
loans under the alternative fuel transportation grant program and	116
by the director in the administration of that program.	117

Sec. 123.011.  (A) As used in this section:

118

(1) "Construct" includes reconstruct, improve, renovate,	119
enlarge, or otherwise alter.	120

(2) "Energy consumption analysis" means the evaluation of all	121
energy consuming systems, components, and equipment by demand and	122
type of energy, including the internal energy load imposed on a	123
facility by its occupants and the external energy load imposed by	124
climatic conditions.	125

(3) "Energy performance index" means a number describing the	126
energy requirements of a facility per square foot of floor space	127
or per cubic foot of occupied volume as appropriate under defined	128
internal and external ambient conditions over an entire seasonal	129
cycle.	130

(4) "Facility" means a building or other structure, or part	131
of a building or other structure, that includes provision for a	132
heating, refrigeration, ventilation, cooling, lighting, hot water,	133
or other major energy consuming system, component, or equipment.	134

(5) "Life-cycle cost analysis" means a general approach to	135
economic evaluation that takes into account all dollar costs	136
related to owning, operating, maintaining, and ultimately	137
disposing of a project over the appropriate study period.	138

(6) "Political subdivision" means a county, township,	139
municipal corporation, board of education of any school district,	140
or any other body corporate and politic that is responsible for	141
government activities in a geographic area smaller than that of	142
the state.	143

(7) "State funded" means funded in whole or in part through	144
appropriation by the general assembly or through the use of any	145
guarantee provided by this state.	146

(8) "State institution of higher education" has the same	147
meaning as in section 3345.011 of the Revised Code.	148

(9) "Cogeneration" means the simultaneous production of	149
thermal energy and electricity for use primarily within a building	150
or complex of buildings.	151

(B) There is hereby created within the department of	152
administrative services the office of energy services. The office	153
shall be under the supervision of a manager, who shall be	154
appointed by the director of administrative services. The director	155
shall assign to the office such number of employees and furnish	156
such equipment and supplies as are necessary for the performance	157
of the office's duties.	158

The office shall develop energy efficiency and conservation	159
programs in each of the following areas:	160

(1) New construction design and review;

161

(2) Existing building audit and retrofit;

162

(3) Energy efficient procurement;

163

(4) Alternative fuel vehicles.

164

The office may accept and administer grants from public and	165
private sources for carrying out any of its duties under this	166
section.	167

(C) No state agency, department, division, bureau, office,	168
unit, board, commission, authority, quasi-governmental entity, or	169
institution, including those agencies otherwise excluded from the	170
jurisdiction of the department under division (A)(3) of section	171
123.01 of the Revised Code, shall lease, construct, or cause to be	172
leased or constructed, within the limits prescribed in this	173
section, a state-funded facility, without a proper life-cycle cost	174
analysis or, in the case of a lease, an energy consumption	175
analysis, as computed or prepared by a qualified architect or	176
engineer in accordance with the rules required by division (D) of	177
this section.	178

Construction shall proceed only upon the disclosure to the	179
office, for the facility chosen, of the life-cycle costs as	180
determined in this section and the capitalization of the initial	181
construction costs of the building. The results of life-cycle cost	182
analysis shall be a primary consideration in the selection of a	183
building design. That analysis shall be required only for	184
construction of buildings with an area of five thousand square	185
feet or greater. For projects with an estimated construction cost	186
exceeding fifty million dollars, the analysis shall include a	187
review of cogeneration as an energy source. An energy consumption	188
analysis for the term of a proposed lease shall be required only	189
for the leasing of an area of twenty thousand square feet or	190
greater within a given building boundary. That analysis shall be a	191
primary consideration in the selection of a facility to be leased.	192

Nothing in this section shall deprive or limit any state	193
agency that has review authority over design, construction, or	194
leasing plans from requiring a life-cycle cost analysis or energy	195
consumption analysis.	196

(D) For the purposes of assisting the department in its	197
responsibility for state-funded facilities pursuant to section	198
123.01 of the Revised Code and of cost-effectively reducing the	199
energy consumption of those and any other state-funded facilities,	200
thereby promoting fiscal, economic, and environmental benefits to	201
this state, the office shall promulgate rules specifying	202
cost-effective, energy efficiency and conservation standards that	203
may govern the lease, design, construction, operation, and	204
maintenance of all state-funded facilities, except facilities of	205
state institutions of higher education or facilities operated by a	206
political subdivision. The office of energy efficiency in the	207
department of development shall cooperate in providing information	208
and technical expertise to the office of energy services to ensure	209
promulgation of rules of maximum effectiveness. The standards	210
prescribed by rules promulgated under this division may draw from	211
or incorporate, by reference or otherwise and in whole or in part,	212
standards already developed or implemented by any competent,	213
public or private standards organization or program. The rules	214
also may include any of the following:	215

(1) Specifications for a life-cycle cost analysis that shall	216
determine, for the economic life of such state-funded facility,	217
the reasonably expected costs of facility ownership, operation,	218
and maintenance including labor and materials. Life-cycle cost may	219
be expressed as an annual cost for each year of the facility's	220
use.	221

A life-cycle cost analysis additionally may include an energy	222
consumption analysis that conforms to division (D)(2) of this	223
section.	224

(2) Specifications for an energy consumption analysis of the	225
facility's heating, refrigeration, ventilation, cooling, lighting,	226
hot water, and other major energy consuming systems, components,	227
and equipment.	228

A life-cycle cost analysis and energy consumption analysis	229
shall be based on the best currently available methods of	230
analysis, such as those of the national institute of standards and	231
technology, the United States department of energy or other	232
federal agencies, professional societies, and directions developed	233
by the department.	234

(3) Specifications for energy performance indices, to be used	235
to audit and evaluate competing design proposals submitted to the	236
state.	237

(4) A requirement that, not later than two years after April	238
6, 2007, each state-funded facility, except a facility of a state	239
institution of higher education or a facility operated by a	240
political subdivision, is managed by at least one building	241
operator certified under the building operator certification	242
program or any equivalent program or standards as shall be	243
prescribed in the rules and considered reasonably equivalent.	244

(5) An application process by which a manager of a specified	245
state-funded facility, except a facility of a state institution of	246
higher education or a facility operated by a political	247
subdivision, may apply for a waiver of compliance with any	248
provision of the rules required by divisions (D)(1) to (4) of this	249
section.	250

(E) The office of energy services shall promulgate rules to	251
ensure that energy efficiency and conservation will be considered	252
in the purchase of products and equipment, except motor vehicles,	253
by any state agency, department, division, bureau, office, unit,	254
board, commission, authority, quasi-governmental entity, or	255
institution. Minimum energy efficiency standards for purchased	256
products and equipment may be required, based on federal testing	257
and labeling where available or on standards developed by the	258
office. The rules shall apply to the competitive selection of	259
energy consuming systems, components, and equipment under Chapter	260
125. of the Revised Code where possible.	261

The office also shall ensure energy efficient and energy	262
conserving purchasing practices by doing all of the following:	263

(1) Cooperatively with the office of energy efficiency,	264
identifying available energy efficiency and conservation	265
opportunities;	266

(2) Providing for interchange of information among purchasing	267
agencies;	268

(3) Identifying laws, policies, rules, and procedures that	269
need modification;	270

(4) Monitoring experience with and the cost-effectiveness of	271
this state's purchase and use of motor vehicles and of major	272
energy-consuming systems, components, equipment, and products	273
having a significant impact on energy consumption by government;	274

(5) Cooperatively with the office of energy efficiency,	275
providing technical assistance and training to state employees	276
involved in the purchasing process.	277

The department of development shall make recommendations to	278
the office regarding planning and implementation of purchasing	279
policies and procedures supportive of energy efficiency and	280
conservation.	281

(F)(1) The office of energy services shall require all state	282
agencies, departments, divisions, bureaus, offices, units,	283
commissions, boards, authorities, quasi-governmental entities,	284
institutions, and state institutions of higher education to	285
implement procedures ensuring that all their passenger automobiles	286
acquired in each fiscal year, except for those passenger	287
automobiles acquired for use in law enforcement or emergency	288
rescue work, achieve a fleet average fuel economy of not less than	289
the fleet average fuel economy for that fiscal year as shall be	290
prescribed by the office by rule. The office shall promulgate the	291
rule prior to the beginning of the fiscal year in accordance with	292
the average fuel economy standards established pursuant to federal	293
law for passenger automobiles manufactured during the model year	294
that begins during the fiscal year.	295

(2) Each state agency, department, division, bureau, office,	296
unit, commission, board, authority, quasi-governmental entity,	297
institution, and state institution of higher education shall	298
determine its fleet average fuel economy by dividing:	299

(a) The total number of passenger vehicles acquired during	300
the fiscal year, except for those passenger vehicles acquired for	301
use in law enforcement or emergency rescue work, by	302

(b) A sum of terms, each of which is a fraction created by	303
dividing:	304

(i) The number of passenger vehicles of a given make, model,	305
and year, except for passenger vehicles acquired for use in law	306
enforcement or emergency rescue work, acquired during the fiscal	307
year, by	308

(ii) The fuel economy measured by the administrator of the	309
United States environmental protection agency, for the given make,	310
model, and year of vehicle, that constitutes an average fuel	311
economy for combined city and highway driving.	312

As used in division (F)(2) of this section, "acquired" means	313
leased for a period of sixty continuous days or more, or	314
purchased.	315

(G) Each state agency, department, division, bureau, office,	316
unit, board, commission, authority, quasi-governmental entity,	317
institution, and state institution of higher education shall	318
comply with any applicable provision of this section or of a rule	319
promulgated pursuant to division (D) or (F) of this section.	320

Sec. 125.836.  (A) As used in this section:

321

(1) "Biodiesel," "blended biodiesel," and "diesel fuel" have	322
the same meanings as in section 125.831 of the Revised Code.	323

(2) "Credit" means a credit generated by the acquisition of	324
alternative fueled vehicles in accordance with the "Energy Policy	325
Act of 1992," 106 Stat. 2897, 42 U.S.C. 13257.	326

(3) "Incremental cost" means the difference in cost between	327
blended biodiesel and conventional petroleum-based diesel fuel at	328
the time the blended biodiesel is purchased.	329

(B) The department of administrative services shall establish	330
and administer a credit banking and selling program. The	331
department may sell or trade credits in accordance with procedures	332
established pursuant to the "Energy Policy Act of 1992," 106 Stat.	333
2897, 42 U.S.C. 13258.	334

(C) There is hereby created in the state treasury the	335
"biodiesel revolving fund," to which shall be credited moneys	336
received from the sale of credits under this section, any moneys	337
appropriated to the fund by the general assembly, and any other	338
moneys obtained or accepted by the department for crediting to the	339
fund. Moneys credited to the fund shall be used to pay for the	340
incremental cost of biodiesel for use in vehicles owned or leased	341
by the state that use diesel fuel. The director of administrative	342
services, after consultation with the director of development, may	343
direct the director of budget and management to transfer available	344
moneys in the biodiesel revolving fund to the alternative fuel	345
transportation grant fund created in section 122.075 of the	346
Revised Code to be used by the department of development for the	347
purposes specified in that section.	348

(D) The director of administrative services shall adopt rules	349
under Chapter 119. of the Revised Code that are necessary for the	350
administration of the credit banking and selling program.	351

Sec. 133.06.  (A) A school district shall not incur, without	352
a vote of the electors, net indebtedness that exceeds an amount	353
equal to one-tenth of one per cent of its tax valuation, except as	354
provided in divisions (G) and (H) of this section and in division	355
(C) of section 3313.372 of the Revised Code, or as prescribed in	356
section 3318.052 or 3318.44 of the Revised Code, or as provided in	357
division (J) of this section.	358

(B) Except as provided in divisions (E), (F), and (I) of this	359
section, a school district shall not incur net indebtedness that	360
exceeds an amount equal to nine per cent of its tax valuation.	361

(C) A school district shall not submit to a vote of the	362
electors the question of the issuance of securities in an amount	363
that will make the district's net indebtedness after the issuance	364
of the securities exceed an amount equal to four per cent of its	365
tax valuation, unless the superintendent of public instruction,	366
acting under policies adopted by the state board of education, and	367
the tax commissioner, acting under written policies of the	368
commissioner, consent to the submission. A request for the	369
consents shall be made at least one hundred twenty days prior to	370
the election at which the question is to be submitted.	371

The superintendent of public instruction shall certify to the	372
district the superintendent's and the tax commissioner's decisions	373
within thirty days after receipt of the request for consents.	374

If the electors do not approve the issuance of securities at	375
the election for which the superintendent of public instruction	376
and tax commissioner consented to the submission of the question,	377
the school district may submit the same question to the electors	378
on the date that the next special election may be held under	379
section 3501.01 of the Revised Code without submitting a new	380
request for consent. If the school district seeks to submit the	381
same question at any other subsequent election, the district shall	382
first submit a new request for consent in accordance with this	383
division.	384

(D) In calculating the net indebtedness of a school district,	385
none of the following shall be considered:	386

(1) Securities issued to acquire school buses and other	387
equipment used in transporting pupils or issued pursuant to	388
division (D) of section 133.10 of the Revised Code;	389

(2) Securities issued under division (F) of this section,	390
under section 133.301 of the Revised Code, and, to the extent in	391
excess of the limitation stated in division (B) of this section,	392
under division (E) of this section;	393

(3) Indebtedness resulting from the dissolution of a joint	394
vocational school district under section 3311.217 of the Revised	395
Code, evidenced by outstanding securities of that joint vocational	396
school district;	397

(4) Loans, evidenced by any securities, received under	398
sections 3313.483, 3317.0210, 3317.0211, and 3317.64 of the	399
Revised Code;	400

(5) Debt incurred under section 3313.374 of the Revised Code;

401

(6) Debt incurred pursuant to division (B)(5) of section	402
3313.37 of the Revised Code to acquire computers and related	403
hardware;	404

(7) Debt incurred under section 3318.042 of the Revised Code.

405

(E) A school district may become a special needs district as	406
to certain securities as provided in division (E) of this section.	407

(1) A board of education, by resolution, may declare its	408
school district to be a special needs district by determining both	409
of the following:	410

(a) The student population is not being adequately serviced	411
by the existing permanent improvements of the district.	412

(b) The district cannot obtain sufficient funds by the	413
issuance of securities within the limitation of division (B) of	414
this section to provide additional or improved needed permanent	415
improvements in time to meet the needs.	416

(2) The board of education shall certify a copy of that	417
resolution to the superintendent of public instruction with a	418
statistical report showing all of the following:	419

(a) The history of and a projection of the growth of the tax	420
valuation;	421

(b) The projected needs;

422

(c) The estimated cost of permanent improvements proposed to	423
meet such projected needs.	424

(3) The superintendent of public instruction shall certify	425
the district as an approved special needs district if the	426
superintendent finds both of the following:	427

(a) The district does not have available sufficient	428
additional funds from state or federal sources to meet the	429
projected needs.	430

(b) The projection of the potential average growth of tax	431
valuation during the next five years, according to the information	432
certified to the superintendent and any other information the	433
superintendent obtains, indicates a likelihood of potential	434
average growth of tax valuation of the district during the next	435
five years of an average of not less than one and one-half per	436
cent per year. The findings and certification of the	437
superintendent shall be conclusive.	438

(4) An approved special needs district may incur net	439
indebtedness by the issuance of securities in accordance with the	440
provisions of this chapter in an amount that does not exceed an	441
amount equal to the greater of the following:	442

(a) Twelve per cent of the sum of its tax valuation plus an	443
amount that is the product of multiplying that tax valuation by	444
the percentage by which the tax valuation has increased over the	445
tax valuation on the first day of the sixtieth month preceding the	446
month in which its board determines to submit to the electors the	447
question of issuing the proposed securities;	448

(b) Twelve per cent of the sum of its tax valuation plus an	449
amount that is the product of multiplying that tax valuation by	450
the percentage, determined by the superintendent of public	451
instruction, by which that tax valuation is projected to increase	452
during the next ten years.	453

(F) A school district may issue securities for emergency	454
purposes, in a principal amount that does not exceed an amount	455
equal to three per cent of its tax valuation, as provided in this	456
division.	457

(1) A board of education, by resolution, may declare an	458
emergency if it determines both of the following:	459

(a) School buildings or other necessary school facilities in	460
the district have been wholly or partially destroyed, or condemned	461
by a constituted public authority, or that such buildings or	462
facilities are partially constructed, or so constructed or planned	463
as to require additions and improvements to them before the	464
buildings or facilities are usable for their intended purpose, or	465
that corrections to permanent improvements are necessary to remove	466
or prevent health or safety hazards.	467

(b) Existing fiscal and net indebtedness limitations make	468
adequate replacement, additions, or improvements impossible.	469

(2) Upon the declaration of an emergency, the board of	470
education may, by resolution, submit to the electors of the	471
district pursuant to section 133.18 of the Revised Code the	472
question of issuing securities for the purpose of paying the cost,	473
in excess of any insurance or condemnation proceeds received by	474
the district, of permanent improvements to respond to the	475
emergency need.	476

(3) The procedures for the election shall be as provided in	477
section 133.18 of the Revised Code, except that:	478

(a) The form of the ballot shall describe the emergency	479
existing, refer to this division as the authority under which the	480
emergency is declared, and state that the amount of the proposed	481
securities exceeds the limitations prescribed by division (B) of	482
this section;	483

(b) The resolution required by division (B) of section 133.18	484
of the Revised Code shall be certified to the county auditor and	485
the board of elections at least one hundred days prior to the	486
election;	487

(c) The county auditor shall advise and, not later than	488
ninety-five days before the election, confirm that advice by	489
certification to, the board of education of the information	490
required by division (C) of section 133.18 of the Revised Code;	491

(d) The board of education shall then certify its resolution	492
and the information required by division (D) of section 133.18 of	493
the Revised Code to the board of elections not less than ninety	494
days prior to the election.	495

(4) Notwithstanding division (B) of section 133.21 of the	496
Revised Code, the first principal payment of securities issued	497
under this division may be set at any date not later than sixty	498
months after the earliest possible principal payment otherwise	499
provided for in that division.	500

(G) The board of education may contract with an architect,	501
professional engineer, or other person experienced in the design	502
and implementation of energy conservation measures for an analysis	503
and recommendations pertaining to installations, modifications of	504
installations, or remodeling that would significantly reduce	505
energy consumption in buildings owned by the district. The report	506
shall include estimates of all costs of such installations,	507
modifications, or remodeling, including costs of design,	508
engineering, installation, maintenance, repairs, and debt service,	509
forgone residual value of materials or equipment replaced by the	510
energy conservation measure, as defined by the Ohio school	511
facilities commission, a baseline analysis of actual energy	512
consumption data for the preceding fivethree years, and estimates	513
of the amounts by which energy consumption and resultant	514
operational and maintenance costs, as defined by the commission,	515
would be reduced.	516

If the board finds after receiving the report that the amount	517
of money the district would spend on such installations,	518
modifications, or remodeling is not likely to exceed the amount of	519
money it would save in energy and resultant operational and	520
maintenance costs over the ensuing fifteen years, the board may	521
submit to the commission a copy of its findings and a request for	522
approval to incur indebtedness to finance the making or	523
modification of installations or the remodeling of buildings for	524
the purpose of significantly reducing energy consumption.	525

If the commission determines that the board's findings are	526
reasonable, it shall approve the board's request. Upon receipt of	527
the commission's approval, the district may issue securities	528
without a vote of the electors in a principal amount not to exceed	529
nine-tenths of one per cent of its tax valuation for the purpose	530
of making such installations, modifications, or remodeling, but	531
the total net indebtedness of the district without a vote of the	532
electors incurred under this and all other sections of the Revised	533
Code, except section 3318.052 of the Revised Code, shall not	534
exceed one per cent of the district's tax valuation.	535

So long as any securities issued under division (G) of this	536
section remain outstanding, the board of education shall monitor	537
the energy consumption and resultant operational and maintenance	538
costs of buildings in which installations or modifications have	539
been made or remodeling has been done pursuant to division (G) of	540
this section and shall maintain and annually update a report	541
documenting the reductions in energy consumption and resultant	542
operational and maintenance cost savings attributable to such	543
installations, modifications, or remodeling. The report shall be	544
certified by an architect or engineer independent of any person	545
that provided goods or services to the board in connection with	546
the energy conservation measures that are the subject of the	547
report. The resultant operational and maintenance cost savings	548
shall be certified by the school district treasurer. The report	549
shall be submitted annually to the commission.	550

(H) With the consent of the superintendent of public	551
instruction, a school district may incur without a vote of the	552
electors net indebtedness that exceeds the amounts stated in	553
divisions (A) and (G) of this section for the purpose of paying	554
costs of permanent improvements, if and to the extent that both of	555
the following conditions are satisfied:	556

(1) The fiscal officer of the school district estimates that	557
receipts of the school district from payments made under or	558
pursuant to agreements entered into pursuant to section 725.02,	559
1728.10, 3735.671, 5709.081, 5709.082, 5709.40, 5709.41, 5709.62,	560
5709.63, 5709.632, 5709.73, 5709.78, or 5709.82 of the Revised	561
Code, or distributions under division (C) of section 5709.43 of	562
the Revised Code, or any combination thereof, are, after	563
accounting for any appropriate coverage requirements, sufficient	564
in time and amount, and are committed by the proceedings, to pay	565
the debt charges on the securities issued to evidence that	566
indebtedness and payable from those receipts, and the taxing	567
authority of the district confirms the fiscal officer's estimate,	568
which confirmation is approved by the superintendent of public	569
instruction;	570

(2) The fiscal officer of the school district certifies, and	571
the taxing authority of the district confirms, that the district,	572
at the time of the certification and confirmation, reasonably	573
expects to have sufficient revenue available for the purpose of	574
operating such permanent improvements for their intended purpose	575
upon acquisition or completion thereof, and the superintendent of	576
public instruction approves the taxing authority's confirmation.	577

The maximum maturity of securities issued under division (H)	578
of this section shall be the lesser of twenty years or the maximum	579
maturity calculated under section 133.20 of the Revised Code.	580

(I) A school district may incur net indebtedness by the	581
issuance of securities in accordance with the provisions of this	582
chapter in excess of the limit specified in division (B) or (C) of	583
this section when necessary to raise the school district portion	584
of the basic project cost and any additional funds necessary to	585
participate in a project under Chapter 3318. of the Revised Code,	586
including the cost of items designated by the Ohio school	587
facilities commission as required locally funded initiatives, the	588
cost of other locally funded initiatives in an amount that does	589
not exceed fifty per cent of the district's portion of the basic	590
project cost, and the cost for site acquisition. The school	591
facilities commission shall notify the superintendent of public	592
instruction whenever a school district will exceed either limit	593
pursuant to this division.	594

(J) A school district whose portion of the basic project cost	595
of its classroom facilities project under sections 3318.01 to	596
3318.20 of the Revised Code is greater than or equal to one	597
hundred million dollars may incur without a vote of the electors	598
net indebtedness in an amount up to two per cent of its tax	599
valuation through the issuance of general obligation securities in	600
order to generate all or part of the amount of its portion of the	601
basic project cost if the controlling board has approved the	602
school facilities commission's conditional approval of the project	603
under section 3318.04 of the Revised Code. The school district	604
board and the Ohio school facilities commission shall include the	605
dedication of the proceeds of such securities in the agreement	606
entered into under section 3318.08 of the Revised Code. No state	607
moneys shall be released for a project to which this section	608
applies until the proceeds of any bonds issued under this section	609
that are dedicated for the payment of the school district portion	610
of the project are first deposited into the school district's	611
project construction fund.	612

Sec. 156.01.  As used in sections 156.01 to 156.05 of the	613
Revised Code:	614

(A) "Avoided capital costs" means a measured reduction in the	615
cost of future equipment or other capital purchases that results	616
from implementation of one or more energy or water conservation	617
measures, when compared to an established baseline for previous	618
such cost.	619

(B) "Energy conservation measure" means an installation or	620
modification of an installation in, or a remodeling of, an	621
existing building in order to reduce energy consumption and	622
operating costs. The term includes any of the following:	623

(1) Installation or modification of insulation in the	624
building structure and systems within the building;	625

(2) Installation or modification of storm windows and doors,	626
multiglazed windows and doors, and heat absorbing or heat	627
reflective glazed and coated window and door systems; installation	628
of additional glazing; reductions in glass area; and other window	629
and door system modifications that reduce energy consumption and	630
operating costs;	631

(3) Installation or modification of automatic energy control	632
systems;	633

(4) Replacement or modification of heating, ventilating, or	634
air conditioning systems;	635

(5) Application of caulking and weather stripping;

636

(6) Replacement or modification of lighting fixtures to	637
increase the energy efficiency of the lighting system without	638
increasing the overall illumination of a building unless the	639
increase in illumination is necessary to conform to the applicable	640
state or local building code for the proposed lighting system;	641

(7) Installation or modification of energy recovery systems;

642

(8) Installation or modification of cogeneration systems that	643
produce steam or forms of energy such as heat, as well as	644
electricity, for use primarily within a building or complex of	645
buildings;	646

(9) Installation or modification of trigeneration systems	647
that produce heat and cooling, as well as electricity, for use	648
primarily within a building or complex of buildings;	649

(10) Installation or modification of systems that harvest	650
renewable energy from solar, wind, water, biomass, bio-gas, or	651
geothermal sources, for use primarily within a building or complex	652
of buildings;	653

(11) Retro-commissioning or recommissioning energy-related	654
systems to verify that they are installed and calibrated to	655
optimize energy and operational performance within a building or	656
complex of buildings;	657

(12) Consolidation, virtualization, and optimization of	658
computer servers, data storage devices, or other information	659
technology hardware and infrastructure;	660

(13) Any other modification, installation, or remodeling	661
approved by the director of administrative services as an energy	662
conservation measure for one or more buildings owned by theeither	663
of the following:	664

(a) The state;

665

(b) A state institution of higher education as defined in	666
section 3345.011 of the Revised Code that implements the energy	667
conservation measure in consultation with the director.	668

(C) "Energy saving measure" means the acquisition and	669
installation, by purchase, lease, lease-purchase, lease with an	670
option to buy, or installment purchase, of an energy conservation	671
measure and any attendant architectural and engineering consulting	672
services.	673

(D) "Energy, water, or wastewater cost savings" means a	674
measured reduction in, as applicable, the cost of fuel, energy or	675
water consumption, wastewater production, or stipulated operation	676
or maintenance resulting from the implementation of one or more	677
energy or water conservation measures, when compared to an	678
established baseline for previous such costs, respectively.	679

(E) "Operating cost savings" means a measured reduction in	680
the cost of stipulated operation or maintenance created by the	681
installation of new equipment or implementation of a new service,	682
when compared with an established baseline for previous such	683
stipulated costs.	684

(F) "Water conservation measure" means an installation or	685
modification of an installation in, or a remodeling of, an	686
existing building or the surrounding grounds in order to reduce	687
water consumption. The term includes any of the following:	688

(1) Water-conserving fixture, appliance, or equipment, or the	689
substitution of a nonwater-using fixture, appliance, or equipment;	690

(2) Water-conserving, landscape irrigation equipment;

691

(3) Landscaping measure that reduces storm water runoff	692
demand and capture and hold applied water and rainfall, including	693
landscape contouring such as the use of a berm, swale, or terrace	694
and including the use of a soil amendment, including compost, that	695
increases the water-holding capacity of the soil;	696

(4) Rainwater harvesting equipment or equipment to make use	697
of water collected as part of a storm water system installed for	698
water quality control;	699

(5) Equipment for recycling or reuse of water originating on	700
the premises or from another source, including treated, municipal	701
effluent;	702

(6) Equipment needed to capture water for nonpotable uses	703
from any nonconventional, alternate source, including air	704
conditioning condensate or gray water;	705

(7) Any other modification, installation, or remodeling	706
approved by the board of trustees of a state institution of higher	707
education as defined in section 3345.011 of the Revised Code	708
director of administrative services as a water conservation	709
measure for one or more buildings or the surrounding grounds owned	710
by either of the following:	711

(a) The state;

712

(b) A state institution of higher education as defined in	713
section 3345.011 of the Revised Code that implements the water	714
conservation measure in consultation with the director.	715

(G) "Water saving measure" means the acquisition and	716
installation, by the purchase, lease, lease-purchase, lease with	717
an option to buy, or installment purchases of a water conservation	718
measure and any attendant architectural and engineering consulting	719
services.	720

Sec. 156.02. (A) The director of administrative services may	721
contract with an energy services company, contractor, architect,	722
professional engineer, or other person experienced in the design	723
and implementation of energy conservation measures for a report	724
containing an analysis and recommendations pertaining to the	725
implementation of energy conservation measures that would	726
significantly reduce energy consumption and operating costs in any	727
buildings owned by the state. The report shall include estimates	728
of all costs of such measures, including the costs of design,	729
engineering, installation, maintenance, repairs, and debt service,	730
and estimates of the amounts by which energy consumption and	731
operating costs would be reduced.	732

(B) Upon the request of the board of trustees or managing	733
authority of a state institution of higher education as defined in	734
section 3345.011 of the Revised Code, the director may contract	735
withor a water services company, architect, professional	736
engineer, contractor, or other person experienced in the design	737
and implementation of energy or water conservation measures for a	738
report containing an analysis and recommendations pertaining to	739
the implementation of energy or water conservation measures that	740
result in energy, water, or wastewater cost savings, operating	741
cost savings, or avoided capital costs for the institution. The	742
report shall include estimates of all costs of such installations,	743
including the costs of design, engineering, installation,	744
maintenance, repairs, and debt service, and estimates of the	745
energy, water, or wastewater cost savings, operating cost savings,	746
and avoided capital costs created.	747

Sec. 156.03.  (A) If the director of administrative services	748
wishes to enter into an installment payment contract pursuant to	749
section 156.04 of the Revised Code or any other contract to	750
implement one or more energy saving measures or, in the case of a	751
state institution of higher education pursuant to division (B) of	752
section 156.02 of the Revised Code, energy or water saving	753
measures, the director may proceed under Chapter 153. of the	754
Revised Code, or, alternatively, the director may request the	755
controlling board to exempt the contract from Chapter 153. of the	756
Revised Code.	757

If the controlling board by a majority vote approves an	758
exemption, that chapter shall not apply to the contract and	759
instead the director shall request proposals from at least three	760
parties for the implementation of the energy or water saving	761
measures. Prior to providing any interested party a copy of any	762
such request, the director shall advertise, in a newspaper of	763
general circulation in the county where the contract is to be	764
performed, and may advertise by electronic means pursuant to rules	765
adopted by the director, the director's intent to request	766
proposals for the implementation of the energy or water saving	767
measures. The notice shall invite interested parties to submit	768
proposals for consideration and shall be published at least thirty	769
days prior to the date for accepting proposals.	770

(B) Upon receiving the proposals, the director shall analyze	771
them and, after considering the cost estimates of each proposal	772
and the availability of funds to pay for each with current	773
appropriations or by financing the cost of each through an	774
installment payment contract under section 156.04 of the Revised	775
Code, may select one or more proposals or reject all proposals. In	776
selecting proposals, the director shall select the one or more	777
proposals most likely to result in the greatest savings when the	778
cost of the proposal is compared to the reduced energy and	779
operating costs that will result from implementing the proposal.	780
However, in the case of a state institution of higher education	781
pursuant to division (B) of section 156.02 of the Revised Code,	782
the director shall select the one or more proposals most likely to	783
result in the greatest energy, water, or wastewater savings,	784
operating costs savings, and avoided capital costs created.	785

(C)(1) No contract shall be awarded to implement energy or	786
water saving measures under this section, other than in the case	787
of a state institution of higher education, unless the director	788
finds that one or both of the following circumstances exists, as	789
applicable:	790

(a) In the case of a contract for a cogeneration system	791
described in division (H) of section 156.01 of the Revised Code,	792
the cost of the contract is not likely to exceed the amount of	793
money that would be saved in energy and operating costs over no	794
more than five years;	795

(b) In the case of any contract for any energy saving measure	796
other than a cogeneration system, the cost of the contract is not	797
likely to exceed the amount of money that would be saved in energy	798
and operating costs over no more than ten years.	799

(2) In the case of a state institution of higher education	800
pursuant to division (B) of section 156.02 of the Revised Code, no	801
contract shall be awarded to implement energy or water saving	802
measures for the institution under this section unless the	803
director finds that both of the following circumstances exists:	804

(a)(1) Not less than one-fifteenth of the costs of the	805
contract shall be paid within two years from the date of purchase;	806

(b)(2) The remaining balance of the cost of the contract	807
shall be paid within fifteen years from the date of purchase.	808

Sec. 156.04.  (A) In accordance with this section and section	809
156.03 of the Revised Code, the director of administrative	810
services may enter into an installment payment contract for the	811
implementation of one or more energy or water saving measures. If	812
the director wishes an installment payment contract to be exempted	813
from Chapter 153. of the Revised Code, the director shall proceed	814
pursuant to section 156.03 of the Revised Code.	815

(B)(1) Any installment payment contract under this section,	816
other than in the case of a state institution of higher education,	817
for one or more energy saving measures shall provide that all	818
payments, except payments for repairs and obligations on	819
termination of the contract prior to its expiration, are to be a	820
stated percentage of calculated savings of energy and operating	821
costs attributable to the one or more measures over a defined	822
period of time and are to be made only to the extent that those	823
savings actually occur. No such contract shall contain any of the	824
following:	825

(a) A requirement of any additional capital investment or	826
contribution of funds, other than funds available from state or	827
federal grants;	828

(b) In the case of a contract for an energy saving measure	829
that is a cogeneration system described in division (H) of section	830
156.01 of the Revised Code, a payment term longer than five years;	831

(c) In the case of a contract for any energy saving measure	832
that is not a cogeneration system, a payment term longer than ten	833
years.	834

(2) Any installment payment contract under this section for	835
one or more energy or water saving measures for a state	836
institution of higher education pursuant to division (B) of	837
section 156.02 of the Revised Code, shall provide that all	838
payments, except payments for repairs and obligations on	839
termination of the contract prior to its expiration, are to be a	840
stated percentage of calculated energy, water, or wastewater cost	841
savings, operating costs, and avoided capital costs attributable	842
to the one or more measures over a defined period of time and are	843
to be made only to the extent that those calculated amounts	844
actually occur. No such contract shall contain either of the	845
following:	846

(a)(1) A requirement of any additional capital investment or	847
contribution of funds, other than funds available from state or	848
federal grants;	849

(b)(2) A payment term longer than fifteen years.

850

(C) Any installment payment contract entered into under this	851
section shall terminate no later than the last day of the fiscal	852
biennium for which funds have been appropriated to the department	853
of administrative services by the general assembly and shall be	854
renewed in each succeeding fiscal biennium in which any balance of	855
the contract remains unpaid, provided that both an appropriation	856
for that succeeding fiscal biennium and the certification required	857
by section 126.07 of the Revised Code are made.	858

(D) Any installment payment contract entered into under this	859
section shall be eligible for financing provided through the Ohio	860
air quality development authority under Chapter 3706. of the	861
Revised Code.	862

Sec. 303.213. (A) As used in this section, "small wind farm"	863
means wind turbines and associated facilities with a single	864
interconnection to the ele-ctrical grid and designed for, or	865
capable of, operation at an aggregate capacity of less than five	866
megawatts.	867

(B) Notwithstanding division (A) of section 303.211 of the	868
Revised Code, sections 303.01 to 303.25 of the Revised Code confer	869
power on a board of county commissioners or board of zoning	870
appeals to adopt zoning regulations governing the location,	871
erection, construction, reconstruction, change, alteration,	872
maintenance, removal, use, or enlargement of any small wind farm,	873
whether publicly or privately owned, or the use of land for that	874
purpose, which regulations may be more strict than the regulations	875
prescribed in rules adopted under division (C)(B)(2) of section	876
4906.20 of the Revised Code.	877

(C) The designation under this section of a small wind farm	878
as a public utility for purposes of sections 303.01 to 303.25 of	879
the Revised Code shall not affect the classification of a small	880
wind farm for purposes of state or local taxation.	881

(D) Nothing in division (C) of this section shall be	882
construed as affecting the classification of a telecommunications	883
tower as defined in division (B) or (E) of section 303.211 of the	884
Revised Code or any other public utility for purposes of state and	885
local taxation.	886

Sec. 1505.09.  There is hereby created in the state treasury	887
the geological mapping fund, to be administered by the chief of	888
the division of geological survey. The fund shall be used for the	889
purposes of performing the necessary field, laboratory, and	890
administrative tasks to map and make public reports on the	891
geology, geologic hazards, and energy and mineral resources of the	892
state. The source of moneys for the fund shall include, but not be	893
limited to, the mineral severance tax as specified in section	894
5749.02 of the Revised Code and, the fees collected under rules	895
adopted under section 1505.05 of the Revised Code, and ten per	896
cent of the money collected from fees under division (H) of	897
section 1509.22 of the Revised Code. The chief may seek federal or	898
other moneys in addition to the mineral severance tax and, fees,	899
and money credited to the fund to carry out the purposes of this	900
section. If the chief receives federal moneys for the purposes of	901
this section, the chief shall deposit those moneys into the state	902
treasury to the credit of a fund created by the controlling board	903
to carry out those purposes. Other moneys received by the chief	904
for the purposes of this section in addition to the mineral	905
severance tax, fees, money credited to the geological mapping fund	906
under section 1509.22 of the Revised Code, and federal moneys	907
shall be credited to the geological mapping fund.	908

Sec. 1509.01.  As used in this chapter:

909

(A) "Well" means any borehole, whether drilled or bored,	910
within the state for production, extraction, or injection of any	911
gas or liquid mineral, excluding potable water to be used as such,	912
but including natural or artificial brines and oil field waters.	913

(B) "Oil" means crude petroleum oil and all other	914
hydrocarbons, regardless of gravity, that are produced in liquid	915
form by ordinary production methods, but does not include	916
hydrocarbons that were originally in a gaseous phase in the	917
reservoir.	918

(C) "Gas" means all naturalwet gas and all other fluid	919
hydrocarbons that are not oil, including condensatedry gas.	920

(D) "Condensate" means liquid hydrocarbons recovered at the	921
surface that were originally in the gaseous phase in the	922
reservoir.	923

(E) "Pool" means an underground reservoir containing a common	924
accumulation of oil or gas, or both, but does not include a gas	925
storage reservoir. Each zone of a geological structure that is	926
completely separated from any other zone in the same structure may	927
contain a separate pool.	928

(F) "Field" means the general area underlaid by one or more	929
pools.	930

(G) "Drilling unit" means the minimum acreage on which one	931
well may be drilled, but does not apply to a well for injecting	932
gas into or removing gas from a gas storage reservoir.	933

(H) "Waste" includes all of the following:

934

(1) Physical waste, as that term generally is understood in	935
the oil and gas industry;	936

(2) Inefficient, excessive, or improper use, or the	937
unnecessary dissipation, of reservoir energy;	938

(3) Inefficient storing of oil or gas;

939

(4) Locating, drilling, equipping, operating, or producing an	940
oil or gas well in a manner that reduces or tends to reduce the	941
quantity of oil or gas ultimately recoverable under prudent and	942
proper operations from the pool into which it is drilled or that	943
causes or tends to cause unnecessary or excessive surface loss or	944
destruction of oil or gas;	945

(5) Other underground or surface waste in the production or	946
storage of oil, gas, or condensate, however caused.	947

(I) "Correlative rights" means the reasonable opportunity to	948
every person entitled thereto to recover and receive the oil and	949
gas in and under the person's tract or tracts, or the equivalent	950
thereof, without having to drill unnecessary wells or incur other	951
unnecessary expense.	952

(J) "Tract" means a single, individually taxed parcel of land	953
appearing on the tax list.	954

(K) "Owner," unless referring to a mine, means the person who	955
has the right to drill on a tract or drilling unit, to drill into	956
and produce from a pool, and to appropriate the oil or gas	957
produced therefrom either for the person or for others, except	958
that a person ceases to be an owner with respect to a well when	959
the well has been plugged in accordance with applicable rules	960
adopted and orders issued under this chapter. "Owner" does not	961
include a person who obtains a lease of the mineral rights for oil	962
and gas on a parcel of land if the person does not attempt to	963
produce or produce oil or gas from a well or obtain a permit under	964
this chapter for a well or if the entire interest of a well is	965
transferred to the person in accordance with division (B) of	966
section 1509.31 of the Revised Code.	967

(L) "Royalty interest" means the fee holder's share in the	968
production from a well.	969

(M) "Discovery well" means the first well capable of	970
producing oil or gas in commercial quantities from a pool.	971

(N) "Prepared clay" means a clay that is plastic and is	972
thoroughly saturated with fresh water to a weight and consistency	973
great enough to settle through saltwater in the well in which it	974
is to be used, except as otherwise approved by the chief of the	975
division of oil and gas resources management.	976

(O) "Rock sediment" means the combined cutting and residue	977
from drilling sedimentary rocks and formation.	978

(P) "Excavations and workings," "mine," and "pillar" have the	979
same meanings as in section 1561.01 of the Revised Code.	980

(Q) "Coal bearing township" means a township designated as	981
such by the chief of the division of mineral resources management	982
under section 1561.06 of the Revised Code.	983

(R) "Gas storage reservoir" means a continuous area of a	984
subterranean porous sand or rock stratum or strata into which gas	985
is or may be injected for the purpose of storing it therein and	986
removing it therefrom and includes a gas storage reservoir as	987
defined in section 1571.01 of the Revised Code.	988

(S) "Safe Drinking Water Act" means the "Safe Drinking Water	989
Act," 88 Stat. 1661 (1974), 42 U.S.C.A. 300(f), as amended by the	990
"Safe Drinking Water Amendments of 1977," 91 Stat. 1393, 42	991
U.S.C.A. 300(f), the "Safe Drinking Water Act Amendments of 1986,"	992
100 Stat. 642, 42 U.S.C.A. 300(f), and the "Safe Drinking Water	993
Act Amendments of 1996," 110 Stat. 1613, 42 U.S.C.A. 300(f), and	994
regulations adopted under those acts.	995

(T) "Person" includes any political subdivision, department,	996
agency, or instrumentality of this state; the United States and	997
any department, agency, or instrumentality thereof; and any legal	998
entity defined as a person under section 1.59 of the Revised Code.	999

(U) "Brine" means all saline geological formation water	1000
resulting from, obtained from, or produced in connection with	1001
exploration, drilling, well stimulation, production of oil or gas,	1002
or plugging of a well.	1003

(V) "Waters of the state" means all streams, lakes, ponds,	1004
marshes, watercourses, waterways, springs, irrigation systems,	1005
drainage systems, and other bodies of water, surface or	1006
underground, natural or artificial, that are situated wholly or	1007
partially within this state or within its jurisdiction, except	1008
those private waters that do not combine or effect a junction with	1009
natural surface or underground waters.	1010

(W) "Exempt Mississippian well" means a well that meets all	1011
of the following criteria:	1012

(1) Was drilled and completed before January 1, 1980;

1013

(2) Is located in an unglaciated part of the state;

1014

(3) Was completed in a reservoir no deeper than the	1015
Mississippian Big Injun sandstone in areas underlain by	1016
Pennsylvanian or Permian stratigraphy, or the Mississippian Berea	1017
sandstone in areas directly underlain by Permian stratigraphy;	1018

(4) Is used primarily to provide oil or gas for domestic use.

1019

(X) "Exempt domestic well" means a well that meets all of the	1020
following criteria:	1021

(1) Is owned by the owner of the surface estate of the tract	1022
on which the well is located;	1023

(2) Is used primarily to provide gas for the owner's domestic	1024
use;	1025

(3) Is located more than two hundred feet horizontal distance	1026
from any inhabited private dwelling house other than an inhabited	1027
private dwelling house located on the tract on which the well is	1028
located;	1029

(4) Is located more than two hundred feet horizontal distance	1030
from any public building that may be used as a place of resort,	1031
assembly, education, entertainment, lodging, trade, manufacture,	1032
repair, storage, traffic, or occupancy by the public.	1033

(Y) "Urbanized area" means an area where a well or production	1034
facilities of a well are located within a municipal corporation or	1035
within a township that has an unincorporated population of more	1036
than five thousand in the most recent federal decennial census	1037
prior to the issuance of the permit for the well or production	1038
facilities.	1039

(Z) "Well stimulation" or "stimulation of a well" means the	1040
process of enhancing well productivity, including hydraulic	1041
fracturing operations.	1042

(AA) "Production operation" means all operations and	1043
activities and all related equipment, facilities, and other	1044
structures that may be used in or associated with the exploration	1045
and production of oil, gas, or other mineral resources that are	1046
regulated under this chapter, including operations and activities	1047
associated with site preparation, site construction, access road	1048
construction, well drilling, well completion, well stimulation,	1049
well site activities, reclamation, and plugging. "Production	1050
operation" also includes all of the following:	1051

(1) The piping, equipment, and facilities used for the	1052
production and preparation of hydrocarbon gas or liquids for	1053
transportation or delivery;	1054

(2) The processes of extraction and recovery, lifting,	1055
stabilization, treatment, separation, production processing,	1056
storage, waste disposal, and measurement of hydrocarbon gas and	1057
liquids, including related equipment and facilities;	1058

(3) The processes and related equipment and facilities	1059
associated with production compression, gas lift, gas injection,	1060
fuel gas supply, well drilling, well stimulation, and well	1061
completion activities, including dikes, pits, and earthen and	1062
other impoundments used for the temporary storage of fluids and	1063
waste substances associated with well drilling, well stimulation,	1064
and well completion activities.	1065

(BB) "Annular overpressurization" means the accumulation of	1066
fluids within an annulus with sufficient pressure to allow	1067
migration of annular fluids into underground sources of drinking	1068
water.	1069

(CC) "Idle and orphaned well" means a well for which a bond	1070
has been forfeited or an abandoned well for which no money is	1071
available to plug the well in accordance with this chapter and	1072
rules adopted under it.	1073

(DD) "Temporarily inactive well" means a well that has been	1074
granted temporary inactive status under section 1509.062 of the	1075
Revised Code.	1076

(EE) "Material and substantial violation" means any of the	1077
following:	1078

(1) Failure to obtain a permit to drill, reopen, convert,	1079
plugback, or plug a well under this chapter;	1080

(2) Failure to obtain or maintain insurance coverage that is	1081
required under this chapter;	1082

(3) Failure to obtain or maintain a surety bond that is	1083
required under this chapter;	1084

(4) Failure to plug an abandoned well or idle and orphaned	1085
well unless the well has been granted temporary inactive status	1086
under section 1509.062 of the Revised Code or the chief of the	1087
division of oil and gas resources management has approved another	1088
option concerning the abandoned well or idle and orphaned well;	1089

(5) Failure to restore a disturbed land surface as required	1090
by section 1509.072 of the Revised Code;	1091

(6) Failure to reimburse the oil and gas well fund pursuant	1092
to a final order issued under section 1509.071 of the Revised	1093
Code;	1094

(7) Failure to comply with a final nonappealable order of the	1095
chief issued under section 1509.04 of the Revised Code;	1096

(8) Failure to submit a report, test result, fee, or document	1097
that is required in this chapter or rules adopted under it.	1098

(FF) "Severer" has the same meaning as in section 5749.01 of	1099
the Revised Code.	1100

(GG) "Horizontal well" means a well that is drilled for the	1101
production of oil or gas in which the wellbore reaches a	1102
horizontal or near horizontal position and the well is stimulated.	1103

(HH) "Well pad" means the area that is cleared or prepared	1104
for the drilling of a well.	1105

(II) "Dry gas" means all natural gas that contains no	1106
appreciable quantity of dissolved liquid hydrocarbon.	1107

(JJ) "Wet gas" means natural gas that contains ethane,	1108
propane, butane, or other hydrocarbons or any combination of them.	1109

Sec. 1509.02.  There is hereby created in the department of	1110
natural resources the division of oil and gas resources	1111
management, which shall be administered by the chief of the	1112
division of oil and gas resources management. The division has	1113
sole and exclusive authority to regulate the permitting, location,	1114
and spacing of oil and gas wells and production operations within	1115
the state, excepting only those activities regulated under federal	1116
laws for which oversight has been delegated to the environmental	1117
protection agency and activities regulated under sections 6111.02	1118
to 6111.029 of the Revised Code. The regulation of oil and gas	1119
activities is a matter of general statewide interest that requires	1120
uniform statewide regulation, and this chapter and rules adopted	1121
under it constitute a comprehensive plan with respect to all	1122
aspects of the locating, drilling, well stimulation, completing,	1123
and operating of oil and gas wells within this state, including	1124
site construction and restoration, permitting related to those	1125
activities, and the disposal of wastes from those wells. The chief	1126
may enter into cooperative agreements with other state agencies,	1127
as the chief determines necessary, to assist in the enforcement of	1128
this chapter, rules adopted under it, and other pertinent	1129
provisions of the Revised Code and to ensure public health and	1130
safety. Nothing in this section affects the authority granted to	1131
the director of transportation and local authorities in section	1132
723.01 or 4513.34 of the Revised Code, provided that the authority	1133
granted under those sections shall not be exercised in a manner	1134
that discriminates against, unfairly impedes, or obstructs oil and	1135
gas activities and operations regulated under this chapter.	1136

The chief shall not hold any other public office, nor shall	1137
the chief be engaged in any occupation or business that might	1138
interfere with or be inconsistent with the duties as chief.	1139

All moneys collected by the chief pursuant to sections	1140
1509.06, 1509.061, 1509.062, 1509.071, 1509.13, 1509.22, 1509.221,	1141
1509.222, 1509.34, and 1509.50 of the Revised Code, ninety per	1142
cent of the money collected from fees levied under division (H) of	1143
section 1509.22 of the Revised Code, ninety per cent of moneys	1144
received by the treasurer of state from the tax levied in	1145
divisions (A)(5) and (6) of section 5749.02 of the Revised Code,	1146
all civil penalties paid under section 1509.33 of the Revised	1147
Code, and, notwithstanding any section of the Revised Code	1148
relating to the distribution or crediting of fines for violations	1149
of the Revised Code, all fines imposed under divisions (A) and (B)	1150
of section 1509.99 of the Revised Code and fines imposed under	1151
divisions (C) and (D) of section 1509.99 of the Revised Code for	1152
all violations prosecuted by the attorney general and for	1153
violations prosecuted by prosecuting attorneys that do not involve	1154
the transportation of brine by vehicle shall be deposited into the	1155
state treasury to the credit of the oil and gas well fund, which	1156
is hereby created. Fines imposed under divisions (C) and (D) of	1157
section 1509.99 of the Revised Code for violations prosecuted by	1158
prosecuting attorneys that involve the transportation of brine by	1159
vehicle and penalties associated with a compliance agreement	1160
entered into pursuant to this chapter shall be paid to the county	1161
treasury of the county where the violation occurred.	1162

The fund shall be used solely and exclusively for the	1163
purposes enumerated in division (B) of section 1509.071 of the	1164
Revised Code, for the expenses of the division associated with the	1165
administration of this chapter and Chapter 1571. of the Revised	1166
Code and rules adopted under them, and for expenses that are	1167
critical and necessary for the protection of human health and	1168
safety and the environment related to oil and gas production in	1169
this state. The expenses of the division in excess of the moneys	1170
available in the fund shall be paid from general revenue fund	1171
appropriations to the department.	1172

Sec. 1509.03. (A) The chief of the division of oil and gas	1173
resources management shall adopt, rescind, and amend, in	1174
accordance with Chapter 119. of the Revised Code, rules for the	1175
administration, implementation, and enforcement of this chapter.	1176
The rules shall include an identification of the subjects that the	1177
chief shall address when attaching terms and conditions to a	1178
permit with respect to a well and production facilities of a well	1179
that are located within an urbanized area or with respect to a	1180
horizontal well and production facilities associated with a	1181
horizontal well. The subjects shall include all of the following:	1182

(1) Safety concerning the drilling or operation of a well;

1183

(2) Protection of the public and private water supply,	1184
including the amount of water used and the source or sources of	1185
the water;	1186

(3) Fencing and screening of surface facilities of a well;

1187

(4) Containment and disposal of drilling and production	1188
wastes;	1189

(5) Construction of access roads for purposes of the drilling	1190
and operation of a well;	1191

(6) Noise mitigation for purposes of the drilling of a well	1192
and the operation of a well, excluding safety and maintenance	1193
operations.	1194

No person shall violate any rule of the chief adopted under	1195
this chapter.	1196

(B)(1) Any order issuing, denying, or modifying a permit or	1197
notices required to be made by the chief pursuant to this chapter	1198
shall be made in compliance with Chapter 119. of the Revised Code,	1199
except that personal service may be used in lieu of service by	1200
mail. Every order issuing, denying, or modifying a permit under	1201
this chapter and described as such shall be considered an	1202
adjudication order for purposes of Chapter 119. of the Revised	1203
Code. Division (B)(1) of this section does not apply to a permit	1204
issued under section 1509.06 of the Revised Code.	1205

(2) Where notice to the owners is required by this chapter,	1206
the notice shall be given as prescribed by a rule adopted by the	1207
chief to govern the giving of notices. The rule shall provide for	1208
notice by publication except in those cases where other types of	1209
notice are necessary in order to meet the requirements of the law.	1210

(C) The chief or the chief's authorized representative may at	1211
any time enter upon lands, public or private, for the purpose of	1212
administration or enforcement of this chapter, the rules adopted	1213
or orders made thereunder, or terms or conditions of permits or	1214
registration certificates issued thereunder and may examine and	1215
copy records pertaining to the drilling, conversion, or operation	1216
of a well for injection of fluids and logs required by division	1217
(C) of section 1509.223 of the Revised Code. No person shall	1218
prevent or hinder the chief or the chief's authorized	1219
representative in the performance of official duties. If entry is	1220
prevented or hindered, the chief or the chief's authorized	1221
representative may apply for, and the court of common pleas may	1222
issue, an appropriate inspection warrant necessary to achieve the	1223
purposes of this chapter within the court's territorial	1224
jurisdiction.	1225

(D) The chief may issue orders to enforce this chapter, rules	1226
adopted thereunder, and terms or conditions of permits issued	1227
thereunder. Any such order shall be considered an adjudication	1228
order for the purposes of Chapter 119. of the Revised Code. No	1229
person shall violate any order of the chief issued under this	1230
chapter. No person shall violate a term or condition of a permit	1231
or registration certificate issued under this chapter.	1232

(E) Orders of the chief denying, suspending, or revoking a	1233
registration certificate; approving or denying approval of an	1234
application for revision of a registered transporter's plan for	1235
disposal; or to implement, administer, or enforce division (A) of	1236
section 1509.224 and sections 1509.22, 1509.222, 1509.223,	1237
1509.225, and 1509.226 of the Revised Code pertaining to the	1238
transportation of brine by vehicle and the disposal of brine so	1239
transported are not adjudication orders for purposes of Chapter	1240
119. of the Revised Code. The chief shall issue such orders under	1241
division (A) or (B) of section 1509.224 of the Revised Code, as	1242
appropriate.	1243

Sec. 1509.06. (A) An application for a permit to drill a new	1244
well, drill an existing well deeper, reopen a well, convert a well	1245
to any use other than its original purpose, or plug back a well to	1246
a different source of supply, including associated production	1247
operations, shall be filed with the chief of the division of oil	1248
and gas resources management upon such form as the chief	1249
prescribes and shall contain each of the following that is	1250
applicable:	1251

(1) The name and address of the owner and, if a corporation,	1252
the name and address of the statutory agent;	1253

(2) The signature of the owner or the owner's authorized	1254
agent. When an authorized agent signs an application, it shall be	1255
accompanied by a certified copy of the appointment as such agent.	1256

(3) The names and addresses of all persons holding the	1257
royalty interest in the tract upon which the well is located or is	1258
to be drilled or within a proposed drilling unit;	1259

(4) The location of the tract or drilling unit on which the	1260
well is located or is to be drilled identified by section or lot	1261
number, city, village, township, and county;	1262

(5) Designation of the well by name and number;

1263

(6) The geological formation to be tested or used and the	1264
proposed total depth of the well;	1265

(7) The type of drilling equipment to be used;

1266

(8) If the well is for the injection of a liquid, identity of	1267
the geological formation to be used as the injection zone and the	1268
composition of the liquid to be injected;	1269

(9) For an application for a permit to drill a new well	1270
within an urbanized area, a sworn statement that the applicant has	1271
provided notice by regular mail of the application to the owner of	1272
each parcel of real property that is located within five hundred	1273
feet of the surface location of the well and to the executive	1274
authority of the municipal corporation or the board of township	1275
trustees of the township, as applicable, in which the well is to	1276
be located. In addition, the notice shall contain a statement that	1277
informs an owner of real property who is required to receive the	1278
notice under division (A)(9) of this section that within five days	1279
of receipt of the notice, the owner is required to provide notice	1280
under section 1509.60 of the Revised Code to each residence in an	1281
occupied dwelling that is located on the owner's parcel of real	1282
property. The notice shall contain a statement that an application	1283
has been filed with the division of oil and gas resources	1284
management, identify the name of the applicant and the proposed	1285
well location, include the name and address of the division, and	1286
contain a statement that comments regarding the application may be	1287
sent to the division. The notice may be provided by hand delivery	1288
or regular mail. The identity of the owners of parcels of real	1289
property shall be determined using the tax records of the	1290
municipal corporation or county in which a parcel of real property	1291
is located as of the date of the notice.	1292

(10) A plan for restoration of the land surface disturbed by	1293
drilling operations. The plan shall provide for compliance with	1294
the restoration requirements of division (A) of section 1509.072	1295
of the Revised Code and any rules adopted by the chief pertaining	1296
to that restoration.	1297

(11) A description by name or number of the county, township,	1298
and municipal corporation roads, streets, and highways that the	1299
applicant anticipates will be used for access to and egress from	1300
the well site;	1301

(12) For an application for a permit for a horizontal well, a	1302
copy of an agreement, containing reasonable terms, concerning	1303
maintenance of the roads, streets, and highways described in	1304
division (A)(11) of this section between the applicant and the	1305
board of county commissioners of each county, and the board of	1306
township trustees of each township and the legislative authority	1307
of each municipal corporation, as applicable, in which any such	1308
road, street, or highway is located. If such an agreement cannot	1309
be executed, the applicant may include with the application an	1310
affidavit on a form prescribed by the chief attesting that the	1311
applicant is willing and attempted in good faith to enter into an	1312
agreement under this division with the applicable board of county	1313
commissioners, board of township trustees, or legislative	1314
authority of the municipal corporation, but that no agreement was	1315
executed.	1316

(13) An identification of each source of ground water and	1317
surface water that will be used in the production operations of	1318
the well. The identification of each source of water shall	1319
indicate if the water will be withdrawn from the Lake Erie	1320
watershed or the Ohio river watershed. In addition, the applicant	1321
shall provide the estimated rate and volume of the water	1322
withdrawal for the production operations.	1323

(14) Except as provided in division (A)(15) of this section,	1324
for an application for a permit to drill a new well within an	1325
urbanized area, the results of sampling of all water wells within	1326
three hundred feet of the proposed well prior to commencement of	1327
drilling. The sampling shall be conducted in accordance with the	1328
guidelines established in "Best Management Practices For	1329
Pre-drilling Water Sampling," April 30, 2005. The division shall	1330
furnish those guidelines upon request and shall make them	1331
available on the division's web site. The chief may revise the	1332
distance established in this division for purposes of pre-drilling	1333
water sampling if the chief determines that such a revision is	1334
necessary to protect a water supply or if the chief determines	1335
that conditions at the proposed well site warrant such a revision.	1336

(15) For an application for a permit to drill a new	1337
horizontal well, the results of sampling of all water wells within	1338
one thousand five hundred feet of the proposed horizontal well	1339
prior to commencement of drilling. The sampling shall be conducted	1340
in accordance with the guidelines established in "Best Management	1341
Practices For Pre-drilling Water Sampling," April 30, 2005. The	1342
division shall furnish those guidelines upon request and shall	1343
make them available on the division's web site. The chief may	1344
revise the distance established in this division for purposes of	1345
pre-drilling water sampling if the chief determines that such a	1346
revision is necessary to protect a water supply or if the chief	1347
determines that conditions at the proposed well site warrant such	1348
a revision.	1349

(16) Such other relevant information as the chief prescribes	1350
by rule.	1351

Each application shall be accompanied by a map, on a scale	1352
not smaller than four hundred feet to the inch, prepared by an	1353
Ohio registered surveyor, showing the location of the well and	1354
containing such other data as may be prescribed by the chief. If	1355
the well is or is to be located within the excavations and	1356
workings of a mine, the map also shall include the location of the	1357
mine, the name of the mine, and the name of the person operating	1358
the mine.	1359

(B) The chief shall cause a copy of the weekly circular	1360
prepared by the division to be provided to the county engineer of	1361
each county that contains active or proposed drilling activity.	1362
The weekly circular shall contain, in the manner prescribed by the	1363
chief, the names of all applicants for permits, the location of	1364
each well or proposed well, the information required by division	1365
(A)(11) of this section, and any additional information the chief	1366
prescribes. In addition, the chief promptly shall transfer an	1367
electronic copy or facsimile, or if those methods are not	1368
available to a municipal corporation or township, a copy via	1369
regular mail, of a drilling permit application to the clerk of the	1370
legislative authority of the municipal corporation or to the clerk	1371
of the township in which the well or proposed well is or is to be	1372
located if the legislative authority of the municipal corporation	1373
or the board of township trustees has asked to receive copies of	1374
such applications and the appropriate clerk has provided the chief	1375
an accurate, current electronic mailing address or facsimile	1376
number, as applicable.	1377

(C)(1) Except as provided in division (C)(2) of this section,	1378
the chief shall not issue a permit for at least ten days after the	1379
date of filing of the application for the permit unless, upon	1380
reasonable cause shown, the chief waives that period or a request	1381
for expedited review is filed under this section. However, the	1382
chief shall issue a permit within twenty-one days of the filing of	1383
the application unless the chief denies the application by order.	1384

(2) If the location of a well or proposed well will be or is	1385
within an urbanized area, the chief shall not issue a permit for	1386
at least eighteen days after the date of filing of the application	1387
for the permit unless, upon reasonable cause shown, the chief	1388
waives that period or the chief at the chief's discretion grants a	1389
request for an expedited review. However, the chief shall issue a	1390
permit for a well or proposed well within an urbanized area within	1391
thirty days of the filing of the application unless the chief	1392
denies the application by order.	1393

(D) An applicant may file a request with the chief for	1394
expedited review of a permit application if the well is not or is	1395
not to be located in a gas storage reservoir or reservoir	1396
protective area, as "reservoir protective area" is defined in	1397
section 1571.01 of the Revised Code. If the well is or is to be	1398
located in a coal bearing township, the application shall be	1399
accompanied by the affidavit of the landowner prescribed in	1400
section 1509.08 of the Revised Code.	1401

In addition to a complete application for a permit that meets	1402
the requirements of this section and the permit fee prescribed by	1403
this section, a request for expedited review shall be accompanied	1404
by a separate nonrefundable filing fee of two hundred fifty	1405
dollars. Upon the filing of a request for expedited review, the	1406
chief shall cause the county engineer of the county in which the	1407
well is or is to be located to be notified of the filing of the	1408
permit application and the request for expedited review by	1409
telephone or other means that in the judgment of the chief will	1410
provide timely notice of the application and request. The chief	1411
shall issue a permit within seven days of the filing of the	1412
request unless the chief denies the application by order.	1413
Notwithstanding the provisions of this section governing expedited	1414
review of permit applications, the chief may refuse to accept	1415
requests for expedited review if, in the chief's judgment, the	1416
acceptance of the requests would prevent the issuance, within	1417
twenty-one days of their filing, of permits for which applications	1418
are pending.	1419

(E) A well shall be drilled and operated in accordance with	1420
the plans, sworn statements, and other information submitted in	1421
the approved application.	1422

(F) The chief shall issue an order denying a permit if the	1423
chief finds that there is a substantial risk that the operation	1424
will result in violations of this chapter or rules adopted under	1425
it that will present an imminent danger to public health or safety	1426
or damage to the environment, provided that where the chief finds	1427
that terms or conditions to the permit can reasonably be expected	1428
to prevent such violations, the chief shall issue the permit	1429
subject to those terms or conditions, including, if applicable,	1430
terms and conditions regarding subjects identified in rules	1431
adopted under section 1509.03 of the Revised Code. The issuance of	1432
a permit shall not be considered an order of the chief.	1433

(G) Each application for a permit required by section 1509.05	1434
of the Revised Code, except an application to plug back an	1435
existing well that is required by that section and an application	1436
for a well drilled or reopened for purposes of section 1509.22 of	1437
the Revised Code, also shall be accompanied by a nonrefundable fee	1438
as follows:	1439

(1) Five hundred dollars for a permit to conduct activities	1440
in a township with a population of fewer than ten thousand;	1441

(2) Seven hundred fifty dollars for a permit to conduct	1442
activities in a township with a population of ten thousand or	1443
more, but fewer than fifteen thousand;	1444

(3) One thousand dollars for a permit to conduct activities	1445
in either of the following:	1446

(a) A township with a population of fifteen thousand or more;

1447

(b) A municipal corporation regardless of population.

1448

(4) If the application is for a permit that requires	1449
mandatory pooling, an additional five thousand dollars;	1450

(5) If the application is for a permit that requires unit	1451
operation of a pool pursuant to section 1509.28 of the Revised	1452
Code, an additional fifteen thousand dollars.	1453

For purposes of calculating fee amounts, populations shall be	1454
determined using the most recent federal decennial census.	1455

Each application for the revision or reissuance of a permit	1456
shall be accompanied by a nonrefundable fee of two hundred fifty	1457
dollars.	1458

(H) Prior to the issuance of a permit to drill a proposed	1459
horizontal well or a proposed well that is to be located in an	1460
urbanized area, the division shall conduct a site review to	1461
identify and evaluate any site-specific terms and conditions that	1462
may be attached to the permit. At the site review, a	1463
representative of the division shall consider fencing, screening,	1464
and landscaping requirements, if any, for similar structures in	1465
the community in which the well is proposed to be located. The	1466
terms and conditions that are attached to the permit shall include	1467
the establishment of fencing, screening, and landscaping	1468
requirements for the surface facilities of the proposed well,	1469
including a tank battery of the well.	1470

(I) A permit shall be issued by the chief in accordance with	1471
this chapter. A permit issued under this section for a well that	1472
is or is to be located in an urbanized area shall be valid for	1473
twelve months, and all other permits issued under this section	1474
shall be valid for twenty-four months.	1475

(J) An applicant or a permittee, as applicable, shall submit	1476
to the chief an update of the information that is required under	1477
division (A)(13) of this section if any of that information	1478
changes.	1479

(K) A permittee or a permittee's authorized representative	1480
shall notify an inspector from the division at least twenty-four	1481
hours, or another time period agreed to by the chief's authorized	1482
representative, prior to the commencement of well pad construction	1483
and of drilling, reopening, converting, well stimulation, or	1484
plugback operations.	1485

Sec. 1509.07. An(A)(1) Except as provided in division	1486
(A)(2) of this section, an owner of any well, except an exempt	1487
Mississippian well or an exempt domestic well, shall obtain	1488
liability insurance coverage from a company authorized to do	1489
business in this state in an amount of not less than one million	1490
dollars bodily injury coverage and property damage coverage to pay	1491
damages for injury to persons or damage to property caused by the	1492
drilling, operation, or plugging of all the owner's wells in this	1493
state. However, if any well is located within an urbanized area,	1494
the owner shall obtain liability insurance coverage in an amount	1495
of not less than three million dollars for bodily injury coverage	1496
and property damage coverage to pay damages for injury to persons	1497
or damage to property caused by the drilling, operation, or	1498
plugging of all of the owner's wells in this state. The	1499

(2) An owner of a horizontal well shall obtain liability	1500
insurance coverage from a company authorized to do business in	1501
this state in an amount of not less than five million dollars	1502
bodily injury coverage and property damage coverage to pay damages	1503
for injury to persons or damage to property caused by the	1504
drilling, operation, or plugging of all the owner's wells in this	1505
state. The insurance policy shall include a reasonable level of	1506
coverage available for an environmental endorsement covering any	1507
pollution and contamination occurring as a result of the drilling,	1508
operation, or plugging of the owner's wells.	1509

(3) An owner shall maintain the coverage required under	1510
division (A)(1) or (2) of this section until all the owner's wells	1511
are plugged and abandoned or are transferred to an owner who has	1512
obtained insurance as required under this section and who is not	1513
under a notice of material and substantial violation or under a	1514
suspension order. The owner shall provide proof of liability	1515
insurance coverage to the chief of the division of oil and gas	1516
resources management upon request. Upon failure of the owner to	1517
provide that proof when requested, the chief may order the	1518
suspension of any outstanding permits and operations of the owner	1519
until the owner provides proof of the required insurance coverage.	1520

(B)(1) Except as otherwise provided in this section, an owner	1521
of any well, before being issued a permit under section 1509.06 of	1522
the Revised Code or before operating or producing from a well,	1523
shall execute and file with the division of oil and gas resources	1524
management a surety bond conditioned on compliance with the	1525
restoration requirements of section 1509.072, the plugging	1526
requirements of section 1509.12, the permit provisions of section	1527
1509.13 of the Revised Code, and all rules and orders of the chief	1528
relating thereto, in an amount set by rule of the chief.	1529

(2) The owner may deposit with the chief, instead of a surety	1530
bond, cash in an amount equal to the surety bond as prescribed	1531
pursuant to this section or negotiable certificates of deposit or	1532
irrevocable letters of credit, issued by any bank organized or	1533
transacting business in this state or by any savings and loan	1534
association as defined in section 1151.01 of the Revised Code,	1535
having a cash value equal to or greater than the amount of the	1536
surety bond as prescribed pursuant to this section. Cash or	1537
certificates of deposit shall be deposited upon the same terms as	1538
those upon which surety bonds may be deposited. If certificates of	1539
deposit are deposited with the chief instead of a surety bond, the	1540
chief shall require the bank or savings and loan association that	1541
issued any such certificate to pledge securities of a cash value	1542
equal to the amount of the certificate that is in excess of the	1543
amount insured by any of the agencies and instrumentalities	1544
created under the "Federal Deposit Insurance Act," 64 Stat. 873	1545
(1950), 12 U.S.C. 1811, as amended, and regulations adopted under	1546
it, including at least the federal deposit insurance corporation,	1547
bank insurance fund, and savings association insurance fund. The	1548
securities shall be security for the repayment of the certificate	1549
of deposit.	1550

Immediately upon a deposit of cash, certificates of deposit,	1551
or letters of credit with the chief, the chief shall deliver them	1552
to the treasurer of state who shall hold them in trust for the	1553
purposes for which they have been deposited.	1554

(3) Instead of a surety bond, the chief may accept proof of	1555
financial responsibility consisting of a sworn financial statement	1556
showing a net financial worth within this state equal to twice the	1557
amount of the bond for which it substitutes and, as may be	1558
required by the chief, a list of producing properties of the owner	1559
within this state or other evidence showing ability and intent to	1560
comply with the law and rules concerning restoration and plugging	1561
that may be required by rule of the chief. The owner of an exempt	1562
Mississippian well is not required to file scheduled updates of	1563
the financial documents, but shall file updates of those documents	1564
if requested to do so by the chief. The owner of a nonexempt	1565
Mississippian well shall file updates of the financial documents	1566
in accordance with a schedule established by rule of the chief.	1567
The chief, upon determining that an owner for whom the chief has	1568
accepted proof of financial responsibility instead of bond cannot	1569
demonstrate financial responsibility, shall order that the owner	1570
execute and file a bond or deposit cash, certificates of deposit,	1571
or irrevocable letters of credit as required by this section for	1572
the wells specified in the order within ten days of receipt of the	1573
order. If the order is not complied with, all wells of the owner	1574
that are specified in the order and for which no bond is filed or	1575
cash, certificates of deposit, or letters of credit are deposited	1576
shall be plugged. No owner shall fail or refuse to plug such a	1577
well. Each day on which such a well remains unplugged thereafter	1578
constitutes a separate offense.	1579

(4) The surety bond provided for in this section shall be	1580
executed by a surety company authorized to do business in this	1581
state.	1582

The chief shall not approve any bond until it is personally	1583
signed and acknowledged by both principal and surety, or as to	1584
either by the principal's or surety's attorney in fact, with a	1585
certified copy of the power of attorney attached thereto. The	1586
chief shall not approve a bond unless there is attached a	1587
certificate of the superintendent of insurance that the company is	1588
authorized to transact a fidelity and surety business in this	1589
state.	1590

All bonds shall be given in a form to be prescribed by the	1591
chief and shall run to the state as obligee.	1592

(5) An owner of an exempt Mississippian well or an exempt	1593
domestic well, in lieu of filing a surety bond, cash in an amount	1594
equal to the surety bond, certificates of deposit, irrevocable	1595
letters of credit, or a sworn financial statement, may file a	1596
one-time fee of fifty dollars, which shall be deposited in the oil	1597
and gas well plugging fund created in section 1509.071 of the	1598
Revised Code.	1599

(C) An owner, operator, producer, or other person shall not	1600
operate a well or produce from a well at any time if the owner,	1601
operator, producer, or other person has not satisfied the	1602
requirements established in this section.	1603

Sec. 1509.10.  (A) Any person drilling within the state	1604
shall, within sixty days after the completion of drilling	1605
operations to the proposed total depth or after a determination	1606
that a well is a dry or lost hole, file with the division of oil	1607
and gas resources management all wireline electric logs and an	1608
accurate well completion record on a form that is approved by the	1609
chief of the division of oil and gas resources management that	1610
designates:	1611

(1) The purpose for which the well was drilled;

1612

(2) The character, depth, and thickness of geological units	1613
encountered, including coal seams, mineral beds, associated fluids	1614
such as fresh water, brine, and crude oil, natural gas, and sour	1615
gas, if such seams, beds, fluids, or gases are known;	1616

(3) The dates on which drilling operations were commenced and	1617
completed;	1618

(4) The types of drilling tools used and the name of the	1619
person that drilled the well;	1620

(5) The length in feet of the various sizes of casing and	1621
tubing used in drilling the well, the amount removed after	1622
completion, the type and setting depth of each packer, all other	1623
data relating to cementing in the annular space behind such casing	1624
or tubing, and data indicating completion as a dry, gas, oil,	1625
combination oil and gas, brine injection, or artificial brine well	1626
or a stratigraphic test;	1627

(6) The number of perforations in the casing and the	1628
intervals of the perforations;	1629

(7) The elevation above mean sea level of the point from	1630
which the depth measurements were made, stating also the height of	1631
the point above ground level at the well, the total depth of the	1632
well, and the deepest geological unit that was penetrated in the	1633
drilling of the well;	1634

(8) If applicable, the type, volume, and concentration of	1635
acid, and the date on which acid was used in acidizing the well;	1636

(9) If applicable, the type and volume of the fluid, not	1637
including cement and its constituents, used to drill the well. For	1638
each proprietary component in the fluid, the owner shall identify	1639
the chemical class to which the component belongs and provide the	1640
proportion of the component to the amount of the fluid in which it	1641
was used.	1642

(10) If applicable, the type and volume of fluid, not	1643
including cement and its constituents, used to stimulate the	1644
reservoir of the well, the reservoir breakdown pressure, the	1645
method used for the containment of fluids recovered from the	1646
fracturing of the well, the methods used for the containment of	1647
fluids when pulled from the wellbore from swabbing the well, the	1648
average pumping rate of the well, and the name of the person that	1649
performed the well stimulation. For each proprietary component in	1650
the fluid, the owner shall identify the chemical class to which	1651
the component belongs and provide the proportion of the component	1652
to the amount of the fluid in which it was used. In addition, the	1653
owner shall include a copy of the log from the stimulation of the	1654
well, a copy of the invoice for each of the procedures and methods	1655
described in division (A)(9)(10) of this section that were used on	1656
a well, and a copy of the pumping pressure and rate graphs.	1657
However, the owner may redact from the copy of each invoice that	1658
is required to be included under division (A)(9)(10) of this	1659
section the costs of and charges for the procedures and methods	1660
described in division (A)(9)(10) of this section that were used on	1661
a well.	1662

(10)(11) The name of the company that performed the logging	1663
of the well and the types of wireline electric logs performed on	1664
the well.	1665

The well completion record shall be submitted in duplicate.	1666
The first copy shall be retained as a permanent record in the	1667
files of the division, and the second copy shall be transmitted by	1668
the chief to the division of geological survey.	1669

(B)(1) Not later than sixty days after the completion of the	1670
drilling operations to the proposed total depth, the owner shall	1671
file all wireline electric logs with the division of oil and gas	1672
resources management and the chief shall transmit such logs	1673
electronically, if available, to the division of geological	1674
survey. Such logs may be retained by the owner for a period of not	1675
more than six months, or such additional time as may be granted by	1676
the chief in writing, after the completion of the well	1677
substantially to the depth shown in the application required by	1678
section 1509.06 of the Revised Code.	1679

(2) If a well is not completed within sixty days after the	1680
completion of drilling operations, the owner shall file with the	1681
division of oil and gas resources management a supplemental well	1682
completion record that includes all of the information required	1683
under this section within sixty days after the completion of the	1684
well.	1685

(C) Upon request in writing by the chief of the division of	1686
geological survey prior to the beginning of drilling of the well,	1687
the person drilling the well shall make available a complete set	1688
of cuttings accurately identified as to depth.	1689

(D) The form of the well completion record required by this	1690
section shall be one that has been approved by the chief of the	1691
division of oil and gas resources management and the chief of the	1692
division of geological survey. The filing of a log as required by	1693
this section fulfills the requirement of filing a log with the	1694
chief of the division of geological survey in section 1505.04 of	1695
the Revised Code.	1696

(E) If there is a material listed or designated under	1697
division (A)(9) or (F) of this section or listed on the invoice	1698
that is required by division (A)(9)(10) of this section is a	1699
material for which the division of oil and gas resources	1700
management does not have a material safety data sheet, the chief	1701
shall obtain a copy of the material safety data sheet for the	1702
material and post a copy of the material safety data sheet on the	1703
division's web site.	1704

(F) In addition to complying with the other requirements	1705
established in this section, the owner of a well shall file with	1706
the chief of the division of oil and gas resources management a	1707
list of each chemical compound and its corresponding amount, not	1708
including cement and its constituents, that was used during the	1709
preceding year in the servicing, operating, and plugging of the	1710
well in a form that the chief prescribes. For each proprietary	1711
component that was used in the servicing, operating, and plugging	1712
of the well, the owner shall identify the chemical class to which	1713
the component belongs and provide the proportion of the component	1714
to the amount of the fluid in which it was used. The list shall be	1715
submitted on or before the thirtieth day of June of each year. An	1716
owner that has more than one hundred wells shall submit	1717
electronically the list of chemical compounds and the	1718
corresponding amounts used in a format that is approved by the	1719
chief.	1720

The chief may inspect at any time the records concerning any	1721
chemical compound that is used in the production operations of a	1722
well.	1723

(G) The chief shall post on the division's web site each	1724
material safety data sheet obtained under division (E) of this	1725
section and each list received under division (F) of this section.	1726

(H) The owner of a well, upon request, shall provide to	1727
emergency responders the exact chemical composition of each fluid	1728
designated under divisions (A)(9) and (10) of this section and of	1729
each chemical compound listed under division (F) of this section.	1730
The exact chemical composition shall include identification of	1731
each proprietary component.	1732

Sec. 1509.11. (A) The owner of any well that is not a high	1733
volume horizontal well and is producing or capable of producing	1734
oil or gas shall file with the chief of the division of oil and	1735
gas resources management, on or before the thirty-first day of	1736
March, a statement of production of oil, gas, and brine for the	1737
last preceding calendar year in such form as the chief may	1738
prescribe. An owner that has more than one hundred such wells in	1739
this state shall submit electronically the statement of production	1740
in a format that is approved by the chief. The chief shall include	1741
on the form, at the minimum, a request for the submittal of the	1742
information that a person who is regulated under this chapter is	1743
required to submit under the "Emergency Planning and Community	1744
Right-To-Know Act of 1986," 100 Stat. 1728, 42 U.S.C.A. 11001, and	1745
regulations adopted under it, and that the division does not	1746
obtain through other reporting mechanisms.	1747

(B) The owner of any high volume horizontal well that is	1748
producing or capable of producing oil or gas shall file with the	1749
chief, on or before the fifteenth day of the month following the	1750
close of each calendar quarter, a statement of production of oil,	1751
gas, wet gas, condensate, and brine for the preceding calendar	1752
quarter in such form as the chief may prescribe. An owner that has	1753
more than one hundred high volume horizontal wells in this state	1754
shall submit electronically the statement of production in a	1755
format that is approved by the chief. The chief shall include on	1756
the form, at the minimum, a request for the submittal of the	1757
information that a person who is regulated under this chapter is	1758
required to submit under the "Emergency Planning and Community	1759
Right-To-Know Act of 1986," 100 Stat. 1728, 42 U.S.C. 11001, and	1760
regulations adopted under it, and that the division does not	1761
obtain through other reporting mechanisms.	1762

Sec. 1509.22.  (A) Except when acting in accordance with	1763
section 1509.226 of the Revised Code, no person shall place or	1764
cause to be placed brine, crude oil, natural gas, or other fluids	1765
associated with the exploration or development of oil and gas	1766
resources in surface or ground water or in or on the land in such	1767
quantities or in such manner as actually causes or could	1768
reasonably be anticipated to cause either of the following:	1769

(1) Water used for consumption by humans or domestic animals	1770
to exceed the standards of the Safe Drinking Water Act;	1771

(2) Damage or injury to public health or safety or the	1772
environment.	1773

(B) No person shall store or dispose of brine in violation of	1774
a plan approved under division (A) of section 1509.222 or section	1775
1509.226 of the Revised Code, in violation of a resolution	1776
submitted under section 1509.226 of the Revised Code, or in	1777
violation of rules or orders applicable to those plans or	1778
resolutions.	1779

(C) The chief of the division of oil and gas resources	1780
management shall adopt rules and issue orders regarding storage	1781
and disposal of brine and other waste substances; however, the	1782
storage and disposal of brine and other waste substances and the	1783
chief's rules relating to storage and disposal are subject to all	1784
of the following standards:	1785

(1) Brine from any well except an exempt Mississippian well	1786
shall be disposed of only by injection into an underground	1787
formation, including annular disposal if approved by rule of the	1788
chief, which injection shall be subject to division (D) of this	1789
section; by surface application in accordance with section	1790
1509.226 of the Revised Code; in association with a method of	1791
enhanced recovery as provided in section 1509.21 of the Revised	1792
Code; or by other methods approved by the chief for testing or	1793
implementing a new technology or method of disposal. Brine from	1794
exempt Mississippian wells shall not be discharged directly into	1795
the waters of the state.	1796

(2) Muds, cuttings, and other waste substances shall not be	1797
disposed of in violation of any rule.	1798

(3) Pits or steel tanks shall be used as authorized by the	1799
chief for containing brine and other waste substances resulting	1800
from, obtained from, or produced in connection with drilling, well	1801
stimulation, reworking, reconditioning, plugging back, or plugging	1802
operations. The pits and steel tanks shall be constructed and	1803
maintained to prevent the escape of brine and other waste	1804
substances.	1805

(4) A dike or pit may be used for spill prevention and	1806
control. A dike or pit so used shall be constructed and maintained	1807
to prevent the escape of brine and crude oil, and the reservoir	1808
within such a dike or pit shall be kept reasonably free of brine,	1809
crude oil, and other waste substances.	1810

(5) Earthen impoundments constructed pursuant to the	1811
division's specifications may be used for the temporary storage of	1812
fluids used in the stimulation of a well.	1813

(6) No pit, earthen impoundment, or dike shall be used for	1814
the temporary storage of brine or other substances except in	1815
accordance with divisions (C)(3) to (5) of this section.	1816

(7) No pit or dike shall be used for the ultimate disposal of	1817
brine or other liquid waste substances.	1818

(D)(1) No person, without first having obtained a permit from	1819
the chief, shall inject brine or other waste substances resulting	1820
from, obtained from, or produced in connection with oil or gas	1821
drilling, exploration, or production into an underground formation	1822
unless a rule of the chief expressly authorizes the injection	1823
without a permit. The permit shall be in addition to any permit	1824
required by section 1509.05 of the Revised Code, and the permit	1825
application shall be accompanied by a permit fee of one thousand	1826
dollars. The chief shall adopt rules in accordance with Chapter	1827
119. of the Revised Code regarding the injection into wells of	1828
brine and other waste substances resulting from, obtained from, or	1829
produced in connection with oil or gas drilling, exploration, or	1830
production. The rules may authorize tests to evaluate whether	1831
fluids or carbon dioxide may be injected in a reservoir and to	1832
determine the maximum allowable injection pressure, which shall be	1833
conducted in accordance with methods prescribed in the rules or in	1834
accordance with conditions of the permit. In addition, the rules	1835
shall include provisions regarding applicationsall of the	1836
following:	1837

(a) Applications for and issuance of the permits required by	1838
this division; entry	1839

(b) Entry to conduct inspections and to examine and copy	1840
records to ascertain compliance with this division and rules,	1841
orders, and terms and conditions of permits adopted or issued	1842
under it; the	1843

(c) The provision and maintenance of information through	1844
monitoring, recordkeeping, and reporting; and	1845

(d) Any other provisions in furtherance of the goals of this	1846
section and the Safe Drinking Water Act. To	1847

(2) The chief may adopt rules in accordance with Chapter 119.	1848
of the Revised Code authorizing tests to evaluate whether fluids	1849
or carbon dioxide may be injected in a reservoir and to determine	1850
the maximum allowable injection pressure, which shall be conducted	1851
in accordance with methods prescribed in the rules or in	1852
accordance with conditions of the permit. In addition, the chief	1853
may adopt rules that do both of the following:	1854

(a) Establish the total depth of a well for which a permit	1855
has been applied for or issued under this division;	1856

(b) Establish requirements and procedures in accordance with	1857
which the chief may address threats to public health and safety.	1858

(3) To implement the goals of the Safe Drinking Water Act,	1859
the chief shall not issue a permit for the injection of brine or	1860
other waste substances resulting from, obtained from, or produced	1861
in connection with oil or gas drilling, exploration, or production	1862
unless the chief concludes that the applicant has demonstrated	1863
that the injection will not result in the presence of any	1864
contaminant in ground water that supplies or can reasonably be	1865
expected to supply any public water system, such that the presence	1866
of the contaminant may result in the system's not complying with	1867
any national primary drinking water regulation or may otherwise	1868
adversely affect the health of persons. This	1869

(4) This division and rules, orders, and terms and conditions	1870
of permits adopted or issued under it shall be construed to be no	1871
more stringent than required for compliance with the Safe Drinking	1872
Water Act unless essential to ensure that underground sources of	1873
drinking water will not be endangered.	1874

(5) The chief, by order, may require a person to whom a	1875
permit was issued under this division prior to the effective date	1876
of this amendment to comply with any or all of the rules adopted	1877
under this division.	1878

(E) The owner holding a permit, or an assignee or transferee	1879
who has assumed the obligations and liabilities imposed by this	1880
chapter and any rules adopted or orders issued under it pursuant	1881
to section 1509.31 of the Revised Code, and the operator of a well	1882
shall be liable for a violation of this section or any rules	1883
adopted or orders or terms or conditions of a permit issued under	1884
it.	1885

(F) An owner shall replace the water supply of the holder of	1886
an interest in real property who obtains all or part of the	1887
holder's supply of water for domestic, agricultural, industrial,	1888
or other legitimate use from an underground or surface source	1889
where the supply has been substantially disrupted by	1890
contamination, diminution, or interruption proximately resulting	1891
from the owner's oil or gas operation, or the owner may elect to	1892
compensate the holder of the interest in real property for the	1893
difference between the fair market value of the interest before	1894
the damage occurred to the water supply and the fair market value	1895
after the damage occurred if the cost of replacing the water	1896
supply exceeds this difference in fair market values. However,	1897
during the pendency of any order issued under this division, the	1898
owner shall obtain for the holder or shall reimburse the holder	1899
for the reasonable cost of obtaining a water supply from the time	1900
of the contamination, diminution, or interruption by the operation	1901
until the owner has complied with an order of the chief for	1902
compliance with this division or such an order has been revoked or	1903
otherwise becomes not effective. If the owner elects to pay the	1904
difference in fair market values, but the owner and the holder	1905
have not agreed on the difference within thirty days after the	1906
chief issues an order for compliance with this division, within	1907
ten days after the expiration of that thirty-day period, the owner	1908
and the chief each shall appoint an appraiser to determine the	1909
difference in fair market values, except that the holder of the	1910
interest in real property may elect to appoint and compensate the	1911
holder's own appraiser, in which case the chief shall not appoint	1912
an appraiser. The two appraisers appointed shall appoint a third	1913
appraiser, and within thirty days after the appointment of the	1914
third appraiser, the three appraisers shall hold a hearing to	1915
determine the difference in fair market values. Within ten days	1916
after the hearing, the appraisers shall make their determination	1917
by majority vote and issue their final determination of the	1918
difference in fair market values. The chief shall accept a	1919
determination of the difference in fair market values made by	1920
agreement of the owner and holder or by appraisers under this	1921
division and shall make and dissolve orders accordingly. This	1922
division does not affect in any way the right of any person to	1923
enforce or protect, under applicable law, the person's interest in	1924
water resources affected by an oil or gas operation.	1925

(G) In any action brought by the state for a violation of	1926
division (A) of this section involving any well at which annular	1927
disposal is used, there shall be a rebuttable presumption	1928
available to the state that the annular disposal caused the	1929
violation if the well is located within a one-quarter-mile radius	1930
of the site of the violation.	1931

(H)(1) There is levied on the owner of an injection well who	1932
has been issued a permit under division (D) of this section the	1933
following fees:	1934

(a) Ten cents per barrel of each substance that is delivered	1935
to a well to be injected in the well when the substance is	1936
produced within the division of oil and gas resources management	1937
regulatory district in which the well is located or within an	1938
adjoining oil and gas resources management regulatory district;	1939

(b) One dollar per barrel of each substance that is delivered	1940
to a well to be injected in the well when the substance is not	1941
produced within the division of oil and gas resources management	1942
regulatory district in which the well is located or within an	1943
adjoining oil and gas resources management regulatory district.	1944

(2) The maximum number of barrels of substance per injection	1945
well in a calendar year on which a fee may be levied under	1946
division (H) of this section is five hundred thousand. If in a	1947
calendar year the owner of an injection well receives more than	1948
five hundred thousand barrels of substance to be injected in the	1949
owner's well and if the owner receives at least one substance that	1950
is produced within the division's regulatory district in which the	1951
well is located or within an adjoining regulatory district and at	1952
least one substance that is not produced within the division's	1953
regulatory district in which the well is located or within an	1954
adjoining regulatory district, the fee shall be calculated first	1955
on all of the barrels of substance that are not produced within	1956
the division's regulatory district in which the well is located or	1957
within an adjoining district at the rate established in division	1958
(H)(2) of this section. The fee then shall be calculated on the	1959
barrels of substance that are produced within the division's	1960
regulatory district in which the well is located or within an	1961
adjoining district at the rate established in division (H)(1) of	1962
this section until the maximum number of barrels established in	1963
division (H)(2) of this section has been attained.	1964

(3) The owner of an injection well who is issued a permit	1965
under division (D) of this section shall collect the fee levied by	1966
division (H) of this section on behalf of the division of oil and	1967
gas resources management and forward the fee to the division. The	1968
chief shall transmit all money received under division (H) of this	1969
section to the treasurer of state who shall deposit and credit the	1970
money in accordance with division (H)(4) of this section. The	1971
owner of an injection well who collects the fee levied by this	1972
division may retain up to three per cent of the amount that is	1973
collected.	1974

(4) Ten per cent of the proceeds of the fees levied under	1975
division (H) of this section shall be deposited in the state	1976
treasury to the credit of the geological mapping fund created in	1977
section 1505.09 of the Revised Code, and ninety per cent of the	1978
proceeds shall be deposited in the state treasury to the credit of	1979
the oil and gas well fund created in section 1509.02 of the	1980
Revised Code.	1981

(5) The chief shall adopt rules in accordance with Chapter	1982
119. of the Revised Code establishing requirements and procedures	1983
for collection of the fee levied by division (H) of this section.	1984

(I)(1) Except as provided in division (I)(2) of this section,	1985
the owner of an injection well who is issued a permit under	1986
division (D) of this section shall not inject brine or other waste	1987
substances into the well unless the owner first receives from the	1988
transporter of the brine or other waste substances a list of each	1989
chemical compound that was used in the drilling, stimulating,	1990
servicing, operating, or plugging of the well from which the brine	1991
or other waste substances originated. The owner of the well shall	1992
maintain the list and make it available for inspection by the	1993
chief at all times. In addition, the owner annually shall submit	1994
to the chief all lists received under this division in a form	1995
prescribed by the chief.	1996

(2) If the owner of the well from which the brine or other	1997
waste substances originated has submitted the information that is	1998
required by section 1509.10 of the Revised Code and has so	1999
notified the owner of the injection well into which the brine or	2000
other waste substances will be injected, the owner of the	2001
injection well may inject in the injection well brine or other	2002
waste substances from that well without first receiving from the	2003
transporter of the brine or other waste substances the information	2004
that is required by division (I)(1) of this section.	2005

(3) As used in this division, "transporter" means a	2006
transporter that is registered under section 1509.222 of the	2007
Revised Code.	2008

Sec. 1509.221.  (A) No person, without first having obtained	2009
a permit from the chief of the division of oil and gas resources	2010
management, shall drill a well or inject a substance into a well	2011
for the exploration for or extraction of minerals or energy, other	2012
than oil or natural gas, including, but not limited to, the mining	2013
of sulfur by the Frasch process, the solution mining of minerals,	2014
the in situ combustion of fossil fuel, or the recovery of	2015
geothermal energy to produce electric power, unless a rule of the	2016
chief expressly authorizes the activity without a permit. The	2017
permit shall be in addition to any permit required by section	2018
1509.05 of the Revised Code. The chief shall adopt rules in	2019
accordance with Chapter 119. of the Revised Code governing the	2020
issuance of permits under this section. The rules shall include	2021
provisions regarding the matters the applicant for a permit shall	2022
demonstrate to establish eligibility for a permit; the form and	2023
content of applications for permits; the terms and conditions of	2024
permits; entry to conduct inspections and to examine and copy	2025
records to ascertain compliance with this section and rules,	2026
orders, and terms and conditions of permits adopted or issued	2027
thereunder; provision and maintenance of information through	2028
monitoring, recordkeeping, and reporting; and other provisions in	2029
furtherance of the goals of this section and the Safe Drinking	2030
Water Act. To implement the goals of the Safe Drinking Water Act,	2031
the chief shall not issue a permit under this section, unless the	2032
chief concludes that the applicant has demonstrated that the	2033
drilling, injection of a substance, and extraction of minerals or	2034
energy will not result in the presence of any contaminant in	2035
underground water that supplies or can reasonably be expected to	2036
supply any public water system, such that the presence of the	2037
contaminant may result in the system's not complying with any	2038
national primary drinking water regulation or may otherwise	2039
adversely affect the health of persons. The chief may issue,	2040
without a prior adjudication hearing, orders requiring compliance	2041
with this section and rules, orders, and terms and conditions of	2042
permits adopted or issued thereunder. This section and rules,	2043
orders, and terms and conditions of permits adopted or issued	2044
thereunder shall be construed to be no more stringent than	2045
required for compliance with the Safe Drinking Water Act, unless	2046
essential to ensure that underground sources of drinking water	2047
will not be endangered.	2048

(B)(1) There is levied on the owner of an injection well who	2049
has been issued a permit under division (D) of section 1509.22 of	2050
the Revised Code the following fees:	2051

(a) Five cents per barrel of each substance that is delivered	2052
to a well to be injected in the well when the substance is	2053
produced within the division of oil and gas resources management	2054
regulatory district in which the well is located or within an	2055
adjoining oil and gas resources management regulatory district;	2056

(b) Twenty cents per barrel of each substance that is	2057
delivered to a well to be injected in the well when the substance	2058
is not produced within the division of oil and gas resources	2059
management regulatory district in which the well is located or	2060
within an adjoining oil and gas resources management regulatory	2061
district.	2062

(2) The maximum number of barrels of substance per injection	2063
well in a calendar year on which a fee may be levied under	2064
division (B) of this section is five hundred thousand. If in a	2065
calendar year the owner of an injection well receives more than	2066
five hundred thousand barrels of substance to be injected in the	2067
owner's well and if the owner receives at least one substance that	2068
is produced within the division's regulatory district in which the	2069
well is located or within an adjoining regulatory district and at	2070
least one substance that is not produced within the division's	2071
regulatory district in which the well is located or within an	2072
adjoining regulatory district, the fee shall be calculated first	2073
on all of the barrels of substance that are not produced within	2074
the division's regulatory district in which the well is located or	2075
within an adjoining district at the rate established in division	2076
(B)(2) of this section. The fee then shall be calculated on the	2077
barrels of substance that are produced within the division's	2078
regulatory district in which the well is located or within an	2079
adjoining district at the rate established in division (B)(1) of	2080
this section until the maximum number of barrels established in	2081
division (B)(2) of this section has been attained.	2082

(3) The owner of an injection well who is issued a permit	2083
under division (D) of section 1509.22 of the Revised Code shall	2084
collect the fee levied by division (B) of this section on behalf	2085
of the division of oil and gas resources management and forward	2086
the fee to the division. The chief shall transmit all money	2087
received under division (B) of this section to the treasurer of	2088
state who shall deposit the money in the state treasury to the	2089
credit of the oil and gas well fund created in section 1509.02 of	2090
the Revised Code. The owner of an injection well who collects the	2091
fee levied by this division may retain up to three per cent of the	2092
amount that is collected.	2093

(4) The chief shall adopt rules in accordance with Chapter	2094
119. of the Revised Code establishing requirements and procedures	2095
for collection of the fee levied by division (B) of this section.	2096

(C) In an action under section 1509.04 or 1509.33 of the	2097
Revised Code to enforce this section, the court shall grant	2098
preliminary and permanent injunctive relief and impose a civil	2099
penalty upon the showing that the person against whom the action	2100
is brought has violated, is violating, or will violate this	2101
section or rules, orders, or terms or conditions of permits	2102
adopted or issued thereunder. The court shall not require, prior	2103
to granting such preliminary and permanent injunctive relief or	2104
imposing a civil penalty, proof that the violation was, is, or	2105
will be the result of intentional conduct or negligence. In any	2106
such action, any person may intervene as a plaintiff upon the	2107
demonstration that the person has an interest that is or may be	2108
adversely affected by the activity for which injunctive relief or	2109
a civil penalty is sought.	2110

Sec. 1509.222.  (A)(1) Except as provided in section 1509.226	2111
of the Revised Code, no person shall transport brine by vehicle in	2112
this state unless the business entity that employs the person	2113
first registers with and obtains a registration certificate and	2114
identification number from the chief of the division of oil and	2115
gas resources management.	2116

(2) No more than one registration certificate shall be	2117
required of any business entity. Registration certificates issued	2118
under this section are not transferable. An applicant shall file	2119
an application with the chief, containing such information in such	2120
form as the chief prescribes, but including a. The application	2121
shall include at least all of the following:	2122

(a) A list that identifies each vehicle that will be used in	2123
the transportation of brine;	2124

(b) A list that identifies each trailer or container that	2125
will be used in the transportation of brine;	2126

(c) A plan for disposal that provides for compliance with the	2127
requirements of this chapter and rules of the chief pertaining to	2128
the transportation of brine by vehicle and the disposal of brine	2129
so transported and that lists all disposal sites that the	2130
applicant intends to use, the;	2131

(d) The bond required by section 1509.225 of the Revised	2132
Code, and a;	2133

(e) A certificate issued by an insurance company authorized	2134
to do business in this state certifying that the applicant has in	2135
force a liability insurance policy in an amount not less than	2136
three hundred thousand dollars bodily injury coverage and three	2137
hundred thousand dollars property damage coverage to pay damages	2138
for injury to persons or property caused by the collecting,	2139
handling, transportation, or disposal of brine. The	2140

The insurance policy required by division (A)(2)(e) of this	2141
section shall be maintained in effect during the term of the	2142
registration certificate. The policy or policies providing the	2143
coverage shall require the insurance company to give notice to the	2144
chief if the policy or policies lapse for any reason. Upon such	2145
termination of the policy, the chief may suspend the registration	2146
certificate until proper insurance coverage is obtained. Each	2147

(3) Each application for a registration certificate shall be	2148
accompanied by a nonrefundable fee of five hundred dollars.	2149

(3)(4) If a business entity that has been issued a	2150
registration certificate under this section changes its name due	2151
to a business reorganization or merger, the business entity shall	2152
revise the bond or certificates of deposit required by section	2153
1509.225 of the Revised Code and obtain a new certificate from an	2154
insurance company in accordance with division (A)(2)(e) of this	2155
section to reflect the change in the name of the business entity.	2156

(B) The chief shall issue an order denying an application for	2157
a registration certificate if the chief finds that either of the	2158
following applies:	2159

(1) The applicant, at the time of applying for the	2160
registration certificate, has been found liable by a final	2161
nonappealable order of a court of competent jurisdiction for	2162
damage to streets, roads, highways, bridges, culverts, or	2163
drainways pursuant to section 4513.34 or 5577.12 of the Revised	2164
Code until the applicant provides the chief with evidence of	2165
compliance with the order.	2166

(2) The applicant's plan for disposal does not provide for	2167
compliance with the requirements of this chapter and rules of the	2168
chief pertaining to the transportation of brine by vehicle and the	2169
disposal of brine so transported.	2170

(C) No applicant shall attempt to circumvent division (B) of	2171
this section by applying for a registration certificate under a	2172
different name or business organization name, by transferring	2173
responsibility to another person or entity, or by any similar act.	2174

(D) A registered transporter shall apply to revise a disposal	2175
plan under procedures that the chief shall prescribe by rule.	2176
However, at a minimum, an application for a revision shall list	2177
all sources and disposal sites of brine currently transported. The	2178
chief shall deny any application for a revision of a plan under	2179
this division if the chief finds that the proposed revised plan	2180
does not provide for compliance with the requirements of this	2181
chapter and rules of the chief pertaining to the transportation of	2182
brine by vehicle and the disposal of brine so transported.	2183
Approvals and denials of revisions shall be by order of the chief.	2184

(E) The chief may adopt rules, issue orders, and attach terms	2185
and conditions to registration certificates as may be necessary to	2186
administer, implement, and enforce sections 1509.222 to 1509.226	2187
of the Revised Code for protection of public health or safety or	2188
conservation of natural resources.	2189

(F) A registered transporter shall provide to the chief the	2190
information that is required by division (I)(1) of section 1509.22	2191
of the Revised Code.	2192

Sec. 1509.223.  (A) No permit holder or owner of a well shall	2193
enter into an agreement with or permit any person to transport	2194
brine produced from the well who is not registered pursuant to	2195
section 1509.222 of the Revised Code or exempt from registration	2196
under section 1509.226 of the Revised Code.	2197

(B) Each registered transporter shall file with the chief of	2198
the division of oil and gas resources management, on or before the	2199
fifteenth day of April, a statement concerning brine transported,	2200
including quantities transported and source and delivery points,	2201
during the last preceding calendar year, and such other	2202
information in such form as the chief may prescribe.	2203

(C) Each registered transporter shall keep on each vehicle	2204
used to transport brine a daily log and have it available upon the	2205
request of the chief or an authorized representative of the chief	2206
or a peace officer. The log shall, at a minimum, include all of	2207
the following information:	2208

(1) The name of the owner or owners of the well or wells	2209
producing the brine to be transported;	2210

(2) The date and time the brine is loaded;

2211

(3) The name of the driver;

2212

(4) The amount of brine loaded at each collection point;

2213

(5) The disposal location;

2214

(6) The date and time the brine is disposed of and the amount	2215
of brine disposed of at each location.	2216

The chief, by rule, may establish procedures for the	2217
submission to the chief of the information that is required to be	2218
included in the daily log. No registered transporter shall falsify	2219
or fail to keep or submit the log required by this division.	2220

(D) Each registered transporter shall legibly identify with	2221
reflective paints all vehicles employed in transporting or	2222
disposing of brine. Letters shall be no less than four inches in	2223
height and shall indicate the identification number issued by the	2224
chief, the word "brine," and the name and telephone number of the	2225
transporter.	2226

(E) The chief shall maintain and keep a current list of	2227
persons registered to transport brine under section 1509.222 of	2228
the Revised Code. The list shall be open to public inspection. It	2229
is an affirmative defense to a charge under division (A) of this	2230
section that at the time the permit holder or owner of a well	2231
entered into an agreement with or permitted a person to transport	2232
brine, the person was shown on the list as currently registered to	2233
transport brine.	2234

(F) Except as otherwise provided in this division, no person	2235
shall be issued a registration certificate or renewal of a	2236
registration certificate under section 1509.222 of the Revised	2237
Code unless the business entity applying for the registration	2238
certificate or renewal of a registration certificate installs an	2239
electronic transponder of a type approved by the chief on each	2240
vehicle that will be used to transport brine. The electronic	2241
transponder shall allow the chief to electronically verify the	2242
registration status of the transporter and the origin and	2243
disposition of the fluid being transported for disposal.	2244

The chief may waive the requirements established in this	2245
division if the same business entity owns and operates both the	2246
facility that will receive the brine for disposal and the well	2247
that produced the brine that will be disposed of and the business	2248
entity is not in the business of transporting brine for disposal	2249
for any other person.	2250

Sec. 1509.23.  (A) Rules of the chief of the division of oil	2251
and gas resources management may specify practices to be followed	2252
in the drilling and treatment of wells, production of oil and gas,	2253
and plugging of wells for protection of public health or safety or	2254
to prevent damage to natural resources, including specification of	2255
the following:	2256

(1) Appropriate devices;

2257

(2) Minimum distances that wells and other excavations,	2258
structures, and equipment shall be located from water wells,	2259
streets, roads, highways, rivers, lakes, streams, ponds, other	2260
bodies of water, railroad tracks, public or private recreational	2261
areas, zoning districts, and buildings or other structures. Rules	2262
adopted under division (A)(2) of this section shall not conflict	2263
with section 1509.021 of the Revised Code.	2264

(3) Other methods of operation;

2265

(4) Procedures, methods, and equipment and other requirements	2266
for equipment to prevent and contain discharges of oil and brine	2267
from oil production facilities and oil drilling and workover	2268
facilities consistent with and equivalent in scope, content, and	2269
coverage to section 311(j)(1)(c) of the "Federal Water Pollution	2270
Control Act Amendments of 1972," 86 Stat. 886, 33 U.S.C.A. 1251,	2271
as amended, and regulations adopted under it. In addition, the	2272
rules may specify procedures, methods, and equipment and other	2273
requirements for equipment to prevent and contain surface and	2274
subsurface discharges of fluids, condensates, and gases.	2275

(5) Notifications;

2276

(6) Requirements governing the location and construction of	2277
fresh water impoundments that are part of a production operation.	2278

(B) The chief, in consultation with the emergency response	2279
commission created in section 3750.02 of the Revised Code, shall	2280
adopt rules in accordance with Chapter 119. of the Revised Code	2281
that specify the information that shall be included in an	2282
electronic database that the chief shall create and host. The	2283
information shall be that which the chief considers to be	2284
appropriate for the purpose of responding to emergency situations	2285
that pose a threat to public health or safety or the environment.	2286
At the minimum, the information shall include that which a person	2287
who is regulated under this chapter is required to submit under	2288
the "Emergency Planning and Community Right-To-Know Act of 1986,"	2289
100 Stat. 1728, 42 U.S.C.A. 11001, and regulations adopted under	2290
it.	2291

In addition, the rules shall specify whether and to what	2292
extent the database and the information that it contains will be	2293
made accessible to the public. The rules shall ensure that the	2294
database will be made available via the internet or a system of	2295
computer disks to the emergency response commission and to every	2296
local emergency planning committee and fire department in this	2297
state.	2298

Sec. 1509.31.  (A) Whenever the entire interest of an oil and	2299
gas lease is assigned or otherwise transferred, the assignor or	2300
transferor shall notify the holders of the royalty interests, and,	2301
if a well or wells exist on the lease, the division of oil and gas	2302
resources management, of the name and address of the assignee or	2303
transferee by certified mail, return receipt requested, not later	2304
than thirty days after the date of the assignment or transfer.	2305
When notice of any such assignment or transfer is required to be	2306
provided to the division, it shall be provided on a form	2307
prescribed and provided by the division and verified by both the	2308
assignor or transferor and by the assignee or transferee and shall	2309
be accompanied by a nonrefundable fee of one hundred dollars for	2310
each well. The notice form applicable to assignments or transfers	2311
of a well to the owner of the surface estate of the tract on which	2312
the well is located shall contain a statement informing the	2313
landowner that the well may require periodic servicing to maintain	2314
its productivity; that, upon assignment or transfer of the well to	2315
the landowner, the landowner becomes responsible for compliance	2316
with the requirements of this chapter and rules adopted under it,	2317
including, without limitation, the proper disposal of brine	2318
obtained from the well, the plugging of the well when it becomes	2319
incapable of producing oil or gas, and the restoration of the well	2320
site; and that, upon assignment or transfer of the well to the	2321
landowner, the landowner becomes responsible for the costs of	2322
compliance with the requirements of this chapter and rules adopted	2323
under it and the costs for operating and servicing the well.	2324

(B) When the entire interest of a well is proposed to be	2325
assigned or otherwise transferred to the landowner for use as an	2326
exempt domestic well, the owner who has been issued a permit under	2327
this chapter for the well shall submit to the chief of the	2328
division of oil and gas resources management an application for	2329
the assignment or transfer that contains all documents that the	2330
chief requires and a nonrefundable fee of one hundred dollars. The	2331
application for such an assignment or transfer shall be prescribed	2332
and provided by the chief. The chief may approve the application	2333
if the application is accompanied by a release of all of the oil	2334
and gas leases that are included in the applicable formation of	2335
the drilling unit, the release is in a form such that the well	2336
ownership merges with the fee simple interest of the surface	2337
tract, and the release is in a form that may be recorded. However,	2338
if the owner of the well does not release the oil and gas leases	2339
associated with the well that is proposed to be assigned or	2340
otherwise transferred or if the fee simple tract that results from	2341
the merger of the well ownership with the fee simple interest of	2342
the surface tract is less than five acres, the proposed exempt	2343
domestic well owner shall post a five thousand dollar bond with	2344
the division prior to the assignment or transfer of the well to	2345
ensure that the well will be properly plugged. The chief, for good	2346
cause, may modify the requirements of this section governing the	2347
assignment or transfer of the interests of a well to the	2348
landowner. Upon the assignment or transfer of the well, the owner	2349
of an exempt domestic well is not subject to the severance tax	2350
levied under section 5749.02 of the Revised Code, but is subject	2351
to all applicable fees established in this chapter.	2352

(C) The owner holding a permit under section 1509.05 of the	2353
Revised Code is responsible for all obligations and liabilities	2354
imposed by this chapter and any rules, orders, and terms and	2355
conditions of a permit adopted or issued under it, and no	2356
assignment or transfer by the owner relieves the owner of the	2357
obligations and liabilities until and unless the assignee or	2358
transferee files with the division the information described in	2359
divisions (A)(1), (2), (3), (4), (5), (10), (11), and (12)(16) of	2360
section 1509.06 of the Revised Code; obtains liability insurance	2361
coverage required by section 1509.07 of the Revised Code, except	2362
when none is required by that section; and executes and files a	2363
surety bond, negotiable certificates of deposit or irrevocable	2364
letters of credit, or cash, as described in that section. Instead	2365
of a bond, but only upon acceptance by the chief, the assignee or	2366
transferee may file proof of financial responsibility, described	2367
in section 1509.07 of the Revised Code. Section 1509.071 of the	2368
Revised Code applies to the surety bond, cash, and negotiable	2369
certificates of deposit and irrevocable letters of credit	2370
described in this section. Unless the chief approves a	2371
modification, each assignee or transferee shall operate in	2372
accordance with the plans and information filed by the permit	2373
holder pursuant to section 1509.06 of the Revised Code.	2374

(D) If a mortgaged property that is being foreclosed is	2375
subject to an oil or gas lease, pipeline agreement, or other	2376
instrument related to the production or sale of oil or natural gas	2377
and the lease, agreement, or other instrument was recorded	2378
subsequent to the mortgage, and if the lease, agreement, or other	2379
instrument is not in default, the oil or gas lease, pipeline	2380
agreement, or other instrument, as applicable, has priority over	2381
all other liens, claims, or encumbrances on the property so that	2382
the oil or gas lease, pipeline agreement, or other instrument is	2383
not terminated or extinguished upon the foreclosure sale of the	2384
mortgaged property. If the owner of the mortgaged property was	2385
entitled to oil and gas royalties before the foreclosure sale, the	2386
oil or gas royalties shall be paid to the purchaser of the	2387
foreclosed property.	2388

Sec. 1509.50.  (A) An oil and gas regulatory cost recovery	2389
assessment is hereby imposed by this section on an owner. An owner	2390
shall pay the assessment in the same manner as a severer who is	2391
required to file a return under section 5749.06 of the Revised	2392
Code. However, an owner may designate a severer who shall pay the	2393
owner's assessment on behalf of the owner on the return that the	2394
severer is required to file under that section. If a severer so	2395
pays an owner's assessment, the severer may recoup from the owner	2396
the amount of the assessment. Except for an exempt domestic well,	2397
the assessment imposed shall be in addition to the taxes levied on	2398
the severance of oil and gas under section 5749.02 of the Revised	2399
Code.	2400

(B)(1) Except for an exempt domestic well, the oil and gas	2401
regulatory cost recovery assessment shall be calculated on a	2402
quarterly basis and shall be one of the following:	2403

(a) If the sum of ten cents per barrel of oil for all of the	2404
wells of the owner, one-half of one cent per one thousand cubic	2405
feet of natural gas for all of the wells of the owner, and the	2406
amount of the severance tax levied on each severer for all of the	2407
wells of the owner under divisions (A)(5) and (6) of section	2408
5749.02 of the Revised Code, as applicable, is greater than the	2409
sum of fifteen dollars for each well owned by the owner, the	2410
amount of the assessment is the sum of ten cents per barrel of oil	2411
for all of the wells of the owner and one-half of one cent per one	2412
thousand cubic feet of natural gas for all of the wells of the	2413
owner.	2414

(b) If the sum of ten cents per barrel of oil for all of the	2415
wells of the owner, one-half of one cent per one thousand cubic	2416
feet of natural gas for all of the wells of the owner, andapply	2417
if the amount of the severance tax levied on each severer for all	2418
of the wells of the owner under divisions (A)(5) and (6) of	2419
section 5749.02 of the Revised Code, as applicable, is less than	2420
the sum of fifteen dollars for each well owned by the owner,. The	2421
assessment shall be calculated on a quarterly basis, and the	2422
amount of the assessment isshall be the sum of fifteen dollars	2423
for each well owned by the owner less the amount of the tax levied	2424
on each severer for all of the wells of the owner under divisions	2425
(A)(5) and (6) of section 5749.02 of the Revised Code, as	2426
applicable.	2427

(2) The oil and gas regulatory cost recovery assessment for a	2428
well that becomes an exempt domestic well on and after June 30,	2429
2010, shall be sixty dollars to be paid to the division of oil and	2430
gas resources management on the first day of July of each year.	2431

(C) All money collected pursuant to this section shall be	2432
deposited in the state treasury to the credit of the oil and gas	2433
well fund created in section 1509.02 of the Revised Code.	2434

(D) Except for purposes of revenue distribution as specified	2435
in division (B) of section 5749.02 of the Revised Code, the oil	2436
and gas regulatory cost recovery assessment imposed by this	2437
section shall be treated the same and equivalent for all purposes	2438
as the taxes levied on the severance of oil and gas under that	2439
section. However, the assessment imposed by this section is not a	2440
tax under Chapter 5749. of the Revised Code.	2441

Sec. 1514.01.  As used in this chapter:

2442

(A) "Surface mining" means all or any part of a process	2443
followed in the production of minerals from the earth or from the	2444
surface of the land by surface excavation methods, such as open	2445
pit mining, dredging, placering, or quarrying, and includes the	2446
removal of overburden for the purpose of determining the location,	2447
quantity, or quality of mineral deposits, and the incidental	2448
removal of coal at a rate less than one-sixth the total weight of	2449
minerals and coal removed during the year, but does not include:	2450
test or exploration boring; mining operations carried out beneath	2451
the surface by means of shafts, tunnels, or similar mine openings;	2452
the extraction of minerals, other than coal, by a landowner for	2453
the landowner's own noncommercial use where such material is	2454
extracted and used in an unprocessed form on the same tract of	2455
land; the extraction of minerals, other than coal, from borrow	2456
pits for highway construction purposes, provided that the	2457
extraction is performed under a bond, a contract, and	2458
specifications that substantially provide for and require	2459
reclamation practices consistent with the requirements of this	2460
chapter; the removal of minerals incidental to construction work,	2461
provided that the owner or person having control of the land upon	2462
which the construction occurs, the contractor, or the construction	2463
firm possesses a valid building permit; the removal of minerals to	2464
a depth of not more than five feet, measured from the highest	2465
original surface elevation of the area to be excavated, where not	2466
more than one acre of land is excavated during twelve successive	2467
calendar months; routine dredging of a watercourse for purely	2468
navigational or flood control purposes during which materials are	2469
removed for noncommercial purposes, including activities conducted	2470
by or on behalf of a conservancy district, organized under Chapter	2471
6101. of the Revised Code, for flood control purposes that are	2472
exempt from permitting requirements under section 10 of the	2473
"Rivers and Harbors Act of 1899," 30 Stat. 1151, 33 U.S.C. 403, as	2474
amended; or the extraction or movement of soil or minerals within	2475
a solid waste facility, as defined in section 3734.01 of the	2476
Revised Code, that is a sanitary landfill when the soil or	2477
minerals are used exclusively for the construction, operation,	2478
closure, and post-closure care of the facility or for maintenance	2479
activities at the facility.	2480

(B) "Minerals" means sand, gravel, clay, shale, gypsum,	2481
halite, limestone, dolomite, sandstone, other stone, metalliferous	2482
or nonmetalliferous ore, or other material or substance of	2483
commercial value excavated in a solid state from natural deposits	2484
on or in the earth, but does not include coal or peat.	2485

(C) "Overburden" means all of the earth and other materials	2486
that cover a natural deposit of minerals and also means such earth	2487
and other materials after removal from their natural state in the	2488
process of surface mining.	2489

(D) "Spoil bank" means a pile of removed overburden.

2490

(E) "Area of land affected" means the area of land that has	2491
been excavated, or upon which a spoil bank exists, or both.	2492

(F)(1) "Operation" or "surface mining operation" means all of	2493
the premises, facilities, and equipment used in the process of	2494
removing minerals, or minerals and incidental coal, by surface	2495
mining from a mining area in the creation of which mining area	2496
overburden or minerals, or minerals and incidental coal, are	2497
disturbed or removed, such surface mining area being located upon	2498
a single tract of land or upon two or more contiguous tracts of	2499
land. Separation by a stream or roadway shall not preclude the	2500
tracts from being considered contiguous.	2501

(2) When the context indicates, "operation" or "in-stream	2502
mining operation" means all of the premises, facilities, and	2503
equipment used in the process of removing minerals by in-stream	2504
mining from a mining area.	2505

(G) "Operator" means any person engaged in surface mining who	2506
removes minerals, or minerals and incidental coal, from the earth	2507
by surface mining or who removes overburden for the purpose of	2508
determining the location, quality, or quantity of a mineral	2509
deposit. "Operator" also means any person engaged in in-stream	2510
mining who removes minerals from the bottom of the channel of a	2511
watercourse by in-stream mining.	2512

(H) "Performance bond" means the surety bond required to be	2513
filed under section 1514.04 of the Revised Code and includes cash,	2514
an irrevocable letter of credit, and negotiable certificates of	2515
deposit authorized to be deposited in lieu of the surety bond	2516
under that section.	2517

(I) "Dewatering" means the withdrawal of ground water from an	2518
aquifer or saturated zone that may result in the lowering of the	2519
water level within the aquifer or saturated zone or a decline of	2520
the potentiometric surface within that aquifer or saturated zone.	2521

(J) "Ground water" means all water occurring in an aquifer.

2522

(K) "Cone of depression" means a depression or low point in	2523
the water table or potentiometric surface of a body of ground	2524
water that develops around a location from which ground water is	2525
being withdrawn.	2526

(L) "High water mark" means the line on the shore that is	2527
established by the fluctuations of water and indicated by physical	2528
characteristics such as a natural line impressed on the bank;	2529
shelving; changes in the character of soil; destruction of	2530
terrestrial vegetation; the presence of litter and debris; or	2531
other appropriate means that consider the characteristics of the	2532
surrounding area.	2533

(M) "In-stream mining" means all or any part of a process	2534
followed in the production of minerals from the bottom of the	2535
channel of a watercourse that drains a surface area of more than	2536
one hundred square miles. "In-stream mining" may be accomplished	2537
by using any technique or by using surface excavation methods,	2538
such as open pit mining, dredging, placering, or quarrying, and	2539
includes the removal of overburden for the purpose of determining	2540
the location, quantity, or quality of mineral deposits. "In-stream	2541
mining" does not include either of the following:	2542

(1) Routine dredging for purely navigational or flood control	2543
purposes during which materials are removed for noncommercial	2544
purposes;	2545

(2) The extraction of minerals, other than coal, by a	2546
landowner for the landowner's own noncommercial use when the	2547
material is extracted and used in an unprocessed form on the same	2548
tract of land.	2549

For purposes of division (M) of this section, the number of	2550
square miles of surface area that a watercourse drains shall be	2551
determined by consulting the "gazetteer of Ohio streams," which is	2552
a portion of the Ohio water plan inventory published in 1960 by	2553
the division of water in the department of natural resources, or	2554
its successor, if any.	2555

(N) In provisions concerning in-stream mining, when the	2556
context is appropriate, "land" is deemed to include an area of a	2557
watercourse.	2558

(O) "Watercourse" means any naturally occurring perennial or	2559
intermittent stream, river, or creek flowing within a defined	2560
stream bed and banks.	2561

(P) "Certified mine foreperson" means the person whom the	2562
operator of a surface mining operation places in charge of the	2563
conditions and practices at the mine, who is responsible for	2564
conducting workplace examinations under 30 C.F.R. part 56, as	2565
amended, and who has passed an examination for the position	2566
administered by the division of mineral resources management.	2567

Sec. 1514.02.  (A) After the dates the chief of the division	2568
of mineral resources management prescribes by rule pursuant to	2569
section 1514.08 of the Revised Code, but not later than July 1,	2570
1977, nor earlier than July 1, 1975, no operator shall engage in	2571
surface mining or conduct a surface mining operation without a	2572
surface mining permit issued by the chief.	2573

No person shall engage in in-stream mining or conduct an	2574
in-stream mining operation without an in-stream mining permit	2575
issued by the chief. However, a person who, on the effective date	2576
of this amendmentMarch 15, 2002, holds a valid permit to conduct	2577
in-stream mining that is issued under section 10 of the "Rivers	2578
and Harbors Appropriation Act of 1899," 30 Stat. 1151, 33 U.S.C.	2579
403, as amended, shall not be required to obtain an in-stream	2580
mining permit from the chief under this section until the existing	2581
permit expires.	2582

An application for a surface or in-stream mining permit shall	2583
be upon the form that the chief prescribes and provides and shall	2584
contain all of the following:	2585

(1) The name and address of the applicant, of all partners if	2586
the applicant is a partnership, or of all officers and directors	2587
if the applicant is a corporation, and any other person who has a	2588
right to control or in fact controls the management of the	2589
applicant or the selection of officers, directors, or managers of	2590
the applicant;	2591

(2) A list of the minerals and coal, if any coal, sought to	2592
be extracted, an estimate of the annual production rates for each	2593
mineral and coal, and a description of the land upon which the	2594
applicant proposes to engage in a surface or in-stream mining	2595
operation, which description shall set forth the names of the	2596
counties, townships, and municipal corporations, if any, in which	2597
the land is located; the location of its boundaries; and a	2598
description of the land of sufficient certainty that it may be	2599
located and distinguished from other lands;	2600

(3) The name of each county, township, or municipal	2601
corporation, if any, that has in effect a zoning resolution or	2602
ordinance that would affect the proposed surface or in-stream	2603
mining operation or, if no such zoning resolution or ordinance is	2604
in effect, a statement attesting to that fact. The application	2605
also shall contain an explanation of how the applicant intends to	2606
comply with any applicable provisions of a zoning resolution or	2607
ordinance.	2608

(4) An estimate of the number of acres of land that will	2609
comprise the total area of land to be affected and an estimate of	2610
the number of acres of land to be affected during the first year	2611
of operation under the permit;	2612

(5) The name and address of the owner of surface rights in	2613
the land upon which the applicant proposes to engage in surface or	2614
in-stream mining;	2615

(6) A copy of the deed, lease, or other instrument that	2616
authorizes entry upon the land by the applicant or the applicant's	2617
agents if surface rights in the land are not owned by the	2618
applicant;	2619

(7) A statement of whether any surface or in-stream mining	2620
permits or coal mining and reclamation permits are now held by the	2621
applicant in this state and, if so, the numbers of the permits;	2622

(8) A statement of whether the applicant, any partner if the	2623
applicant is a partnership, any officer or director if the	2624
applicant is a corporation, or any other person who has a right to	2625
control or in fact controls the management of the applicant or the	2626
selection of officers, directors, or managers of the applicant has	2627
ever had a surface or in-stream mining permit or coal mining and	2628
reclamation permit issued by this or any other state suspended or	2629
revoked or has ever forfeited a surface or in-stream mining or	2630
coal mining and reclamation bond or cash, an irrevocable letter of	2631
credit, or a security deposited in lieu of a bond;	2632

(9) A report of the results of test borings that the operator	2633
has conducted on the area or otherwise has readily available,	2634
including, to the extent that the information is readily available	2635
to the operator, the nature and depth of overburden and material	2636
underlying each mineral or coal deposit, and the thickness and	2637
extent of each mineral or coal deposit. In the case of an	2638
application for an in-stream mining permit, the report	2639
additionally shall include sufficient information to show the	2640
approximate depth to bedrock. All information relating to test	2641
boring results submitted to the chief pursuant to this section	2642
shall be kept confidential and not made a matter of public record,	2643
except that the information may be disclosed by the chief in any	2644
legal action in which the truthfulness of the information is	2645
material.	2646

(10) A complete plan for surface or in-stream mining and	2647
reclamation of the area to be affected, which shall include a	2648
statement of the intended future uses of the area and show the	2649
approximate sequence in which mining and reclamation measures are	2650
to occur, the approximate intervals following mining during which	2651
the reclamation of all various parts of the area affected will be	2652
completed, and the measures the operator will perform to prevent	2653
damage to adjoining property and to achieve all of the following	2654
general performance standards for mining and reclamation:	2655

(a) Prepare the site adequately for its intended future uses	2656
upon completion of mining;	2657

(b) Where a plan of zoning or other comprehensive plan has	2658
been adopted that governs land uses or the construction of public	2659
improvements and utilities for an area that includes the area	2660
sought to be mined, ensure that future land uses within the site	2661
will not conflict with the plan. On and after the effective date	2662
of this amendmentMarch 15, 2002, division (A)(10)(b) of this	2663
section does not apply to any surface or in-stream mining permit	2664
or applications for a surface or in-stream mining permit, any	2665
renewal of an existing surface or in-stream mining permit or	2666
application for a renewal of an existing surface or in-stream	2667
mining permit, any amendment or application for an amendment to an	2668
existing surface or in-stream mining permit, or any modification	2669
or application for a modification of a mining and reclamation plan	2670
of an existing surface or in-stream mining permit unless the	2671
application for such a permit, renewal, amendment, or modification	2672
is a resubmission, revision, or reconsideration of an application	2673
that was pending before the chief or was first approved prior to	2674
the effective date of this amendmentMarch 15, 2002.	2675

(c) Grade, contour, or terrace final slopes, wherever needed,	2676
sufficient to achieve soil stability and control landslides,	2677
erosion, and sedimentation. Highwalls will be permitted if they	2678
are compatible with the future uses specified in the plan and	2679
measures will be taken to ensure public safety. Where ponds,	2680
impoundments, or other resulting bodies of water are intended for	2681
recreational use, establish banks and slopes that will ensure safe	2682
access to those bodies of water. Where such bodies of water are	2683
not intended for recreation, include measures to ensure public	2684
safety, but access need not be provided.	2685

(d) Resoil the area of land affected, wherever needed, with	2686
topsoil or suitable subsoil, fertilizer, lime, or soil amendments,	2687
as appropriate, in sufficient quantity and depth to raise and	2688
maintain a diverse growth of vegetation adequate to bind the soil	2689
and control soil erosion and sedimentation;	2690

(e) Establish a diverse vegetative cover of grass and legumes	2691
or trees, grasses, and legumes capable of self-regeneration and	2692
plant succession wherever required by the plan;	2693

(f) Remove or bury any metal, lumber, equipment, or other	2694
refuse resulting from mining, and remove or bury any unwanted or	2695
useless structures;	2696

(g) Reestablish boundary, section corner, government, and	2697
other survey monuments that were removed by the operator;	2698

(h) During mining and reclamation, ensure that contamination,	2699
resulting from mining, of underground water supplies is prevented.	2700
Upon completion of reclamation, ensure that any watercourse, lake,	2701
or pond located within the site boundaries is free of substances	2702
resulting from mining in amounts or concentrations that are	2703
harmful to persons, fish, waterfowl, or other beneficial species	2704
of aquatic life.	2705

(i) During mining and reclamation, control drainage so as to	2706
prevent the causing of flooding, landslides, and flood hazards to	2707
adjoining lands resulting from the mining operation. Leave any	2708
ponds in such condition as to avoid their constituting a hazard to	2709
adjoining lands.	2710

(j) During mining and reclamation, ensure that the effect of	2711
any reduction of the quantity of ground water is minimized;	2712

(k) Ensure that mining and reclamation are carried out in the	2713
sequence and manner set forth in the plan and that reclamation	2714
measures are performed in a timely manner. All reclamation of an	2715
area of land affected shall be completed no later than three years	2716
following the mining of the area unless the operator makes a	2717
showing satisfactory to the chief that the future use of the area	2718
requires a longer period for completing reclamation.	2719

(l) During mining, store topsoil or fill in quantities	2720
sufficient to complete the backfilling, grading, contouring,	2721
terracing, and resoiling that are specified in the plan. Stabilize	2722
the slopes of and plant each spoil bank to control soil erosion	2723
and sedimentation wherever substantial damage to adjoining	2724
property might occur.	2725

(m) During mining, promptly remove, store, or cover any coal,	2726
pyritic shale, or other acid producing materials in a manner that	2727
will minimize acid drainage and the accumulation of acid water;	2728

(n) During mining, detonate explosives in a manner that will	2729
prevent damage to adjoining property;	2730

(o) In the case of in-stream mining, do all of the following:

2731

(i) Limit access to the channel of a watercourse to a single	2732
point of entry on one bank of the watercourse;	2733

(ii) Maintain riparian vegetation to the fullest extent	2734
possible;	2735

(iii) Upon cessation of in-stream mining, stabilize and	2736
reclaim to the pre-mined condition the banks of a watercourse	2737
affected by in-stream mining.	2738

(11) For any applicant, except an applicant for an in-stream	2739
mining permit, who intends to extract less than ten thousand tons	2740
of minerals per year and no incidental coal, a current tax map, in	2741
triplicate and notarized, and the appropriate United States	2742
geological survey seven and one-half minute topographic map. Each	2743
copy shall bear the applicant's name and shall identify the area	2744
of land to be affected corresponding to the application.	2745

(12) For any applicant for a surface mining permit who	2746
intends to extract ten thousand tons of minerals or more per year	2747
or who intends to extract any incidental coal irrespective of the	2748
tonnage of minerals intended to be mined, a map, in triplicate, on	2749
a scale of not more than four hundred feet to the inch, or three	2750
copies of an enlarged United States geological survey topographic	2751
map on a scale of not more than four hundred feet to the inch.	2752
Each application for an in-stream mining permit shall include such	2753
a map regardless of the tons of minerals that the applicant	2754
intends to extract.	2755

The map shall comply with all of the following:

2756

(a) Be prepared and certified by a professional engineer or	2757
surveyor registered under Chapter 4733. of the Revised Code;	2758

(b) Identify the area of land to be affected corresponding to	2759
the application;	2760

(c) Show the probable limits of subjacent and adjacent deep,	2761
strip, surface, or in-stream mining operations, whether active,	2762
inactive, or mined out;	2763

(d) Show the boundaries of the area of land to be affected	2764
during the period of the permit and the area of land estimated to	2765
be affected during the first year of operation, and name the	2766
surface and mineral owners of record of the area and the owners of	2767
record of adjoining surface properties;	2768

(e) Show the names and locations of all streams, creeks, or	2769
other bodies of water, roads, railroads, utility lines, buildings,	2770
cemeteries, and oil and gas wells on the area of land to be	2771
affected and within five hundred feet of the perimeter of the	2772
area;	2773

(f) Show the counties, municipal corporations, townships, and	2774
sections in which the area of land to be affected is located;	2775

(g) Show the drainage plan on, above, below, and away from	2776
the area of land to be affected, indicating the directional flow	2777
of water, constructed drainways, natural waterways used for	2778
drainage, and the streams or tributaries receiving or to receive	2779
this discharge;	2780

(h) Show the location of available test boring holes that the	2781
operator has conducted on the area of land to be affected or	2782
otherwise has readily available;	2783

(i) Show the date on which the map was prepared, the north	2784
direction and the quadrangle sketch, and the exact location of the	2785
operation;	2786

(j) Show the type, kind, location, and references of all	2787
existing boundary, section corner, government, and other survey	2788
monuments within the area to be affected and within five hundred	2789
feet of the perimeter of the area.	2790

The certification of the maps shall read: "I, the	2791
undersigned, hereby certify that this map is correct, and shows to	2792
the best of my knowledge and belief all of the information	2793
required by the surface or in-stream mining laws, as applicable,	2794
of the state." The certification shall be signed and attested	2795
before a notary public. The chief may reject any map as incomplete	2796
if its accuracy is not so certified and attested.	2797

(13) A certificate of public liability insurance issued by an	2798
insurance company authorized to do business in this state or	2799
obtained pursuant to sections 3905.30 to 3905.35 of the Revised	2800
Code covering all surface or in-stream mining operations of the	2801
applicant in this state and affording bodily injury and property	2802
damage protection in amounts not less than the following:	2803

(a) One hundred thousand dollars for all damages because of	2804
bodily injury sustained by one person as the result of any one	2805
occurrence, and three hundred thousand dollars for all damages	2806
because of bodily injury sustained by two or more persons as the	2807
result of any one occurrence;	2808

(b) One hundred thousand dollars for all claims arising out	2809
of damage to property as the result of any one occurrence, with an	2810
aggregate limit of three hundred thousand dollars for all property	2811
damage to which the policy applies.	2812

(14) A sworn statement by the applicant that, during the term	2813
of any permit issued under this chapter or of any renewal of such	2814
a permit, the applicant will comply with all applicable zoning	2815
resolutions or ordinances that are in effect at the time the	2816
application is filed unless the resolutions or ordinances	2817
subsequently become invalid during the term of the permit or	2818
renewal;	2819

(15) A copy of the advertisement that the applicant is	2820
required to have published in accordance with section 1514.022 of	2821
the Revised Code, if applicable;	2822

(16) For any applicant whose operation may result in	2823
dewatering, a compilation of data in a form that is prescribed by	2824
the chief and that is suitable to conduct ground water modeling in	2825
order to establish a projected cone of depression for purposes of	2826
section 1514.13 of the Revised Code. The chief shall adopt rules	2827
as provided in section 1514.08 of the Revised Code establishing	2828
the minimum requirements and standards governing the data required	2829
under this division.	2830

(17) A statement by the applicant certifying that the	2831
applicant has communicated with the county engineer of the county	2832
in which the proposed surface or in-stream mining operation will	2833
be located regarding any streets and roads under the county	2834
engineer's jurisdiction that will be used by vehicles entering and	2835
leaving the proposed surface or in-stream mining operation;	2836

(18) In the case of an application for an in-stream mining	2837
permit, and if required by the division of mineral resources	2838
management after review of an applicant's proposed in-stream	2839
mining plans, a hydraulic evaluation of the watercourse prepared	2840
by a professional engineer registered under Chapter 4733. of the	2841
Revised Code. TheIf the hydraulic evaluation is required, it	2842
shall include, without limitation, all of the following:	2843

(a) Soundings that depict the cross-sectional views of the	2844
channel bottom of the watercourse and water elevations for the	2845
watercourse;	2846

(b) A profile of the channel bottom;

2847

(c) An analysis of design flows and water surface profiles	2848
for the watercourse prior to in-stream mining and the proposed	2849
final mining condition;	2850

(d) An analysis of the expected changes in the roughness	2851
coefficient, resistance to water flow velocity, and hydraulic	2852
gradient in the channel bottom due to the proposed mining;	2853

(e) Any additional information that the chief requires in	2854
order to evaluate the potential impact of in-stream mining on the	2855
watercourse and to determine if any additional performance	2856
standards are required to protect the environment and property	2857
outside the limits of the operation as established in the permit.	2858

The chief may allow an applicant to deviate from the	2859
requirements of divisions (A)(18)(a) to (d) of this section if the	2860
chief determines that such a deviation is appropriate.	2861

(B) No permit application or amendment shall be approved by	2862
the chief if the chief finds that the reclamation described in the	2863
application will not be performed in full compliance with this	2864
chapter or that there is not reasonable cause to believe that	2865
reclamation as required by this chapter will be accomplished.	2866

The chief shall issue an order denying an application for an	2867
operating permit or an amendment if the chief determines that the	2868
measures set forth in the plan are likely to be inadequate to	2869
prevent damage to adjoining property or to achieve one or more of	2870
the performance standards required in division (A)(10) of this	2871
section.	2872

No permit application or amendment shall be approved if the	2873
approval would result in a violation of division (E), (F), or (G)	2874
of section 1514.10 of the Revised Code.	2875

No permit application or amendment shall be approved to	2876
surface mine land adjacent to a public road in violation of	2877
section 1563.11 of the Revised Code.	2878

To ensure adequate lateral support, no permit application or	2879
amendment shall be approved to engage in surface or in-stream	2880
mining on land that is closer than fifty feet of horizontal	2881
distance to any adjacent land or waters in which the operator	2882
making application does not own the surface or mineral rights	2883
unless the owners of the surface and mineral rights in and under	2884
the adjacent land or waters consent in writing to surface or	2885
in-stream mining closer than fifty feet of horizontal distance.	2886
The consent, or a certified copy thereof, shall be attached to the	2887
application as a part of the permanent record of the application	2888
for a surface or in-stream mining permit.	2889

The chief shall issue an order granting a permit upon the	2890
chief's approval of an application, as required by this section,	2891
filing of the performance bond required by section 1514.04 of the	2892
Revised Code, payment of an acreage fee in the amount of	2893
seventy-five dollars multiplied by the number of acres estimated	2894
in the application that will comprise the area of land to be	2895
affected within the first year of operation under the permit, and	2896
payment of a permit fee. The amount of the permit fee for a	2897
surface mining permit shall be five hundred dollars, and the	2898
amount of the permit fee for an in-stream mining permit shall be	2899
two hundred fifty dollars.	2900

The chief may issue an order denying a permit if the chief	2901
finds that the applicant, any partner if the applicant is a	2902
partnership, any officer or director if the applicant is a	2903
corporation, or any other person who has a right to control or in	2904
fact controls the management of the applicant or the selection of	2905
officers, directors, or managers of the applicant has	2906
substantially or materially failed to comply or continues to fail	2907
to comply with this chapter, which failure may consist of one or	2908
more violations thereof, a rule adopted thereunder, or an order of	2909
the chief or failure to perform reclamation as required by this	2910
chapter. The chief may deny or revoke the permit of any person who	2911
so violates or fails to comply or who purposely misrepresents or	2912
omits any material fact in the application for the permit or an	2913
amendment to a permit.	2914

If the chief denies the permit, the chief shall state the	2915
reasons for denial in the order denying the permit.	2916

Each permit shall be issued upon condition that the operator	2917
will comply with this chapter and perform the measures set forth	2918
in the operator's plan of mining and reclamation in a timely	2919
manner. The chief, mineral resources inspectors, or other	2920
authorized representatives of the chief may enter upon the	2921
premises of the operator at reasonable times for the purposes of	2922
determining whether or not there is compliance with this chapter.	2923

(C) If the chief approves an application for a surface mining	2924
permit, the order granting the permit shall authorize the person	2925
to whom the permit is issued to engage as the operator of a	2926
surface mining operation upon the land described in the permit	2927
during a period that shall expire fifteen years after the date of	2928
issuance of the permit, or upon the date when the chief, after	2929
inspection, orders the release of any remaining performance bond	2930
deposited to assure satisfactory performance of the reclamation	2931
measures required pursuant to this chapter, whichever occurs	2932
earlier.	2933

If the chief approves an application for an in-stream mining	2934
permit, the order granting the permit shall authorize the person	2935
to whom the permit is issued to engage as the operator of an	2936
in-stream mining operation on the land described in the permit	2937
during a period that shall expire twofive years after the date of	2938
issuance of the permit, or on the date when the chief, after	2939
inspection, orders the release of any remaining bond, cash,	2940
irrevocable letters of credit, or certificates of deposit that	2941
were deposited to ensure satisfactory performance of the	2942
reclamation measures required under this chapter, whichever occurs	2943
earlier.	2944

(D) Before an operator engages in a surface or in-stream	2945
mining operation on land not described in the operator's permit,	2946
but that is contiguous to the land described in the operator's	2947
permit, the operator shall file with the chief an application for	2948
an amendment to the operator's permit. Before approving an	2949
amendment, the chief shall require the information, maps, fees,	2950
and amount, except as otherwise provided by rule, of the	2951
performance bond as required for an original application under	2952
this section and shall apply the same prohibitions and	2953
restrictions applicable to land described in an original	2954
application for a permit. An applicant for a significant amendment	2955
to a permit, as "significant" is defined by rule, shall include a	2956
copy of the advertisement that the applicant is required to have	2957
published in accordance with section 1514.022 of the Revised Code.	2958
If the chief disapproves the amendment, the chief shall state the	2959
reasons for disapproval in the order disapproving the amendment.	2960
Upon the approval of an amendment by the chief, the operator shall	2961
be authorized to engage in surface mining on the land or in-stream	2962
mining in the watercourse described in the operator's original	2963
permit plus the land or area of the watercourse described in the	2964
amendment until the date when the permit expires, or when the	2965
chief, after inspection, orders the release of any remaining	2966
performance bond deposited to assure satisfactory performance of	2967
the reclamation measures required pursuant to this chapter,	2968
whichever occurs earlier.	2969

(E) An operator, at any time and upon application therefor	2970
and approval by the chief, may amend the plan of mining and	2971
reclamation filed with the application for a permit in order to	2972
change the reclamation measures to be performed, modify the	2973
interval after mining within which reclamation measures will be	2974
performed, change the sequence in which mining or reclamation will	2975
occur at specific locations within the area affected, mine acreage	2976
previously mined or reclaimed, or for any other purpose, provided	2977
that the plan, as amended, includes measures that the chief	2978
determines will be adequate to prevent damage to adjoining	2979
property and to achieve the performance standards set forth in	2980
division (A)(10) of this section. An application for a significant	2981
amendment to a plan, as "significant" is defined by rule, shall	2982
include a copy of the advertisement that the applicant is required	2983
to have published in accordance with section 1514.022 of the	2984
Revised Code.	2985

The chief may propose one or more amendments to the plan in	2986
writing within ninety days after the fifth anniversary of the date	2987
of issuance of a surface mining permit or within ninety days after	2988
the first anniversary of the date of issuance of an in-stream	2989
mining permit. The chief's proposal may be made upon a finding of	2990
any of the following conditions after a complete review of the	2991
plan and inspection of the area of land affected, and the plan	2992
shall be so amended upon written concurrence in the findings and	2993
approval of the amendments by the operator:	2994

(1) An alternate measure, in lieu of one previously approved	2995
in the plan, will more economically or effectively achieve one or	2996
more of the performance standards.	2997

(2) Developments in reclamation technology make an alternate	2998
measure to achieve one or more of the performance standards more	2999
economical, feasible, practical, or effective.	3000

(3) Changes in the use or development of adjoining lands	3001
require changes in the intended future uses of the area of land	3002
affected in order to prevent damage to adjoining property.	3003

(F) The holder of a surface or in-stream mining permit who	3004
desires to transfer the rights granted under the permit to another	3005
person at any time during the term of the permit or its renewal	3006
shall file with the chief an application for the transfer of the	3007
permit. The chief shall issue an order approving or disapproving	3008
the transfer of the permit in accordance with criteria and	3009
procedures established by rule.	3010

Sec. 1514.021.  (A) A permit holder who wishes to continue	3011
surface or in-stream mining operations after the expiration date	3012
of the existing permit or renewal permit shall file with the chief	3013
of the division of mineral resources management an applicationa	3014
notice of intent to renew for purposes of the renewal of a surface	3015
or in-stream mining permit or renewal permit at least ninety days	3016
before the expiration date of the existing permit or renewal	3017
permit. The applicationnotice of intent to renew shall be upon	3018
theon a form that the chief prescribes and provides and shall be	3019
accompanied by a permit renewal fee. The amount of the fee for	3020
renewal of a surface mining permit or renewal permit shall be one	3021
thousand dollars, and the amount of the fee for renewal of an	3022
in-stream mining permit or renewal permit shall be five hundred	3023
dollars.	3024

(B) Upon receipt of an application for renewala notice of	3025
intent to renew form and the permit renewal fee under division (A)	3026
of this section, the chief shall notify the applicantpermit	3027
holder to submit a renewal application package. The permit holder	3028
shall submit a complete renewal package to the chief at least	3029
thirty days prior to the expiration of the existing surface or	3030
in-stream mining permit or renewal permit. The renewal application	3031
package shall include all of the following:	3032

(1) A map that is a composite of the information required to	3033
be contained in the most recent annual report map under section	3034
1514.03 of the Revised Code and of all surface or in-stream mining	3035
and reclamation activities conducted under the existing permit or	3036
renewal permit; the	3037

(2) The annual report required under section 1514.03 of the	3038
Revised Code; in	3039

(3) In the case of an applicant proposing a significant	3040
change to the plan of mining and reclamation, as "significant" is	3041
defined by rule, a copy of the advertisement that the applicant is	3042
required to havebe published in accordance with section 1514.022	3043
of the Revised Code; and additional	3044

(4) Additional maps, plans, and revised or updated	3045
information that the chief determines to be necessary for permit	3046
renewal. Within sixty days after receipt of this notification, the	3047
applicant shall submit all the required information to the chief.	3048

For a renewal permit requiring minor or minimal updates to	3049
the existing permit, renewal permit, or accompanying information,	3050
the chief may authorize a permit holder to file updated	3051
information through a surface mining permit modification process	3052
using a surface mining permit modification form. However, the	3053
chief may require such a permit holder to submit a complete	3054
renewal application package.	3055

(C)(1) Upon receipt of the informationcomplete renewal	3056
application package required under division (B) of this section	3057
and except as otherwise provided in division (C)(2) of this	3058
section, the chief shall approve the application for renewal and	3059
issue an order granting a renewal permit unless the chief finds	3060
that any of the following applies:	3061

(a) The permit holder's operation is not in substantial or	3062
material compliance with this chapter, rules adopted and orders	3063
issued under it, and the plan of mining and reclamation under the	3064
existing permit or renewal permit.	3065

(b) The permit holder has not provided evidence that a	3066
performance bond filed under section 1514.04 of the Revised Code	3067
applicable to lands affected under the existing permit or renewal	3068
permit will remain effective until released under section 1514.05	3069
of the Revised Code.	3070

(c) The permit holder, any partner if the applicantpermit	3071
holder is a partnership, any officer or director if the applicant	3072
permit holder is a corporation, or any other person who has a	3073
right to control or in fact controls the management of the	3074
applicantpermit holder or the selection of officers, directors,	3075
or managers of the applicantpermit holder has failed	3076
substantially or materially to comply or continues to fail to	3077
comply with this chapter as provided in section 1514.02 of the	3078
Revised Code.	3079

(2) If the application for renewal proposes significant	3080
changes to the plan of mining and reclamation, as "significant" is	3081
defined by rule, the chief may, but is not required to, approve	3082
the application for renewal.	3083

(D) Within sixty days after receiving the information and	3084
permit renewal fees required under divisions (A) and (B) of this	3085
section, the chief shall approve the application for renewal and	3086
issue an order granting a renewal permit, issue an order denying	3087
the application, or notify the applicant that the time limit for	3088
issuing such an order has been extended. This extension of time	3089
shall not exceed sixty days(1) After receiving a complete renewal	3090
application package and permit renewal fees required under	3091
divisions (A) and (B) of this section, the chief shall do one of	3092
the following:	3093

(a) Approve the application for renewal and issue an order	3094
granting a renewal permit;	3095

(b) Issue an order denying a renewal permit;

3096

(c) Notify the applicant in accordance with division (D)(2)	3097
of this section that there are deficiencies in the renewal	3098
application package and that an extension of the time limit for	3099
issuing an order approving or disapproving the renewal permit has	3100
been granted.	3101

In making a decision regarding a renewal application package,	3102
the chief shall review the package for compliance with this	3103
chapter and rules adopted under it.	3104

(2) The chief shall notify a permit holder and, if	3105
applicable, the permit holder's consultant, surveyor, or engineer	3106
of deficiencies or errors in a renewal application package and	3107
shall include in the notification a discussion of the deficiencies	3108
or errors.	3109

A permit holder shall have up to one hundred eighty days	3110
after the expiration of the permit holder's permit or renewal	3111
permit to submit a revised renewal application package. A permit	3112
holder may request, in writing, an extension of the one	3113
hundred-eighty-day period for revisions to the renewal application	3114
package. The chief may approve a sixty-day extension. The chief	3115
shall notify the permit holder of the chief's decision to either	3116
grant or deny the extension.	3117

Upon the submission of a revised renewal application package	3118
that is determined to be complete by the chief, the chief shall	3119
proceed to approve or deny the application in accordance with	3120
division (D)(1)(a) or (b) of this section. If the revised renewal	3121
application package is not submitted within one hundred eighty	3122
days after the permit expiration date or, if an extension has been	3123
granted, within two hundred forty days after the permit expiration	3124
date, the chief shall issue an order denying the renewal permit in	3125
accordance with division (D)(1)(b) of this section.	3126

(E) If an applicant for a renewal permit has complied with	3127
division (A) of this section, the applicant may continue surface	3128
or in-stream mining operations under the existing permit or	3129
renewal permit after its expiration date until the sixty-daytime	3130
period for filing the information required by the chief under	3131
division (B) of this sectiona complete renewal application	3132
package has expired under division (D) of this section or until	3133
the chief issues an order under division (D) of this section	3134
denying the renewal permit.	3135

(F) A permit holder who fails to submit an applicationa	3136
notice of intent to renew form and required permit renewal fees	3137
within the time prescribed by division (A) of this section and a	3138
renewal application package under division (B) of this section	3139
shall cease surface or in-stream mining operations on the	3140
expiration date of the existing permit or renewal permit. If such	3141
a permit holder then submits a notice of intent to renew form, an	3142
application for renewal, and the permit renewal fees otherwise	3143
required by division (A) of this section on or before the	3144
thirtieth day after the expiration date of the expired permit or	3145
renewal permit and provides the information required by the chief	3146
under division (B) of this section within sixty days after being	3147
notified of the information required under that divisionthe	3148
permit expiration date, the permit holder need not submit the	3149
final map and report required by section 1514.03 of the Revised	3150
Code until the later of thirty days after the chief issues an	3151
order denying the application for renewal or thirty days after the	3152
chief's order is affirmed upon appeal under section 1513.13 or	3153
1513.14 of the Revised Code. An applicant under this division who	3154
fails to provide the information required by the chief under	3155
division (B) of this section within the prescribed time period	3156
shall submit the final map and report required by section 1514.03	3157
of the Revised Code within thirty days after the expiration of	3158
that prescribed period.	3159

(G) If the chief issues an order denying an application for	3160
renewal of a permit or renewal permit after the expiration date of	3161
the permit, the permit holder shall cease surface or in-stream	3162
mining operations immediately and, within thirty days after the	3163
issuance of the order, shall submit the final report and map	3164
required under section 1514.03 of the Revised Code. The chief	3165
shall state the reasons for denial in the order denying renewal of	3166
the applicationpermit. An applicantA permit holder may appeal	3167
the chief's order denying the renewal under section 1513.13 of the	3168
Revised Code and may continue surface or in-stream mining and	3169
reclamation operations under the expired permit until the	3170
reclamation commission affirms the chief's order under that	3171
section and, if the applicant elects to appeal the order of the	3172
commission under section 1513.14 of the Revised Code, until the	3173
court of appeals affirms the order.	3174

(H) The approval of an application for renewal under this	3175
section authorizes the continuation of an existing surface mining	3176
permit or renewal permit for a term of fifteen years from the	3177
expiration date of the existing permit.	3178

The approval of an application for renewal under this section	3179
authorizes the continuation of an existing in-stream mining permit	3180
or renewal permit for a term of twofive years from the expiration	3181
date of the existing permit.	3182

(I) Any renewal permit is subject to all the requirements of	3183
this chapter and rules adopted under it.	3184

Sec. 1514.03.  Within thirty days after each anniversary date	3185
of issuance of a surface or in-stream mining permit, the operator	3186
shall file with the chief of the division of mineral resources	3187
management an annual report, on a form prescribed and furnished by	3188
the chief, that, for the period covered by the report, shall state	3189
the amount of and identify the types of minerals and coal, if any	3190
coal, produced and shall state the number of acres affected and	3191
the number of acres estimated to be affected during the next year	3192
of operation. An annual report is not required to be filed if a	3193
final report is filed in lieu thereof.	3194

Each annual report for a surface mining operation shall	3195
include a progress map indicating the location of areas of land	3196
affected during the period of the report and the location of the	3197
area of land estimated to be affected during the next year. The	3198
map shall be prepared in accordance with division (A)(11) or (12)	3199
of section 1514.02 of the Revised Code, as appropriate, except	3200
that a map prepared in accordance with division (A)(12) of that	3201
section may be certified by the operator or authorized agent of	3202
the operator in lieu of certification by a professional engineer	3203
or surveyor registered under Chapter 4733. of the Revised Code.	3204
However, the chief may require that an annual progress map or a	3205
final map be prepared by a registered professional engineer or	3206
registered surveyor if the chief has reason to believe that the	3207
operator exceeded the boundaries of the permit area or, if the	3208
operator filed the map required under division (A)(11) of section	3209
1514.02 of the Revised Code, that the operator extracted ten	3210
thousand tons or more of minerals during the period covered by the	3211
report.	3212

Each annual report for an in-stream mining operation shall	3213
include a statement of the total tonnage removed by in-stream	3214
mining for each month and of the surface acreage and depth of	3215
material removed by in-stream mining and shall include a map that	3216
identifies the area affected by the in-stream mining if the	3217
in-stream mining for the year addressed by the report occurred	3218
beyond the area identified in the most recent approved map,	3219
soundings that depict the cross-sectional views of the channel	3220
bottom of the watercourse if the soundings depict a	3221
cross-sectional view of the channel bottom that is different from	3222
the most recent approved map, and water elevations for the	3223
watercourse if water elevations are different from those indicated	3224
on the most recent approved map.	3225

Each annual report shall be accompanied by a filing fee in	3226
the amount of five hundred dollars, except in the case of an	3227
annual report filed by a small operator or an in-stream mining	3228
operator. A small operator, which is a surface mine operator who	3229
intends to extract fewer than ten thousand tons of minerals and no	3230
coal during the next year of operation under the permit, or an	3231
in-stream mining operator shall include a filing fee in the amount	3232
of two hundred fifty dollars with each annual report. The annual	3233
report of any operator also shall be accompanied by an acreage fee	3234
in the amount of seventy-five dollars multiplied by the number of	3235
acres estimated in the report to be affected during the next year	3236
of operation under the permit. The acreage fee shall be adjusted	3237
by subtracting a credit of seventy-five dollars per excess acre	3238
paid for the preceding year if the acreage paid for the preceding	3239
year exceeds the acreage actually affected or by adding an	3240
additional amount of seventy-five dollars per excess acre affected	3241
if the acreage actually affected exceeds the acreage paid for the	3242
preceding year.	3243

With each annual report the operator shall file a performance	3244
bond in the amount, unless otherwise provided by rule, of five	3245
hundred dollars multiplied by the number of acres estimated to be	3246
affected during the next year of operation under the permit for	3247
which no performance bond previously was filed. Unless otherwise	3248
provided by rule, the bond shall be adjusted by subtracting a	3249
credit of five hundred dollars per excess acre for which bond was	3250
filed for the preceding year if the acreage for which the bond was	3251
filed for the preceding year exceeds the acreage actually	3252
affected, or by adding an amount of five hundred dollars per	3253
excess acre affected if the acreage actually affected exceeds the	3254
acreage for which bond was filed for the preceding year.	3255

Within thirty days after the expiration of the surface or	3256
in-stream mining permit, or completion or abandonment of the	3257
operation, whichever occurs earlier, the operator shall submit a	3258
final report containing the same information required in an annual	3259
report, but covering the time from the last annual report to the	3260
expiration of the permit, or completion or abandonment of the	3261
operation, whichever occurs earlier.	3262

Each final report shall include a map indicating the location	3263
of the area of land affected during the period of the report and	3264
the location of the total area of land affected under the permit.	3265
The map shall be prepared in accordance with division (A)(11) or	3266
(12) of section 1514.02 of the Revised Code, as appropriate.	3267

In the case of a final report for an in-stream mining	3268
operation, the map also shall include the information required	3269
under division (A)(18) of section 1514.02 of the Revised Code, as	3270
applicable.	3271

If the final report and certified map, as verified by the	3272
chief, show that the number of acres affected under the permit is	3273
larger than the number of acres for which the operator has paid an	3274
acreage fee or filed a performance bond, upon notification by the	3275
chief, the operator shall pay an additional acreage fee in the	3276
amount of seventy-five dollars multiplied by the difference	3277
between the number of acres affected under the permit and the	3278
number of acres for which the operator has paid an acreage fee and	3279
shall file an additional performance bond in the amount, unless	3280
otherwise provided by rule, of five hundred dollars multiplied by	3281
the difference between the number of acres affected under the	3282
permit and the number of acres for which the operator has filed	3283
bond.	3284

If the final report and certified map, as verified by the	3285
chief, show that the number of acres affected under the permit is	3286
smaller than the number of acres for which the operator has filed	3287
a performance bond, the chief shall order release of the excess	3288
bond. However, the chief shall retain a performance bond in a	3289
minimum amount of ten thousand dollars irrespective of the number	3290
of acres affected under the permit. The release of the excess bond	3291
shall be in an amount, unless otherwise provided by rule, equal to	3292
five hundred dollars multiplied by the difference between the	3293
number of acres affected under the permit and the number of acres	3294
for which the operator has filed bond.	3295

The fees collected pursuant to this section and section	3296
1514.02 of the Revised Code shall be deposited with the treasurer	3297
of state to the credit of the surface mining fund created under	3298
section 1514.06 of the Revised Code.	3299

If upon inspection the chief finds that any filing fee,	3300
acreage fee, performance bond, or part thereof is not paid when	3301
due or is paid on the basis of false or substantially inaccurate	3302
reports, the chief may request the attorney general to recover the	3303
unpaid amounts that are due the state, and the attorney general	3304
shall commence appropriate legal proceedings to recover the unpaid	3305
amounts.	3306

Sec. 1514.05.  (A) At any time within the period allowed an	3307
operator by section 1514.02 of the Revised Code to reclaim an area	3308
of land affected by surface or in-stream mining, the operator may	3309
file a request, on a form provided by the chief of the division of	3310
mineral resources management, for inspection of the area of land	3311
upon which the reclamation, other than any required planting, is	3312
completed. The request shall include all of the following:	3313

(1) The location of the area and number of acres;

3314

(2) The permit number;

3315

(3) A map showing the location of the acres reclaimed,	3316
prepared and certified in accordance with division (A)(11) or (12)	3317
of section 1514.02 of the Revised Code, as appropriate. In the	3318
case of an in-stream mining operation, the map also shall include,	3319
as applicable, the information required under division (A)(18) of	3320
section 1514.02 of the Revised Code.	3321

The chief shall make an inspection and evaluation of the	3322
reclamation of the area of land for which the request was	3323
submitted within ninety days after receipt of the request or, if	3324
the operator fails to complete the reclamation or file the request	3325
as required, as soon as the chief learns of the default.	3326
Thereupon, if the chief approves the reclamation, other than any	3327
required planting, as meeting the requirements of this chapter,	3328
rules adopted thereunder, any orders issued during the mining or	3329
reclamation, and the specifications of the plan for mining and	3330
reclaiming, the chief shall issue an order to the operator and the	3331
operator's surety releasing them from liability for one-half of	3332
the total amount of their surety bond on deposit to ensure	3333
reclamation for the area upon which reclamation is completed. If	3334
the operator has deposited cash, an irrevocable letter of credit,	3335
or certificates of deposit in lieu of a surety bond to ensure	3336
reclamation, the chief shall issue an order to the operator	3337
releasing one-half of the amount so held and promptly shall	3338
transmit a certified copy of the order to the treasurer of state.	3339
Upon presentation of the order to the treasurer of state by the	3340
operator to whom it was issued, or by the operator's authorized	3341
agent, the treasurer of state shall deliver to the operator or the	3342
operator's authorized agent the cash, irrevocable letter of	3343
credit, or certificates of deposit designated in the order.	3344

If the chief does not approve the reclamation, other than any	3345
required planting, the chief shall notify the operator by	3346
certified mail. The notice shall be an order stating the reasons	3347
for unacceptability, ordering further actions to be taken, and	3348
setting a time limit for compliance. If the operator does not	3349
comply with the order within the time limit specified, the chief	3350
may order an extension of time for compliance after determining	3351
that the operator's noncompliance is for good cause, resulting	3352
from developments partially or wholly beyond the operator's	3353
control. If the operator complies within the time limit or the	3354
extension of time granted for compliance, the chief shall order	3355
release of the performance bond in the same manner as in the case	3356
of approval of reclamation, other than any required planting, by	3357
the chief, and the treasurer of state shall proceed as in that	3358
case. If the operator does not comply within the time limit and	3359
the chief does not order an extension, or if the chief orders an	3360
extension of time and the operator does not comply within the	3361
extension of time granted for compliance, the chief shall issue	3362
another order declaring that the operator has failed to reclaim	3363
and, if the operator's permit has not already expired or been	3364
revoked, revoking the operator's permit. The chief shall thereupon	3365
proceed under division (C) of this section.	3366

(B) At any time within the period allowed an operator by	3367
section 1514.02 of the Revised Code to reclaim an area affected by	3368
surface mining, the operator may file a request, on a form	3369
provided by the chief, for inspection of the area of land on which	3370
all reclamation, including the successful establishment of any	3371
required planting, is completed. The request shall include all of	3372
the following:	3373

(1) The location of the area and number of acres;

3374

(2) The permit number;

3375

(3) The type and date of any required planting of vegetative	3376
cover and the degree of success of growth;	3377

(4) A map showing the location of the acres reclaimed,	3378
prepared and certified in accordance with division (A)(11) or (12)	3379
of section 1514.02 of the Revised Code, as appropriate. In the	3380
case of an in-stream mining operation, the map also shall include	3381
the information required under division (A)(18) of section 1514.02	3382
of the Revised Code.	3383

The chief shall make an inspection and evaluation of the	3384
reclamation of the area of land for which the request was	3385
submitted within ninety days after receipt of the request or, if	3386
the operator fails to complete the reclamation or file the request	3387
as required, as soon as the chief learns of the default.	3388
Thereupon, if the chief finds that the reclamation meets the	3389
requirements of this chapter, rules adopted under it, any orders	3390
issued during the mining and reclamation, and the specifications	3391
of the plan for mining and reclaiming and decides to release any	3392
remaining performance bond on deposit to ensure reclamation of the	3393
area on which reclamation is completed, within ten days of	3394
completing the inspection and evaluation, the chief shall order	3395
release of the remaining performance bond in the same manner as in	3396
the case of approval of reclamation other than required planting,	3397
and the treasurer of state shall proceed as in that case.	3398

If the chief does not approve the reclamation performed by	3399
the operator, the chief shall notify the operator by certified	3400
mail within ninety days of the filing of the application for	3401
inspection or of the date when the chief learns of the default.	3402
The notice shall be an order stating the reasons for	3403
unacceptability, ordering further actions to be taken, and setting	3404
a time limit for compliance. If the operator does not comply with	3405
the order within the time limit specified, the chief may order an	3406
extension of time for compliance after determining that the	3407
operator's noncompliance is for good cause, resulting from	3408
developments partially or wholly beyond the operator's control. If	3409
the operator complies within the time limit or the extension of	3410
time granted for compliance, the chief shall order release of the	3411
remaining performance bond in the same manner as in the case of	3412
approval of reclamation by the chief, and the treasurer of state	3413
shall proceed as in that case. If the operator does not comply	3414
within the time limit and the chief does not order an extension,	3415
or if the chief orders an extension of time and the operator does	3416
not comply within the extension of time granted for compliance,	3417
the chief shall issue another order declaring that the operator	3418
has failed to reclaim and, if the operator's permit has not	3419
already expired or been revoked, revoking the operator's permit.	3420
The chief then shall proceed under division (C) of this section.	3421

(C) Upon issuing an order under division (A) or (B) of this	3422
section declaring that the operator has failed to reclaim, the	3423
chief shall make a finding as to the number and location of the	3424
acres of land that the operator has failed to reclaim in the	3425
manner required by this chapter. The chief shall order the release	3426
of the performance bond in the amount of five hundred dollars per	3427
acre for those acres that the chief finds to have been reclaimed	3428
in the manner required by this chapter. The release shall be	3429
ordered in the same manner as in the case of other approval of	3430
reclamation by the chief, and the treasurer of state shall proceed	3431
as in that case. If the operator has on deposit cash, an	3432
irrevocable letter of credit, or certificates of deposit to ensure	3433
reclamation of the area of the land affected, the chief at the	3434
same time shall issue an order declaring that the remaining cash,	3435
irrevocable letter of credit, or certificates of deposit are the	3436
property of the state and are available for use by the chief in	3437
performing reclamation of the area and shall proceed in accordance	3438
with section 1514.06 of the Revised Code.	3439

If the operator has on deposit a surety bond to ensure	3440
reclamation of the area of land affected, the chief shall notify	3441
the surety in writing of the operator's default and shall request	3442
the surety to perform the surety's obligation and that of the	3443
operator. The surety, within ten days after receipt of the notice,	3444
shall notify the chief as to whether it intends to perform those	3445
obligations.	3446

If the surety chooses to perform, it shall arrange for work	3447
to begin within thirty days of the day on which it notifies the	3448
chief of its decision. If the surety completes the work as	3449
required by this chapter, the chief shall issue an order to the	3450
surety releasing the surety from liability under the bond in the	3451
same manner as if the surety were an operator proceeding under	3452
this section. If, after the surety begins the work, the chief	3453
determines that the surety is not carrying the work forward with	3454
reasonable progress, or that it is improperly performing the work,	3455
or that it has abandoned the work or otherwise failed to perform	3456
its obligation and that of the operator, the chief shall issue an	3457
order terminating the right of the surety to perform the work and	3458
demanding payment of the amount due as required by this chapter.	3459

If the surety chooses not to perform and so notifies the	3460
chief, does not respond to the chief's notice within ten days of	3461
receipt thereof, or fails to begin work within thirty days of the	3462
day it timely notifies the chief of its decision to perform its	3463
obligation and that of the operator, the chief shall issue an	3464
order terminating the right of the surety to perform the work and	3465
demanding payment of the amount due, as required by this chapter.	3466

Upon receipt of an order of the chief demanding payment of	3467
the amount due, the surety immediately shall deposit with the	3468
chief cash in the full amount due under the order for deposit with	3469
the treasurer of state. If the surety fails to make an immediate	3470
deposit, the chief shall certify it to the attorney general for	3471
collection. When the chief has issued an order terminating the	3472
right of the surety and has the cash on deposit, the cash is the	3473
property of the state and is available for use by the chief, who	3474
shall proceed in accordance with section 1514.06 of the Revised	3475
Code.	3476

Sec. 3706.27. (A) There is hereby created in the state	3477
treasury the advanced energy research and development fund to	3478
provide grants for advanced energy projects. There is hereby	3479
created in the state treasury the advanced energy research and	3480
development taxable fund to provide loans for advanced energy	3481
projects.	3482

(B)(1) The advanced energy research and development fund and	3483
the advanced energy research and development taxable fund shall	3484
consist of the proceeds of obligations issued under section 166.08	3485
of the Revised Code. Money shall be credited to the respective	3486
funds in the proportion that the executive director of the Ohio	3487
air quality development authority, with the affirmative vote of a	3488
majority of the members of the authority, determines appropriate.	3489

(2) Any investment earnings from the money in the advanced	3490
energy research and development fund and in the advanced energy	3491
research and development taxable fund shall be credited to those	3492
funds, respectively. Any repayment of loans made from money in the	3493
advanced energy research and development taxable fund shall be	3494
credited to the facilities establishmentalternative fuel	3495
transportation fund created in section 166.03122.075 of the	3496
Revised Code.	3497

(C) The director of budget and management shall establish and	3498
maintain records or accounts for or within these funds in such a	3499
manner as to show the amount credited to the funds pursuant to	3500
section 166.08 of the Revised Code and that the amounts so	3501
credited have been expended for the purposes set forth in Section	3502
2p or 13 of Article VIII, Ohio Constitution, and sections 166.08,	3503
166.30, and 3706.26 of the Revised Code.	3504

Sec. 4905.90.  As used in sections 4905.90 to 4905.96 of the	3505
Revised Code:	3506

(A) "Condensate" means liquid hydrocarbons recovered at the	3507
ground surface that result from condensation due to reduced	3508
pressure or temperature of petroleum hydrocarbons that were	3509
originally in the gaseous phase in the underground reservoir.	3510

(B) "Contiguous property" includes, but is not limited to, a	3511
manufactured home park as defined in section 3733.01 of the	3512
Revised Code; a public or publicly subsidized housing project; an	3513
apartment complex; a condominium complex; a college or university;	3514
an office complex; a shopping center; a hotel; an industrial park;	3515
and a race track.	3516

(B)(C) "Gas" means natural gas, flammable gas, or gas which	3517
is toxic or corrosive.	3518

(C) "Gathering lines" and the "gathering of gas" have the	3519
same meaning as in the Natural Gas Pipeline Safety Act and the	3520
rules adopted by the United States department of transportation	3521
pursuant to the Natural Gas Pipeline Safety Act, including 49	3522
C.F.R. part 192, as amended.	3523

(D) "Gas gathering pipeline" means a pipeline used to collect	3524
and transport wet natural gas from a well facility to the inlet of	3525
a gas processing plant. The pipeline may be upstream or downstream	3526
from a wet natural gas compressor station.	3527

(E) "Gas processing plant" means a plant that processes wet	3528
natural gas into merchantable products, including transmission	3529
quality gas or natural gas liquids.	3530

(F) "High pressure gas gathering pipeline" means a gas	3531
gathering pipeline that includes either of the following:	3532

(1) A metallic gas gathering pipeline in which the MAOP	3533
produces a hoop stress of twenty per cent or more of SMYS. If the	3534
stress level is unknown, an operator must determine the stress	3535
level according to the applicable provisions of 49 C.F.R. part 192	3536
subpart C.	3537

(2) A nonmetallic gas gathering pipeline in which the MAOP is	3538
more than 125 pounds per square inch.	3539

(G) "High pressure processing plant gas stub pipeline" means	3540
a processing plant gas stub pipeline that includes either of the	3541
following:	3542

(1) A metallic processing plant gas stub pipeline in which	3543
the MAOP produces a hoop stress of twenty per cent or more of	3544
SMYS. If the stress level is unknown, an operator must determine	3545
the stress level according to the applicable provisions of 49	3546
C.F.R. part 192 subpart C.	3547

(2) A nonmetallic processing plant gas stub pipeline in which	3548
the MAOP is more than 125 pounds per square inch.	3549

(H) "Intrastate pipe-line transportation" has the same	3550
meaning as in 82 Stat. 720 (1968), 49 U.S.C.A. App. 1671, as	3551
amended, but excludes the gathering of gas exempted by the Natural	3552
Gas Pipeline Safety Act.	3553

(E)(I) "Low pressure gas gathering pipeline" means a gas	3554
gathering pipeline that includes either of the following:	3555

(1) A metallic gas gathering pipeline in which the MAOP	3556
produces a hoop stress of less than twenty per cent of SMYS. If	3557
the stress level is unknown, an operator must determine the stress	3558
level according to the applicable provisions of 49 C.F.R. part 192	3559
subpart C.	3560

(2) A nonmetallic gas gathering pipeline in which the MAOP is	3561
125 pounds per square inch or less.	3562

(J) "Low pressure processing plant gas stub pipeline" means a	3563
processing plant gas stub pipeline that includes either of the	3564
following:	3565

(1) A metallic processing plant gas stub pipeline in which	3566
the MAOP produces a hoop stress of less than twenty per cent of	3567
SMYS. If the stress level is unknown, an operator must determine	3568
the stress level according to the applicable provisions of 49	3569
C.F.R. part 192 subpart C.	3570

(2) A nonmetallic processing plant gas stub pipeline in which	3571
the MAOP is 125 pounds per square inch or less.	3572

(K) "MAOP" means the maximum pressure at which a gas	3573
gathering pipeline or any segment of such a pipeline may be	3574
operated under sections 4905.90 to 4905.96 of the Revised Code.	3575

(L) "Master-meter system" means a pipe-line system that	3576
distributes gas within a contiguous property for which the system	3577
operator purchases gas for resale to consumers, including tenants.	3578
Such pipe-line system supplies consumers who purchase the gas	3579
directly through a meter, or by paying rent, or by other means.	3580
The term includes a master-meter system as defined in 49 C.F.R.	3581
191.3, as amended. The term excludes a pipeline within a	3582
manufactured home, mobile home, or a building.	3583

(F)(M) "Natural Gas Pipeline Safety Act" means the "Natural	3584
Gas Pipeline Safety Act of 1968," 82 Stat. 720, 49 U.S.C.A. App.	3585
1671 et seq., as amended.	3586

(G)(N) "Operator" means any of the following:

3587

(1) A gas company or natural gas company as defined in	3588
section 4905.03 of the Revised Code, except that division (A)(5)	3589
of that section does not authorize the public utilities commission	3590
to relieve any producer of gas, as a gas company or natural gas	3591
company, of compliance with sections 4905.90 to 4905.96 of the	3592
Revised Code or the pipe-line safety code created under section	3593
4905.91 of the Revised Code;	3594

(2) A pipe-line company, as defined in section 4905.03 of the	3595
Revised Code, when engaged in the business of transporting gas by	3596
pipeline;	3597

(3) A public utility that is excepted from the definition of	3598
"public utility" under division (B) or (C) of section 4905.02 of	3599
the Revised Code, when engaged in supplying or transporting gas by	3600
pipeline within this state;	3601

(4) Any person that owns, operates, manages, controls, or	3602
leases any of the following:	3603

(a) Intrastate pipe-line transportation facilities within	3604
this state;	3605

(b) Gas gathering lines within this state which are not	3606
exempted by the Natural Gas Pipeline Safety Act;	3607

(c) A master-meter system within this state.

3608

"Operator" does not include an ultimate consumer who owns a	3609
service line, as defined in 49 C.F.R. 192.3, as amended, on the	3610
real property of that ultimate consumer.	3611

(H)(O) "Operator of a master-meter system" means a person	3612
described under division (F)(N)(4)(c) of this section. An operator	3613
of a master-meter system is not a public utility under section	3614
4905.02 or a gas or natural gas company under section 4905.03 of	3615
the Revised Code.	3616

(I)(P) "Person" means:

3617

(1) In addition to those defined in division (C) of section	3618
1.59 of the Revised Code, a joint venture or a municipal	3619
corporation;	3620

(2) Any trustee, receiver, assignee, or personal	3621
representative of persons defined in division (H)(P)(1) of this	3622
section.	3623

(J)(Q) "Processing plant gas stub pipeline" means a gas	3624
pipeline that transports transmission quality gas from the	3625
tailgate of a gas processing plant to the inlet of an interstate	3626
or intrastate transmission line and that is considered an	3627
extension of the gas processing plant and is not for public use.	3628

(R) "Safety audit" means the public utilities commission's	3629
audit of the premises, pipe-line facilities, and the records,	3630
maps, and other relevant documents of a master-meter system to	3631
determine the operator's compliance with sections 4905.90 to	3632
4905.96 of the Revised Code and the pipe-line safety code.	3633

(K)(S) "Safety inspection" means any inspection, survey, or	3634
testing of a master-meter system which is authorized or required	3635
by sections 4905.90 to 4905.96 of the Revised Code and the	3636
pipe-line safety code. The term includes, but is not limited to,	3637
leak surveys, inspection of regulators and critical valves, and	3638
monitoring of cathodic protection systems, where applicable.	3639

(L)(T) "Safety-related condition" means any safety-related	3640
condition defined in 49 C.F.R. 191.23, as amended.	3641

(M)(U) "SMYS" mean specified minimum yield strength that is	3642
either of the following:	3643

(1) For steel pipe manufactured in accordance with a listed	3644
specification, the yield strength specified as a minimum in that	3645
specification;	3646

(2) For steel pipe manufactured in accordance with an unknown	3647
or unlisted specification, the yield strength determined in	3648
accordance with 49 C.F.R. 192.107(b).	3649

(V) "Supervisory control and data acquisition system" means a	3650
computer-based system or systems used by a controller in a control	3651
room that collects and displays information about a pipeline	3652
facility and may have the ability to send commands back to the	3653
pipeline facility.	3654

(W) "Total Mcfs of gas it supplied or delivered" means the	3655
sum of the following volumes of gas that an operator supplied or	3656
delivered, measured in units per one thousand cubic feet:	3657

(1) Residential sales;

3658

(2) Commercial and industrial sales;

3659

(3) Other sales to public authorities;

3660

(4) Interdepartmental sales;

3661

(5) Sales for resale;

3662

(6) Transportation of gas.

3663

(X) "Transmission quality gas" means gas consisting	3664
predominantly of methane that meets all downstream specifications	3665
for transportation in an intrastate or interstate transmission	3666
pipeline and that is suitable for use by public consumers.	3667

(Y) "Well facility" means a facility located at or near a	3668
natural gas well that separates raw natural gas, condensate, and	3669
water.	3670

(Z) "Wet natural gas" means natural gas with a mixture of	3671
natural gas liquids that normally include ethane, propane, butane,	3672
and other condensates that are liquid if the temperature is	3673
reduced below the hydrocarbon dew point temperature of the natural	3674
gas and which may be processed to remove any or all of the natural	3675
gas liquids.	3676

(AA) "Wet natural gas compressor station" means a facility	3677
that contains one or more compressors and that is used to increase	3678
the pressure of raw natural gas for further transport by pipeline.	3679

Sec. 4905.91.  For the purpose of protecting the public	3680
safety with respect to intrastate pipe-line transportation by any	3681
operator:	3682

(A) The public utilities commission shall:

3683

(1) Adopt, and may amend or rescind, rules to carry out	3684
sections 4905.90 to 4905.96 of the Revised Code, including rules	3685
concerning pipe-line safety, drug testing, and enforcement	3686
procedures. The commission shall adopt these rules only after	3687
notice and opportunity for public comment. The rules adopted under	3688
this division and any orders issued under sections 4905.90 to	3689
4905.96 of the Revised Code constitute the pipe-line safety code.	3690
The commission shall administer and enforce that code.	3691

(2) Make certifications and reports to the United States	3692
department of transportation as required under the Natural Gas	3693
Pipeline Safety Act.	3694

(B) The commission may:

3695

(1) Investigate any service, act, practice, policy, or	3696
omission by any operator to determine its compliance with sections	3697
4905.90 to 4905.96 of the Revised Code and the pipe-line safety	3698
code;	3699

(2) Investigate any intrastate pipe-line transportation	3700
facility to determine if it is hazardous to life or property, as	3701
provided in 82 Stat. 720 (1968), 49 U.S.C.A. App. 1679b(b)(2) and	3702
(3);	3703

(3) Investigate the existence or report of any safety-related	3704
condition that involves any intrastate pipe-line transportation	3705
facility;	3706

(4) Enter into and perform contracts or agreements with the	3707
United States department of transportation to inspect interstate	3708
transmission facilities pursuant to the Natural Gas Pipeline	3709
Safety Act;	3710

(5) Accept grants-in-aid, cash, and reimbursements provided	3711
for or made available to this state by the federal government to	3712
carry out the Natural Gas Pipeline Safety Act or to enforce	3713
sections 4905.90 to 4905.96 of the Revised Code and the pipe-line	3714
safety code. All such grants-in-aid, cash, and reimbursements	3715
shall be deposited to the credit of the gas pipe-line safety fund,	3716
which is hereby created in the state treasury, to be used by the	3717
commission for the purpose of carrying out this section.	3718

(C) The commission's regulation of gathering lines shall	3719
conform to the regulation of gathering lines in 49 C.F.R. 192 and	3720
199, as amended, and the commission's annual certification	3721
agreements with the United States department of transportation,	3722
except that rule 4901:1-16-03, paragraph (D) of rule 4901:1-16-05,	3723
and rule 4901:1-16-06 of the Ohio Administrative Code shall also	3724
apply to gathering lines. The procedural rules under chapter	3725
4901:1-16 of the Ohio Administrative Code shall also apply to	3726
operators of gathering lines.	3727

Sec. 4905.911.  (A) The public utilities commission shall	3728
require an operator of a low pressure gas gathering pipeline or	3729
low pressure processing plant gas stub pipeline to comply with the	3730
safety requirements of 49 C.F.R. 192, division (C) of this	3731
section, and to do all of the following regarding that pipeline:	3732

(1) Design, install, construct, initially inspect, and	3733
initially test the pipeline in accordance with the requirements of	3734
49 C.F.R. 192 applicable to transmission lines if the pipeline is	3735
new, replaced, relocated, or otherwise changed;	3736

(2) Control corrosion according to requirements of 49 C.F.R.	3737
192 subpart I applicable to transmission lines if the pipeline is	3738
metallic;	3739

(3) Establish and carry out a damage prevention program under	3740
49 C.F.R. 192.614;	3741

(4) Establish and carry out a public education program under	3742
49 C.F.R. 192.616;	3743

(5) Establish the MAOP of the pipeline under 49 C.F.R.	3744
192.619;	3745

(6) Install and maintain pipeline markers according to the	3746
requirements for transmission lines under 49 C.F.R. 192.707;	3747

(7) Perform leakage surveys according to requirements in 49	3748
C.F.R. 192.706;	3749

(8) Retain a record of each required leakage survey conducted	3750
under division (A)(7) of this section and 49 C.F.R. 192.706 for	3751
five years or until the next leakage survey is completed,	3752
whichever time period is longer.	3753

(B) The commission shall require an operator of a high	3754
pressure gas gathering pipeline or a high pressure processing	3755
plant gas stub pipeline to comply with the safety requirements of	3756
49 C.F.R. 192 applicable to transmission lines, except the	3757
operator shall not have to comply with the requirements of 49	3758
C.F.R. 192.150 or 49 C.F.R. 192 subpart O. The commission shall	3759
also require the operator to comply with division (C) of this	3760
section and to do all of the following regarding that pipeline:	3761

(1) Install safety tape at a depth of two feet below grade to	3762
warn excavators of imminent danger while excavating;	3763

(2) Ensure the pipeline has inlet and outlet automated	3764
shutdown valves;	3765

(3) Ensure the pipeline has a minimum setback of two hundred	3766
feet from any occupied structure, which may be waived by the owner	3767
or occupant of the structure;	3768

(4) Implement and document a protective remote supervisory	3769
control and data acquisition system.	3770

(C) The commission shall require an operator of a pipeline	3771
subject to division (A) or (B) of this section to comply with all	3772
of the following:	3773

(1) The procedural rules under chapter 4901:1-16 of the Ohio	3774
Administrative Code;	3775

(2) Rule 4901:1-16-03 of the Ohio Administrative Code;

3776

(3) Paragraphs (A) to (D) of rule 4901:1-16-04 of the Ohio	3777
Administrative Code;	3778

(4) Paragraphs (C) and (D) of rule 4901:1-16-05 of the Ohio	3779
Administrative Code;	3780

(5) Rule 4901:1-16-06 of the Ohio Administrative Code.

3781

Sec. 4905.95.  (A) Except as otherwise provided in division	3782
(C) of this section:	3783

(1) The public utilities commission, regarding any proceeding	3784
under this section, shall provide reasonable notice and the	3785
opportunity for a hearing in accordance with rules adopted under	3786
section 4901.13 of the Revised Code.	3787

(2) Sections 4903.02 to 4903.082, 4903.09 to 4903.16, and	3788
4903.20 to 4903.23 of the Revised Code apply to all proceedings	3789
and orders of the commission under this section and to all	3790
operators subject to those proceedings and orders.	3791

(B) If, pursuant to a proceeding it specially initiates or to	3792
any other proceeding and after the hearing provided for under	3793
division (A) of this section, the commission finds that:	3794

(1) An operator has violated or failed to comply with, or is	3795
violating or failing to comply with, sections 4905.90 to 4905.96	3796
of the Revised Code or the pipe-line safety code, the commission	3797
by order:	3798

(a) Shall require the operator to comply and to undertake	3799
corrective action necessary to protect the public safety;	3800

(b) May assess upon the operator forfeitures of not more than	3801
one hundred thousand dollars for each day of each violation or	3802
noncompliance, except that the aggregate of such forfeitures shall	3803
not exceed five hundred thousandone million dollars for any	3804
related series of violations or noncompliances. In determining the	3805
amount of any such forfeiture, the commission shall consider all	3806
of the following:	3807

(i) The gravity of the violation or noncompliance;

3808

(ii) The operator's history of prior violations or	3809
noncompliances;	3810

(iii) The operator's good faith efforts to comply and	3811
undertake corrective action;	3812

(iv) The operator's ability to pay the forfeiture;

3813

(v) The effect of the forfeiture on the operator's ability to	3814
continue as an operator;	3815

(vi) Such other matters as justice may require.

3816

All forfeitures collected under this division or section 4905.96	3817
of the Revised Code shall be deposited in the state treasury to	3818
the credit of the general revenue fund.	3819

(c) May direct the attorney general to seek the remedies	3820
provided in section 4905.96 of the Revised Code.	3821

(2) An intrastate pipe-line transportation facility is	3822
hazardous to life or property, the commission by order:	3823

(a) Shall require the operator of the facility to take	3824
corrective action to remove the hazard. Such corrective action may	3825
include suspended or restricted use of the facility, physical	3826
inspection, testing, repair, replacement, or other action.	3827

(b) May direct the attorney general to seek the remedies	3828
provided in section 4905.96 of the Revised Code.	3829

(C) If, pursuant to a proceeding it specially initiates or to	3830
any other proceeding, the commission finds that an emergency	3831
exists due to a condition on an intrastate pipe-line	3832
transportation facility posing a clear and immediate danger to	3833
life or health or threatening a significant loss of property and	3834
requiring immediate corrective action to protect the public	3835
safety, the commission may issue, without notice or prior hearing,	3836
an order reciting its finding and may direct the attorney general	3837
to seek the remedies provided in section 4905.96 of the Revised	3838
Code. The order shall remain in effect for not more than forty	3839
days after the date of its issuance. The order shall provide for a	3840
hearing as soon as possible, but not later than thirty days after	3841
the date of its issuance. After the hearing the commission shall	3842
continue, revoke, or modify the order and may make findings under	3843
and seek appropriate remedies as provided in division (B) of this	3844
section.	3845

Sec. 4906.01.  As used in Chapter 4906. of the Revised Code:

3846

(A) "Person" means an individual, corporation, business	3847
trust, association, estate, trust, or partnership or any officer,	3848
board, commission, department, division, or bureau of the state or	3849
a political subdivision of the state, or any other entity.	3850

(B)(1) "Major utility facility" means:

3851

(a) Electric generating plant and associated facilities	3852
designed for, or capable of, operation at a capacity of fifty	3853
megawatts or more;	3854

(b) An electric transmission line and associated facilities	3855
of a design capacity of one hundred twenty-five kilovolts or more;	3856

(c) A gas or natural gas transmission line andpipeline,	3857
including its associated facilities, that meets either of the	3858
following requirements:	3859

(i) It is more than nine inches in outside diameter and is	3860
designed for, or capable of, transporting gas or natural gas at	3861
pressures in excess of one hundred twenty-five pounds per square	3862
inch.	3863

(ii) It is designed for, or capable of, transporting gas at	3864
pressures in excess of 300 pounds per square inch.	3865

(2) "Major utility facility" does not include gas or natural	3866
gasany of the following:	3867

(a) Gas transmission lines over which an agency of the United	3868
States has exclusive jurisdiction, any;	3869

(b) Any solid waste facilities as defined in section 6123.01	3870
of the Revised Code, or either of the following as defined by the	3871
power siting board:;	3872

(a)(c) Electric, gas, natural gas distributing lines and gas	3873
or natural gas gathering lines and associated facilities as	3874
defined by the power siting board;	3875

(b)(d) Any manufacturing facility that creates byproducts	3876
that may be used in the generation of electricity as defined by	3877
the power siting board;	3878

(e) Gas gathering pipelines and processing plant gas stub	3879
pipelines as defined in section 4905.90 of the Revised Code;	3880

(f) Any gas processing plant as defined in section 4905.90 of	3881
the Revised Code;	3882

(g) Natural gas liquids finished products pipelines;

3883

(h) Pipelines from a natural gas liquids processing plant to	3884
an interstate or intrastate gas pipeline;	3885

(i) Any natural gas liquids fractionation plant.

3886

(C) "Commence to construct" means any clearing of land,	3887
excavation, or other action that would adversely affect the	3888
natural environment of the site or route of a major utility	3889
facility, but does not include surveying changes needed for	3890
temporary use of sites or routes for nonutility purposes, or uses	3891
in securing geological data, including necessary borings to	3892
ascertain foundation conditions.	3893

(D) "Certificate" means a certificate of environmental	3894
compatibility and public need issued by the power siting board	3895
under section 4906.10 of the Revised Code or a construction	3896
certificate issued by the board under rules adopted under division	3897
(E) or (F) of section 4906.03 of the Revised Code.	3898

(E) "Gas" means natural gas, flammable gas, or gas that is	3899
toxic or corrosive.	3900

(F) "Natural gas liquids finished product pipeline" means a	3901
pipeline that carries finished product natural gas liquids to the	3902
inlet of an interstate or intrastate finished product natural gas	3903
liquid transmission pipeline, rail loading facility, or other	3904
petrochemical or refinery facility.	3905

(G) "Natural gas liquids fractionation plant" means a	3906
facility that takes a feed of raw natural gas liquids and produces	3907
finished product natural gas liquids.	3908

(H) "Raw natural gas" means hydrocarbons that are produced in	3909
a gaseous state from gas wells and that generally include methane,	3910
ethane, propane, butanes, pentanes, hexanes, heptanes, octanes,	3911
nonanes, and decanes, plus other naturally occurring impurities	3912
like water, carbon dioxide, hydrogen sulfide, nitrogen, oxygen,	3913
and helium.	3914

(I) "Raw natural gas liquids" means naturally occurring	3915
hydrocarbons contained in raw natural gas that are extracted in a	3916
gas processing plant and liquefied and generally include mixtures	3917
of ethane, propane, butanes, and natural gasoline.	3918

(J) "Finished product natural gas liquids" means an	3919
individual finished product produced by a natural gas liquids	3920
fractionation plant as a liquid that meets the specifications for	3921
commercial products as defined by the gas processors association.	3922
Those products include ethane, propane, iso-butane, normal butane,	3923
and natural gasoline.	3924

Sec. 4906.03.  The power siting board shall:

3925

(A) Require such information from persons subject to its	3926
jurisdiction as it considers necessary to assist in the conduct of	3927
hearings and any investigations or studies it may undertake;	3928

(B) Conduct any studies or investigations that it considers	3929
necessary or appropriate to carry out its responsibilities under	3930
this chapter;	3931

(C) Adopt rules establishing criteria for evaluating the	3932
effects on environmental values of proposed and alternative sites,	3933
and projected needs for electric power, and such other rules as	3934
are necessary and convenient to implement this chapter, including	3935
rules governing application fees, supplemental application fees,	3936
and other reasonable fees to be paid by persons subject to the	3937
board's jurisdiction. The board shall make an annual accounting of	3938
its collection and use of these fees and shall issue an annual	3939
report of its accounting, in the form and manner prescribed by its	3940
rules, not later than the last day of June of the year following	3941
the calendar year to which the report applies.	3942

(D) Approve or, disapprove, or modify and approve	3943
applications for certificates;	3944

(E) Notwithstanding sections 4906.06 to 4906.14 of the	3945
Revised Code, the board may adopt rules to provide for an	3946
abbreviatedaccelerated review of an application for a	3947
construction certificate for construction of a major utility	3948
facility related to a coal research and development project as	3949
defined in section 1555.01 of the Revised Code, or to a coal	3950
development project as defined in section 1551.30 of the Revised	3951
Code, submitted to the Ohio coal development office for review	3952
under division (B)(7) of section 1551.33 of the Revised Code.	3953
Applications for construction certificates for construction of	3954
major utility facilities for Ohio coal research and development	3955
shall be filed with the board on the same day as the proposed	3956
facility or project is submitted to the Ohio coal development	3957
office for review.	3958

The board shall render a decision on an application for a	3959
construction certificate within ninety days after receipt of the	3960
application and all of the data and information it may require	3961
from the applicant. In rendering a decision on an application for	3962
a construction certificate, the board shall only consider the	3963
criteria and make the findings and determinations set forth in	3964
divisions (A)(2), (3), (5), and (7) and division (B) of section	3965
4906.10 of the Revised Code.	3966

(F) Notwithstanding sections 4906.06 to 4906.14 of the	3967
Revised Code, the board shall adopt rules to provide for an	3968
accelerated review of an application for a construction	3969
certificate for any of the following:	3970

(1) An electric transmission line that is not more than two	3971
miles in length;	3972

(2) An electric generating facility that uses waste heat and	3973
is primarily within the current boundary of an existing industrial	3974
facility;	3975

(3) A gas pipeline that is not more than five miles in	3976
length.	3977

The board shall adopt rules that provide for the automatic	3978
certification to any entity described in this division when an	3979
application by any such entity is not suspended by the board, an	3980
administrative law judge, or the chairperson or executive director	3981
of the board for good cause shown, within ninety days of	3982
submission of the application. If an application is suspended, the	3983
board shall approve, disapprove, or modify and approve the	3984
application not later than ninety days after the date of the	3985
suspension.	3986

Sec. 4906.05.  No certificate is required for a major utility	3987
facility on which construction had already commenced on October	3988
23, 1972, or within two years thereafter. This section does not	3989
exempt such a facility from any other requirements of state and	3990
local laws and regulations.	3991

No certificate is required for any major utility facility	3992
already in operation on October 23, 1972, and the facility shall	3993
not be exempt from any applicable state or local laws or	3994
regulations. A certificate is required for any substantial	3995
addition to a facility already in operation. "Substantial	3996
addition" shall be defined by the power siting board.	3997

Any electric generating plant and associated facilities,	3998
electric transmission line and associated facilities, or gas or	3999
natural gas transmission linepipeline and associated facilities	4000
which is not a major utility facility is not exempt from state or	4001
local laws or regulations.	4002

Sec. 4906.06.  (A) An applicant for a certificate shall file	4003
with the office of the chairperson of the power siting board an	4004
application, in such form as the board prescribes, containing the	4005
following information:	4006

(1) A description of the location and of the major utility	4007
facility;	4008

(2) A summary of any studies that have been made by or for	4009
the applicant of the environmental impact of the facility;	4010

(3) A statement explaining the need for the facility;

4011

(4) A statement of the reasons why the proposed location is	4012
best suited for the facility;	4013

(5) A statement of how the facility fits into the applicant's	4014
forecast contained in the report submitted under section 4935.04	4015
of the Revised Code;	4016

(6) Such other information as the applicant may consider	4017
relevant or as the board by rule or order may require. Copies of	4018
the studies referred to in division (A)(2) of this section shall	4019
be filed with the office of the chairperson, if ordered, and shall	4020
be available for public inspection.	4021

The application shall be filed not less than one year nor	4022
more than five years prior to the planned date of commencement of	4023
construction. EitherThe five-year period may be waived by the	4024
board for good cause shown.	4025

(B) Each application shall be accompanied by proof of service	4026
of a copy of such application on the chief executive officer of	4027
each municipal corporation and county, and the head of each public	4028
agency charged with the duty of protecting the environment or of	4029
planning land use, in the area in which any portion of such	4030
facility is to be located.	4031

(C) Each applicant within fifteen days after the date of the	4032
filing of the application shall give public notice to persons	4033
residing in the municipal corporations and counties entitled to	4034
receive notice under division (B) of this section, by the	4035
publication of a summary of the application in newspapers of	4036
general circulation in such area. Proof of such publication shall	4037
be filed with the office of the chairperson.	4038

(D) Inadvertent failure of service on, or notice to, any of	4039
the persons identified in divisions (B) and (C) of this section	4040
may be cured pursuant to orders of the board designed to afford	4041
them adequate notice to enable them to participate effectively in	4042
the proceeding. In addition, the board, after filing, may require	4043
the applicant to serve notice of the application or copies thereof	4044
or both upon such other persons, and file proof thereof, as the	4045
board considers appropriate.	4046

(E) An application for an amendment of a certificate shall be	4047
in such form and contain such information as the board prescribes.	4048
Notice of such an application shall be given as required in	4049
divisions (B) and (C) of this section.	4050

(F) Each application for certificate or an amendment shall be	4051
accompanied by the application fee prescribed by board rule. All	4052
application fees, supplemental application fees, and other fees	4053
collected by the board shall be deposited in the state treasury to	4054
the credit of the power siting board fund, which is hereby	4055
created. The chairperson shall administer and authorize	4056
expenditures from the fund for any of the purposes of this	4057
chapter. If the chairperson determines that moneys credited to the	4058
fund from an applicant's fee are not sufficient to pay the board's	4059
expenses associated with its review of the application, the	4060
chairperson shall request the approval of the controlling board to	4061
assess a supplemental application fee upon an applicant to pay	4062
anticipated additional expenses associated with the board's review	4063
of the application or an amendment to an application. If the	4064
chairperson finds that an application fee exceeds the amount	4065
needed to pay the board's expenses for review of the application,	4066
the chairperson shall cause a refund of the excess amount to be	4067
issued to the applicant from the fund.	4068

Sec. 4906.07.  (A) Upon the receipt of an application	4069
complying with section 4906.06 of the Revised Code, the power	4070
siting board shall promptly fix a date for a public hearing	4071
thereon, not less than sixty nor more than ninety days after such	4072
receipt, and shall conclude the proceeding as expeditiously as	4073
practicable.	4074

(B) On an application for an amendment of a certificate, the	4075
board shall hold a hearing in the same manner as a hearing is held	4076
on an application for a certificate if the proposed change in the	4077
facility would result in any material increase in any	4078
environmental impact of the facility or a substantial change in	4079
the location of all or a portion of such facility other than as	4080
provided in the alternates set forth in the application.	4081

(C) The chairmanchairperson of the power siting board shall	4082
cause each application filed with the board to be investigated and	4083
shall, not less than fifteen days prior to the date any	4084
application is set for hearing submit a written report to the	4085
board and to the applicant. A copy of such report shall be made	4086
available to any person upon request. Such report shall set forth	4087
the nature of the investigation, and shall contain recommended	4088
findings with regard to division (A) of section 4906.10 of the	4089
Revised Code and shall become part of the record and served upon	4090
all parties to the proceeding.	4091

Sec. 4906.10.  (A) The power siting board shall render a	4092
decision upon the record either granting or denying the	4093
application as filed, or granting it upon such terms, conditions,	4094
or modifications of the construction, operation, or maintenance of	4095
the major utility facility as the board considers appropriate. The	4096
certificate shall be conditioned upon the facility being in	4097
compliance with standards and rules adopted under sections	4098
1501.33, 1501.34, and 4561.32 and Chapters 3704., 3734., and 6111.	4099
of the Revised Code. The period of initial operation under a	4100
certificate shall expire two years after the date on which	4101
electric power is first generated by the facility. During the	4102
period of initial operation, the facility shall be subject to the	4103
enforcement and monitoring powers of the director of environmental	4104
protection under Chapters 3704., 3734., and 6111. of the Revised	4105
Code and to the emergency provisions under those chapters. If a	4106
major utility facility constructed in accordance with the terms	4107
and conditions of its certificate is unable to operate in	4108
compliance with all applicable requirements of state laws, rules,	4109
and standards pertaining to air pollution, the facility may apply	4110
to the director of environmental protection for a conditional	4111
operating permit under division (G) of section 3704.03 of the	4112
Revised Code and the rules adopted thereunder. The operation of a	4113
major utility facility in compliance with a conditional operating	4114
permit is not in violation of its certificate. After the	4115
expiration of the period of initial operation of a major utility	4116
facility, the facility shall be under the jurisdiction of the	4117
environmental protection agency and shall comply with all laws,	4118
rules, and standards pertaining to air pollution, water pollution,	4119
and solid and hazardous waste disposal.	4120

The board shall not grant a certificate for the construction,	4121
operation, and maintenance of a major utility facility, either as	4122
proposed or as modified by the board, unless it finds and	4123
determines all of the following:	4124

(1) The basis of the need for the facility if the facility is	4125
an electric transmission line or gas or natural gas transmission	4126
linepipeline;	4127

(2) The nature of the probable environmental impact;

4128

(3) That the facility represents the minimum adverse	4129
environmental impact, considering the state of available	4130
technology and the nature and economics of the various	4131
alternatives, and other pertinent considerations;	4132

(4) In the case of an electric transmission line or	4133
generating facility, that the facility is consistent with regional	4134
plans for expansion of the electric power grid of the electric	4135
systems serving this state and interconnected utility systems and	4136
that the facility will serve the interests of electric system	4137
economy and reliability;	4138

(5) That the facility will comply with Chapters 3704., 3734.,	4139
and 6111. of the Revised Code and all rules and standards adopted	4140
under those chapters and under sections 1501.33, 1501.34, and	4141
4561.32 of the Revised Code. In determining whether the facility	4142
will comply with all rules and standards adopted under section	4143
4561.32 of the Revised Code, the board shall consult with the	4144
office of aviation of the division of multi-modal planning and	4145
programs of the department of transportation under section	4146
4561.341 of the Revised Code.	4147

(6) That the facility will serve the public interest,	4148
convenience, and necessity;	4149

(7) In addition to the provisions contained in divisions	4150
(A)(1) to (6) of this section and rules adopted under those	4151
divisions, what its impact will be on the viability as	4152
agricultural land of any land in an existing agricultural district	4153
established under Chapter 929. of the Revised Code that is located	4154
within the site and alternative site of the proposed major utility	4155
facility. Rules adopted to evaluate impact under division (A)(7)	4156
of this section shall not require the compilation, creation,	4157
submission, or production of any information, document, or other	4158
data pertaining to land not located within the site and	4159
alternative site.	4160

(8) That the facility incorporates maximum feasible water	4161
conservation practices as determined by the board, considering	4162
available technology and the nature and economics of the various	4163
alternatives.	4164

(B) If the board determines that the location of all or a	4165
part of the proposed facility should be modified, it may condition	4166
its certificate upon that modification, provided that the	4167
municipal corporations and counties, and persons residing therein,	4168
affected by the modification shall have been given reasonable	4169
notice thereof.	4170

(C) A copy of the decision and any opinion issued therewith	4171
shall be served upon each party.	4172

Sec. 4906.20. (A) No person shall commence to construct an	4173
economically significant wind farm in this state without first	4174
having obtained a certificate from the power siting board. An	4175
economically significant wind farm with respect to which such a	4176
certificate is required shall be constructed, operated, and	4177
maintained in conformity with that certificate and any terms,	4178
conditions, and modifications it contains. A certificate shall be	4179
issued only pursuant to this section. The certificate may be	4180
transferred, subject to the approval of the board, to a person	4181
that agrees to comply with those terms, conditions, and	4182
modifications.	4183

(B) The board shall adopt rules governing the certificating	4184
of economically significant wind farms under this section. Initial	4185
rules shall be adopted within one hundred twenty days after this	4186
section's effective dateJune 24, 2008.	4187

(1) The rules shall provide for an application process for	4188
certificating economically significant wind farms that is	4189
identical to the extent practicable to the process applicable to	4190
certificating major utility facilities under sections 4906.06,	4191
4906.07, 4906.08, 4906.09, 4906.10, 4906.11, and 4906.12 of the	4192
Revised Code and shall prescribe a reasonable schedule of	4193
application filing fees structured in the manner of the schedule	4194
of filing fees required for major utility facilities.	4195

(2) Additionally, the rules shall prescribe reasonable	4196
regulations regarding any wind turbines and associated facilities	4197
of an economically significant wind farm, including, but not	4198
limited to, their location, erection, construction,	4199
reconstruction, change, alteration, maintenance, removal, use, or	4200
enlargement and including erosion control, aesthetics,	4201
recreational land use, wildlife protection, interconnection with	4202
power lines and with regional transmission organizations,	4203
independent transmission system operators, or similar	4204
organizations, ice throw, sound and noise levels, blade shear,	4205
shadow flicker, decommissioning, and necessary cooperation for	4206
site visits and enforcement investigations. The rules also shall	4207
prescribe a minimum setback for a wind turbine of an economically	4208
significant wind farm. That minimum shall be equal to a horizontal	4209
distance, from the turbine's base to the property line of the wind	4210
farm property, equal to one and one-tenth times the total height	4211
of the turbine structure as measured from its base to the tip of	4212
its highest blade and be at least seven hundred fifty feet in	4213
horizontal distance from the tip of the turbine's nearest blade at	4214
ninety degrees to the exterior of the nearest, habitable,	4215
residential structure, if any, located on adjacent property at the	4216
time of the certification application. The setback shall apply in	4217
all cases except those in which all owners of property adjacent to	4218
the wind farm property waive application of the setback to that	4219
property pursuant to a procedure the board shall establish by rule	4220
and except in which, in a particular case, the board determines	4221
that a setback greater than the minimum is necessary.	4222

(C) The board shall approve, or may modify and approve, an	4223
application for economically significant wind farm certification	4224
if it finds that the construction, operation, and maintenance of	4225
the economically significant wind farm will comply with the rules	4226
adopted under division (B) of this section. The certificate shall	4227
be conditioned upon the economically significant wind farm	4228
complying with rules adopted under section 4561.32 of the Revised	4229
Code.	4230

Sec. 4906.99.  Whoever willfully violates any provision of	4231
section 4906.98 of the Revised Code may be fined not less than one	4232
thousand dollars nor more than tenone hundred thousand dollars	4233
for each day of each violation, or imprisoned for not more than	4234
one year, or both.	4235

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

4236

(1) "Ancillary service" means any function necessary to the	4237
provision of electric transmission or distribution service to a	4238
retail customer and includes, but is not limited to, scheduling,	4239
system control, and dispatch services; reactive supply from	4240
generation resources and voltage control service; reactive supply	4241
from transmission resources service; regulation service; frequency	4242
response service; energy imbalance service; operating	4243
reserve-spinning reserve service; operating reserve-supplemental	4244
reserve service; load following; back-up supply service;	4245
real-power loss replacement service; dynamic scheduling; system	4246
black start capability; and network stability service.	4247

(2) "Billing and collection agent" means a fully independent	4248
agent, not affiliated with or otherwise controlled by an electric	4249
utility, electric services company, electric cooperative, or	4250
governmental aggregator subject to certification under section	4251
4928.08 of the Revised Code, to the extent that the agent is under	4252
contract with such utility, company, cooperative, or aggregator	4253
solely to provide billing and collection for retail electric	4254
service on behalf of the utility company, cooperative, or	4255
aggregator.	4256

(3) "Certified territory" means the certified territory	4257
established for an electric supplier under sections 4933.81 to	4258
4933.90 of the Revised Code.	4259

(4) "Competitive retail electric service" means a component	4260
of retail electric service that is competitive as provided under	4261
division (B) of this section.	4262

(5) "Electric cooperative" means a not-for-profit electric	4263
light company that both is or has been financed in whole or in	4264
part under the "Rural Electrification Act of 1936," 49 Stat. 1363,	4265
7 U.S.C. 901, and owns or operates facilities in this state to	4266
generate, transmit, or distribute electricity, or a not-for-profit	4267
successor of such company.	4268

(6) "Electric distribution utility" means an electric utility	4269
that supplies at least retail electric distribution service.	4270

(7) "Electric light company" has the same meaning as in	4271
section 4905.03 of the Revised Code and includes an electric	4272
services company, but excludes any self-generator to the extent	4273
that it consumes electricity it so produces, sells that	4274
electricity for resale, or obtains electricity from a generating	4275
facility it hosts on its premises.	4276

(8) "Electric load center" has the same meaning as in section	4277
4933.81 of the Revised Code.	4278

(9) "Electric services company" means an electric light	4279
company that is engaged on a for-profit or not-for-profit basis in	4280
the business of supplying or arranging for the supply of only a	4281
competitive retail electric service in this state. "Electric	4282
services company" includes a power marketer, power broker,	4283
aggregator, or independent power producer but excludes an electric	4284
cooperative, municipal electric utility, governmental aggregator,	4285
or billing and collection agent.	4286

(10) "Electric supplier" has the same meaning as in section	4287
4933.81 of the Revised Code.	4288

(11) "Electric utility" means an electric light company that	4289
has a certified territory and is engaged on a for-profit basis	4290
either in the business of supplying a noncompetitive retail	4291
electric service in this state or in the businesses of supplying	4292
both a noncompetitive and a competitive retail electric service in	4293
this state. "Electric utility" excludes a municipal electric	4294
utility or a billing and collection agent.	4295

(12) "Firm electric service" means electric service other	4296
than nonfirm electric service.	4297

(13) "Governmental aggregator" means a legislative authority	4298
of a municipal corporation, a board of township trustees, or a	4299
board of county commissioners acting as an aggregator for the	4300
provision of a competitive retail electric service under authority	4301
conferred under section 4928.20 of the Revised Code.	4302

(14) A person acts "knowingly," regardless of the person's	4303
purpose, when the person is aware that the person's conduct will	4304
probably cause a certain result or will probably be of a certain	4305
nature. A person has knowledge of circumstances when the person is	4306
aware that such circumstances probably exist.	4307

(15) "Level of funding for low-income customer energy	4308
efficiency programs provided through electric utility rates" means	4309
the level of funds specifically included in an electric utility's	4310
rates on October 5, 1999, pursuant to an order of the public	4311
utilities commission issued under Chapter 4905. or 4909. of the	4312
Revised Code and in effect on October 4, 1999, for the purpose of	4313
improving the energy efficiency of housing for the utility's	4314
low-income customers. The term excludes the level of any such	4315
funds committed to a specific nonprofit organization or	4316
organizations pursuant to a stipulation or contract.	4317

(16) "Low-income customer assistance programs" means the	4318
percentage of income payment plan program, the home energy	4319
assistance program, the home weatherization assistance program,	4320
and the targeted energy efficiency and weatherization program.	4321

(17) "Market development period" for an electric utility	4322
means the period of time beginning on the starting date of	4323
competitive retail electric service and ending on the applicable	4324
date for that utility as specified in section 4928.40 of the	4325
Revised Code, irrespective of whether the utility applies to	4326
receive transition revenues under this chapter.	4327

(18) "Market power" means the ability to impose on customers	4328
a sustained price for a product or service above the price that	4329
would prevail in a competitive market.	4330

(19) "Mercantile customer" means a commercial or industrial	4331
customer if the electricity consumed is for nonresidential use and	4332
the customer consumes more than seven hundred thousand kilowatt	4333
hours per year or is part of a national account involving multiple	4334
facilities in one or more states.	4335

(20) "Municipal electric utility" means a municipal	4336
corporation that owns or operates facilities to generate,	4337
transmit, or distribute electricity.	4338

(21) "Noncompetitive retail electric service" means a	4339
component of retail electric service that is noncompetitive as	4340
provided under division (B) of this section.	4341

(22) "Nonfirm electric service" means electric service	4342
provided pursuant to a schedule filed under section 4905.30 of the	4343
Revised Code or pursuant to an arrangement under section 4905.31	4344
of the Revised Code, which schedule or arrangement includes	4345
conditions that may require the customer to curtail or interrupt	4346
electric usage during nonemergency circumstances upon notification	4347
by an electric utility.	4348

(23) "Percentage of income payment plan arrears" means funds	4349
eligible for collection through the percentage of income payment	4350
plan rider, but uncollected as of July 1, 2000.	4351

(24) "Person" has the same meaning as in section 1.59 of the	4352
Revised Code.	4353

(25) "Advanced energy project" means any technologies,	4354
products, activities, or management practices or strategies that	4355
facilitate the generation or use of electricity or energy and that	4356
reduce or support the reduction of energy consumption or support	4357
the production of clean, renewable energy for industrial,	4358
distribution, commercial, institutional, governmental, research,	4359
not-for-profit, or residential energy users, including, but not	4360
limited to, advanced energy resources and renewable energy	4361
resources. "Advanced energy project" also includes any project	4362
described in division (A), (B), or (C) of section 4928.621 of the	4363
Revised Code.	4364

(26) "Regulatory assets" means the unamortized net regulatory	4365
assets that are capitalized or deferred on the regulatory books of	4366
the electric utility, pursuant to an order or practice of the	4367
public utilities commission or pursuant to generally accepted	4368
accounting principles as a result of a prior commission	4369
rate-making decision, and that would otherwise have been charged	4370
to expense as incurred or would not have been capitalized or	4371
otherwise deferred for future regulatory consideration absent	4372
commission action. "Regulatory assets" includes, but is not	4373
limited to, all deferred demand-side management costs; all	4374
deferred percentage of income payment plan arrears;	4375
post-in-service capitalized charges and assets recognized in	4376
connection with statement of financial accounting standards no.	4377
109 (receivables from customers for income taxes); future nuclear	4378
decommissioning costs and fuel disposal costs as those costs have	4379
been determined by the commission in the electric utility's most	4380
recent rate or accounting application proceeding addressing such	4381
costs; the undepreciated costs of safety and radiation control	4382
equipment on nuclear generating plants owned or leased by an	4383
electric utility; and fuel costs currently deferred pursuant to	4384
the terms of one or more settlement agreements approved by the	4385
commission.	4386

(27) "Retail electric service" means any service involved in	4387
supplying or arranging for the supply of electricity to ultimate	4388
consumers in this state, from the point of generation to the point	4389
of consumption. For the purposes of this chapter, retail electric	4390
service includes one or more of the following "service	4391
components": generation service, aggregation service, power	4392
marketing service, power brokerage service, transmission service,	4393
distribution service, ancillary service, metering service, and	4394
billing and collection service.	4395

(28) "Starting date of competitive retail electric service"	4396
means January 1, 2001.	4397

(29) "Customer-generator" means a user of a net metering	4398
system.	4399

(30) "Net metering" means measuring the difference in an	4400
applicable billing period between the electricity supplied by an	4401
electric service provider and the electricity generated by a	4402
customer-generator that is fed back to the electric service	4403
provider.	4404

(31) "Net metering system" means a facility for the	4405
production of electrical energy that does all of the following:	4406

(a) Uses as its fuel either solar, wind, biomass, landfill	4407
gas, or hydropower, or uses a microturbine or a fuel cell;	4408

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

4409

(c) Operates in parallel with the electric utility's	4410
transmission and distribution facilities;	4411

(d) Is intended primarily to offset part or all of the	4412
customer-generator's requirements for electricity.	4413

(32) "Self-generator" means an entity in this state that owns	4414
or hosts on its premises an electric generation facility that	4415
produces electricity primarily for the owner's consumption and	4416
that may provide any such excess electricity to another entity,	4417
whether the facility is installed or operated by the owner or by	4418
an agent under a contract.	4419

(33) "Rate plan" means the standard service offer in effect	4420
on the effective date of the amendment of this section by S.B. 221	4421
of the 127th general assembly, July 31, 2008.	4422

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

4423

(a) Any method or any modification or replacement of any	4424
property, process, device, structure, or equipment that increases	4425
the generation output of an electric generating facility to the	4426
extent such efficiency is achieved without additional carbon	4427
dioxide emissions by that facility;	4428

(b) Any distributed generation system consisting of customer	4429
cogeneration of electricity and thermal output simultaneously;	4430

(c) Clean coal technology that includes a carbon-based	4431
product that is chemically altered before combustion to	4432
demonstrate a reduction, as expressed as ash, in emissions of	4433
nitrous oxide, mercury, arsenic, chlorine, sulfur dioxide, or	4434
sulfur trioxide in accordance with the American society of testing	4435
and materials standard D1757A or a reduction of metal oxide	4436
emissions in accordance with standard D5142 of that society, or	4437
clean coal technology that includes the design capability to	4438
control or prevent the emission of carbon dioxide, which design	4439
capability the commission shall adopt by rule and shall be based	4440
on economically feasible best available technology or, in the	4441
absence of a determined best available technology, shall be of the	4442
highest level of economically feasible design capability for which	4443
there exists generally accepted scientific opinion;	4444

(d) Advanced nuclear energy technology consisting of	4445
generation III technology as defined by the nuclear regulatory	4446
commission; other, later technology; or significant improvements	4447
to existing facilities;	4448

(e) Any fuel cell used in the generation of electricity,	4449
including, but not limited to, a proton exchange membrane fuel	4450
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or	4451
solid oxide fuel cell;	4452

(f) Advanced solid waste or construction and demolition	4453
debris conversion technology, including, but not limited to,	4454
advanced stoker technology, and advanced fluidized bed	4455
gasification technology, that results in measurable greenhouse gas	4456
emissions reductions as calculated pursuant to the United States	4457
environmental protection agency's waste reduction model (WARM).	4458

(g) Demand-side management and any energy efficiency	4459
improvement.	4460

"Advanced energy resource" does not include a waste energy	4461
recovery system that is, or has been, included in an energy	4462
efficiency program of an electric distribution utility pursuant to	4463
requirements under section 4928.66 of the Revised Code.	4464

(35) "Renewable energy resource" means solar photovoltaic or	4465
solar thermal energy, wind energy, power produced by a	4466
hydroelectric facility, geothermal energy, fuel derived from solid	4467
wastes, as defined in section 3734.01 of the Revised Code, through	4468
fractionation, biological decomposition, or other process that	4469
does not principally involve combustion, biomass energy,	4470
biologically derived methane gas, or energy derived from	4471
nontreated by-products of the pulping process or wood	4472
manufacturing process, including bark, wood chips, sawdust, and	4473
lignin in spent pulping liquors. "Renewable energy resource"	4474
includes, but is not limited to, any fuel cell used in the	4475
generation of electricity, including, but not limited to, a proton	4476
exchange membrane fuel cell, phosphoric acid fuel cell, molten	4477
carbonate fuel cell, or solid oxide fuel cell; wind turbine	4478
located in the state's territorial waters of Lake Erie; methane	4479
gas emitted from an abandoned coal mine; waste energy recovery	4480
system; storage facility that will promote the better utilization	4481
of a renewable energy resource that primarily generates off peak;	4482
or distributed generation system used by a customer to generate	4483
electricity from any such energy. "Renewable energy resource" does	4484
not include a waste energy recovery system that is, or has been,	4485
included in an energy efficiency program of an electric	4486
distribution utility pursuant to requirements under section	4487
4928.66 of the Revised Code. As used in division (A)(35) of this	4488
section, "hydroelectric facility" means a hydroelectric generating	4489
facility that is located at a dam on a river, or on any water	4490
discharged to a river, that is within or bordering this state or	4491
within or bordering an adjoining state and meets all of the	4492
following standards:	4493

(a) The facility provides for river flows that are not	4494
detrimental for fish, wildlife, and water quality, including	4495
seasonal flow fluctuations as defined by the applicable licensing	4496
agency for the facility.	4497

(b) The facility demonstrates that it complies with the water	4498
quality standards of this state, which compliance may consist of	4499
certification under Section 401 of the "Clean Water Act of 1977,"	4500
91 Stat. 1598, 1599, 33 U.S.C. 1341, and demonstrates that it has	4501
not contributed to a finding by this state that the river has	4502
impaired water quality under Section 303(d) of the "Clean Water	4503
Act of 1977," 114 Stat. 870, 33 U.S.C. 1313.	4504

(c) The facility complies with mandatory prescriptions	4505
regarding fish passage as required by the federal energy	4506
regulatory commission license issued for the project, regarding	4507
fish protection for riverine, anadromous, and catadromous fish.	4508

(d) The facility complies with the recommendations of the	4509
Ohio environmental protection agency and with the terms of its	4510
federal energy regulatory commission license regarding watershed	4511
protection, mitigation, or enhancement, to the extent of each	4512
agency's respective jurisdiction over the facility.	4513

(e) The facility complies with provisions of the "Endangered	4514
Species Act of 1973," 87 Stat. 884, 16 U.S.C. 1531 to 1544, as	4515
amended.	4516

(f) The facility does not harm cultural resources of the	4517
area. This can be shown through compliance with the terms of its	4518
federal energy regulatory commission license or, if the facility	4519
is not regulated by that commission, through development of a plan	4520
approved by the Ohio historic preservation office, to the extent	4521
it has jurisdiction over the facility.	4522

(g) The facility complies with the terms of its federal	4523
energy regulatory commission license or exemption that are related	4524
to recreational access, accommodation, and facilities or, if the	4525
facility is not regulated by that commission, the facility	4526
complies with similar requirements as are recommended by resource	4527
agencies, to the extent they have jurisdiction over the facility;	4528
and the facility provides access to water to the public without	4529
fee or charge.	4530

(h) The facility is not recommended for removal by any	4531
federal agency or agency of any state, to the extent the	4532
particular agency has jurisdiction over the facility.	4533

(36) "Waste energy recovery system" means a facility that	4534
generates electricity through the conversion of energy from either	4535
of the following:	4536

(a) Exhaust heat from engines or manufacturing, industrial,	4537
commercial, or institutional sites, except for exhaust heat from a	4538
facility whose primary purpose is the generation of electricity;	4539

(b) Reduction of pressure in gas pipelines before gas is	4540
distributed through the pipeline, provided that the conversion of	4541
energy to electricity is achieved without using additional fossil	4542
fuels.	4543

(37) "Smart grid" means capital improvements to an electric	4544
distribution utility's distribution infrastructure, including, but	4545
not limited to, advanced metering and automation of system	4546
functions.	4547

(B) For the purposes of this chapter, a retail electric	4548
service component shall be deemed a competitive retail electric	4549
service if the service component is competitive pursuant to a	4550
declaration by a provision of the Revised Code or pursuant to an	4551
order of the public utilities commission authorized under division	4552
(A) of section 4928.04 of the Revised Code. Otherwise, the service	4553
component shall be deemed a noncompetitive retail electric	4554
service.	4555

Sec. 4928.02.  It is the policy of this state to do the	4556
following throughout this state:	4557

(A) Ensure the availability to consumers of adequate,	4558
reliable, safe, efficient, nondiscriminatory, and reasonably	4559
priced retail electric service;	4560

(B) Ensure the availability of unbundled and comparable	4561
retail electric service that provides consumers with the supplier,	4562
price, terms, conditions, and quality options they elect to meet	4563
their respective needs;	4564

(C) Ensure diversity of electricity supplies and suppliers,	4565
by giving consumers effective choices over the selection of those	4566
supplies and suppliers and by encouraging the development of	4567
distributed and small generation facilities;	4568

(D) Encourage innovation and market access for cost-effective	4569
supply- and demand-side retail electric service including, but not	4570
limited to, demand-side management, time-differentiated pricing,	4571
waste energy recovery systems, smart grid programs, and	4572
implementation of advanced metering infrastructure;	4573

(E) Encourage cost-effective and efficient access to	4574
information regarding the operation of the transmission and	4575
distribution systems of electric utilities in order to promote	4576
both effective customer choice of retail electric service and the	4577
development of performance standards and targets for service	4578
quality for all consumers, including annual achievement reports	4579
written in plain language;	4580

(F) Ensure that an electric utility's transmission and	4581
distribution systems are available to a customer-generator or	4582
owner of distributed generation, so that the customer-generator or	4583
owner can market and deliver the electricity it produces;	4584

(G) Recognize the continuing emergence of competitive	4585
electricity markets through the development and implementation of	4586
flexible regulatory treatment;	4587

(H) Ensure effective competition in the provision of retail	4588
electric service by avoiding anticompetitive subsidies flowing	4589
from a noncompetitive retail electric service to a competitive	4590
retail electric service or to a product or service other than	4591
retail electric service, and vice versa, including by prohibiting	4592
the recovery of any generation-related costs through distribution	4593
or transmission rates;	4594

(I) Ensure retail electric service consumers protection	4595
against unreasonable sales practices, market deficiencies, and	4596
market power;	4597

(J) Provide coherent, transparent means of giving appropriate	4598
incentives to technologies that can adapt successfully to	4599
potential environmental mandates;	4600

(K) Encourage implementation of distributed generation across	4601
customer classes through regular review and updating of	4602
administrative rules governing critical issues such as, but not	4603
limited to, interconnection standards, standby charges, and net	4604
metering;	4605

(L) Protect at-risk populations, including, but not limited	4606
to, when considering the implementation of any new advanced energy	4607
or renewable energy resource;	4608

(M) Encourage the education of small business owners in this	4609
state regarding the use of, and encourage the use of, energy	4610
efficiency programs and alternative energy resources in their	4611
businesses;	4612

(N) Facilitate the state's effectiveness in the global	4613
economy.	4614

In carrying out this policy, the commission shall consider	4615
rules as they apply to the costs of electric distribution	4616
infrastructure, including, but not limited to, line extensions,	4617
for the purpose of development in this state.	4618

Sec. 4928.111.  The public utilities commission shall consult	4619
with electric distribution utilities to review the distribution	4620
infrastructure in this state and shall consult with regional	4621
transmission organizations and entities that own or control	4622
transmission facilities to review the transmission infrastructure	4623
in this state. The commission shall evaluate the distribution and	4624
transmission infrastructure and shall order any necessary	4625
upgrades, additions, or improvements to ensure adequate and	4626
reliable service, enable new electric generation, and promote new	4627
industry in this state.	4628

Sec. 4928.143. (A) For the purpose of complying with section	4629
4928.141 of the Revised Code, an electric distribution utility may	4630
file an application for public utilities commission approval of an	4631
electric security plan as prescribed under division (B) of this	4632
section. The utility may file that application prior to the	4633
effective date of any rules the commission may adopt for the	4634
purpose of this section, and, as the commission determines	4635
necessary, the utility immediately shall conform its filing to	4636
those rules upon their taking effect.	4637

(B) Notwithstanding any other provision of Title XLIX of the	4638
Revised Code to the contrary except division (D) of this section,	4639
divisions (I), (J), and (K) of section 4928.20, division (E) of	4640
section 4928.64, and section 4928.69 of the Revised Code:	4641

(1) An electric security plan shall include provisions	4642
relating to the supply and pricing of electric generation service.	4643
In addition, if the proposed electric security plan has a term	4644
longer than three years, it may include provisions in the plan to	4645
permit the commission to test the plan pursuant to division (E) of	4646
this section and any transitional conditions that should be	4647
adopted by the commission if the commission terminates the plan as	4648
authorized under that division.	4649

(2) The plan may provide for or include, without limitation,	4650
any of the following:	4651

(a) Automatic recovery of any of the following costs of the	4652
electric distribution utility, provided the cost is prudently	4653
incurred: the cost of fuel used to generate the electricity	4654
supplied under the offer; the cost of purchased power supplied	4655
under the offer, including the cost of energy and capacity, and	4656
including purchased power acquired from an affiliate; the cost of	4657
emission allowances; and the cost of federally mandated carbon or	4658
energy taxes;	4659

(b) A reasonable allowance for construction work in progress	4660
for any of the electric distribution utility's cost of	4661
constructing an electric generating facility or for an	4662
environmental expenditure for any electric generating facility of	4663
the electric distribution utility, provided the cost is incurred	4664
or the expenditure occurs on or after January 1, 2009. Any such	4665
allowance shall be subject to the construction work in progress	4666
allowance limitations of division (A) of section 4909.15 of the	4667
Revised Code, except that the commission may authorize such an	4668
allowance upon the incurrence of the cost or occurrence of the	4669
expenditure. No such allowance for generating facility	4670
construction shall be authorized, however, unless the commission	4671
first determines in the proceeding that there is need for the	4672
facility based on resource planning projectionsthe long-term	4673
forecast report submitted by the electric distribution utility	4674
pursuant to division (C) of section 4935.04 of the Revised Code	4675
and any hearing record produced under that section. Further, no	4676
such allowance shall be authorized unless the facility's	4677
construction was sourced through a competitive bid process,	4678
regarding which process the commission may adopt rules. An	4679
allowance approved under division (B)(2)(b) of this section shall	4680
be established as a nonbypassable surcharge for the life of the	4681
facility.	4682

(c) The establishment of a nonbypassable surcharge for the	4683
life of an electric generating facility that is owned or operated	4684
by the electric distribution utility, was sourced through a	4685
competitive bid process subject to any such rules as the	4686
commission adopts under division (B)(2)(b) of this section, and is	4687
newly used and useful on or after January 1, 2009, which surcharge	4688
shall cover all costs of the utility specified in the application,	4689
excluding costs recovered through a surcharge under division	4690
(B)(2)(b) of this section. However, no surcharge shall be	4691
authorized unless the commission first determines in the	4692
proceeding that there is need for the facility based on resource	4693
planning projectionsthe long-term forecast report submitted by	4694
the electric distribution utility pursuant to division (C) of	4695
section 4935.04 of the Revised Code and any hearing record	4696
produced under that section. Additionally, if a surcharge is	4697
authorized for a facility pursuant to plan approval under division	4698
(C) of this section and as a condition of the continuation of the	4699
surcharge, the electric distribution utility shall dedicate to	4700
Ohio consumers the capacity and energy and the rate associated	4701
with the cost of that facility. Before the commission authorizes	4702
any surcharge pursuant to this division, it may consider, as	4703
applicable, the effects of any decommissioning, deratings, and	4704
retirements.	4705

(d) Terms, conditions, or charges relating to limitations on	4706
customer shopping for retail electric generation service,	4707
bypassability, standby, back-up, or supplemental power service,	4708
default service, carrying costs, amortization periods, and	4709
accounting or deferrals, including future recovery of such	4710
deferrals, as would have the effect of stabilizing or providing	4711
certainty regarding retail electric service;	4712

(e) Automatic increases or decreases in any component of the	4713
standard service offer price;	4714

(f) Consistent with sections 4928.23 to 4928.2318 of the	4715
Revised Code, both of the following:	4716

(i) Provisions for the electric distribution utility to	4717
securitize any phase-in, inclusive of carrying charges, of the	4718
utility's standard service offer price, which phase-in is	4719
authorized in accordance with section 4928.144 of the Revised	4720
Code;	4721

(ii) Provisions for the recovery of the utility's cost of	4722
securitization.	4723

(g) Provisions relating to transmission, ancillary,	4724
congestion, or any related service required for the standard	4725
service offer, including provisions for the recovery of any cost	4726
of such service that the electric distribution utility incurs on	4727
or after that date pursuant to the standard service offer;	4728

(h) Provisions regarding the utility's distribution service,	4729
including, without limitation and notwithstanding any provision of	4730
Title XLIX of the Revised Code to the contrary, provisions	4731
regarding single issue ratemaking, a revenue decoupling mechanism	4732
or any other incentive ratemaking, and provisions regarding	4733
distribution infrastructure and modernization incentives for the	4734
electric distribution utility. The latter may include a long-term	4735
energy delivery infrastructure modernization plan for that utility	4736
or any plan providing for the utility's recovery of costs,	4737
including lost revenue, shared savings, and avoided costs, and a	4738
just and reasonable rate of return on such infrastructure	4739
modernization. As part of its determination as to whether to allow	4740
in an electric distribution utility's electric security plan	4741
inclusion of any provision described in division (B)(2)(h) of this	4742
section, the commission shall examine the reliability of the	4743
electric distribution utility's distribution system and ensure	4744
that customers' and the electric distribution utility's	4745
expectations are aligned and that the electric distribution	4746
utility is placing sufficient emphasis on and dedicating	4747
sufficient resources to the reliability of its distribution	4748
system.	4749

(i) Provisions under which the electric distribution utility	4750
may implement economic development, job retention, and energy	4751
efficiency programs, which provisions may allocate program costs	4752
across all classes of customers of the utility and those of	4753
electric distribution utilities in the same holding company	4754
system.	4755

(C)(1) The burden of proof in the proceeding shall be on the	4756
electric distribution utility. The commission shall issue an order	4757
under this division for an initial application under this section	4758
not later than one hundred fifty days after the application's	4759
filing date and, for any subsequent application by the utility	4760
under this section, not later than two hundred seventy-five days	4761
after the application's filing date. Subject to division (D) of	4762
this section, the commission by order shall approve or modify and	4763
approve an application filed under division (A) of this section if	4764
it finds that the electric security plan so approved, including	4765
its pricing and all other terms and conditions, including any	4766
deferrals and any future recovery of deferrals, is more favorable	4767
in the aggregate as compared to the expected results that would	4768
otherwise apply under section 4928.142 of the Revised Code.	4769
Additionally, if the commission so approves an application that	4770
contains a surcharge under division (B)(2)(b) or (c) of this	4771
section, the commission shall ensure that the benefits derived for	4772
any purpose for which the surcharge is established are reserved	4773
and made available to those that bear the surcharge. Otherwise,	4774
the commission by order shall disapprove the application.	4775

(2)(a) If the commission modifies and approves an application	4776
under division (C)(1) of this section, the electric distribution	4777
utility may withdraw the application, thereby terminating it, and	4778
may file a new standard service offer under this section or a	4779
standard service offer under section 4928.142 of the Revised Code.	4780

(b) If the utility terminates an application pursuant to	4781
division (C)(2)(a) of this section or if the commission	4782
disapproves an application under division (C)(1) of this section,	4783
the commission shall issue such order as is necessary to continue	4784
the provisions, terms, and conditions of the utility's most recent	4785
standard service offer, along with any expected increases or	4786
decreases in fuel costs from those contained in that offer, until	4787
a subsequent offer is authorized pursuant to this section or	4788
section 4928.142 of the Revised Code, respectively.	4789

(D) Regarding the rate plan requirement of division (A) of	4790
section 4928.141 of the Revised Code, if an electric distribution	4791
utility that has a rate plan that extends beyond December 31,	4792
2008, files an application under this section for the purpose of	4793
its compliance with division (A) of section 4928.141 of the	4794
Revised Code, that rate plan and its terms and conditions are	4795
hereby incorporated into its proposed electric security plan and	4796
shall continue in effect until the date scheduled under the rate	4797
plan for its expiration, and that portion of the electric security	4798
plan shall not be subject to commission approval or disapproval	4799
under division (C) of this section, and the earnings test provided	4800
for in division (F) of this section shall not apply until after	4801
the expiration of the rate plan. However, that utility may include	4802
in its electric security plan under this section, and the	4803
commission may approve, modify and approve, or disapprove subject	4804
to division (C) of this section, provisions for the incremental	4805
recovery or the deferral of any costs that are not being recovered	4806
under the rate plan and that the utility incurs during that	4807
continuation period to comply with section 4928.141, division (B)	4808
of section 4928.64, or division (A) of section 4928.66 of the	4809
Revised Code.	4810

(E) If an electric security plan approved under division (C)	4811
of this section, except one withdrawn by the utility as authorized	4812
under that division, has a term, exclusive of phase-ins or	4813
deferrals, that exceeds three years from the effective date of the	4814
plan, the commission shall test the plan in the fourth year, and	4815
if applicable, every fourth year thereafter, to determine whether	4816
the plan, including its then-existing pricing and all other terms	4817
and conditions, including any deferrals and any future recovery of	4818
deferrals, continues to be more favorable in the aggregate and	4819
during the remaining term of the plan as compared to the expected	4820
results that would otherwise apply under section 4928.142 of the	4821
Revised Code. The commission shall also determine the prospective	4822
effect of the electric security plan to determine if that effect	4823
is substantially likely to provide the electric distribution	4824
utility with a return on common equity that is significantly in	4825
excess of the return on common equity that is likely to be earned	4826
by publicly traded companies, including utilities, that face	4827
comparable business and financial risk, with such adjustments for	4828
capital structure as may be appropriate. The burden of proof for	4829
demonstrating that significantly excessive earnings will not occur	4830
shall be on the electric distribution utility. If the test results	4831
are in the negative or the commission finds that continuation of	4832
the electric security plan will result in a return on equity that	4833
is significantly in excess of the return on common equity that is	4834
likely to be earned by publicly traded companies, including	4835
utilities, that will face comparable business and financial risk,	4836
with such adjustments for capital structure as may be appropriate,	4837
during the balance of the plan, the commission may terminate the	4838
electric security plan, but not until it shall have provided	4839
interested parties with notice and an opportunity to be heard. The	4840
commission may impose such conditions on the plan's termination as	4841
it considers reasonable and necessary to accommodate the	4842
transition from an approved plan to the more advantageous	4843
alternative. In the event of an electric security plan's	4844
termination pursuant to this division, the commission shall permit	4845
the continued deferral and phase-in of any amounts that occurred	4846
prior to that termination and the recovery of those amounts as	4847
contemplated under that electric security plan.	4848

(F) With regard to the provisions that are included in an	4849
electric security plan under this section, the commission shall	4850
consider, following the end of each annual period of the plan, if	4851
any such adjustments resulted in excessive earnings as measured by	4852
whether the earned return on common equity of the electric	4853
distribution utility is significantly in excess of the return on	4854
common equity that was earned during the same period by publicly	4855
traded companies, including utilities, that face comparable	4856
business and financial risk, with such adjustments for capital	4857
structure as may be appropriate. Consideration also shall be given	4858
to the capital requirements of future committed investments in	4859
this state. The burden of proof for demonstrating that	4860
significantly excessive earnings did not occur shall be on the	4861
electric distribution utility. If the commission finds that such	4862
adjustments, in the aggregate, did result in significantly	4863
excessive earnings, it shall require the electric distribution	4864
utility to return to consumers the amount of the excess by	4865
prospective adjustments; provided that, upon making such	4866
prospective adjustments, the electric distribution utility shall	4867
have the right to terminate the plan and immediately file an	4868
application pursuant to section 4928.142 of the Revised Code. Upon	4869
termination of a plan under this division, rates shall be set on	4870
the same basis as specified in division (C)(2)(b) of this section,	4871
and the commission shall permit the continued deferral and	4872
phase-in of any amounts that occurred prior to that termination	4873
and the recovery of those amounts as contemplated under that	4874
electric security plan. In making its determination of	4875
significantly excessive earnings under this division, the	4876
commission shall not consider, directly or indirectly, the	4877
revenue, expenses, or earnings of any affiliate or parent company.	4878

Sec. 4928.61.  (A) There is hereby established in the state	4879
treasury the advanced energy fund, into which shall be deposited	4880
all advanced energy revenues remitted to the director of	4881
development under division (B) of this section, for the exclusive	4882
purposes of funding the advanced energy program created under	4883
section 4928.62 of the Revised Code and paying the program's	4884
administrative costs. Interest on the fund shall be credited to	4885
the fund.	4886

(B) Advanced energy revenues shall include all of the	4887
following:	4888

(1) Revenues remitted to the director after collection by	4889
each electric distribution utility in this state of a temporary	4890
rider on retail electric distribution service rates as such rates	4891
are determined by the public utilities commission pursuant to this	4892
chapter. The rider shall be a uniform amount statewide, determined	4893
by the director of development, after consultation with the public	4894
benefits advisory board created by section 4928.58 of the Revised	4895
Code. The amount shall be determined by dividing an aggregate	4896
revenue target for a given year as determined by the director,	4897
after consultation with the advisory board, by the number of	4898
customers of electric distribution utilities in this state in the	4899
prior year. Such aggregate revenue target shall not exceed more	4900
than fifteen million dollars in any year through 2005 and shall	4901
not exceed more than five million dollars in any year after 2005.	4902
The rider shall be imposed beginning on the effective date of the	4903
amendment of this section by Sub. H.B. 251 of the 126th general	4904
assembly, January 4, 2007, and shall terminate at the end of ten	4905
years following the starting date of competitive retail electric	4906
service or until the advanced energy fund, including interest,	4907
reaches one hundred million dollars, whichever is first.	4908

(2) Revenues from payments, repayments, and collections under	4909
the advanced energy program and from program income;	4910

(3) Revenues remitted to the director after collection by a	4911
municipal electric utility or electric cooperative in this state	4912
upon the utility's or cooperative's decision to participate in the	4913
advanced energy fund;	4914

(4) Revenues from renewable energy compliance payments as	4915
provided under division (C)(2) of section 4928.64 of the Revised	4916
Code;	4917

(5) Revenue from forfeitures under division (C) of section	4918
4928.66 of the Revised Code;	4919

(6) Funds transferred pursuant to division (B) of Section	4920
512.10 of S.B. ... of the 129th general assembly;	4921

(7) Interest earnings on the advanced energy fund.

4922

(C)(1) Each electric distribution utility in this state shall	4923
remit to the director on a quarterly basis the revenues described	4924
in divisions (B)(1) and (2) of this section. Such remittances	4925
shall occur within thirty days after the end of each calendar	4926
quarter.	4927

(2) Each participating electric cooperative and participating	4928
municipal electric utility shall remit to the director on a	4929
quarterly basis the revenues described in division (B)(3) of this	4930
section. Such remittances shall occur within thirty days after the	4931
end of each calendar quarter. For the purpose of division (B)(3)	4932
of this section, the participation of an electric cooperative or	4933
municipal electric utility in the energy efficiency revolving loan	4934
program as it existed immediately prior to the effective date of	4935
the amendment of this section by Sub. H.B. 251 of the 126th	4936
general assembly, January 4, 2007, does not constitute a decision	4937
to participate in the advanced energy fund under this section as	4938
so amended.	4939

(3) All remittances under divisions (C)(1) and (2) of this	4940
section shall continue only until the end of ten years following	4941
the starting date of competitive retail electric service or until	4942
the advanced energy fund, including interest, reaches one hundred	4943
million dollars, whichever is first.	4944

(D) Any moneys collected in rates for non-low-income customer	4945
energy efficiency programs, as of October 5, 1999, and not	4946
contributed to the energy efficiency revolving loan fund	4947
authorized under this section prior to the effective date of its	4948
amendment by Sub. H.B. 251 of the 126th general assembly, January	4949
4, 2007, shall be used to continue to fund cost-effective,	4950
residential energy efficiency programs, be contributed into the	4951
universal service fund as a supplement to that required under	4952
section 4928.53 of the Revised Code, or be returned to ratepayers	4953
in the form of a rate reduction at the option of the affected	4954
electric distribution utility.	4955

Sec. 4928.62.  (A) There is hereby created the advanced	4956
energy program, which shall be administered by the director of	4957
development. Under the program, the director may authorize the use	4958
of moneys in the advanced energy fund for financial, technical,	4959
and related assistance for advanced energy projects in this state	4960
or for economic development assistance, in furtherance of the	4961
purposes set forth in section 4928.63 of the Revised Code. To	4962

(1) To the extent feasible given approved applications for	4963
assistance, the assistance shall be distributed among the	4964
certified territories of electric distribution utilities and	4965
participating electric cooperatives, and among the service areas	4966
of participating municipal electric utilities, in amounts	4967
proportionate to the remittances of each utility and cooperative	4968
under divisions (B)(1) and (3) of section 4928.61 of the Revised	4969
Code.	4970

(2) The funds described in division (B)(6) of section 4928.61	4971
of the Revised Code shall not be subject to the territorial	4972
requirements of division (A)(1) of this section.	4973

(3) The director shall not authorize financial assistance for	4974
an advanced energy project under the program unless the director	4975
first determines that the project will create new jobs or preserve	4976
existing jobs in this state or use innovative technologies or	4977
materials.	4978

(B) In carrying out sections 4928.61 to 4928.63 of the	4979
Revised Code, the director may do all of the following to further	4980
the public interest in advanced energy projects and economic	4981
development:	4982

(1) Award grants, contracts, loans, loan participation	4983
agreements, linked deposits, and energy production incentives;	4984

(2) Acquire in the name of the director any property of any	4985
kind or character in accordance with this section, by purchase,	4986
purchase at foreclosure, or exchange, on such terms and in such	4987
manner as the director considers proper;	4988

(3) Make and enter into all contracts and agreements	4989
necessary or incidental to the performance of the director's	4990
duties and the exercise of the director's powers under sections	4991
4928.61 to 4928.63 of the Revised Code;	4992

(4) Employ or enter into contracts with financial	4993
consultants, marketing consultants, consulting engineers,	4994
architects, managers, construction experts, attorneys, technical	4995
monitors, energy evaluators, or other employees or agents as the	4996
director considers necessary, and fix their compensation;	4997

(5) Adopt rules prescribing the application procedures for	4998
financial assistance under the advanced energy program; the fees,	4999
charges, interest rates, payment schedules, local match	5000
requirements, and other terms and conditions of any grants,	5001
contracts, loans, loan participation agreements, linked deposits,	5002
and energy production incentives; criteria pertaining to the	5003
eligibility of participating lending institutions; and any other	5004
matters necessary for the implementation of the program;	5005

(6) Do all things necessary and appropriate for the operation	5006
of the program.	5007

(C) The department of development may hold ownership to any	5008
unclaimed energy efficiency and renewable energy emission	5009
allowances provided for in Chapter 3745-14 of the Administrative	5010
Code or otherwise, that result from advanced energy projects that	5011
receive funding from the advanced energy fund, and it may use the	5012
allowances to further the public interest in advanced energy	5013
projects or for economic development.	5014

(D) Financial statements, financial data, and trade secrets	5015
submitted to or received by the director from an applicant or	5016
recipient of financial assistance under sections 4928.61 to	5017
4928.63 of the Revised Code, or any information taken from those	5018
statements, data, or trade secrets for any purpose, are not public	5019
records for the purpose of section 149.43 of the Revised Code.	5020

(E) Nothing in the amendments of sections 4928.61, 4928.62,	5021
and 4928.63 of the Revised Code by Sub. H.B. 251 of the 126th	5022
general assembly shall affect any pending or effected assistance,	5023
pending or effected purchases or exchanges of property made, or	5024
pending or effected contracts or agreements entered into pursuant	5025
to division (A) or (B) of this section as the section existed	5026
prior to the effective date of those amendments, January 4, 2007,	5027
or shall affect the exemption provided under division (C) of this	5028
section as the section existed prior to that effective date.	5029

(F) Any assistance a school district receives for an advanced	5030
energy project, including a geothermal heating, ventilating, and	5031
air conditioning system, shall be in addition to any assistance	5032
provided under Chapter 3318. of the Revised Code and shall not be	5033
included as part of the district or state portion of the basic	5034
project cost under that chapter.	5035

Sec. 4928.66. (A)(1)(a) Beginning in 2009, an electric	5036
distribution utility shall implement energy efficiency programs,	5037
which may include a waste energy recovery system placed into	5038
service or retrofitted on or after January 1, 2006, that achieve	5039
energy savings equivalent to at least three-tenths of one per cent	5040
of the total, annual average, and normalized kilowatt-hour sales	5041
hours distributed to retail customers of the electric distribution	5042
utility during the preceding three calendar years to customers in	5043
this state. For a waste energy recovery system, the savings shall	5044
be as estimated by the public utilities commission. The savings	5045
requirement, using such a three-year average, shall increase to an	5046
additional five-tenths of one per cent in 2010, seven-tenths of	5047
one per cent in 2011, eight-tenths of one per cent in 2012,	5048
nine-tenths of one per cent in 2013, one per cent from 2014 to	5049
2018, and two per cent each year thereafter, achieving a	5050
cumulative, annual energy savings in excess of twenty-two per cent	5051
by the end of 2025.	5052

(b) Beginning in 2009, an electric distribution utility shall	5053
implement peak demand reduction programs designed to achieve a one	5054
per cent reduction in peak demand in 2009 and an additional	5055
seventy-five hundredths of one per cent reduction each year	5056
through 2018. In 2018, the standing committees in the house of	5057
representatives and the senate primarily dealing with energy	5058
issues shall make recommendations to the general assembly	5059
regarding future peak demand reduction targets.	5060

(2) For the purposes of divisions (A)(1)(a) and (b) of this	5061
section:	5062

(a) The baseline for energy savings under division (A)(1)(a)	5063
of this section shall be the average of the total kilowatt hours	5064
the electric distribution utility sold in the preceding three	5065
calendar years, and the baseline for a peak demand reduction under	5066
division (A)(1)(b) of this section shall be the average peak	5067
demand on the utility in the preceding three calendar years,	5068
except that the commission may reduce either baseline to adjust	5069
for new economic growth in the utility's certified territory.	5070

(b) The commission may amend the benchmarks set forth in	5071
division (A)(1)(a) or (b) of this section if, after application by	5072
the electric distribution utility, the commission determines that	5073
the amendment is necessary because the utility cannot reasonably	5074
achieve the benchmarks due to regulatory, economic, or	5075
technological reasons beyond its reasonable control.	5076

(c) Compliance with divisions (A)(1)(a) and (b) of this	5077
section shall be measured by including the effects of all	5078
demand-response programs for mercantile customers of the subject	5079
electric distribution utility, all waste energy recovery systems,	5080
and all such mercantile customer-sited energy efficiency,	5081
including waste energy recovery, and peak demand reduction	5082
programs, adjusted upward by the appropriate loss factors. Any	5083
mechanism designed to recover the cost of energy efficiency,	5084
including waste energy recovery, and peak demand reduction	5085
programs under divisions (A)(1)(a) and (b) of this section may	5086
exempt mercantile customers that commit their demand-response or	5087
other customer-sited capabilities, whether existing or new, for	5088
integration into the electric distribution utility's	5089
demand-response, energy efficiency, including waste energy	5090
recovery, or peak demand reduction programs, if the commission	5091
determines that that exemption reasonably encourages such	5092
customers to commit those capabilities to those programs. If a	5093
mercantile customer makes such existing or new demand-response,	5094
energy efficiency, including waste energy recovery, or peak demand	5095
reduction capability available to an electric distribution utility	5096
pursuant to division (A)(2)(c) of this section, the electric	5097
utility's baseline under division (A)(2)(a) of this section shall	5098
be adjusted to exclude the effects of all such demand-response,	5099
energy efficiency, including waste energy recovery, or peak demand	5100
reduction programs that may have existed during the period used to	5101
establish the baseline. The baseline also shall be normalized for	5102
changes in numbers of customers, sales, weather, peak demand, and	5103
other appropriate factors so that the compliance measurement is	5104
not unduly influenced by factors outside the control of the	5105
electric distribution utility.	5106

(d) Programs implemented by a utility may include	5107
demand-response programs, smart grid investment programs, provided	5108
that such programs are demonstrated to be cost-beneficial,	5109
customer-sited programs, including waste energy recovery systems,	5110
and transmission and distribution infrastructure improvements that	5111
reduce line losses. Division (A)(2)(c) of this section shall be	5112
applied to include facilitating efforts by a mercantile customer	5113
or group of those customers to offer customer-sited	5114
demand-response, energy efficiency, including waste energy	5115
recovery, or peak demand reduction capabilities to the electric	5116
distribution utility as part of a reasonable arrangement submitted	5117
to the commission pursuant to section 4905.31 of the Revised Code.	5118

(e) No programs or improvements described in division	5119
(A)(2)(d) of this section shall conflict with any statewide	5120
building code adopted by the board of building standards.	5121

(B) In accordance with rules it shall adopt, the public	5122
utilities commission shall produce and docket at the commission an	5123
annual report containing the results of its verification of the	5124
annual levels of energy efficiency and of peak demand reductions	5125
achieved by each electric distribution utility pursuant to	5126
division (A) of this section. A copy of the report shall be	5127
provided to the consumers' counsel.	5128

(C) If the commission determines, after notice and	5129
opportunity for hearing and based upon its report under division	5130
(B) of this section, that an electric distribution utility has	5131
failed to comply with an energy efficiency or peak demand	5132
reduction requirement of division (A) of this section, the	5133
commission shall assess a forfeiture on the utility as provided	5134
under sections 4905.55 to 4905.60 and 4905.64 of the Revised Code,	5135
either in the amount, per day per undercompliance or	5136
noncompliance, relative to the period of the report, equal to that	5137
prescribed for noncompliances under section 4905.54 of the Revised	5138
Code, or in an amount equal to the then existing market value of	5139
one renewable energy credit per megawatt hour of undercompliance	5140
or noncompliance. Revenue from any forfeiture assessed under this	5141
division shall be deposited to the credit of the advanced energy	5142
fund created under section 4928.61 of the Revised Code.	5143

(D) The commission may establish rules regarding the content	5144
of an application by an electric distribution utility for	5145
commission approval of a revenue decoupling mechanism under this	5146
division. Such an application shall not be considered an	5147
application to increase rates and may be included as part of a	5148
proposal to establish, continue, or expand energy efficiency or	5149
conservation programs. The commission by order may approve an	5150
application under this division if it determines both that the	5151
revenue decoupling mechanism provides for the recovery of revenue	5152
that otherwise may be foregoneforgone by the utility as a result	5153
of or in connection with the implementation by the electric	5154
distribution utility of any energy efficiency or energy	5155
conservation programs and reasonably aligns the interests of the	5156
utility and of its customers in favor of those programs.	5157

(E) The commission additionally shall adopt rules that	5158
require an electric distribution utility to provide a customer	5159
upon request with two years' consumption data in an accessible	5160
form.	5161

Sec. 4928.70.  (A) The public utilities commission may	5162
periodically review any green pricing program offered in this	5163
state as part of retail electric service. At the conclusion of a	5164
review, the commission may make recommendations to improve or	5165
expand the program subject of the review.	5166

(B) The commission shall adopt rules necessary to carry out	5167
purposes of this section.	5168

Sec. 4928.71.  The public utilities commission shall study	5169
whether increased energy efficiency, demand response, generation,	5170
and transmission provide increased opportunities for customer	5171
choice. The commission shall include in the study an evaluation of	5172
emerging technologies. The commission shall commence the study not	5173
later than eighteen months after the effective date of this	5174
section. At the conclusion of the study, the commission shall	5175
prepare a report of its findings and make the report available on	5176
its web site.	5177

Sec. 4928.72. The public utilities commission may, in	5178
cooperation with the department of transportation, work with other	5179
states to develop a multi-state study on the development of	5180
compressed natural gas infrastructures for transportation.	5181

Sec. 4935.04.  (A) As used in this chapter:

5182

(1) "Major utility facility" means:

5183

(a) An electric transmission line and associated facilities	5184
of a design capacity of one hundred twenty-five kilovolts or more;	5185

(b) A gas or natural gas transmission line and associated	5186
facilities designed for, or capable of, transporting gas or	5187
natural gas at pressures in excess of one hundred twenty-five	5188
pounds per square inch.	5189

"Major utility facility" does not include electric, gas, or	5190
natural gas distributing lines and gas or natural gas gathering	5191
lines and associated facilities as defined by the public utilities	5192
commission; facilities owned or operated by industrial firms,	5193
persons, or institutions that produce or transmit gas or natural	5194
gas, or electricity primarily for their own use or as a byproduct	5195
of their operations; gas or natural gas transmission lines and	5196
associated facilities over which an agency of the United States	5197
has certificate jurisdiction; facilities owned or operated by a	5198
person furnishing gas or natural gas directly to fifteen thousand	5199
or fewer customers within this state.	5200

(2) "Person" has the meaning set forth in section 4906.01 of	5201
the Revised Code.	5202

(B) Each person owning or operating a gas or natural gas	5203
transmission line and associated facilities within this state over	5204
which an agency of the United States has certificate jurisdiction	5205
shall furnish to the commission a copy of the energy information	5206
filed by the person with that agency of the United States.	5207

(C) Each person owning or operating a major utility facility	5208
within this state, or furnishing gas, natural gas, or electricity	5209
directly to more than fifteen thousand customers within this state	5210
shall furnish a report to the commission for its review. The	5211
report shall be furnished annually, except that for a gas or	5212
natural gas company the report shall be furnished every three	5213
years. The report shall be termed the long-term forecast report	5214
and shall contain:	5215

(1) A year-by-year, ten-year forecast of annual energy	5216
demand, peak load, reserves, and a general description of the	5217
resource planplanning projections to meet demand;	5218

(2) A range of projected loads during the period;

5219

(3) A description of major utility facilities planned to be	5220
added or taken out of service in the next ten years, including, to	5221
the extent the information is available, prospective sites for	5222
transmission line locations;	5223

(4) For gas and natural gas, a projection of anticipated	5224
supply, supply prices, and sources of supply over the forecast	5225
period;	5226

(5) A description of proposed changes in the transmission	5227
system planned for the next five years;	5228

(6) A month-by-month forecast of both energy demand and peak	5229
load for electric utilities, and gas sendout for gas and natural	5230
gas utilities, for the next two years. The report shall describe	5231
the major utility facilities that, in the judgment of such person,	5232
will be required to supply system demands during the forecast	5233
period. The report from a gas or natural gas utility shall cover	5234
the ten- and five-year periods next succeeding the date of the	5235
report, and the report from an electric utility shall cover the	5236
twenty-, ten-, and five-year periods next succeeding the date of	5237
the report. Each report shall be made available to the public and	5238
furnished upon request to municipal corporations and governmental	5239
agencies charged with the duty of protecting the environment or of	5240
planning land use. The report shall be in such form and shall	5241
contain such information as may be prescribed by the commission.	5242

Each person not owning or operating a major utility facility	5243
within this state and serving fifteen thousand or fewer gas or	5244
natural gas, or electric customers within this state shall furnish	5245
such information as the commission requires.	5246

(D) The commission shall:

5247

(1) Review and comment on the reports filed under division	5248
(C) of this section, and make the information contained in the	5249
reports readily available to the public and other interested	5250
government agencies;	5251

(2) Compile and publish each year the general locations of	5252
proposed and existing transmission line routes within its	5253
jurisdiction as identified in the reports filed under division (C)	5254
of this section, identifying the general location of such sites	5255
and routes and the approximate year when construction is expected	5256
to commence, and to make such information readily available to the	5257
public, to each newspaper of daily or weekly circulation within	5258
the area affected by the proposed site and route, and to	5259
interested federal, state, and local agencies;	5260

(3) Hold a public hearing upon the showing of good cause to	5261
the commission by an interested party.	5262

If a hearing is held, the commission shall fix a time for the	5263
hearing, which shall be not later than ninety days after the	5264
report is filed, and publish notice of the date, time of day, and	5265
location of the hearing in a newspaper of general circulation in	5266
each county in which the person furnishing the report has or	5267
intends to locate a major utility facility and will provide	5268
service during the period covered by the report. The notice shall	5269
be published not less than fifteen nor more than thirty days	5270
before the hearing and shall state the matters to be considered.	5271

(4) Require such information from persons subject to its	5272
jurisdiction as necessary to assist in the conduct of hearings and	5273
any investigation or studies it may undertake;	5274

(5) Conduct any studies or investigations that are necessary	5275
or appropriate to carry out its responsibilities under this	5276
section.	5277

(E)(1) The scope of the hearing held under division (D)(3) of	5278
this section shall be limited to issues relating to forecasting.	5279
The power siting board, the office of consumers' counsel, and all	5280
other persons having an interest in the proceedings shall be	5281
afforded the opportunity to be heard and to be represented by	5282
counsel. The commission may adjourn the hearing from time to time.	5283

(2) The hearing shall include, but not be limited to, a	5284
review of:	5285

(a) The projected loads and energy requirements for each year	5286
of the period;	5287

(b) The estimated installed capacity and supplies to meet the	5288
projected load requirements.	5289

(F) Based upon the report furnished pursuant to division (C)	5290
of this section and the hearing record, the commission, within	5291
ninety days from the close of the record in the hearing, shall	5292
determine if:	5293

(1) All information relating to current activities,	5294
facilities agreements, and published energy policies of the state	5295
has been completely and accurately represented;	5296

(2) The load requirements are based on substantially accurate	5297
historical information and adequate methodology;	5298

(3) The forecasting methods consider the relationships	5299
between price and energy consumption;	5300

(4) The report identifies and projects reductions in energy	5301
demands due to energy conservation measures in the industrial,	5302
commercial, residential, transportation, and energy production	5303
sectors in the service area;	5304

(5) Utility company forecasts of loads and resources are	5305
reasonable in relation to population growth estimates made by	5306
state and federal agencies, transportation, and economic	5307
development plans and forecasts, and make recommendations where	5308
possible for necessary and reasonable alternatives to meet	5309
forecasted electric power demand;	5310

(6) The report considers plans for expansion of the regional	5311
power grid and the planned facilities of other utilities in the	5312
state;	5313

(7) All assumptions made in the forecast are reasonable and	5314
adequately documented.	5315

(G) The commission shall adopt rules under section 111.15 of	5316
the Revised Code to establish criteria for evaluating the	5317
long-term forecasts of needs for gas and electric transmission	5318
service, to conduct hearings held under this section, to establish	5319
reasonable fees to defray the direct cost of the hearings and the	5320
review process, and such other rules as are necessary and	5321
convenient to implement this section.	5322

(H) The hearing record produced under this section and the	5323
determinations of the commission shall be introduced into evidence	5324
and shall be considered in determining the basis of need for power	5325
siting board deliberations under division (A)(1) of section	5326
4906.10 of the Revised Code. The hearing record produced under	5327
this section shall be introduced into evidence and shall be	5328
considered by the public utilities commission in its initiation of	5329
programs, examinations, and findings under section 4905.70 of the	5330
Revised Code, and shall be considered in the commission's	5331
determinations with respect to the establishment of just and	5332
reasonable rates under section 4909.15 of the Revised Code and	5333
financing utility facilities and authorizing issuance of all	5334
securities under sections 4905.40, 4905.401, 4905.41, and 4905.42	5335
of the Revised Code. The forecast findings also shall serve as the	5336
basis for all other energy planning and development activities of	5337
the state government where electric and gas data are required.	5338

(I)(1) No court other than the supreme court shall have power	5339
to review, suspend, or delay any determination made by the	5340
commission under this section, or enjoin, restrain, or interfere	5341
with the commission in the performance of official duties. A writ	5342
of mandamus shall not be issued against the commission by any	5343
court other than the supreme court.	5344

(2) A final determination made by the commission shall be	5345
reversed, vacated, or modified by the supreme court on appeal, if,	5346
upon consideration of the record, such court is of the opinion	5347
that such determination was unreasonable or unlawful.	5348

The proceeding to obtain such reversal, vacation, or	5349
modification shall be by notice of appeal, filed with the	5350
commission by any party to the proceeding before it, against the	5351
commission, setting forth the determination appealed from and	5352
errors complained of. The notice of appeal shall be served, unless	5353
waived, upon the commission by leaving a copy at the office of the	5354
chairperson of the commission at Columbus. The court may permit an	5355
interested party to intervene by cross-appeal.	5356

(3) No proceeding to reverse, vacate, or modify a	5357
determination of the commission is commenced unless the notice of	5358
appeal is filed within sixty days after the date of the	5359
determination.	5360

Sec. 6111.30. (A) Applications for a section 401 water	5361
quality certification required under division (P) of section	5362
6111.03 of the Revised Code shall be submitted on forms provided	5363
by the director of environmental protection and shall include all	5364
information required on those forms as well as all of the	5365
following:	5366

(1) A copy of a letter from the United States army corps of	5367
engineers documenting its jurisdiction over the wetlands, streams,	5368
or other waters of the state that are the subject of the section	5369
401 water quality certification application;	5370

(2) If the project involves impacts to a wetland, a wetland	5371
characterization analysis consistent with the Ohio rapid	5372
assessment method;	5373

(3) If the project involves a stream for which a specific	5374
aquatic life use designation has not been made, a use	5375
attainability analysis;	5376

(4) A specific and detailed mitigation proposal, including	5377
the location and proposed legal mechanism for protecting the	5378
property in perpetuity;	5379

(5) Applicable fees;

5380

(6) Site photographs;

5381

(7) Adequate documentation confirming that the applicant has	5382
requested comments from the department of natural resources and	5383
the United States fish and wildlife service regarding threatened	5384
and endangered species, including the presence or absence of	5385
critical habitat;	5386

(8) Descriptions, schematics, and appropriate economic	5387
information concerning the applicant's preferred alternative,	5388
nondegradation alternatives, and minimum degradation alternatives	5389
for the design and operation of the project;	5390

(9) The applicant's investigation report of the waters of the	5391
United States in support of a section 404 permit application	5392
concerning the project;	5393

(10) A copy of the United States army corps of engineers'	5394
public notice regarding the section 404 permit application	5395
concerning the project.	5396

(B) Not later than fifteen business days after the receipt of	5397
an application for a section 401 water quality certification, the	5398
director shall review the application to determine if it is	5399
complete and shall notify the applicant in writing as to whether	5400
the application is complete. If the director fails to notify the	5401
applicant within fifteen business days regarding the completeness	5402
of the application, the application is considered complete. If the	5403
director determines that the application is not complete, the	5404
director shall include with the written notification an itemized	5405
list of the information or materials that are necessary to	5406
complete the application. If the applicant fails to provide the	5407
information or materials within sixty days after the director's	5408
receipt of the application, the director may return the incomplete	5409
application to the applicant and take no further action on the	5410
application. If the application is returned to the applicant	5411
because it is incomplete, the director shall return the review fee	5412
levied under division (A)(1), (2), or (3) of section 3745.114 of	5413
the Revised Code to the applicant, but shall retain the	5414
application fee levied under that section.	5415

(C) Not later than twenty-one days after a determination that	5416
an application is complete under division (B) of this section, the	5417
applicant shall publish public notice of the director's receipt of	5418
the complete application in a newspaper of general circulation in	5419
the county in which the project that is the subject of the	5420
application is located. The public notice shall be in a form	5421
acceptable to the director. The applicant shall promptly provide	5422
the director with proof of publication. The applicant may choose,	5423
subject to review by and approval of the director, to include in	5424
the public notice an advertisement for an antidegradation public	5425
hearing on the application pursuant to section 6111.12 of the	5426
Revised Code. There shall be a public comment period of thirty	5427
days following the publication of the public notice.	5428

(D) If the director determines that there is significant	5429
public interest in a public hearing as evidenced by the public	5430
comments received concerning the application and by other requests	5431
for a public hearing on the application, the director or the	5432
director's representative shall conduct a public hearing	5433
concerning the application. Notice of the public hearing shall be	5434
published by the applicant, subject to review and approval by the	5435
director, at least thirty days prior to the date of the hearing in	5436
a newspaper of general circulation in the county in which the	5437
project that is the subject of the application is to take place.	5438
If a public hearing is requested concerning an application, the	5439
director shall accept comments concerning the application until	5440
five business days after the public hearing. A public hearing	5441
conducted under this division shall take place not later than one	5442
hundred days after the application is determined to be complete.	5443

(E) The director shall forward all public comments concerning	5444
an application submitted under this section that are received	5445
through the public involvement process required by rules adopted	5446
under this chapter to the applicant not later than five business	5447
days after receipt of the comments by the director.	5448

(F) The applicant shall respond in writing to written	5449
comments or to deficiencies identified by the director during the	5450
course of reviewing the application not later than fifteen days	5451
after receiving or being notified of them.	5452

(G) The director shall issue or deny a section 401 water	5453
quality certification not later than one hundred eighty days after	5454
the complete application for the certification is received. The	5455
director shall provide an applicant for a section 401 water	5456
quality certification with an opportunity to review the	5457
certification prior to its issuance.	5458

(H) The director shall maintain an accessible database that	5459
includes environmentally beneficial water restoration and	5460
protection projects that may serve as potential mitigation	5461
projects for projects in the state for which a section 401 water	5462
quality certification is required. A project's inclusion in the	5463
database does not constitute an approval of the project.	5464

(I) As used in this section and sectionssection 6111.31 and	5465
6111.32 of the Revised Code, "section 401 water quality	5466
certification" means certification pursuant to section 401 of the	5467
Federal Water Pollution Control Act and this chapter and rules	5468
adopted under it that any discharge, as set forth in section 401,	5469
will comply with sections 301, 302, 303, 306, and 307 of the	5470
Federal Water Pollution Control Act.	5471

Sec. 6111.32.  (A) The director of environmental protection,	5472
on behalf of the state, may apply for approval from the United	5473
States environmental protection agency, in accordance with 33	5474
U.S.C 1344(g)(1), for the state to assume responsibility for	5475
administering the section 404 permitting program for the discharge	5476
of dredged or fill material into navigable waters established	5477
under the Federal Water Pollution Control Act.	5478

(B) Upon approval by the United States environmental	5479
protection agency of the state's application to assume	5480
responsibility for administering the section 404 permitting	5481
program, the director shall administer the program consistent with	5482
and in the manner required by the Federal Water Pollution Control	5483
Act.	5484

(C) The director may adopt rules in accordance with Chapter	5485
119. of the Revised Code that are necessary to obtain approval to	5486
administer the section 404 permitting program and to administer	5487
the program upon receiving approval to do so. The rules shall	5488
govern or establish all of the following, without limitation:	5489

(1) The issuance of permits. The rules adopted under division	5490
(C)(1) of this section shall do all of the following:	5491

(a) Require compliance with any applicable requirements of 33	5492
U.S.C. 1317 and 33 U.S.C. 1344, including, but not limited to, the	5493
guidelines established under 33 U.S.C. 1344(b)(1);	5494

(b) Require a permit to be issued for a fixed term not to	5495
exceed five years;	5496

(c) Specify that a permit may be terminated or modified for	5497
cause, including, but not limited to, all the following:	5498

(i) A violation of any condition of the permit;

5499

(ii) Obtaining a permit by misrepresentation or failure to	5500
disclose fully all relevant facts related to the permit;	5501

(iii) A change in any condition that requires either a	5502
temporary or permanent reduction or elimination of the permitted	5503
discharge.	5504

(2) Requirements that ensure compliance with 33 U.S.C. 1318,	5505
including requirements for the inspection of, monitoring of, and	5506
right to enter property that is the subject of a section 404	5507
permit and requirements governing the content and submission of	5508
reports;	5509

(3) The provision of notice regarding the receipt of an	5510
application for a section 404 permit to the public, any other	5511
state with waters that may be affected by the issuance of the	5512
permit, and the administrator of the United States environmental	5513
protection agency;	5514

(4) The opportunity for a public hearing regarding an	5515
application for a section 404 permit to be conducted before	5516
issuance or denial of the permit;	5517

(5) Requirements that authorize any other state with waters	5518
that may be affected by the issuance of a section 404 permit by	5519
the director to submit written recommendations to the director and	5520
the administrator of the United States environmental protection	5521
agency with respect to the permit application. The rules shall	5522
require the director to notify a state that has submitted	5523
recommendations if any or all of the recommendations are not	5524
accepted by the director and the reasons that the recommendations	5525
are not accepted. The rules shall require the notice to be in	5526
writing and a copy of the notice to be provided to the	5527
administrator.	5528

(6) Requirements that the director ensure that a section 404	5529
permit will not be issued if anchorage and navigation of any	5530
navigable waters would be substantially impaired. The rules shall	5531
require the director to do so based on the judgment of the	5532
secretary of the United States army after consultation with the	5533
secretary of the department of the federal government under which	5534
the United States coast guard is operating at the time that the	5535
application for the permit is submitted.	5536

(7) Enforcement with regard to a violation of the terms of a	5537
permit or a violation of the permit program administered under	5538
this section. The rules adopted under division (C)(7) of this	5539
section shall establish requirements governing abatements of	5540
violations, civil and criminal penalties, and other means of	5541
enforcement.	5542

(8) Coordination with federal and state water-related	5543
planning and review processes.	5544

(D) This section is intended solely to authorize the	5545
environmental protection agency to assume the role of the United	5546
States army corps of engineers in the regulation of the navigable	5547
waters of this state. Nothing in this section shall be construed	5548
as a preemption, modification, or amendment of Title 33 of the	5549
United States Code. This section shall not be enforced as an	5550
expansion of the laws, regulations, rules, or regulatory authority	5551
of the federal government. Any rule, policy, or permit adopted or	5552
issued by the director under this section shall not conflict with	5553
existing federal law and shall not exceed the limitations placed	5554
by the United States congress on the United States army corps of	5555
engineers.	5556

Section 101.02. That existing sections 122.075, 123.011,	5557
125.836, 133.06, 156.01, 156.02, 156.03, 156.04, 303.213, 1505.09,	5558
1509.01, 1509.02, 1509.03, 1509.06, 1509.07, 1509.10, 1509.11,	5559
1509.22, 1509.221, 1509.222, 1509.223, 1509.23, 1509.31, 1509.50,	5560
1514.01, 1514.02, 1514.021, 1514.03, 1514.05, 3706.27, 4905.90,	5561
4905.91, 4905.95, 4906.01, 4906.03, 4906.05, 4906.06, 4906.07,	5562
4906.10, 4906.20, 4906.99, 4928.01, 4928.02, 4928.143, 4928.61,	5563
4928.62, 4928.66, 4935.04, and 6111.30 of the Revised Code are	5564
hereby repealed.	5565

Section 512.10. As soon as possible after the effective date	5566
of this section, the Director of Budget and Management shall do	5567
both of the following:	5568

(A) Transfer any unexpended and unencumbered amounts received	5569
from the repayment of loans made from money in the Advanced Energy	5570
Research and Development Taxable Fund (Fund 7004), except for such	5571
amounts in the Facilities Establishment Fund (Fund 7037), to the	5572
Alternative Fuel Transportation Fund (Fund 5CG0); and	5573

(B) Transfer any unexpended and unencumbered amounts in the	5574
Advanced Energy Research and Development Taxable Fund (Fund 7004)	5575
and the Advanced Energy Research and Development Fund (Fund 7005)	5576
to the Advanced Energy Fund (Fund 5M50).	5577

Section 701.10. The Department of Administrative Services and	5578
the Department of Transportation cooperatively shall analyze their	5579
respective motor vehicle fleets to determine whether it is	5580
beneficial to establish standards for vehicle replacement in order	5581
to increase the overall efficiency of the state motor vehicle	5582
fleet. Not later than September 1, 2012, the Department of	5583
Administrative Services and the Department of Transportation shall	5584
produce a joint report with their findings and shall deliver the	5585
report to the Speaker of the House of Representatives, the	5586
Minority Leader of the House of Representatives, the President of	5587
the Senate, the Minority Leader of the Senate, and the Governor.	5588

Section 715.10. The injection well disposal fees levied by	5589
section 1509.22 of the Revised Code, as amended by this act, are a	5590
continuation of the injection well disposal fees levied by section	5591
1509.221 of the Revised Code as that section existed prior to its	5592
amendment by this act except insofar as the fees are increased by	5593
the amendment.	5594

Section 737.10. (A) The Director of Environmental Protection,	5595
in coordination with the Department of Natural Resources, the	5596
United States Environmental Protection Agency, and other entities	5597
as determined appropriate by the Director, shall coordinate the	5598
evaluation of emerging wastewater treatment and recycling	5599
technologies that may reduce reliance on underground injection	5600
wells and may assist in the advancement of industry in this state,	5601
including the exploration and production of oil and gas. As part	5602
of the evaluation, the Director may initiate, participate in,	5603
oversee, or consult on pilot projects regarding wastewater	5604
treatment and recycling technologies.	5605

(B) The Director of Environmental Protection, in coordination	5606
with the Public Utilities Commission of Ohio, the United States	5607
Environmental Protection Agency, and other entities as determined	5608
appropriate by the Director, shall conduct a study that identifies	5609
current and future environmental regulatory requirements and how	5610
those requirements may impact current and future power generation	5611
and transmission in this state.	5612

Section 755.10. The Department of Transportation and the	5613
Public Utilities Commission cooperatively shall analyze the cost	5614
effectiveness of purchasing vehicles that operate on compressed	5615
natural gas and the conversion of certain state motor vehicles to	5616
operate on compressed natural gas. Not later than January 30,	5617
2013, the Department and the Commission shall produce a joint	5618
report with their findings and shall deliver the report to the	5619
Speaker of the House of Representatives, the Minority Leader of	5620
the House of Representatives, the President of the Senate, the	5621
Minority Leader of the Senate, and the Governor.	5622

Section 812.20. Section exempt from referendum: general	5623
effective date. The amendment by this act of section 133.06 of the	5624
Revised Code and Section 701.10 of this act are exempt from the	5625
referendum under Ohio Constitution, Article II, Section 1d and	5626
section 1.471 of the Revised Code and therefore take effect	5627
immediately when this act becomes law.	5628

Section 815.10.  Section 4928.01 of the Revised Code is	5629
presented in this act as a composite of the section as amended by	5630
both Am. Sub. S.B. 181 and Am. Sub. S.B. 232 of the 128th General	5631
Assembly. The General Assembly, applying the principle stated in	5632
division (B) of section 1.52 of the Revised Code that amendments	5633
are to be harmonized if reasonably capable of simultaneous	5634
operation, finds that the composite is the resulting version of	5635
the section in effect prior to the effective date of the section	5636
as presented in this act.	5637