As Reported by the House Public Utilities Committee

129th General Assembly Regular Session 2011-2012

Sub. S. B. No. 315

Senator Jones 

(By Request)

Cosponsors: Senators Coley, Bacon, Balderson, Beagle, Eklund, Lehner, Niehaus, Peterson, Schaffer 

Representative Stautberg 

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A BILL

To amend sections 122.075, 123.011, 125.836, 131.50,

1

133.06, 156.01, 156.02, 156.03, 156.04, 303.213,

2

905.40, 1509.01, 1509.02, 1509.03, 1509.04,

3

1509.06, 1509.07, 1509.10, 1509.11, 1509.22,

4

1509.221, 1509.222, 1509.223, 1509.23, 1509.28,

5

1509.33, 1509.99, 1514.01, 1514.02, 1514.021,

6

1514.03, 1514.05, 3706.27, 4905.03, 4905.90,

7

4905.91, 4905.95, 4906.01, 4906.03, 4906.05,

8

4906.06, 4906.07, 4906.10, 4906.20, 4928.01,

9

4928.02, 4928.2314, 4928.61, 4928.62, 4928.64,

10

4928.66, 4935.04, 5703.21, and 5751.01; to amend,

11

for the purpose of adopting a new section number

12

as indicated in parentheses, section 905.461

13

(905.411); and to enact sections 905.41, 3737.832,

14

4905.911, 4928.111, 4928.70, 4928.71, 4928.72, and

15

6301.12 of the Revised Code to make changes to the

16

energy and natural resources laws and related

17

programs of the state.

18

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

Section 101.01. That sections 122.075, 123.011, 125.836,	19
131.50, 133.06, 156.01, 156.02, 156.03, 156.04, 303.213, 905.40,	20
1509.01, 1509.02, 1509.03, 1509.04, 1509.06, 1509.07, 1509.10,	21
1509.11, 1509.22, 1509.221, 1509.222, 1509.223, 1509.23, 1509.28,	22
1509.33, 1509.99, 1514.01, 1514.02, 1514.021, 1514.03, 1514.05,	23
3706.27, 4905.03, 4905.90, 4905.91, 4905.95, 4906.01, 4906.03,	24
4906.05, 4906.06, 4906.07, 4906.10, 4906.20, 4928.01, 4928.02,	25
4928.2314, 4928.61, 4928.62, 4928.64, 4928.66, 4935.04, 5703.21,	26
and 5751.01 be amended; section 905.461 (905.411) be amended for	27
the purpose of adopting a new section number as indicated in	28
parentheses; and sections 905.41, 3737.832, 4905.911, 4928.111,	29
4928.70, 4928.71, 4928.72, and 6301.12 of the Revised Code be	30
enacted to read as follows:	31

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

32

(1) "Alternative fuel" has the same meaning as in section	33
125.831 of the Revised Code.	34

(2) "Biodiesel" means a mono-alkyl ester combustible liquid	35
fuel that is derived from vegetable oils or animal fats, or any	36
combination of those reagents, and that meets American society for	37
testing and materials specification D6751-03a for biodiesel fuel	38
(B100) blend stock distillate fuels.	39

(3) "Diesel fuel" and "gasoline" have the same meanings as in	40
section 5735.01 of the Revised Code.	41

(4) "Ethanol" has the same meaning as in section 5733.46 of	42
the Revised Code.	43

(5) "Blended biodiesel" means diesel fuel containing at least	44
twenty per cent biodiesel by volume.	45

(6) "Blended gasoline" means gasoline containing at least	46
eighty-five per cent ethanol by volume.	47

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

48

(a) The difference in cost between blended gasoline and	49
gasoline containing ten per cent or less ethanol at the time that	50
the blended gasoline is purchased;	51

(b) The difference in cost between blended biodiesel and	52
diesel fuel containing two per cent or less biodiesel at the time	53
that the blended biodiesel is purchased.	54

(B) For the purpose of improving the air quality in this	55
state, the director of development shall establish an alternative	56
fuel transportation grant program under which the director may	57
make grants and loans to businesses, nonprofit organizations,	58
public school systems, or local governments for the purchase and	59
installation of alternative fuel refueling or distribution	60
facilities and terminals, for the purchase and use of alternative	61
fuel, and to pay the costs of educational and promotional	62
materials and activities intended for prospective alternative fuel	63
consumers, fuel marketers, and others in order to increase the	64
availability and use of alternative fuel.	65

(C) The director, in consultation with the director of	66
agriculture, shall adopt rules in accordance with Chapter 119. of	67
the Revised Code that are necessary for the administration of the	68
alternative fuel transportation grant program. The rules shall	69
establish at least all of the following:	70

(1) An application form and procedures governing the	71
application process for a grantreceiving funds under the program;	72

(2) A procedure for prioritizing the award of grants and	73
loans under the program. The procedures shall give preference to	74
all of the following:	75

(a) Publicly accessible refueling facilities;

76

(b) Entities seeking grantsapplying to the program that have	77
secured funding from other sources, including, but not limited to,	78
private or federal grantsincentives;	79

(c) Entities that have presented compelling evidence of	80
demand in the market in which the facilities or terminals will be	81
located;	82

(d) Entities that have committed to utilizing purchased or	83
installed facilities or terminals for the greatest number of	84
years;	85

(e) Entities that will be purchasing or installing facilities	86
or terminals for any type of alternative fuel.	87

(3) A requirement that the maximum grantincentive for the	88
purchase and installation of an alternative fuel refueling or	89
distribution facility or terminal be eighty per cent of the cost	90
of the facility or terminal, except that at least twenty per cent	91
of the total net cost of the facility or terminal shall be	92
incurred by the grant recipient and not compensated for by any	93
other source;	94

(4) A requirement that the maximum grantincentive for the	95
purchase of alternative fuel be eighty per cent of the cost of the	96
fuel or, in the case of blended biodiesel or blended gasoline,	97
eighty per cent of the incremental cost of the blended biodiesel	98
or blended gasoline;	99

(5) Any other criteria, procedures, or guidelines that the	100
director determines are necessary to administer the program,	101
including fees, charges, interest rates, and payment schedules.	102

(D) An applicant for a grant or loan under this section that	103
sells motor vehicle fuel at retail shall agree that if the	104
applicant receives a grantfunding, the applicant will report to	105
the director the gallon or gallon equivalent amounts of	106
alternative fuel the applicant sells at retail in this state for a	107
period of three years after the grant is awardedproject is	108
completed.	109

The director shall enter into a written confidentiality	110
agreement with the applicant regarding the gallon or gallon	111
equivalent amounts sold as described in this division, and upon	112
execution of the agreement this information is not a public	113
record.	114

(E) There is hereby created in the state treasury the	115
alternative fuel transportation grant fund. The fund shall consist	116
of money transferred to the fund under division (C) of section	117
125.836 and under division (B)(2) of section 3706.27 of the	118
Revised Code, money that is appropriated to it by the general	119
assembly, and money as may be specified by the general assembly	120
from the advanced energy fund created by section 4928.61 of the	121
Revised Code. Money in the fund shall be used to make grants and	122
loans under the alternative fuel transportation grant program and	123
by the director in the administration of that program.	124

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

125

(1) "Construct" includes reconstruct, improve, renovate,	126
enlarge, or otherwise alter.	127

(2) "Energy consumption analysis" means the evaluation of all	128
energy consuming systems, components, and equipment by demand and	129
type of energy, including the internal energy load imposed on a	130
facility by its occupants and the external energy load imposed by	131
climatic conditions.	132

(3) "Energy performance index" means a number describing the	133
energy requirements of a facility per square foot of floor space	134
or per cubic foot of occupied volume as appropriate under defined	135
internal and external ambient conditions over an entire seasonal	136
cycle.	137

(4) "Facility" means a building or other structure, or part	138
of a building or other structure, that includes provision for a	139
heating, refrigeration, ventilation, cooling, lighting, hot water,	140
or other major energy consuming system, component, or equipment.	141

(5) "Life-cycle cost analysis" means a general approach to	142
economic evaluation that takes into account all dollar costs	143
related to owning, operating, maintaining, and ultimately	144
disposing of a project over the appropriate study period.	145

(6) "Political subdivision" means a county, township,	146
municipal corporation, board of education of any school district,	147
or any other body corporate and politic that is responsible for	148
government activities in a geographic area smaller than that of	149
the state.	150

(7) "State funded" means funded in whole or in part through	151
appropriation by the general assembly or through the use of any	152
guarantee provided by this state.	153

(8) "State institution of higher education" has the same	154
meaning as in section 3345.011 of the Revised Code.	155

(9) "Cogeneration" means the simultaneous production of	156
thermal energy and electricity for use primarily within a building	157
or complex of buildings.	158

(B) There is hereby created within the department of	159
administrative services the office of energy services. The office	160
shall be under the supervision of a manager, who shall be	161
appointed by the director of administrative services. The director	162
shall assign to the office such number of employees and furnish	163
such equipment and supplies as are necessary for the performance	164
of the office's duties.	165

The office shall develop energy efficiency and conservation	166
programs in each of the following areas:	167

(1) New construction design and review;

168

(2) Existing building audit and retrofit;

169

(3) Energy efficient procurement;

170

(4) Alternative fuel vehicles.

171

The office may accept and administer grants from public and	172
private sources for carrying out any of its duties under this	173
section.	174

(C) No state agency, department, division, bureau, office,	175
unit, board, commission, authority, quasi-governmental entity, or	176
institution, including those agencies otherwise excluded from the	177
jurisdiction of the department under division (A)(3) of section	178
123.01 of the Revised Code, shall lease, construct, or cause to be	179
leased or constructed, within the limits prescribed in this	180
section, a state-funded facility, without a proper life-cycle cost	181
analysis or, in the case of a lease, an energy consumption	182
analysis, as computed or prepared by a qualified architect or	183
engineer in accordance with the rules required by division (D) of	184
this section.	185

Construction shall proceed only upon the disclosure to the	186
office, for the facility chosen, of the life-cycle costs as	187
determined in this section and the capitalization of the initial	188
construction costs of the building. The results of life-cycle cost	189
analysis shall be a primary consideration in the selection of a	190
building design. That analysis shall be required only for	191
construction of buildings with an area of five thousand square	192
feet or greater. For projects with an estimated construction cost	193
exceeding fifty million dollars, the analysis shall include a	194
review of cogeneration as an energy source. An energy consumption	195
analysis for the term of a proposed lease shall be required only	196
for the leasing of an area of twenty thousand square feet or	197
greater within a given building boundary. That analysis shall be a	198
primary consideration in the selection of a facility to be leased.	199

Nothing in this section shall deprive or limit any state	200
agency that has review authority over design, construction, or	201
leasing plans from requiring a life-cycle cost analysis or energy	202
consumption analysis.	203

(D) For the purposes of assisting the department in its	204
responsibility for state-funded facilities pursuant to section	205
123.01 of the Revised Code and of cost-effectively reducing the	206
energy consumption of those and any other state-funded facilities,	207
thereby promoting fiscal, economic, and environmental benefits to	208
this state, the office shall promulgate rules specifying	209
cost-effective, energy efficiency and conservation standards that	210
may govern the lease, design, construction, operation, and	211
maintenance of all state-funded facilities, except facilities of	212
state institutions of higher education or facilities operated by a	213
political subdivision. The office of energy efficiency in the	214
department of development shall cooperate in providing information	215
and technical expertise to the office of energy services to ensure	216
promulgation of rules of maximum effectiveness. The standards	217
prescribed by rules promulgated under this division may draw from	218
or incorporate, by reference or otherwise and in whole or in part,	219
standards already developed or implemented by any competent,	220
public or private standards organization or program. The rules	221
also may include any of the following:	222

(1) Specifications for a life-cycle cost analysis that shall	223
determine, for the economic life of such state-funded facility,	224
the reasonably expected costs of facility ownership, operation,	225
and maintenance including labor and materials. Life-cycle cost may	226
be expressed as an annual cost for each year of the facility's	227
use.	228

A life-cycle cost analysis additionally may include an energy	229
consumption analysis that conforms to division (D)(2) of this	230
section.	231

(2) Specifications for an energy consumption analysis of the	232
facility's heating, refrigeration, ventilation, cooling, lighting,	233
hot water, and other major energy consuming systems, components,	234
and equipment.	235

A life-cycle cost analysis and energy consumption analysis	236
shall be based on the best currently available methods of	237
analysis, such as those of the national institute of standards and	238
technology, the United States department of energy or other	239
federal agencies, professional societies, and directions developed	240
by the department.	241

(3) Specifications for energy performance indices, to be used	242
to audit and evaluate competing design proposals submitted to the	243
state.	244

(4) A requirement that, not later than two years after April	245
6, 2007, each state-funded facility, except a facility of a state	246
institution of higher education or a facility operated by a	247
political subdivision, is managed by at least one building	248
operator certified under the building operator certification	249
program or any equivalent program or standards as shall be	250
prescribed in the rules and considered reasonably equivalent.	251

(5) An application process by which a manager of a specified	252
state-funded facility, except a facility of a state institution of	253
higher education or a facility operated by a political	254
subdivision, may apply for a waiver of compliance with any	255
provision of the rules required by divisions (D)(1) to (4) of this	256
section.	257

(E) The office of energy services shall promulgate rules to	258
ensure that energy efficiency and conservation will be considered	259
in the purchase of products and equipment, except motor vehicles,	260
by any state agency, department, division, bureau, office, unit,	261
board, commission, authority, quasi-governmental entity, or	262
institution. Minimum energy efficiency standards for purchased	263
products and equipment may be required, based on federal testing	264
and labeling where available or on standards developed by the	265
office. The rules shall apply to the competitive selection of	266
energy consuming systems, components, and equipment under Chapter	267
125. of the Revised Code where possible.	268

The office also shall ensure energy efficient and energy	269
conserving purchasing practices by doing all of the following:	270

(1) Cooperatively with the office of energy efficiency,	271
identifying available energy efficiency and conservation	272
opportunities;	273

(2) Providing for interchange of information among purchasing	274
agencies;	275

(3) Identifying laws, policies, rules, and procedures that	276
need modification;	277

(4) Monitoring experience with and the cost-effectiveness of	278
this state's purchase and use of motor vehicles and of major	279
energy-consuming systems, components, equipment, and products	280
having a significant impact on energy consumption by government;	281

(5) Cooperatively with the office of energy efficiency,	282
providing technical assistance and training to state employees	283
involved in the purchasing process.	284

The department of development shall make recommendations to	285
the office regarding planning and implementation of purchasing	286
policies and procedures supportive of energy efficiency and	287
conservation.	288

(F)(1) The office of energy services shall require all state	289
agencies, departments, divisions, bureaus, offices, units,	290
commissions, boards, authorities, quasi-governmental entities,	291
institutions, and state institutions of higher education to	292
implement procedures ensuring that all their passenger automobiles	293
acquired in each fiscal year, except for those passenger	294
automobiles acquired for use in law enforcement or emergency	295
rescue work, achieve a fleet average fuel economy of not less than	296
the fleet average fuel economy for that fiscal year as shall be	297
prescribed by the office by rule. The office shall promulgate the	298
rule prior to the beginning of the fiscal year in accordance with	299
the average fuel economy standards established pursuant to federal	300
law for passenger automobiles manufactured during the model year	301
that begins during the fiscal year.	302

(2) Each state agency, department, division, bureau, office,	303
unit, commission, board, authority, quasi-governmental entity,	304
institution, and state institution of higher education shall	305
determine its fleet average fuel economy by dividing:	306

(a) The total number of passenger vehicles acquired during	307
the fiscal year, except for those passenger vehicles acquired for	308
use in law enforcement or emergency rescue work, by	309

(b) A sum of terms, each of which is a fraction created by	310
dividing:	311

(i) The number of passenger vehicles of a given make, model,	312
and year, except for passenger vehicles acquired for use in law	313
enforcement or emergency rescue work, acquired during the fiscal	314
year, by	315

(ii) The fuel economy measured by the administrator of the	316
United States environmental protection agency, for the given make,	317
model, and year of vehicle, that constitutes an average fuel	318
economy for combined city and highway driving.	319

As used in division (F)(2) of this section, "acquired" means	320
leased for a period of sixty continuous days or more, or	321
purchased.	322

(G) Each state agency, department, division, bureau, office,	323
unit, board, commission, authority, quasi-governmental entity,	324
institution, and state institution of higher education shall	325
comply with any applicable provision of this section or of a rule	326
promulgated pursuant to division (D) or (F) of this section.	327

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

328

(1) "Biodiesel," "blended biodiesel," and "diesel fuel" have	329
the same meanings as in section 125.831 of the Revised Code.	330

(2) "Credit" means a credit generated by the acquisition of	331
alternative fueled vehicles in accordance with the "Energy Policy	332
Act of 1992," 106 Stat. 2897, 42 U.S.C. 13257.	333

(3) "Incremental cost" means the difference in cost between	334
blended biodiesel and conventional petroleum-based diesel fuel at	335
the time the blended biodiesel is purchased.	336

(B) The department of administrative services shall establish	337
and administer a credit banking and selling program. The	338
department may sell or trade credits in accordance with procedures	339
established pursuant to the "Energy Policy Act of 1992," 106 Stat.	340
2897, 42 U.S.C. 13258.	341

(C) There is hereby created in the state treasury the	342
"biodiesel revolving fund," to which shall be credited moneys	343
received from the sale of credits under this section, any moneys	344
appropriated to the fund by the general assembly, and any other	345
moneys obtained or accepted by the department for crediting to the	346
fund. Moneys credited to the fund shall be used to pay for the	347
incremental cost of biodiesel for use in vehicles owned or leased	348
by the state that use diesel fuel. The director of administrative	349
services, after consultation with the director of development, may	350
direct the director of budget and management to transfer available	351
moneys in the biodiesel revolving fund to the alternative fuel	352
transportation grant fund created in section 122.075 of the	353
Revised Code to be used by the department of development for the	354
purposes specified in that section.	355

(D) The director of administrative services shall adopt rules	356
under Chapter 119. of the Revised Code that are necessary for the	357
administration of the credit banking and selling program.	358

Sec. 131.50.  (A) There is hereby created in the state	359
treasury the state land royalty fund consisting of money credited	360
to it under section 1509.73 of the Revised Code. Any investment	361
proceeds earned on money in the fund shall be credited to the fund	362
and used as required in division (B) or (C) of this section.	363

(B) MoneyExcept as provided in division (C) of this section,	364
money in the state land royalty fund shall be used by state	365
agencies to acquire land and to pay capital costs of state	366
agencies, including equipment and renovations and repairs of	367
facilities, that have contributed to the fund under section	368
1509.73 of the Revised Code. Such a state agency is entitled to	369
receive from the fund the amount that the state agency contributed	370
and a share of the investment earnings of the fund in an amount	371
that is equivalent to the proportionate share of contributions	372
made by the state agency to the fund.	373

(C) Money in the fund that is allocated to a state college or	374
university may be used to pay for operating expenses associated	375
with any property that is owned by the college or university and	376
that is at least partially used for the exploration, development,	377
and production of oil or gas if both of the following apply:	378

(1) The state college or university is engaged in research at	379
the property or in education or outreach regarding the property.	380

(2) The research, education, or outreach is associated with	381
furthering the public understanding of how oil and gas	382
exploration, development, or production potentially benefits the	383
public and impacts the use of the state's natural resources.	384

(D) As used in this section, "state agency" has the same	385
meaning as in section 1509.70 of the Revised Code.	386

Sec. 133.06.  (A) A school district shall not incur, without	387
a vote of the electors, net indebtedness that exceeds an amount	388
equal to one-tenth of one per cent of its tax valuation, except as	389
provided in divisions (G) and (H) of this section and in division	390
(C) of section 3313.372 of the Revised Code, or as prescribed in	391
section 3318.052 or 3318.44 of the Revised Code, or as provided in	392
division (J) of this section.	393

(B) Except as provided in divisions (E), (F), and (I) of this	394
section, a school district shall not incur net indebtedness that	395
exceeds an amount equal to nine per cent of its tax valuation.	396

(C) A school district shall not submit to a vote of the	397
electors the question of the issuance of securities in an amount	398
that will make the district's net indebtedness after the issuance	399
of the securities exceed an amount equal to four per cent of its	400
tax valuation, unless the superintendent of public instruction,	401
acting under policies adopted by the state board of education, and	402
the tax commissioner, acting under written policies of the	403
commissioner, consent to the submission. A request for the	404
consents shall be made at least one hundred twenty days prior to	405
the election at which the question is to be submitted.	406

The superintendent of public instruction shall certify to the	407
district the superintendent's and the tax commissioner's decisions	408
within thirty days after receipt of the request for consents.	409

If the electors do not approve the issuance of securities at	410
the election for which the superintendent of public instruction	411
and tax commissioner consented to the submission of the question,	412
the school district may submit the same question to the electors	413
on the date that the next special election may be held under	414
section 3501.01 of the Revised Code without submitting a new	415
request for consent. If the school district seeks to submit the	416
same question at any other subsequent election, the district shall	417
first submit a new request for consent in accordance with this	418
division.	419

(D) In calculating the net indebtedness of a school district,	420
none of the following shall be considered:	421

(1) Securities issued to acquire school buses and other	422
equipment used in transporting pupils or issued pursuant to	423
division (D) of section 133.10 of the Revised Code;	424

(2) Securities issued under division (F) of this section,	425
under section 133.301 of the Revised Code, and, to the extent in	426
excess of the limitation stated in division (B) of this section,	427
under division (E) of this section;	428

(3) Indebtedness resulting from the dissolution of a joint	429
vocational school district under section 3311.217 of the Revised	430
Code, evidenced by outstanding securities of that joint vocational	431
school district;	432

(4) Loans, evidenced by any securities, received under	433
sections 3313.483, 3317.0210, 3317.0211, and 3317.64 of the	434
Revised Code;	435

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

436

(6) Debt incurred pursuant to division (B)(5) of section	437
3313.37 of the Revised Code to acquire computers and related	438
hardware;	439

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

440

(E) A school district may become a special needs district as	441
to certain securities as provided in division (E) of this section.	442

(1) A board of education, by resolution, may declare its	443
school district to be a special needs district by determining both	444
of the following:	445

(a) The student population is not being adequately serviced	446
by the existing permanent improvements of the district.	447

(b) The district cannot obtain sufficient funds by the	448
issuance of securities within the limitation of division (B) of	449
this section to provide additional or improved needed permanent	450
improvements in time to meet the needs.	451

(2) The board of education shall certify a copy of that	452
resolution to the superintendent of public instruction with a	453
statistical report showing all of the following:	454

(a) The history of and a projection of the growth of the tax	455
valuation;	456

(b) The projected needs;

457

(c) The estimated cost of permanent improvements proposed to	458
meet such projected needs.	459

(3) The superintendent of public instruction shall certify	460
the district as an approved special needs district if the	461
superintendent finds both of the following:	462

(a) The district does not have available sufficient	463
additional funds from state or federal sources to meet the	464
projected needs.	465

(b) The projection of the potential average growth of tax	466
valuation during the next five years, according to the information	467
certified to the superintendent and any other information the	468
superintendent obtains, indicates a likelihood of potential	469
average growth of tax valuation of the district during the next	470
five years of an average of not less than one and one-half per	471
cent per year. The findings and certification of the	472
superintendent shall be conclusive.	473

(4) An approved special needs district may incur net	474
indebtedness by the issuance of securities in accordance with the	475
provisions of this chapter in an amount that does not exceed an	476
amount equal to the greater of the following:	477

(a) Twelve per cent of the sum of its tax valuation plus an	478
amount that is the product of multiplying that tax valuation by	479
the percentage by which the tax valuation has increased over the	480
tax valuation on the first day of the sixtieth month preceding the	481
month in which its board determines to submit to the electors the	482
question of issuing the proposed securities;	483

(b) Twelve per cent of the sum of its tax valuation plus an	484
amount that is the product of multiplying that tax valuation by	485
the percentage, determined by the superintendent of public	486
instruction, by which that tax valuation is projected to increase	487
during the next ten years.	488

(F) A school district may issue securities for emergency	489
purposes, in a principal amount that does not exceed an amount	490
equal to three per cent of its tax valuation, as provided in this	491
division.	492

(1) A board of education, by resolution, may declare an	493
emergency if it determines both of the following:	494

(a) School buildings or other necessary school facilities in	495
the district have been wholly or partially destroyed, or condemned	496
by a constituted public authority, or that such buildings or	497
facilities are partially constructed, or so constructed or planned	498
as to require additions and improvements to them before the	499
buildings or facilities are usable for their intended purpose, or	500
that corrections to permanent improvements are necessary to remove	501
or prevent health or safety hazards.	502

(b) Existing fiscal and net indebtedness limitations make	503
adequate replacement, additions, or improvements impossible.	504

(2) Upon the declaration of an emergency, the board of	505
education may, by resolution, submit to the electors of the	506
district pursuant to section 133.18 of the Revised Code the	507
question of issuing securities for the purpose of paying the cost,	508
in excess of any insurance or condemnation proceeds received by	509
the district, of permanent improvements to respond to the	510
emergency need.	511

(3) The procedures for the election shall be as provided in	512
section 133.18 of the Revised Code, except that:	513

(a) The form of the ballot shall describe the emergency	514
existing, refer to this division as the authority under which the	515
emergency is declared, and state that the amount of the proposed	516
securities exceeds the limitations prescribed by division (B) of	517
this section;	518

(b) The resolution required by division (B) of section 133.18	519
of the Revised Code shall be certified to the county auditor and	520
the board of elections at least one hundred days prior to the	521
election;	522

(c) The county auditor shall advise and, not later than	523
ninety-five days before the election, confirm that advice by	524
certification to, the board of education of the information	525
required by division (C) of section 133.18 of the Revised Code;	526

(d) The board of education shall then certify its resolution	527
and the information required by division (D) of section 133.18 of	528
the Revised Code to the board of elections not less than ninety	529
days prior to the election.	530

(4) Notwithstanding division (B) of section 133.21 of the	531
Revised Code, the first principal payment of securities issued	532
under this division may be set at any date not later than sixty	533
months after the earliest possible principal payment otherwise	534
provided for in that division.	535

(G) The board of education may contract with an architect,	536
professional engineer, or other person experienced in the design	537
and implementation of energy conservation measures for an analysis	538
and recommendations pertaining to installations, modifications of	539
installations, or remodeling that would significantly reduce	540
energy consumption in buildings owned by the district. The report	541
shall include estimates of all costs of such installations,	542
modifications, or remodeling, including costs of design,	543
engineering, installation, maintenance, repairs, and debt service,	544
forgone residual value of materials or equipment replaced by the	545
energy conservation measure, as defined by the Ohio school	546
facilities commission, a baseline analysis of actual energy	547
consumption data for the preceding fivethree years, and estimates	548
of the amounts by which energy consumption and resultant	549
operational and maintenance costs, as defined by the commission,	550
would be reduced.	551

If the board finds after receiving the report that the amount	552
of money the district would spend on such installations,	553
modifications, or remodeling is not likely to exceed the amount of	554
money it would save in energy and resultant operational and	555
maintenance costs over the ensuing fifteen years, the board may	556
submit to the commission a copy of its findings and a request for	557
approval to incur indebtedness to finance the making or	558
modification of installations or the remodeling of buildings for	559
the purpose of significantly reducing energy consumption.	560

If the commission determines that the board's findings are	561
reasonable, it shall approve the board's request. Upon receipt of	562
the commission's approval, the district may issue securities	563
without a vote of the electors in a principal amount not to exceed	564
nine-tenths of one per cent of its tax valuation for the purpose	565
of making such installations, modifications, or remodeling, but	566
the total net indebtedness of the district without a vote of the	567
electors incurred under this and all other sections of the Revised	568
Code, except section 3318.052 of the Revised Code, shall not	569
exceed one per cent of the district's tax valuation.	570

So long as any securities issued under division (G) of this	571
section remain outstanding, the board of education shall monitor	572
the energy consumption and resultant operational and maintenance	573
costs of buildings in which installations or modifications have	574
been made or remodeling has been done pursuant to division (G) of	575
this section and shall maintain and annually update a report	576
documenting the reductions in energy consumption and resultant	577
operational and maintenance cost savings attributable to such	578
installations, modifications, or remodeling. The report shall be	579
certified by an architect or engineer independent of any person	580
that provided goods or services to the board in connection with	581
the energy conservation measures that are the subject of the	582
report. The resultant operational and maintenance cost savings	583
shall be certified by the school district treasurer. The report	584
shall be submitted annually to the commission.	585

(H) With the consent of the superintendent of public	586
instruction, a school district may incur without a vote of the	587
electors net indebtedness that exceeds the amounts stated in	588
divisions (A) and (G) of this section for the purpose of paying	589
costs of permanent improvements, if and to the extent that both of	590
the following conditions are satisfied:	591

(1) The fiscal officer of the school district estimates that	592
receipts of the school district from payments made under or	593
pursuant to agreements entered into pursuant to section 725.02,	594
1728.10, 3735.671, 5709.081, 5709.082, 5709.40, 5709.41, 5709.62,	595
5709.63, 5709.632, 5709.73, 5709.78, or 5709.82 of the Revised	596
Code, or distributions under division (C) of section 5709.43 of	597
the Revised Code, or any combination thereof, are, after	598
accounting for any appropriate coverage requirements, sufficient	599
in time and amount, and are committed by the proceedings, to pay	600
the debt charges on the securities issued to evidence that	601
indebtedness and payable from those receipts, and the taxing	602
authority of the district confirms the fiscal officer's estimate,	603
which confirmation is approved by the superintendent of public	604
instruction;	605

(2) The fiscal officer of the school district certifies, and	606
the taxing authority of the district confirms, that the district,	607
at the time of the certification and confirmation, reasonably	608
expects to have sufficient revenue available for the purpose of	609
operating such permanent improvements for their intended purpose	610
upon acquisition or completion thereof, and the superintendent of	611
public instruction approves the taxing authority's confirmation.	612

The maximum maturity of securities issued under division (H)	613
of this section shall be the lesser of twenty years or the maximum	614
maturity calculated under section 133.20 of the Revised Code.	615

(I) A school district may incur net indebtedness by the	616
issuance of securities in accordance with the provisions of this	617
chapter in excess of the limit specified in division (B) or (C) of	618
this section when necessary to raise the school district portion	619
of the basic project cost and any additional funds necessary to	620
participate in a project under Chapter 3318. of the Revised Code,	621
including the cost of items designated by the Ohio school	622
facilities commission as required locally funded initiatives, the	623
cost of other locally funded initiatives in an amount that does	624
not exceed fifty per cent of the district's portion of the basic	625
project cost, and the cost for site acquisition. The school	626
facilities commission shall notify the superintendent of public	627
instruction whenever a school district will exceed either limit	628
pursuant to this division.	629

(J) A school district whose portion of the basic project cost	630
of its classroom facilities project under sections 3318.01 to	631
3318.20 of the Revised Code is greater than or equal to one	632
hundred million dollars may incur without a vote of the electors	633
net indebtedness in an amount up to two per cent of its tax	634
valuation through the issuance of general obligation securities in	635
order to generate all or part of the amount of its portion of the	636
basic project cost if the controlling board has approved the	637
school facilities commission's conditional approval of the project	638
under section 3318.04 of the Revised Code. The school district	639
board and the Ohio school facilities commission shall include the	640
dedication of the proceeds of such securities in the agreement	641
entered into under section 3318.08 of the Revised Code. No state	642
moneys shall be released for a project to which this section	643
applies until the proceeds of any bonds issued under this section	644
that are dedicated for the payment of the school district portion	645
of the project are first deposited into the school district's	646
project construction fund.	647

Sec. 156.01.  As used in sections 156.01 to 156.05 of the	648
Revised Code:	649

(A) "Avoided capital costs" means a measured reduction in the	650
cost of future equipment or other capital purchases that results	651
from implementation of one or more energy or water conservation	652
measures, when compared to an established baseline for previous	653
such cost.	654

(B) "Energy conservation measure" means an installation or	655
modification of an installation in, or a remodeling of, an	656
existing building in order to reduce energy consumption and	657
operating costs. The term includes any of the following:	658

(1) Installation or modification of insulation in the	659
building structure and systems within the building;	660

(2) Installation or modification of storm windows and doors,	661
multiglazed windows and doors, and heat absorbing or heat	662
reflective glazed and coated window and door systems; installation	663
of additional glazing; reductions in glass area; and other window	664
and door system modifications that reduce energy consumption and	665
operating costs;	666

(3) Installation or modification of automatic energy control	667
systems;	668

(4) Replacement or modification of heating, ventilating, or	669
air conditioning systems;	670

(5) Application of caulking and weather stripping;

671

(6) Replacement or modification of lighting fixtures to	672
increase the energy efficiency of the lighting system without	673
increasing the overall illumination of a building unless the	674
increase in illumination is necessary to conform to the applicable	675
state or local building code for the proposed lighting system;	676

(7) Installation or modification of energy recovery systems;

677

(8) Installation or modification of cogeneration systems that	678
produce steam or forms of energy such as heat, as well as	679
electricity, for use primarily within a building or complex of	680
buildings;	681

(9) Installation or modification of trigeneration systems	682
that produce heat and cooling, as well as electricity, for use	683
primarily within a building or complex of buildings;	684

(10) Installation or modification of systems that harvest	685
renewable energy from solar, wind, water, biomass, bio-gas, or	686
geothermal sources, for use primarily within a building or complex	687
of buildings;	688

(11) Retro-commissioning or recommissioning energy-related	689
systems to verify that they are installed and calibrated to	690
optimize energy and operational performance within a building or	691
complex of buildings;	692

(12) Consolidation, virtualization, and optimization of	693
computer servers, data storage devices, or other information	694
technology hardware and infrastructure;	695

(13) Any other modification, installation, or remodeling	696
approved by the director of administrative services as an energy	697
conservation measure for one or more buildings owned by theeither	698
of the following:	699

(a) The state;

700

(b) A state institution of higher education as defined in	701
section 3345.011 of the Revised Code that implements the energy	702
conservation measure in consultation with the director.	703

(C) "Energy saving measure" means the acquisition and	704
installation, by purchase, lease, lease-purchase, lease with an	705
option to buy, or installment purchase, of an energy conservation	706
measure and any attendant architectural and engineering consulting	707
services.	708

(D) "Energy, water, or wastewater cost savings" means a	709
measured reduction in, as applicable, the cost of fuel, energy or	710
water consumption, wastewater production, or stipulated operation	711
or maintenance resulting from the implementation of one or more	712
energy or water conservation measures, when compared to an	713
established baseline for previous such costs, respectively.	714

(E) "Operating cost savings" means a measured reduction in	715
the cost of stipulated operation or maintenance created by the	716
installation of new equipment or implementation of a new service,	717
when compared with an established baseline for previous such	718
stipulated costs.	719

(F) "Water conservation measure" means an installation or	720
modification of an installation in, or a remodeling of, an	721
existing building or the surrounding grounds in order to reduce	722
water consumption. The term includes any of the following:	723

(1) Water-conserving fixture, appliance, or equipment, or the	724
substitution of a nonwater-using fixture, appliance, or equipment;	725

(2) Water-conserving, landscape irrigation equipment;

726

(3) Landscaping measure that reduces storm water runoff	727
demand and capture and hold applied water and rainfall, including	728
landscape contouring such as the use of a berm, swale, or terrace	729
and including the use of a soil amendment, including compost, that	730
increases the water-holding capacity of the soil;	731

(4) Rainwater harvesting equipment or equipment to make use	732
of water collected as part of a storm water system installed for	733
water quality control;	734

(5) Equipment for recycling or reuse of water originating on	735
the premises or from another source, including treated, municipal	736
effluent;	737

(6) Equipment needed to capture water for nonpotable uses	738
from any nonconventional, alternate source, including air	739
conditioning condensate or gray water;	740

(7) Any other modification, installation, or remodeling	741
approved by the board of trustees of a state institution of higher	742
education as defined in section 3345.011 of the Revised Code	743
director of administrative services as a water conservation	744
measure for one or more buildings or the surrounding grounds owned	745
by either of the following:	746

(a) The state;

747

(b) A state institution of higher education as defined in	748
section 3345.011 of the Revised Code that implements the water	749
conservation measure in consultation with the director.	750

(G) "Water saving measure" means the acquisition and	751
installation, by the purchase, lease, lease-purchase, lease with	752
an option to buy, or installment purchases of a water conservation	753
measure and any attendant architectural and engineering consulting	754
services.	755

Sec. 156.02. (A) The director of administrative services may	756
contract with an energy services company, contractor, architect,	757
professional engineer, or other person experienced in the design	758
and implementation of energy conservation measures for a report	759
containing an analysis and recommendations pertaining to the	760
implementation of energy conservation measures that would	761
significantly reduce energy consumption and operating costs in any	762
buildings owned by the state. The report shall include estimates	763
of all costs of such measures, including the costs of design,	764
engineering, installation, maintenance, repairs, and debt service,	765
and estimates of the amounts by which energy consumption and	766
operating costs would be reduced.	767

(B) Upon the request of the board of trustees or managing	768
authority of a state institution of higher education as defined in	769
section 3345.011 of the Revised Code, the director may contract	770
withor a water services company, architect, professional	771
engineer, contractor, or other person experienced in the design	772
and implementation of energy or water conservation measures for a	773
report containing an analysis and recommendations pertaining to	774
the implementation of energy or water conservation measures that	775
result in energy, water, or wastewater cost savings, operating	776
cost savings, or avoided capital costs for the institution. The	777
report shall include estimates of all costs of such installations,	778
including the costs of design, engineering, installation,	779
maintenance, repairs, and debt service, and estimates of the	780
energy, water, or wastewater cost savings, operating cost savings,	781
and avoided capital costs created.	782

Sec. 156.03.  (A) If the director of administrative services	783
wishes to enter into an installment payment contract pursuant to	784
section 156.04 of the Revised Code or any other contract to	785
implement one or more energy saving measures or, in the case of a	786
state institution of higher education pursuant to division (B) of	787
section 156.02 of the Revised Code, energy or water saving	788
measures, the director may proceed under Chapter 153. of the	789
Revised Code, or, alternatively, the director may request the	790
controlling board to exempt the contract from Chapter 153. of the	791
Revised Code.	792

If the controlling board by a majority vote approves an	793
exemption, that chapter shall not apply to the contract and	794
instead the director shall request proposals from at least three	795
parties for the implementation of the energy or water saving	796
measures. Prior to providing any interested party a copy of any	797
such request, the director shall advertise, in a newspaper of	798
general circulation in the county where the contract is to be	799
performed, and may advertise by electronic means pursuant to rules	800
adopted by the director, the director's intent to request	801
proposals for the implementation of the energy or water saving	802
measures. The notice shall invite interested parties to submit	803
proposals for consideration and shall be published at least thirty	804
days prior to the date for accepting proposals.	805

(B) Upon receiving the proposals, the director shall analyze	806
them and, after considering the cost estimates of each proposal	807
and the availability of funds to pay for each with current	808
appropriations or by financing the cost of each through an	809
installment payment contract under section 156.04 of the Revised	810
Code, may select one or more proposals or reject all proposals. In	811
selecting proposals, the director shall select the one or more	812
proposals most likely to result in the greatest savings when the	813
cost of the proposal is compared to the reduced energy and	814
operating costs that will result from implementing the proposal.	815
However, in the case of a state institution of higher education	816
pursuant to division (B) of section 156.02 of the Revised Code,	817
the director shall select the one or more proposals most likely to	818
result in the greatest energy, water, or wastewater savings,	819
operating costs savings, and avoided capital costs created.	820

(C)(1) No contract shall be awarded to implement energy or	821
water saving measures under this section, other than in the case	822
of a state institution of higher education, unless the director	823
finds that one or both of the following circumstances exists, as	824
applicable:	825

(a) In the case of a contract for a cogeneration system	826
described in division (H) of section 156.01 of the Revised Code,	827
the cost of the contract is not likely to exceed the amount of	828
money that would be saved in energy and operating costs over no	829
more than five years;	830

(b) In the case of any contract for any energy saving measure	831
other than a cogeneration system, the cost of the contract is not	832
likely to exceed the amount of money that would be saved in energy	833
and operating costs over no more than ten years.	834

(2) In the case of a state institution of higher education	835
pursuant to division (B) of section 156.02 of the Revised Code, no	836
contract shall be awarded to implement energy or water saving	837
measures for the institution under this section unless the	838
director finds that both of the following circumstances exists:	839

(a)(1) Not less than one-fifteenth of the costs of the	840
contract shall be paid within two years from the date of purchase;	841

(b) The(2) In the case of a contract for a cogeneration	842
system described in division (B)(8) of section 156.01 of the	843
Revised Code, the remaining balance of the cost of the contract	844
shall be paid within fifteentwenty years from the date of	845
purchase, and, in the case of all other contracts, fifteen years.	846

Sec. 156.04.  (A) In accordance with this section and section	847
156.03 of the Revised Code, the director of administrative	848
services may enter into an installment payment contract for the	849
implementation of one or more energy or water saving measures. If	850
the director wishes an installment payment contract to be exempted	851
from Chapter 153. of the Revised Code, the director shall proceed	852
pursuant to section 156.03 of the Revised Code.	853

(B)(1) Any installment payment contract under this section,	854
other than in the case of a state institution of higher education,	855
for one or more energy saving measures shall provide that all	856
payments, except payments for repairs and obligations on	857
termination of the contract prior to its expiration, are to be a	858
stated percentage of calculated savings of energy and operating	859
costs attributable to the one or more measures over a defined	860
period of time and are to be made only to the extent that those	861
savings actually occur. No such contract shall contain any of the	862
following:	863

(a) A requirement of any additional capital investment or	864
contribution of funds, other than funds available from state or	865
federal grants;	866

(b) In the case of a contract for an energy saving measure	867
that is a cogeneration system described in division (H) of section	868
156.01 of the Revised Code, a payment term longer than five years;	869

(c) In the case of a contract for any energy saving measure	870
that is not a cogeneration system, a payment term longer than ten	871
years.	872

(2) Any installment payment contract under this section for	873
one or more energy or water saving measures for a state	874
institution of higher education pursuant to division (B) of	875
section 156.02 of the Revised Code, shall provide that all	876
payments, except payments for repairs and obligations on	877
termination of the contract prior to its expiration, are to be a	878
stated percentage of calculated energy, water, or wastewater cost	879
savings, operating costs, and avoided capital costs attributable	880
to the one or more measures over a defined period of time and are	881
to be made only to the extent that those calculated amounts	882
actually occur. No such contract shall contain either of the	883
following:	884

(a)(1) A requirement of any additional capital investment or	885
contribution of funds, other than funds available from state or	886
federal grants;	887

(b) A(2) In the case of a contract for a cogeneration system	888
described in division (B)(8) of section 156.01 of the Revised	889
Code, a payment term longer than twenty years, and, in the case of	890
all other contracts, a payment term longer than fifteen years.	891

(C) Any installment payment contract entered into under this	892
section shall terminate no later than the last day of the fiscal	893
biennium for which funds have been appropriated to the department	894
of administrative services by the general assembly and shall be	895
renewed in each succeeding fiscal biennium in which any balance of	896
the contract remains unpaid, provided that both an appropriation	897
for that succeeding fiscal biennium and the certification required	898
by section 126.07 of the Revised Code are made.	899

(D) Any installment payment contract entered into under this	900
section shall be eligible for financing provided through the Ohio	901
air quality development authority under Chapter 3706. of the	902
Revised Code.	903

Sec. 303.213. (A) As used in this section, "small wind farm"	904
means wind turbines and associated facilities with a single	905
interconnection to the electrical grid and designed for, or	906
capable of, operation at an aggregate capacity of less than five	907
megawatts.	908

(B) Notwithstanding division (A) of section 303.211 of the	909
Revised Code, sections 303.01 to 303.25 of the Revised Code confer	910
power on a board of county commissioners or board of zoning	911
appeals to adopt zoning regulations governing the location,	912
erection, construction, reconstruction, change, alteration,	913
maintenance, removal, use, or enlargement of any small wind farm,	914
whether publicly or privately owned, or the use of land for that	915
purpose, which regulations may be more strict than the regulations	916
prescribed in rules adopted under division (C)(B)(2) of section	917
4906.20 of the Revised Code.	918

(C) The designation under this section of a small wind farm	919
as a public utility for purposes of sections 303.01 to 303.25 of	920
the Revised Code shall not affect the classification of a small	921
wind farm for purposes of state or local taxation.	922

(D) Nothing in division (C) of this section shall be	923
construed as affecting the classification of a telecommunications	924
tower as defined in division (B) or (E) of section 303.211 of the	925
Revised Code or any other public utility for purposes of state and	926
local taxation.	927

Sec. 905.40.  The director of agriculture may promulgate,	928
shall adopt, and enforce uniform rules:	929

(A) Governing the storing and handling of fertilizers;

930

(B) For safety in the design, construction, location,	931
installation, or operation of equipment for storing, handling,	932
transporting, and utilizing anhydrous ammonia, aqueous ammonia, or	933
other solutions for use as agricultural fertilizers;. In addition,	934
with regard to anhydrous ammonia that is used for agricultural	935
purposes, the rules shall establish standards and procedures for	936
the approval or disapproval of the design and construction of	937
storage facilities for anhydrous ammonia and procedures for	938
applying for such approval, including the form of the application.	939

(C) To prohibit the reselling or reuse of such containers	940
without authorization by the owner thereof;	941

(D) Requiring that guaranteed analysis be stated in a form	942
other than that defined in section 905.31 of the Revised Code when	943
another form will not impose an economic hardship on	944
manufacturers, distributors, and users of fertilizer by reason of	945
conflicting labeling requirements among the states.	946

Sec. 905.41. (A) A storage facility for anhydrous ammonia	947
that is used for agricultural purposes shall be designed and	948
constructed in accordance with rules adopted under section 905.40	949
of the Revised Code. On and after the effective date of this	950
section, no person shall construct a storage facility for	951
anhydrous ammonia that is used for agricultural purposes without	952
applying for and receiving approval of the design of the facility	953
and approval to construct the facility from the director of	954
agriculture in accordance with those rules.	955

(B) Upon the submission of an application to the director for	956
the approval of the design and construction of a storage facility	957
for anhydrous ammonia that is used for agricultural purposes in	958
accordance with rules adopted under section 905.40 of the Revised	959
Code, the applicant shall submit written notification of the	960
application to all of the following:	961

(1) The board of township trustees of the township or the	962
legislative authority of the municipal corporation, as applicable,	963
in which the storage facility is proposed to be located;	964

(2) The county sheriff, or the police chief of the police	965
department of a municipal corporation, township, or township or	966
joint township police district, as applicable, with jurisdiction	967
over the location where the storage facility is proposed to be	968
located;	969

(3) The fire chief of the fire department with jurisdiction	970
over the location where the storage facility is proposed to be	971
located.	972

(C) Prior to approving or disapproving a storage facility for	973
anhydrous ammonia that is used for agricultural purposes, the	974
director may take into consideration any past violations of an	975
applicable state or federal law pertaining to environmental	976
protection or the environmental laws of another country or any	977
conviction of or guilty plea to a violation of section 901.511 of	978
the Revised Code or a felony drug offense as defined in section	979
2925.01 of the Revised Code related to the use and storage of	980
chemicals used for agriculture by the owner of the storage	981
facility.	982

Sec. 905.461.        Sec. 905.411.  The director of agriculture may issue	983
an order prohibiting the use of anhydrous ammonia equipment found	984
not to comply with rules adopted under division (B) of section	985
905.40 of the Revised Code. No person shall use the equipment	986
until a release in writing is issued by the director.	987

The director shall not issue a release until both of the	988
following have occurred:	989

(A) The director has inspected the anhydrous ammonia	990
equipment and has found that the equipment complies with rules	991
adopted under division (B) of section 905.40 of the Revised Code;	992

(B) The person in control of the anhydrous ammonia equipment	993
at the time of the noncompliance has paid the director in an	994
amount equal to all expenses incurred by the director due to the	995
order prohibiting use of the equipment.	996

Sec. 1509.01.  As used in this chapter:

997

(A) "Well" means any borehole, whether drilled or bored,	998
within the state for production, extraction, or injection of any	999
gas or liquid mineral, excluding potable water to be used as such,	1000
but including natural or artificial brines and oil field waters.	1001

(B) "Oil" means crude petroleum oil and all other	1002
hydrocarbons, regardless of gravity, that are produced in liquid	1003
form by ordinary production methods, but does not include	1004
hydrocarbons that were originally in a gaseous phase in the	1005
reservoir.	1006

(C) "Gas" means all natural gas and all other fluid	1007
hydrocarbons that are not oil, including condensate.	1008

(D) "Condensate" means liquid hydrocarbons that were	1009
originally in the gaseous phase in the reservoirseparated at or	1010
near the well pad or along the gas production or gathering system	1011
prior to gas processing.	1012

(E) "Pool" means an underground reservoir containing a common	1013
accumulation of oil or gas, or both, but does not include a gas	1014
storage reservoir. Each zone of a geological structure that is	1015
completely separated from any other zone in the same structure may	1016
contain a separate pool.	1017

(F) "Field" means the general area underlaid by one or more	1018
pools.	1019

(G) "Drilling unit" means the minimum acreage on which one	1020
well may be drilled, but does not apply to a well for injecting	1021
gas into or removing gas from a gas storage reservoir.	1022

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

1023

(1) Physical waste, as that term generally is understood in	1024
the oil and gas industry;	1025

(2) Inefficient, excessive, or improper use, or the	1026
unnecessary dissipation, of reservoir energy;	1027

(3) Inefficient storing of oil or gas;

1028

(4) Locating, drilling, equipping, operating, or producing an	1029
oil or gas well in a manner that reduces or tends to reduce the	1030
quantity of oil or gas ultimately recoverable under prudent and	1031
proper operations from the pool into which it is drilled or that	1032
causes or tends to cause unnecessary or excessive surface loss or	1033
destruction of oil or gas;	1034

(5) Other underground or surface waste in the production or	1035
storage of oil, gas, or condensate, however caused.	1036

(I) "Correlative rights" means the reasonable opportunity to	1037
every person entitled thereto to recover and receive the oil and	1038
gas in and under the person's tract or tracts, or the equivalent	1039
thereof, without having to drill unnecessary wells or incur other	1040
unnecessary expense.	1041

(J) "Tract" means a single, individually taxed parcel of land	1042
appearing on the tax list.	1043

(K) "Owner," unless referring to a mine, means the person who	1044
has the right to drill on a tract or drilling unit, to drill into	1045
and produce from a pool, and to appropriate the oil or gas	1046
produced therefrom either for the person or for others, except	1047
that a person ceases to be an owner with respect to a well when	1048
the well has been plugged in accordance with applicable rules	1049
adopted and orders issued under this chapter. "Owner" does not	1050
include a person who obtains a lease of the mineral rights for oil	1051
and gas on a parcel of land if the person does not attempt to	1052
produce or produce oil or gas from a well or obtain a permit under	1053
this chapter for a well or if the entire interest of a well is	1054
transferred to the person in accordance with division (B) of	1055
section 1509.31 of the Revised Code.	1056

(L) "Royalty interest" means the fee holder's share in the	1057
production from a well.	1058

(M) "Discovery well" means the first well capable of	1059
producing oil or gas in commercial quantities from a pool.	1060

(N) "Prepared clay" means a clay that is plastic and is	1061
thoroughly saturated with fresh water to a weight and consistency	1062
great enough to settle through saltwater in the well in which it	1063
is to be used, except as otherwise approved by the chief of the	1064
division of oil and gas resources management.	1065

(O) "Rock sediment" means the combined cutting and residue	1066
from drilling sedimentary rocks and formation.	1067

(P) "Excavations and workings," "mine," and "pillar" have the	1068
same meanings as in section 1561.01 of the Revised Code.	1069

(Q) "Coal bearing township" means a township designated as	1070
such by the chief of the division of mineral resources management	1071
under section 1561.06 of the Revised Code.	1072

(R) "Gas storage reservoir" means a continuous area of a	1073
subterranean porous sand or rock stratum or strata into which gas	1074
is or may be injected for the purpose of storing it therein and	1075
removing it therefrom and includes a gas storage reservoir as	1076
defined in section 1571.01 of the Revised Code.	1077

(S) "Safe Drinking Water Act" means the "Safe Drinking Water	1078
Act," 88 Stat. 1661 (1974), 42 U.S.C.A. 300(f), as amended by the	1079
"Safe Drinking Water Amendments of 1977," 91 Stat. 1393, 42	1080
U.S.C.A. 300(f), the "Safe Drinking Water Act Amendments of 1986,"	1081
100 Stat. 642, 42 U.S.C.A. 300(f), and the "Safe Drinking Water	1082
Act Amendments of 1996," 110 Stat. 1613, 42 U.S.C.A. 300(f), and	1083
regulations adopted under those acts.	1084

(T) "Person" includes any political subdivision, department,	1085
agency, or instrumentality of this state; the United States and	1086
any department, agency, or instrumentality thereof; and any legal	1087
entity defined as a person under section 1.59 of the Revised Code.	1088

(U) "Brine" means all saline geological formation water	1089
resulting from, obtained from, or produced in connection with	1090
exploration, drilling, well stimulation, production of oil or gas,	1091
or plugging of a well.	1092

(V) "Waters of the state" means all streams, lakes, ponds,	1093
marshes, watercourses, waterways, springs, irrigation systems,	1094
drainage systems, and other bodies of water, surface or	1095
underground, natural or artificial, that are situated wholly or	1096
partially within this state or within its jurisdiction, except	1097
those private waters that do not combine or effect a junction with	1098
natural surface or underground waters.	1099

(W) "Exempt Mississippian well" means a well that meets all	1100
of the following criteria:	1101

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

1102

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

1103

(3) Was completed in a reservoir no deeper than the	1104
Mississippian Big Injun sandstone in areas underlain by	1105
Pennsylvanian or Permian stratigraphy, or the Mississippian Berea	1106
sandstone in areas directly underlain by Permian stratigraphy;	1107

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

1108

(X) "Exempt domestic well" means a well that meets all of the	1109
following criteria:	1110

(1) Is owned by the owner of the surface estate of the tract	1111
on which the well is located;	1112

(2) Is used primarily to provide gas for the owner's domestic	1113
use;	1114

(3) Is located more than two hundred feet horizontal distance	1115
from any inhabited private dwelling house other than an inhabited	1116
private dwelling house located on the tract on which the well is	1117
located;	1118

(4) Is located more than two hundred feet horizontal distance	1119
from any public building that may be used as a place of resort,	1120
assembly, education, entertainment, lodging, trade, manufacture,	1121
repair, storage, traffic, or occupancy by the public.	1122

(Y) "Urbanized area" means an area where a well or production	1123
facilities of a well are located within a municipal corporation or	1124
within a township that has an unincorporated population of more	1125
than five thousand in the most recent federal decennial census	1126
prior to the issuance of the permit for the well or production	1127
facilities.	1128

(Z) "Well stimulation" or "stimulation of a well" means the	1129
process of enhancing well productivity, including hydraulic	1130
fracturing operations.	1131

(AA) "Production operation" means all operations and	1132
activities and all related equipment, facilities, and other	1133
structures that may be used in or associated with the exploration	1134
and production of oil, gas, or other mineral resources that are	1135
regulated under this chapter, including operations and activities	1136
associated with site preparation, site construction, access road	1137
construction, well drilling, well completion, well stimulation,	1138
well site activities, reclamation, and plugging. "Production	1139
operation" also includes all of the following:	1140

(1) The piping, equipment, and facilities used for the	1141
production and preparation of hydrocarbon gas or liquids for	1142
transportation or delivery;	1143

(2) The processes of extraction and recovery, lifting,	1144
stabilization, treatment, separation, production processing,	1145
storage, waste disposal, and measurement of hydrocarbon gas and	1146
liquids, including related equipment and facilities;	1147

(3) The processes and related equipment and facilities	1148
associated with production compression, gas lift, gas injection,	1149
fuel gas supply, well drilling, well stimulation, and well	1150
completion activities, including dikes, pits, and earthen and	1151
other impoundments used for the temporary storage of fluids and	1152
waste substances associated with well drilling, well stimulation,	1153
and well completion activities.	1154

(BB) "Annular overpressurization" means the accumulation of	1155
fluids within an annulus with sufficient pressure to allow	1156
migration of annular fluids into underground sources of drinking	1157
water.	1158

(CC) "Idle and orphaned well" means a well for which a bond	1159
has been forfeited or an abandoned well for which no money is	1160
available to plug the well in accordance with this chapter and	1161
rules adopted under it.	1162

(DD) "Temporarily inactive well" means a well that has been	1163
granted temporary inactive status under section 1509.062 of the	1164
Revised Code.	1165

(EE) "Material and substantial violation" means any of the	1166
following:	1167

(1) Failure to obtain a permit to drill, reopen, convert,	1168
plugback, or plug a well under this chapter;	1169

(2) Failure to obtain or, maintain, update, or submit proof	1170
of insurance coverage that is required under this chapter;	1171

(3) Failure to obtain or, maintain, update, or submit proof	1172
of a surety bond that is required under this chapter;	1173

(4) Failure to plug an abandoned well or idle and orphaned	1174
well unless the well has been granted temporary inactive status	1175
under section 1509.062 of the Revised Code or the chief of the	1176
division of oil and gas resources management has approved another	1177
option concerning the abandoned well or idle and orphaned well;	1178

(5) Failure to restore a disturbed land surface as required	1179
by section 1509.072 of the Revised Code;	1180

(6) Failure to reimburse the oil and gas well fund pursuant	1181
to a final order issued under section 1509.071 of the Revised	1182
Code;	1183

(7) Failure to comply with a final nonappealable order of the	1184
chief issued under section 1509.04 of the Revised Code;	1185

(8) Failure to submit a report, test result, fee, or document	1186
that is required in this chapter or rules adopted under it.	1187

(FF) "Severer" has the same meaning as in section 5749.01 of	1188
the Revised Code.	1189

(GG) "Horizontal well" means a well that is drilled for the	1190
production of oil or gas in which the wellbore reaches a	1191
horizontal or near horizontal position in the Point Pleasant,	1192
Utica, or Marcellus formation and the well is stimulated.	1193

(HH) "Well pad" means the area that is cleared or prepared	1194
for the drilling of one or more horizontal wells.	1195

Sec. 1509.02.  There is hereby created in the department of	1196
natural resources the division of oil and gas resources	1197
management, which shall be administered by the chief of the	1198
division of oil and gas resources management. The division has	1199
sole and exclusive authority to regulate the permitting, location,	1200
and spacing of oil and gas wells and production operations within	1201
the state, excepting only those activities regulated under federal	1202
laws for which oversight has been delegated to the environmental	1203
protection agency and activities regulated under sections 6111.02	1204
to 6111.029 of the Revised Code. The regulation of oil and gas	1205
activities is a matter of general statewide interest that requires	1206
uniform statewide regulation, and this chapter and rules adopted	1207
under it constitute a comprehensive plan with respect to all	1208
aspects of the locating, drilling, well stimulation, completing,	1209
and operating of oil and gas wells within this state, including	1210
site construction and restoration, permitting related to those	1211
activities, and the disposal of wastes from those wells. In order	1212
to assist the division in the furtherance of its sole and	1213
exclusive authority as established in this section, the chief may	1214
enter into cooperative agreements with other state agencies for	1215
advice and consultation, including visitations at the surface	1216
location of a well on behalf of the division. Such cooperative	1217
agreements do not confer on other state agencies any authority to	1218
administer or enforce this chapter and rules adopted under it. In	1219
addition, such cooperative agreements shall not be construed to	1220
dilute or diminish the division's sole and exclusive authority as	1221
established in this section. Nothing in this section affects the	1222
authority granted to the director of transportation and local	1223
authorities in section 723.01 or 4513.34 of the Revised Code,	1224
provided that the authority granted under those sections shall not	1225
be exercised in a manner that discriminates against, unfairly	1226
impedes, or obstructs oil and gas activities and operations	1227
regulated under this chapter.	1228

The chief shall not hold any other public office, nor shall	1229
the chief be engaged in any occupation or business that might	1230
interfere with or be inconsistent with the duties as chief.	1231

All moneys collected by the chief pursuant to sections	1232
1509.06, 1509.061, 1509.062, 1509.071, 1509.13, 1509.22, 1509.221,	1233
1509.222, 1509.28, 1509.34, and 1509.50 of the Revised Code,	1234
ninety per cent of moneys received by the treasurer of state from	1235
the tax levied in divisions (A)(5) and (6) of section 5749.02 of	1236
the Revised Code, all civil penalties paid under section 1509.33	1237
of the Revised Code, and, notwithstanding any section of the	1238
Revised Code relating to the distribution or crediting of fines	1239
for violations of the Revised Code, all fines imposed under	1240
divisions (A) and (B) of section 1509.99 of the Revised Code and	1241
fines imposed under divisions (C) and (D) of section 1509.99 of	1242
the Revised Code for all violations prosecuted by the attorney	1243
general and for violations prosecuted by prosecuting attorneys	1244
that do not involve the transportation of brine by vehicle shall	1245
be deposited into the state treasury to the credit of the oil and	1246
gas well fund, which is hereby created. Fines imposed under	1247
divisions (C) and (D) of section 1509.99 of the Revised Code for	1248
violations prosecuted by prosecuting attorneys that involve the	1249
transportation of brine by vehicle and penalties associated with a	1250
compliance agreement entered into pursuant to this chapter shall	1251
be paid to the county treasury of the county where the violation	1252
occurred.	1253

The fund shall be used solely and exclusively for the	1254
purposes enumerated in division (B) of section 1509.071 of the	1255
Revised Code, for the expenses of the division associated with the	1256
administration of this chapter and Chapter 1571. of the Revised	1257
Code and rules adopted under them, and for expenses that are	1258
critical and necessary for the protection of human health and	1259
safety and the environment related to oil and gas production in	1260
this state. The expenses of the division in excess of the moneys	1261
available in the fund shall be paid from general revenue fund	1262
appropriations to the department.	1263

Sec. 1509.03. (A) The chief of the division of oil and gas	1264
resources management shall adopt, rescind, and amend, in	1265
accordance with Chapter 119. of the Revised Code, rules for the	1266
administration, implementation, and enforcement of this chapter.	1267
The rules shall include an identification of the subjects that the	1268
chief shall address when attaching terms and conditions to a	1269
permit with respect to a well and production facilities of a well	1270
that are located within an urbanized area or with respect to a	1271
horizontal well and production facilities associated with a	1272
horizontal well. The subjects shall include all of the following:	1273

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

1274

(2) Protection of the public and private water supply,	1275
including the amount of water used and the source or sources of	1276
the water;	1277

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

1278

(4) Containment and disposal of drilling and production	1279
wastes;	1280

(5) Construction of access roads for purposes of the drilling	1281
and operation of a well;	1282

(6) Noise mitigation for purposes of the drilling of a well	1283
and the operation of a well, excluding safety and maintenance	1284
operations.	1285

No person shall violate any rule of the chief adopted under	1286
this chapter.	1287

(B)(1) Any order issuing, denying, or modifying a permit or	1288
notices required to be made by the chief pursuant to this chapter	1289
shall be made in compliance with Chapter 119. of the Revised Code,	1290
except that personal service may be used in lieu of service by	1291
mail. Every order issuing, denying, or modifying a permit under	1292
this chapter and described as such shall be considered an	1293
adjudication order for purposes of Chapter 119. of the Revised	1294
Code. Division (B)(1) of this section does not apply to a permit	1295
issued under section 1509.06 of the Revised Code.	1296

(2) Where notice to the owners is required by this chapter,	1297
the notice shall be given as prescribed by a rule adopted by the	1298
chief to govern the giving of notices. The rule shall provide for	1299
notice by publication except in those cases where other types of	1300
notice are necessary in order to meet the requirements of the law.	1301

(C) The chief or the chief's authorized representative may at	1302
any time enter upon lands, public or private, for the purpose of	1303
administration or enforcement of this chapter, the rules adopted	1304
or orders made thereunder, or terms or conditions of permits or	1305
registration certificates issued thereunder and may examine and	1306
copy records pertaining to the drilling, conversion, or operation	1307
of a well for injection of fluids and logs required by division	1308
(C) of section 1509.223 of the Revised Code. No person shall	1309
prevent or hinder the chief or the chief's authorized	1310
representative in the performance of official duties. If entry is	1311
prevented or hindered, the chief or the chief's authorized	1312
representative may apply for, and the court of common pleas may	1313
issue, an appropriate inspection warrant necessary to achieve the	1314
purposes of this chapter within the court's territorial	1315
jurisdiction.	1316

(D) The chief may issue orders to enforce this chapter, rules	1317
adopted thereunder, and terms or conditions of permits issued	1318
thereunder. Any such order shall be considered an adjudication	1319
order for the purposes of Chapter 119. of the Revised Code. No	1320
person shall violate any order of the chief issued under this	1321
chapter. No person shall violate a term or condition of a permit	1322
or registration certificate issued under this chapter.	1323

(E) Orders of the chief denying, suspending, or revoking a	1324
registration certificate; approving or denying approval of an	1325
application for revision of a registered transporter's plan for	1326
disposal; or to implement, administer, or enforce division (A) of	1327
section 1509.224 and sections 1509.22, 1509.222, 1509.223,	1328
1509.225, and 1509.226 of the Revised Code pertaining to the	1329
transportation of brine by vehicle and the disposal of brine so	1330
transported are not adjudication orders for purposes of Chapter	1331
119. of the Revised Code. The chief shall issue such orders under	1332
division (A) or (B) of section 1509.224 of the Revised Code, as	1333
appropriate.	1334

Sec. 1509.04. (A) The chief of the division of oil and gas	1335
resources management, or the chief's authorized representatives,	1336
shall enforce this chapter and the rules, terms and conditions of	1337
permits and registration certificates, and orders adopted or	1338
issued pursuant thereto, except that any peace officer, as defined	1339
in section 2935.01 of the Revised Code, may arrest for violations	1340
of this chapter involving transportation of brine by vehicle. The	1341
enforcement authority of the chief includes the authority to issue	1342
compliance notices and to enter into compliance agreements.	1343

(B)(1) The chief or the chief's authorized representative may	1344
issue an administrative order to an owner for a violation of this	1345
chapter or rules adopted under it, terms and conditions of a	1346
permit issued under it, a registration certificate that is	1347
required under this chapter, or orders issued under this chapter.	1348

(2)(a) If an owner or other person who is required to submit	1349
a report, test result, fee, or document by this chapter or rules	1350
adopted under it submits a request for an extension of time to	1351
submit the report, test result, fee, or document to the chief	1352
prior to the date on which the report, test result, fee, or	1353
document is due, the chief may grant an extension of not more than	1354
sixty additional days from the original date on which the report,	1355
test result, fee, or document is due.	1356

(b) If an owner or other person who is required to submit a	1357
report, test result, fee, or document by this chapter or rules	1358
adopted under it fails to submit the report, test result, fee, or	1359
document before or on the date on which it is due and the chief	1360
has not granted an extension of time under division (B)(2)(a) of	1361
this section, the chief shall make reasonable attempts to notify	1362
the owner or other person of the failure to submit the report,	1363
test result, fee, or document. If an owner or other person who	1364
receives such a notification fails to submit the report, test	1365
result, fee, or document on or before thirty days after the date	1366
on which the chief so notified the owner or other person, the	1367
chief may issue an order under division (B)(2)(c) of this section.	1368
The	1369

(c) The chief may issue an order finding that an owner has	1370
committed a material and substantial violation.	1371

(C) The chief, by order, immediately may suspend drilling,	1372
operating, or plugging activities that are related to a material	1373
and substantial violation and suspend and revoke an unused permit	1374
after finding either of the following:	1375

(1) An owner has failed to comply with an order issued under	1376
division (B)(2)(c) of this section that is final and	1377
nonappealable.	1378

(2) An owner is causing, engaging in, or maintaining a	1379
condition or activity that the chief determines presents an	1380
imminent danger to the health or safety of the public or that	1381
results in or is likely to result in immediate substantial damage	1382
to the natural resources of this state.	1383

(D)(1) The chief may issue an order under division (C) of	1384
this section without prior notification if reasonable attempts to	1385
notify the owner have failed or if the owner is currently in	1386
material breach of a prior order, but in such an event	1387
notification shall be given as soon thereafter as practical.	1388

(2) Not later than five days after the issuance of an order	1389
under division (C) of this section, the chief shall provide the	1390
owner an opportunity to be heard and to present evidence that one	1391
of the following applies:	1392

(a) The condition or activity does not present an imminent	1393
danger to the public health or safety or is not likely to result	1394
in immediate substantial damage to natural resources.	1395

(b) Required records, reports, or logs have been submitted.

1396

(3) If the chief, after considering evidence presented by the	1397
owner under division (D)(2)(a) of this section, determines that	1398
the activities do not present such a threat or that the required	1399
records, reports, or logs have been submitted under division	1400
(D)(2)(b) of this section, the chief shall revoke the order. The	1401
owner may appeal an order to the court of common pleas of the	1402
county in which the activity that is the subject of the order is	1403
located.	1404

(E) The chief may issue a bond forfeiture order pursuant to	1405
section 1509.071 of the Revised Code for failure to comply with a	1406
final nonappealable order issued or compliance agreement entered	1407
into under this section.	1408

(F) The chief may notify drilling contractors, transporters,	1409
service companies, or other similar entities of the compliance	1410
status of an owner.	1411

If the owner fails to comply with a prior enforcement action	1412
of the chief, the chief may issue a suspension order without prior	1413
notification, but in such an event the chief shall give notice as	1414
soon thereafter as practical. Not later than five calendar days	1415
after the issuance of an order, the chief shall provide the owner	1416
an opportunity to be heard and to present evidence that required	1417
records, reports, or logs have been submitted. If the chief, after	1418
considering the evidence presented by the owner, determines that	1419
the requirements have been satisfied, the chief shall revoke the	1420
suspension order. The owner may appeal a suspension order to the	1421
court of common pleas of the county in which the activity that is	1422
the subject of the suspension order is located.	1423

(G) The prosecuting attorney of the county or the attorney	1424
general, upon the request of the chief, may apply to the court of	1425
common pleas in the county in which any of the provisions of this	1426
chapter or any rules, terms or conditions of a permit or	1427
registration certificate, or orders adopted or issued pursuant to	1428
this chapter are being violated for a temporary restraining order,	1429
preliminary injunction, or permanent injunction restraining any	1430
person from such violation.	1431

Sec. 1509.06. (A) An application for a permit to drill a new	1432
well, drill an existing well deeper, reopen a well, convert a well	1433
to any use other than its original purpose, or plug back a well to	1434
a different source of supply, including associated production	1435
operations, shall be filed with the chief of the division of oil	1436
and gas resources management upon such form as the chief	1437
prescribes and shall contain each of the following that is	1438
applicable:	1439

(1) The name and address of the owner and, if a corporation,	1440
the name and address of the statutory agent;	1441

(2) The signature of the owner or the owner's authorized	1442
agent. When an authorized agent signs an application, it shall be	1443
accompanied by a certified copy of the appointment as such agent.	1444

(3) The names and addresses of all persons holding the	1445
royalty interest in the tract upon which the well is located or is	1446
to be drilled or within a proposed drilling unit;	1447

(4) The location of the tract or drilling unit on which the	1448
well is located or is to be drilled identified by section or lot	1449
number, city, village, township, and county;	1450

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

1451

(6)(a) The geological formation to be tested or used and the	1452
proposed total depth of the well;	1453

(b) If the well is for the injection of a liquid, identity of	1454
the geological formation to be used as the injection zone and the	1455
composition of the liquid to be injected.	1456

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

1457

(8) If the well is for the injection of a liquid, identity of	1458
the geological formation to be used as the injection zone and the	1459
composition of the liquid to be injected;	1460

(a) An identification, to the best of the owner's knowledge,	1461
of each proposed source of ground water and surface water that	1462
will be used in the production operations of the well. The	1463
identification of each proposed source of water shall indicate if	1464
the water will be withdrawn from the Lake Erie watershed or the	1465
Ohio river watershed. In addition, the owner shall provide, to the	1466
best of the owner's knowledge, the proposed estimated rate and	1467
volume of the water withdrawal for the production operations. If	1468
recycled water will be used in the production operations, the	1469
owner shall provide the estimated volume of recycled water to be	1470
used. The owner shall submit to the chief an update of any of the	1471
information that is required by division (A)(8)(a) of this section	1472
if any of that information changes before the chief issues a	1473
permit for the application.	1474

(b) Except as provided in division (A)(8)(c) of this section,	1475
for an application for a permit to drill a new well within an	1476
urbanized area, the results of sampling of water wells within	1477
three hundred feet of the proposed well prior to commencement of	1478
drilling. In addition, the owner shall include a list that	1479
identifies the location of each water well where the owner of the	1480
property on which the water well is located denied the owner	1481
access to sample the water well. The sampling shall be conducted	1482
in accordance with the guidelines established in "Best Management	1483
Practices For Pre-drilling Water Sampling" in effect at the time	1484
that the application is submitted. The division shall furnish	1485
those guidelines upon request and shall make them available on the	1486
division's web site. If the chief determines that conditions at	1487
the proposed well site warrant a revision, the chief may revise	1488
the distance established in this division for purposes of	1489
pre-drilling water sampling.	1490

(c) For an application for a permit to drill a new horizontal	1491
well, the results of sampling of water wells within one thousand	1492
five hundred feet of the proposed horizontal wellhead prior to	1493
commencement of drilling. In addition, the owner shall include a	1494
list that identifies the location of each water well where the	1495
owner of the property on which the water well is located denied	1496
the owner access to sample the water well. The sampling shall be	1497
conducted in accordance with the guidelines established in "Best	1498
Management Practices For Pre-drilling Water Sampling" in effect at	1499
the time that the application is submitted. The division shall	1500
furnish those guidelines upon request and shall make them	1501
available on the division's web site. If the chief determines that	1502
conditions at the proposed well site warrant a revision, the chief	1503
may revise the distance established in this division for purposes	1504
of pre-drilling water sampling.	1505

(9) For an application for a permit to drill a new well	1506
within an urbanized area, a sworn statement that the applicant has	1507
provided notice by regular mail of the application to the owner of	1508
each parcel of real property that is located within five hundred	1509
feet of the surface location of the well and to the executive	1510
authority of the municipal corporation or the board of township	1511
trustees of the township, as applicable, in which the well is to	1512
be located. In addition, the notice shall contain a statement that	1513
informs an owner of real property who is required to receive the	1514
notice under division (A)(9) of this section that within five days	1515
of receipt of the notice, the owner is required to provide notice	1516
under section 1509.60 of the Revised Code to each residence in an	1517
occupied dwelling that is located on the owner's parcel of real	1518
property. The notice shall contain a statement that an application	1519
has been filed with the division of oil and gas resources	1520
management, identify the name of the applicant and the proposed	1521
well location, include the name and address of the division, and	1522
contain a statement that comments regarding the application may be	1523
sent to the division. The notice may be provided by hand delivery	1524
or regular mail. The identity of the owners of parcels of real	1525
property shall be determined using the tax records of the	1526
municipal corporation or county in which a parcel of real property	1527
is located as of the date of the notice.	1528

(10) A plan for restoration of the land surface disturbed by	1529
drilling operations. The plan shall provide for compliance with	1530
the restoration requirements of division (A) of section 1509.072	1531
of the Revised Code and any rules adopted by the chief pertaining	1532
to that restoration.	1533

(11)(a) A description by name or number of the county,	1534
township, and municipal corporation roads, streets, and highways	1535
that the applicant anticipates will be used for access to and	1536
egress from the well site;	1537

(b) For an application for a permit for a horizontal well, a	1538
copy of an agreement concerning maintenance and safe use of the	1539
roads, streets, and highways described in division (A)(11)(a) of	1540
this section entered into on reasonable terms with the public	1541
official that has the legal authority to enter into such	1542
maintenance and use agreements for each county, township, and	1543
municipal corporation, as applicable, in which any such road,	1544
street, or highway is located or an affidavit on a form prescribed	1545
by the chief attesting that the owner attempted in good faith to	1546
enter into an agreement under division (A)(11)(b) of this section	1547
with the applicable public official of each such county, township,	1548
or municipal corporation, but that no agreement was executed.	1549

(12) Such other relevant information as the chief prescribes	1550
by rule.	1551

Each application shall be accompanied by a map, on a scale	1552
not smaller than four hundred feet to the inch, prepared by an	1553
Ohio registered surveyor, showing the location of the well and	1554
containing such other data as may be prescribed by the chief. If	1555
the well is or is to be located within the excavations and	1556
workings of a mine, the map also shall include the location of the	1557
mine, the name of the mine, and the name of the person operating	1558
the mine.	1559

(B) The chief shall cause a copy of the weekly circular	1560
prepared by the division to be provided to the county engineer of	1561
each county that contains active or proposed drilling activity.	1562
The weekly circular shall contain, in the manner prescribed by the	1563
chief, the names of all applicants for permits, the location of	1564
each well or proposed well, the information required by division	1565
(A)(11) of this section, and any additional information the chief	1566
prescribes. In addition, the chief promptly shall transfer an	1567
electronic copy or facsimile, or if those methods are not	1568
available to a municipal corporation or township, a copy via	1569
regular mail, of a drilling permit application to the clerk of the	1570
legislative authority of the municipal corporation or to the clerk	1571
of the township in which the well or proposed well is or is to be	1572
located if the legislative authority of the municipal corporation	1573
or the board of township trustees has asked to receive copies of	1574
such applications and the appropriate clerk has provided the chief	1575
an accurate, current electronic mailing address or facsimile	1576
number, as applicable.	1577

(C)(1) Except as provided in division (C)(2) of this section,	1578
the chief shall not issue a permit for at least ten days after the	1579
date of filing of the application for the permit unless, upon	1580
reasonable cause shown, the chief waives that period or a request	1581
for expedited review is filed under this section. However, the	1582
chief shall issue a permit within twenty-one days of the filing of	1583
the application unless the chief denies the application by order.	1584

(2) If the location of a well or proposed well will be or is	1585
within an urbanized area, the chief shall not issue a permit for	1586
at least eighteen days after the date of filing of the application	1587
for the permit unless, upon reasonable cause shown, the chief	1588
waives that period or the chief at the chief's discretion grants a	1589
request for an expedited review. However, the chief shall issue a	1590
permit for a well or proposed well within an urbanized area within	1591
thirty days of the filing of the application unless the chief	1592
denies the application by order.	1593

(D) An applicant may file a request with the chief for	1594
expedited review of a permit application if the well is not or is	1595
not to be located in a gas storage reservoir or reservoir	1596
protective area, as "reservoir protective area" is defined in	1597
section 1571.01 of the Revised Code. If the well is or is to be	1598
located in a coal bearing township, the application shall be	1599
accompanied by the affidavit of the landowner prescribed in	1600
section 1509.08 of the Revised Code.	1601

In addition to a complete application for a permit that meets	1602
the requirements of this section and the permit fee prescribed by	1603
this section, a request for expedited review shall be accompanied	1604
by a separate nonrefundable filing fee of two hundred fifty	1605
dollars. Upon the filing of a request for expedited review, the	1606
chief shall cause the county engineer of the county in which the	1607
well is or is to be located to be notified of the filing of the	1608
permit application and the request for expedited review by	1609
telephone or other means that in the judgment of the chief will	1610
provide timely notice of the application and request. The chief	1611
shall issue a permit within seven days of the filing of the	1612
request unless the chief denies the application by order.	1613
Notwithstanding the provisions of this section governing expedited	1614
review of permit applications, the chief may refuse to accept	1615
requests for expedited review if, in the chief's judgment, the	1616
acceptance of the requests would prevent the issuance, within	1617
twenty-one days of their filing, of permits for which applications	1618
are pending.	1619

(E) A well shall be drilled and operated in accordance with	1620
the plans, sworn statements, and other information submitted in	1621
the approved application.	1622

(F) The chief shall issue an order denying a permit if the	1623
chief finds that there is a substantial risk that the operation	1624
will result in violations of this chapter or rules adopted under	1625
it that will present an imminent danger to public health or safety	1626
or damage to the environment, provided that where the chief finds	1627
that terms or conditions to the permit can reasonably be expected	1628
to prevent such violations, the chief shall issue the permit	1629
subject to those terms or conditions, including, if applicable,	1630
terms and conditions regarding subjects identified in rules	1631
adopted under section 1509.03 of the Revised Code. The issuance of	1632
a permit shall not be considered an order of the chief.	1633

The chief shall post notice of each permit that has been	1634
approved under this section on the division's web site not later	1635
than two business days after the application for a permit has been	1636
approved.	1637

(G) Each application for a permit required by section 1509.05	1638
of the Revised Code, except an application to plug back an	1639
existing well that is required by that section and an application	1640
for a well drilled or reopened for purposes of section 1509.22 of	1641
the Revised Code, also shall be accompanied by a nonrefundable fee	1642
as follows:	1643

(1) Five hundred dollars for a permit to conduct activities	1644
in a township with a population of fewer than ten thousand;	1645

(2) Seven hundred fifty dollars for a permit to conduct	1646
activities in a township with a population of ten thousand or	1647
more, but fewer than fifteen thousand;	1648

(3) One thousand dollars for a permit to conduct activities	1649
in either of the following:	1650

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

1651

(b) A municipal corporation regardless of population.

1652

(4) If the application is for a permit that requires	1653
mandatory pooling, an additional five thousand dollars.	1654

For purposes of calculating fee amounts, populations shall be	1655
determined using the most recent federal decennial census.	1656

Each application for the revision or reissuance of a permit	1657
shall be accompanied by a nonrefundable fee of two hundred fifty	1658
dollars.	1659

(H)(1) Prior to the commencement of well pad construction and	1660
prior to the issuance of a permit to drill a proposed horizontal	1661
well or a proposed well that is to be located in an urbanized	1662
area, the division shall conduct a site review to identify and	1663
evaluate any site-specific terms and conditions that may be	1664
attached to the permit. At the site review, a representative of	1665
the division shall consider fencing, screening, and landscaping	1666
requirements, if any, for similar structures in the community in	1667
which the well is proposed to be located. The terms and conditions	1668
that are attached to the permit shall include the establishment of	1669
fencing, screening, and landscaping requirements for the surface	1670
facilities of the proposed well, including a tank battery of the	1671
well.	1672

(2) Prior to the issuance of a permit to drill a proposed	1673
well, the division shall conduct a review to identify and evaluate	1674
any site-specific terms and conditions that may be attached to the	1675
permit if the proposed well will be located in a one-hundred-year	1676
floodplain or within the five-year time of travel associated with	1677
a public drinking water supply.	1678

(I) A permit shall be issued by the chief in accordance with	1679
this chapter. A permit issued under this section for a well that	1680
is or is to be located in an urbanized area shall be valid for	1681
twelve months, and all other permits issued under this section	1682
shall be valid for twenty-four months.	1683

(J) An applicant or a permittee, as applicable, shall submit	1684
to the chief an update of the information that is required under	1685
division (A)(8)(a) of this section if any of that information	1686
changes prior to commencement of production operations.	1687

(K) A permittee or a permittee's authorized representative	1688
shall notify an inspector from the division at least twenty-four	1689
hours, or another time period agreed to by the chief's authorized	1690
representative, prior to the commencement of well pad construction	1691
and of drilling, reopening, converting, well stimulation, or	1692
plugback operations.	1693

Sec. 1509.07. An(A)(1) Except as provided in division	1694
(A)(2) of this section, an owner of any well, except an exempt	1695
Mississippian well or an exempt domestic well, shall obtain	1696
liability insurance coverage from a company authorized to do	1697
business in this state in an amount of not less than one million	1698
dollars bodily injury coverage and property damage coverage to pay	1699
damages for injury to persons or damage to property caused by the	1700
drilling, operation, or plugging of all the owner's wells in this	1701
state. However, if any well is located within an urbanized area,	1702
the owner shall obtain liability insurance coverage in an amount	1703
of not less than three million dollars for bodily injury coverage	1704
and property damage coverage to pay damages for injury to persons	1705
or damage to property caused by the drilling, operation, or	1706
plugging of all of the owner's wells in this state. The	1707

(2) An owner of a horizontal well shall obtain liability	1708
insurance coverage from an insurer authorized to write such	1709
insurance in this state or from an insurer approved to write such	1710
insurance in this state under section 3905.33 of the Revised Code	1711
in an amount of not less than five million dollars bodily injury	1712
coverage and property damage coverage to pay damages for injury to	1713
persons or damage to property caused by the production operations	1714
of all the owner's wells in this state. The insurance policy shall	1715
include a reasonable level of coverage available for an	1716
environmental endorsement.	1717

(3) An owner shall maintain the coverage required under	1718
division (A)(1) or (2) of this section until all the owner's wells	1719
are plugged and abandoned or are transferred to an owner who has	1720
obtained insurance as required under this section and who is not	1721
under a notice of material and substantial violation or under a	1722
suspension order. The owner shall provide proof of liability	1723
insurance coverage to the chief of the division of oil and gas	1724
resources management upon request. Upon failure of the owner to	1725
provide that proof when requested, the chief may order the	1726
suspension of any outstanding permits and operations of the owner	1727
until the owner provides proof of the required insurance coverage.	1728

(B)(1) Except as otherwise provided in this section, an owner	1729
of any well, before being issued a permit under section 1509.06 of	1730
the Revised Code or before operating or producing from a well,	1731
shall execute and file with the division of oil and gas resources	1732
management a surety bond conditioned on compliance with the	1733
restoration requirements of section 1509.072, the plugging	1734
requirements of section 1509.12, the permit provisions of section	1735
1509.13 of the Revised Code, and all rules and orders of the chief	1736
relating thereto, in an amount set by rule of the chief.	1737

(2) The owner may deposit with the chief, instead of a surety	1738
bond, cash in an amount equal to the surety bond as prescribed	1739
pursuant to this section or negotiable certificates of deposit or	1740
irrevocable letters of credit, issued by any bank organized or	1741
transacting business in this state or by any savings and loan	1742
association as defined in section 1151.01 of the Revised Code,	1743
having a cash value equal to or greater than the amount of the	1744
surety bond as prescribed pursuant to this section. Cash or	1745
certificates of deposit shall be deposited upon the same terms as	1746
those upon which surety bonds may be deposited. If certificates of	1747
deposit are deposited with the chief instead of a surety bond, the	1748
chief shall require the bank or savings and loan association that	1749
issued any such certificate to pledge securities of a cash value	1750
equal to the amount of the certificate that is in excess of the	1751
amount insured by any of the agencies and instrumentalities	1752
created under the "Federal Deposit Insurance Act," 64 Stat. 873	1753
(1950), 12 U.S.C. 1811, as amended, and regulations adopted under	1754
it, including at least the federal deposit insurance corporation,	1755
bank insurance fund, and savings association insurance fund. The	1756
securities shall be security for the repayment of the certificate	1757
of deposit.	1758

Immediately upon a deposit of cash, certificates of deposit,	1759
or letters of credit with the chief, the chief shall deliver them	1760
to the treasurer of state who shall hold them in trust for the	1761
purposes for which they have been deposited.	1762

(3) Instead of a surety bond, the chief may accept proof of	1763
financial responsibility consisting of a sworn financial statement	1764
showing a net financial worth within this state equal to twice the	1765
amount of the bond for which it substitutes and, as may be	1766
required by the chief, a list of producing properties of the owner	1767
within this state or other evidence showing ability and intent to	1768
comply with the law and rules concerning restoration and plugging	1769
that may be required by rule of the chief. The owner of an exempt	1770
Mississippian well is not required to file scheduled updates of	1771
the financial documents, but shall file updates of those documents	1772
if requested to do so by the chief. The owner of a nonexempt	1773
Mississippian well shall file updates of the financial documents	1774
in accordance with a schedule established by rule of the chief.	1775
The chief, upon determining that an owner for whom the chief has	1776
accepted proof of financial responsibility instead of bond cannot	1777
demonstrate financial responsibility, shall order that the owner	1778
execute and file a bond or deposit cash, certificates of deposit,	1779
or irrevocable letters of credit as required by this section for	1780
the wells specified in the order within ten days of receipt of the	1781
order. If the order is not complied with, all wells of the owner	1782
that are specified in the order and for which no bond is filed or	1783
cash, certificates of deposit, or letters of credit are deposited	1784
shall be plugged. No owner shall fail or refuse to plug such a	1785
well. Each day on which such a well remains unplugged thereafter	1786
constitutes a separate offense.	1787

(4) The surety bond provided for in this section shall be	1788
executed by a surety company authorized to do business in this	1789
state.	1790

The chief shall not approve any bond until it is personally	1791
signed and acknowledged by both principal and surety, or as to	1792
either by the principal's or surety's attorney in fact, with a	1793
certified copy of the power of attorney attached thereto. The	1794
chief shall not approve a bond unless there is attached a	1795
certificate of the superintendent of insurance that the company is	1796
authorized to transact a fidelity and surety business in this	1797
state.	1798

All bonds shall be given in a form to be prescribed by the	1799
chief and shall run to the state as obligee.	1800

(5) An owner of an exempt Mississippian well or an exempt	1801
domestic well, in lieu of filing a surety bond, cash in an amount	1802
equal to the surety bond, certificates of deposit, irrevocable	1803
letters of credit, or a sworn financial statement, may file a	1804
one-time fee of fifty dollars, which shall be deposited in the oil	1805
and gas well plugging fund created in section 1509.071 of the	1806
Revised Code.	1807

(C) An owner, operator, producer, or other person shall not	1808
operate a well or produce from a well at any time if the owner,	1809
operator, producer, or other person has not satisfied the	1810
requirements established in this section.	1811

Sec. 1509.10.  (A) Any person drilling within the state	1812
shall, within sixty days after the completion of drilling	1813
operations to the proposed total depth or after a determination	1814
that a well is a dry or lost hole, file with the division of oil	1815
and gas resources management all wireline electric logs and an	1816
accurate well completion record on a form that is approved	1817
prescribed by the chief of the division of oil and gas resources	1818
management that designates:	1819

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

1820

(2) The character, depth, and thickness of geological units	1821
encountered, including coal seams, mineral beds, associated fluids	1822
such as fresh water, brine, and crude oil, natural gas, and sour	1823
gas, if such seams, beds, fluids, or gases are known;	1824

(3) The dates on which drilling operations were commenced and	1825
completed;	1826

(4) The types of drilling tools used and the name of the	1827
person that drilled the well;	1828

(5) The length in feet of the various sizes of casing and	1829
tubing used in drilling the well, the amount removed after	1830
completion, the type and setting depth of each packer, all other	1831
data relating to cementing in the annular space behind such casing	1832
or tubing, and data indicating completion as a dry, gas, oil,	1833
combination oil and gas, brine injection, or artificial brine well	1834
or a stratigraphic test;	1835

(6) The number of perforations in the casing and the	1836
intervals of the perforations;	1837

(7) The elevation above mean sea level of the point from	1838
which the depth measurements were made, stating also the height of	1839
the point above ground level at the well, the total depth of the	1840
well, and the deepest geological unit that was penetrated in the	1841
drilling of the well;	1842

(8) If applicable, the type, volume, and concentration of	1843
acid, and the date on which acid was used in acidizing the well;	1844

(9)(a) If applicable, the trade name and the total amount of	1845
all products, fluids, and substances, and the supplier of each	1846
product, fluid, or substance, not including cement and its	1847
constituents and lost circulation materials, intentionally added	1848
to facilitate the drilling of any portion of the well until the	1849
surface casing is set and properly sealed. The owner shall	1850
identify each additive used and provide a brief description of the	1851
purpose for which the additive is used. In addition, the owner	1852
shall include a list of all chemicals, not including any	1853
information that is designated as a trade secret pursuant to	1854
division (I)(1) of this section, intentionally added to all	1855
products, fluids, or substances and include each chemical's	1856
corresponding chemical abstracts service number and the maximum	1857
concentration of each chemical. The owner shall obtain the	1858
chemical information, not including any information that is	1859
designated as a trade secret pursuant to division (I)(1) of this	1860
section, from the company that drilled the well, provided service	1861
at the well, or supplied the chemicals. If the company that	1862
drilled the well, provided service at the well, or supplied the	1863
chemicals provides incomplete or inaccurate chemical information,	1864
the owner shall make reasonable efforts to obtain the required	1865
information from the company or supplier.	1866

(b) For purposes of division (A)(9)(a) of this section, if	1867
recycled fluid was used, the total volume of recycled fluid and	1868
the well that is the source of the recycled fluid or the	1869
centralized facility that is the source of the recycled fluid.	1870

(10)(a) If applicable, the type and volume of fluid, not	1871
including cement and its constituents or information that is	1872
designated as a trade secret pursuant to division (I)(1) of this	1873
section, used to stimulate the reservoir of the well, the	1874
reservoir breakdown pressure, the method used for the containment	1875
of fluids recovered from the fracturing of the well, the methods	1876
used for the containment of fluids when pulled from the wellbore	1877
from swabbing the well, the average pumping rate of the well, and	1878
the name of the person that performed the well stimulation. In	1879
addition, the owner shall include a copy of the log from the	1880
stimulation of the well, a copy of the invoice for each of the	1881
procedures and methods described in division (A)(9)(10) of this	1882
section that were used on a well, and a copy of the pumping	1883
pressure and rate graphs. However, the owner may redact from the	1884
copy of each invoice that is required to be included under	1885
division (A)(9)(10) of this section the costs of and charges for	1886
the procedures and methods described in division (A)(9)(10) of	1887
this section that were used on a well.	1888

(10)(b) If applicable, the trade name and the total volume of	1889
all products, fluids, and substances, and the supplier of each	1890
product, fluid, or substance used to stimulate the well. The owner	1891
shall identify each additive used, provide a brief description of	1892
the purpose for which the additive is used, and include the	1893
maximum concentration of the additive used. In addition, the owner	1894
shall include a list of all chemicals, not including any	1895
information that is designated as a trade secret pursuant to	1896
division (I)(1) of this section, intentionally added to all	1897
products, fluids, or substances and include each chemical's	1898
corresponding chemical abstracts service number and the maximum	1899
concentration of each chemical. The owner shall obtain the	1900
chemical information, not including any information that is	1901
designated as a trade secret pursuant to division (I)(1) of this	1902
section, from the company that stimulated the well or supplied the	1903
chemicals. If the company that stimulated the well or supplied the	1904
chemicals provides incomplete or inaccurate chemical information,	1905
the owner shall make reasonable efforts to obtain the required	1906
information from the company or supplier.	1907

(c) For purposes of division (A)(10)(b) of this section, if	1908
recycled fluid was used, the total volume of recycled fluid and	1909
the well that is the source of the recycled fluid or the	1910
centralized facility that is the source of the recycled fluid.	1911

(11) The name of the company that performed the logging of	1912
the well and the types of wireline electric logs performed on the	1913
well.	1914

The well completion record shall be submitted in duplicate.	1915
The first copy shall be retained as a permanent record in the	1916
files of the division, and the second copy shall be transmitted by	1917
the chief to the division of geological survey.	1918

(B)(1) Not later than sixty days after the completion of the	1919
drilling operations to the proposed total depth, the owner shall	1920
file all wireline electric logs with the division of oil and gas	1921
resources management and the chief shall transmit such logs	1922
electronically, if available, to the division of geological	1923
survey. Such logs may be retained by the owner for a period of not	1924
more than six months, or such additional time as may be granted by	1925
the chief in writing, after the completion of the well	1926
substantially to the depth shown in the application required by	1927
section 1509.06 of the Revised Code.	1928

(2) If a well is not completed within sixty days after the	1929
completion of drilling operations, the owner shall file with the	1930
division of oil and gas resources management a supplemental well	1931
completion record that includes all of the information required	1932
under this section within sixty days after the completion of the	1933
well.	1934

(3) After a well is initially completed and stimulated and	1935
until the well is plugged, the owner shall report, on a form	1936
prescribed by the chief, all materials placed into the formation	1937
to refracture, restimulate, or newly complete the well. The owner	1938
shall submit the information within sixty days after completing	1939
the refracturing, restimulation, or new completion. In addition,	1940
the owner shall report the information required in divisions	1941
(A)(10)(a) to (c) of this section, as applicable, in a manner	1942
consistent with the requirements established in this section.	1943

(C) Upon request in writing by the chief of the division of	1944
geological survey prior to the beginning of drilling of the well,	1945
the person drilling the well shall make available a complete set	1946
of cuttings accurately identified as to depth.	1947

(D) The form of the well completion record required by this	1948
section shall be one that has been approvedprescribed by the	1949
chief of the division of oil and gas resources management and the	1950
chief of the division of geological survey. The filing of a log as	1951
required by this section fulfills the requirement of filing a log	1952
with the chief of the division of geological survey in section	1953
1505.04 of the Revised Code.	1954

(E) If there is a material listed on the invoice that is	1955
required by division (A)(9) of this sectionor designated under	1956
division (A)(9) or (10) or (B)(3) of this section is a material	1957
for which the division of oil and gas resources management does	1958
not have a material safety data sheet, the chiefowner shall	1959
obtainprovide a copy of the material safety data sheet for the	1960
material and post a copy of the material safety data sheet on the	1961
division's web siteto the chief.	1962

(F) An owner shall submit to the chief the information that	1963
is required in divisions (A)(10)(b) and (c) and (B)(3) of this	1964
section consistent with the requirements established in this	1965
section using one of the following methods:	1966

(1) On a form prescribed by the chief;

1967

(2) Through the chemical disclosure registry that is	1968
maintained by the ground water protection council and the	1969
interstate oil and gas compact commission;	1970

(3) Any other means approved by the chief.

1971

(G) The chief shall post on the division's web site each	1972
material safety data sheet obtained under division (E) of this	1973
section. In addition, the chief shall make available through the	1974
division's web site the chemical information that is required by	1975
divisions (A)(9) and (10) and (B)(3) of this section.	1976

(H)(1) If a medical professional, in order to assist in the	1977
diagnosis or treatment of an individual who was affected by an	1978
incident associated with the production operations of a well,	1979
requests the exact chemical composition of each product, fluid, or	1980
substance and of each chemical component in a product, fluid, or	1981
substance that is designated as a trade secret pursuant to	1982
division (I) of this section, the person claiming the trade secret	1983
protection pursuant to that division shall provide to the medical	1984
professional the exact chemical composition of the product, fluid,	1985
or substance and of the chemical component in a product, fluid, or	1986
substance that is requested.	1987

(2) A medical professional who receives information pursuant	1988
to division (H)(1) of this section shall keep the information	1989
confidential and shall not disclose the information for any	1990
purpose that is not related to the diagnosis or treatment of an	1991
individual who was affected by an incident associated with the	1992
production operations of a well. Nothing in division (H)(2) of	1993
this section precludes a medical professional from making any	1994
report required by law or professional ethical standards.	1995

(I)(1) The owner of a well who is required to submit a well	1996
completion record under division (A) of this section or a report	1997
under division (B)(3) of this section or a person that provides	1998
information to the owner as described in and for purposes of	1999
division (A)(9) or (10) or (B)(3) of this section may designate	2000
without disclosing on a form prescribed by the chief and withhold	2001
from disclosure to the chief the identity, amount, concentration,	2002
or purpose of a product, fluid, or substance or of a chemical	2003
component in a product, fluid, or substance as a trade secret. The	2004
owner or person may pursue enforcement of any rights or remedies	2005
established in sections 1333.61 to 1333.69 of the Revised Code for	2006
misappropriation, as defined in section 1333.61 of the Revised	2007
Code, with respect to the identity, amount, concentration, or	2008
purpose of a product, fluid, or substance or a chemical component	2009
in a product, fluid, or substance designated as a trade secret	2010
pursuant to division (I)(1) of this section. The division shall	2011
not disclose information regarding the identity, amount,	2012
concentration, or purpose of any product, fluid, or substance or	2013
of any chemical component in a product, fluid, or substance	2014
designated as a trade secret pursuant to division (I)(1) of this	2015
section.	2016

(2) A property owner, an adjacent property owner, or any	2017
person or agency of this state having an interest that is or may	2018
be adversely affected by a product, fluid, or substance or by a	2019
chemical component in a product, fluid, or substance may commence	2020
a civil action in the court of common pleas of Franklin county	2021
against an owner or person described in division (I)(1) of this	2022
section challenging the owner's or person's claim to entitlement	2023
to trade secret protection for the specific identity, amount,	2024
concentration, or purpose of a product, fluid, or substance or of	2025
a chemical component in a product, fluid, or substance pursuant to	2026
division (I)(1) of this section. A person who commences a civil	2027
action pursuant to division (I)(2) of this section shall provide	2028
notice to the chief in a manner prescribed by the chief. In the	2029
civil action, the court shall conduct an in camera review of	2030
information submitted by an owner or person described in division	2031
(I)(1) of this section to determine if the identity, amount,	2032
concentration, or purpose of a product, fluid, or substance or of	2033
a chemical component in a product, fluid, or substance pursuant to	2034
division (I)(1) of this section is entitled to trade secret	2035
protection.	2036

(J)(1) Except for any information that is designated as a	2037
trade secret pursuant to division (I)(1) of this section and	2038
except as provided in division (J)(2) of this section, the owner	2039
of a well shall maintain records of all chemicals placed in a well	2040
for a period of not less than two years after the date on which	2041
each such chemical was placed in the well. The chief may inspect	2042
the records at any time concerning any such chemical.	2043

(2) An owner or person who has designated the identity,	2044
amount, concentration, or purpose of a product, fluid, or	2045
substance or of a chemical component in a product, fluid, or	2046
substance as a trade secret pursuant to division (I)(1) of this	2047
section shall maintain the records for such a product, fluid, or	2048
substance or for a chemical component in a product, fluid, or	2049
substance for a period of not less than two years after the date	2050
on which each such product, fluid, or substance or each such	2051
chemical component in a product, fluid, or substance was placed in	2052
the well. Upon the request of the chief, the owner or person, as	2053
applicable, shall disclose the records to the chief if the	2054
information is necessary to respond to a spill, release, or	2055
investigation. However, the chief shall not disclose the	2056
information that is designated as a trade secret.	2057

(K)(1) For purposes of correcting inaccuracies and	2058
incompleteness in chemical information required by divisions	2059
(A)(9) and (10) and (B)(3) of this section, an owner shall be	2060
considered in substantial compliance if the owner has made	2061
reasonable efforts to obtain the required information from the	2062
supplier.	2063

(2) For purposes of reporting under this section, an owner is	2064
not required to report chemicals that occur incidentally or in	2065
trace amounts.	2066

Sec. 1509.11. (A) The owner of any well, including a	2067
horizontal well, producing or capable of producing oil or gas	2068
shall file with the chief of the division of oil and gas resources	2069
management, on or before the thirty-first day of March, a	2070
statement of production of oil, gas, and brine for the last	2071
preceding calendar year in such form as the chief may prescribe.	2072
An owner that has more than one hundred such wells in this state	2073
shall submit electronically the statement of production in a	2074
format that is approved by the chief. The chief shall include on	2075
the form, at the minimum, a request for the submittal of the	2076
information that a person who is regulated under this chapter is	2077
required to submit under the "Emergency Planning and Community	2078
Right-To-Know Act of 1986," 100 Stat. 1728, 42 U.S.C.A. 11001, and	2079
regulations adopted under it, and that the division does not	2080
obtain through other reporting mechanisms.	2081

(B) The chief shall not disclose information received from	2082
the department of taxation under division (C)(12) of section	2083
5703.21 of the Revised Code until the related statement of	2084
production required by division (A) of this section is filed with	2085
the chief.	2086

Sec. 1509.22.  (A) Except when acting in accordance with	2087
section 1509.226 of the Revised Code, no person shall place or	2088
cause to be placed brine, crude oil, natural gas, or other fluids	2089
associated with the exploration or development of oil and gas	2090
resources in surface or ground water or in or on the land in such	2091
quantities or in such manner as actually causes or could	2092
reasonably be anticipated to cause either of the following:	2093

(1) Water used for consumption by humans or domestic animals	2094
to exceed the standards of the Safe Drinking Water Act;	2095

(2) Damage or injury to public health or safety or the	2096
environment.	2097

(B) No person shall store or dispose of brine in violation of	2098
a plan approved under division (A) of section 1509.222 or section	2099
1509.226 of the Revised Code, in violation of a resolution	2100
submitted under section 1509.226 of the Revised Code, or in	2101
violation of rules or orders applicable to those plans or	2102
resolutions.	2103

(C) The chief of the division of oil and gas resources	2104
management shall adopt rules and issue orders regarding storage	2105
and disposal of brine and other waste substances; however, the	2106
storage and disposal of brine and other waste substances and the	2107
chief's rules relating to storage and disposal are subject to all	2108
of the following standards:	2109

(1) Brine from any well except an exempt Mississippian well	2110
shall be disposed of only by injection into an underground	2111
formation, including annular disposal if approved by rule of the	2112
chief, which injection shall be subject to division (D) of this	2113
section; by surface application in accordance with section	2114
1509.226 of the Revised Code; in association with a method of	2115
enhanced recovery as provided in section 1509.21 of the Revised	2116
Code; or by other methods approved by the chief for testing or	2117
implementing a new technology or method of disposal. Brine from	2118
exempt Mississippian wells shall not be discharged directly into	2119
the waters of the state.	2120

(2) Muds, cuttings, and other waste substances shall not be	2121
disposed of in violation of any rule.	2122

(3) Pits or steel tanks shall be used as authorized by the	2123
chief for containing brine and other waste substances resulting	2124
from, obtained from, or produced in connection with drilling, well	2125
stimulation, reworking, reconditioning, plugging back, or plugging	2126
operations. The pits and steel tanks shall be constructed and	2127
maintained to prevent the escape of brine and other waste	2128
substances.	2129

(4) A dike or pit may be used for spill prevention and	2130
control. A dike or pit so used shall be constructed and maintained	2131
to prevent the escape of brine and crude oil, and the reservoir	2132
within such a dike or pit shall be kept reasonably free of brine,	2133
crude oil, and other waste substances.	2134

(5) Earthen impoundments constructed pursuant to the	2135
division's specifications may be used for the temporary storage of	2136
fluids used in the stimulation of a well.	2137

(6) No pit, earthen impoundment, or dike shall be used for	2138
the temporary storage of brine or other substances except in	2139
accordance with divisions (C)(3) to (5) of this section.	2140

(7) No pit or dike shall be used for the ultimate disposal of	2141
brine or other liquid waste substances.	2142

(D)(1) No person, without first having obtained a permit from	2143
the chief, shall inject brine or other waste substances resulting	2144
from, obtained from, or produced in connection with oil or gas	2145
drilling, exploration, or production into an underground formation	2146
unless a rule of the chief expressly authorizes the injection	2147
without a permit. The permit shall be in addition to any permit	2148
required by section 1509.05 of the Revised Code, and the permit	2149
application shall be accompanied by a permit fee of one thousand	2150
dollars. The chief shall adopt rules in accordance with Chapter	2151
119. of the Revised Code regarding the injection into wells of	2152
brine and other waste substances resulting from, obtained from, or	2153
produced in connection with oil or gas drilling, exploration, or	2154
production. The rules may authorize tests to evaluate whether	2155
fluids or carbon dioxide may be injected in a reservoir and to	2156
determine the maximum allowable injection pressure, which shall be	2157
conducted in accordance with methods prescribed in the rules or in	2158
accordance with conditions of the permit. In addition, the rules	2159
shall include provisions regarding applicationsall of the	2160
following:	2161

(a) Applications for and issuance of the permits required by	2162
this division; entry	2163

(b) Entry to conduct inspections and to examine and copy	2164
records to ascertain compliance with this division and rules,	2165
orders, and terms and conditions of permits adopted or issued	2166
under it; the	2167

(c) The provision and maintenance of information through	2168
monitoring, recordkeeping, and reporting; and. In addition, the	2169
rules shall require the owner of an injection well who has been	2170
issued a permit under division (D) of this section to quarterly	2171
submit electronically to the chief information concerning each	2172
shipment of brine or other waste substances received by the owner	2173
for injection into the well.	2174

(d) The provision and electronic reporting quarterly of	2175
information concerning brine and other waste substances from a	2176
transporter that is registered under section 1509.222 of the	2177
Revised Code prior to the injection of the transported brine or	2178
other waste substances;	2179

(e) Any other provisions in furtherance of the goals of this	2180
section and the Safe Drinking Water Act. To	2181

(2) The chief may adopt rules in accordance with Chapter 119.	2182
of the Revised Code authorizing tests to evaluate whether fluids	2183
or carbon dioxide may be injected in a reservoir and to determine	2184
the maximum allowable injection pressure, which shall be conducted	2185
in accordance with methods prescribed in the rules or in	2186
accordance with conditions of the permit. In addition, the chief	2187
may adopt rules that do both of the following:	2188

(a) Establish the total depth of a well for which a permit	2189
has been applied for or issued under this division;	2190

(b) Establish requirements and procedures to protect public	2191
health and safety.	2192

(3) To implement the goals of the Safe Drinking Water Act,	2193
the chief shall not issue a permit for the injection of brine or	2194
other waste substances resulting from, obtained from, or produced	2195
in connection with oil or gas drilling, exploration, or production	2196
unless the chief concludes that the applicant has demonstrated	2197
that the injection will not result in the presence of any	2198
contaminant in ground water that supplies or can reasonably be	2199
expected to supply any public water system, such that the presence	2200
of the contaminant may result in the system's not complying with	2201
any national primary drinking water regulation or may otherwise	2202
adversely affect the health of persons. This	2203

(4) The chief may issue an order to the owner of a well in	2204
existence on the effective date of this amendment to make changes	2205
in the operation of the well in order to correct problems or to	2206
address safety concerns.	2207

(5) This division and rules, orders, and terms and conditions	2208
of permits adopted or issued under it shall be construed to be no	2209
more stringent than required for compliance with the Safe Drinking	2210
Water Act unless essential to ensure that underground sources of	2211
drinking water will not be endangered.	2212

(E) The owner holding a permit, or an assignee or transferee	2213
who has assumed the obligations and liabilities imposed by this	2214
chapter and any rules adopted or orders issued under it pursuant	2215
to section 1509.31 of the Revised Code, and the operator of a well	2216
shall be liable for a violation of this section or any rules	2217
adopted or orders or terms or conditions of a permit issued under	2218
it.	2219

(F) An owner shall replace the water supply of the holder of	2220
an interest in real property who obtains all or part of the	2221
holder's supply of water for domestic, agricultural, industrial,	2222
or other legitimate use from an underground or surface source	2223
where the supply has been substantially disrupted by	2224
contamination, diminution, or interruption proximately resulting	2225
from the owner's oil or gas operation, or the owner may elect to	2226
compensate the holder of the interest in real property for the	2227
difference between the fair market value of the interest before	2228
the damage occurred to the water supply and the fair market value	2229
after the damage occurred if the cost of replacing the water	2230
supply exceeds this difference in fair market values. However,	2231
during the pendency of any order issued under this division, the	2232
owner shall obtain for the holder or shall reimburse the holder	2233
for the reasonable cost of obtaining a water supply from the time	2234
of the contamination, diminution, or interruption by the operation	2235
until the owner has complied with an order of the chief for	2236
compliance with this division or such an order has been revoked or	2237
otherwise becomes not effective. If the owner elects to pay the	2238
difference in fair market values, but the owner and the holder	2239
have not agreed on the difference within thirty days after the	2240
chief issues an order for compliance with this division, within	2241
ten days after the expiration of that thirty-day period, the owner	2242
and the chief each shall appoint an appraiser to determine the	2243
difference in fair market values, except that the holder of the	2244
interest in real property may elect to appoint and compensate the	2245
holder's own appraiser, in which case the chief shall not appoint	2246
an appraiser. The two appraisers appointed shall appoint a third	2247
appraiser, and within thirty days after the appointment of the	2248
third appraiser, the three appraisers shall hold a hearing to	2249
determine the difference in fair market values. Within ten days	2250
after the hearing, the appraisers shall make their determination	2251
by majority vote and issue their final determination of the	2252
difference in fair market values. The chief shall accept a	2253
determination of the difference in fair market values made by	2254
agreement of the owner and holder or by appraisers under this	2255
division and shall make and dissolve orders accordingly. This	2256
division does not affect in any way the right of any person to	2257
enforce or protect, under applicable law, the person's interest in	2258
water resources affected by an oil or gas operation.	2259

(G) In any action brought by the state for a violation of	2260
division (A) of this section involving any well at which annular	2261
disposal is used, there shall be a rebuttable presumption	2262
available to the state that the annular disposal caused the	2263
violation if the well is located within a one-quarter-mile radius	2264
of the site of the violation.	2265

(H)(1) There is levied on the owner of an injection well who	2266
has been issued a permit under division (D) of this section the	2267
following fees:	2268

(a) Five cents per barrel of each substance that is delivered	2269
to a well to be injected in the well when the substance is	2270
produced within the division of oil and gas resources management	2271
regulatory district in which the well is located or within an	2272
adjoining oil and gas resources management regulatory district;	2273

(b) Twenty cents per barrel of each substance that is	2274
delivered to a well to be injected in the well when the substance	2275
is not produced within the division of oil and gas resources	2276
management regulatory district in which the well is located or	2277
within an adjoining oil and gas resources management regulatory	2278
district.	2279

(2) The maximum number of barrels of substance per injection	2280
well in a calendar year on which a fee may be levied under	2281
division (H) of this section is five hundred thousand. If in a	2282
calendar year the owner of an injection well receives more than	2283
five hundred thousand barrels of substance to be injected in the	2284
owner's well and if the owner receives at least one substance that	2285
is produced within the division's regulatory district in which the	2286
well is located or within an adjoining regulatory district and at	2287
least one substance that is not produced within the division's	2288
regulatory district in which the well is located or within an	2289
adjoining regulatory district, the fee shall be calculated first	2290
on all of the barrels of substance that are not produced within	2291
the division's regulatory district in which the well is located or	2292
within an adjoining district at the rate established in division	2293
(H)(2) of this section. The fee then shall be calculated on the	2294
barrels of substance that are produced within the division's	2295
regulatory district in which the well is located or within an	2296
adjoining district at the rate established in division (H)(1) of	2297
this section until the maximum number of barrels established in	2298
division (H)(2) of this section has been attained.	2299

(3) The owner of an injection well who is issued a permit	2300
under division (D) of this section shall collect the fee levied by	2301
division (H) of this section on behalf of the division of oil and	2302
gas resources management and forward the fee to the division. The	2303
chief shall transmit all money received under division (H) of this	2304
section to the treasurer of state who shall deposit the money in	2305
the state treasury to the credit of the oil and gas well fund	2306
created in section 1509.02 of the Revised Code. The owner of an	2307
injection well who collects the fee levied by this division may	2308
retain up to three per cent of the amount that is collected.	2309

(4) The chief shall adopt rules in accordance with Chapter	2310
119. of the Revised Code establishing requirements and procedures	2311
for collection of the fee levied by division (H) of this section.	2312

Sec. 1509.221.  (A) No person, without first having obtained	2313
a permit from the chief of the division of oil and gas resources	2314
management, shall drill a well or inject a substance into a well	2315
for the exploration for or extraction of minerals or energy, other	2316
than oil or natural gas, including, but not limited to, the mining	2317
of sulfur by the Frasch process, the solution mining of minerals,	2318
the in situ combustion of fossil fuel, or the recovery of	2319
geothermal energy to produce electric power, unless a rule of the	2320
chief expressly authorizes the activity without a permit. The	2321
permit shall be in addition to any permit required by section	2322
1509.05 of the Revised Code. The chief shall adopt rules in	2323
accordance with Chapter 119. of the Revised Code governing the	2324
issuance of permits under this section. The rules shall include	2325
provisions regarding the matters the applicant for a permit shall	2326
demonstrate to establish eligibility for a permit; the form and	2327
content of applications for permits; the terms and conditions of	2328
permits; entry to conduct inspections and to examine and copy	2329
records to ascertain compliance with this section and rules,	2330
orders, and terms and conditions of permits adopted or issued	2331
thereunder; provision and maintenance of information through	2332
monitoring, recordkeeping, and reporting; and other provisions in	2333
furtherance of the goals of this section and the Safe Drinking	2334
Water Act. To implement the goals of the Safe Drinking Water Act,	2335
the chief shall not issue a permit under this section, unless the	2336
chief concludes that the applicant has demonstrated that the	2337
drilling, injection of a substance, and extraction of minerals or	2338
energy will not result in the presence of any contaminant in	2339
underground water that supplies or can reasonably be expected to	2340
supply any public water system, such that the presence of the	2341
contaminant may result in the system's not complying with any	2342
national primary drinking water regulation or may otherwise	2343
adversely affect the health of persons. The chief may issue,	2344
without a prior adjudication hearing, orders requiring compliance	2345
with this section and rules, orders, and terms and conditions of	2346
permits adopted or issued thereunder. This section and rules,	2347
orders, and terms and conditions of permits adopted or issued	2348
thereunder shall be construed to be no more stringent than	2349
required for compliance with the Safe Drinking Water Act, unless	2350
essential to ensure that underground sources of drinking water	2351
will not be endangered.	2352

(B)(1) There is levied on the owner of an injection well who	2353
has been issued a permit under division (D) of section 1509.22 of	2354
the Revised Code the following fees:	2355

(a) Five cents per barrel of each substance that is delivered	2356
to a well to be injected in the well when the substance is	2357
produced within the division of oil and gas resources management	2358
regulatory district in which the well is located or within an	2359
adjoining oil and gas resources management regulatory district;	2360

(b) Twenty cents per barrel of each substance that is	2361
delivered to a well to be injected in the well when the substance	2362
is not produced within the division of oil and gas resources	2363
management regulatory district in which the well is located or	2364
within an adjoining oil and gas resources management regulatory	2365
district.	2366

(2) The maximum number of barrels of substance per injection	2367
well in a calendar year on which a fee may be levied under	2368
division (B) of this section is five hundred thousand. If in a	2369
calendar year the owner of an injection well receives more than	2370
five hundred thousand barrels of substance to be injected in the	2371
owner's well and if the owner receives at least one substance that	2372
is produced within the division's regulatory district in which the	2373
well is located or within an adjoining regulatory district and at	2374
least one substance that is not produced within the division's	2375
regulatory district in which the well is located or within an	2376
adjoining regulatory district, the fee shall be calculated first	2377
on all of the barrels of substance that are not produced within	2378
the division's regulatory district in which the well is located or	2379
within an adjoining district at the rate established in division	2380
(B)(2) of this section. The fee then shall be calculated on the	2381
barrels of substance that are produced within the division's	2382
regulatory district in which the well is located or within an	2383
adjoining district at the rate established in division (B)(1) of	2384
this section until the maximum number of barrels established in	2385
division (B)(2) of this section has been attained.	2386

(3) The owner of an injection well who is issued a permit	2387
under division (D) of section 1509.22 of the Revised Code shall	2388
collect the fee levied by division (B) of this section on behalf	2389
of the division of oil and gas resources management and forward	2390
the fee to the division. The chief shall transmit all money	2391
received under division (B) of this section to the treasurer of	2392
state who shall deposit the money in the state treasury to the	2393
credit of the oil and gas well fund created in section 1509.02 of	2394
the Revised Code. The owner of an injection well who collects the	2395
fee levied by this division may retain up to three per cent of the	2396
amount that is collected.	2397

(4) The chief shall adopt rules in accordance with Chapter	2398
119. of the Revised Code establishing requirements and procedures	2399
for collection of the fee levied by division (B) of this section.	2400

(C) In an action under section 1509.04 or 1509.33 of the	2401
Revised Code to enforce this section, the court shall grant	2402
preliminary and permanent injunctive relief and impose a civil	2403
penalty upon the showing that the person against whom the action	2404
is brought has violated, is violating, or will violate this	2405
section or rules, orders, or terms or conditions of permits	2406
adopted or issued thereunder. The court shall not require, prior	2407
to granting such preliminary and permanent injunctive relief or	2408
imposing a civil penalty, proof that the violation was, is, or	2409
will be the result of intentional conduct or negligence. In any	2410
such action, any person may intervene as a plaintiff upon the	2411
demonstration that the person has an interest that is or may be	2412
adversely affected by the activity for which injunctive relief or	2413
a civil penalty is sought.	2414

Sec. 1509.222.  (A)(1) Except as provided in section 1509.226	2415
of the Revised Code, no person shall transport brine by vehicle in	2416
this state unless the business entity that employs the person	2417
first registers with and obtains a registration certificate and	2418
identification number from the chief of the division of oil and	2419
gas resources management.	2420

(2) No more than one registration certificate shall be	2421
required of any business entity. Registration certificates issued	2422
under this section are not transferable. An applicant shall file	2423
an application with the chief, containing such information in such	2424
form as the chief prescribes, but including a. The application	2425
shall include at least all of the following:	2426

(a) A list that identifies each vehicle, vessel, railcar, and	2427
container that will be used in the transportation of brine;	2428

(b) A plan for disposal that provides for compliance with the	2429
requirements of this chapter and rules of the chief pertaining to	2430
the transportation of brine by vehicle and the disposal of brine	2431
so transported and that lists all disposal sites that the	2432
applicant intends to use, the;	2433

(c) The bond required by section 1509.225 of the Revised	2434
Code, and a;	2435

(d) A certificate issued by an insurance company authorized	2436
to do business in this state certifying that the applicant has in	2437
force a liability insurance policy in an amount not less than	2438
three hundred thousand dollars bodily injury coverage and three	2439
hundred thousand dollars property damage coverage to pay damages	2440
for injury to persons or property caused by the collecting,	2441
handling, transportation, or disposal of brine. The	2442

The insurance policy required by division (A)(2)(d) of this	2443
section shall be maintained in effect during the term of the	2444
registration certificate. The policy or policies providing the	2445
coverage shall require the insurance company to give notice to the	2446
chief if the policy or policies lapse for any reason. Upon such	2447
termination of the policy, the chief may suspend the registration	2448
certificate until proper insurance coverage is obtained. Each	2449

(3) Each application for a registration certificate shall be	2450
accompanied by a nonrefundable fee of five hundred dollars.	2451

(3)(4) If a business entity that has been issued a	2452
registration certificate under this section changes its name due	2453
to a business reorganization or merger, the business entity shall	2454
revise the bond or certificates of deposit required by section	2455
1509.225 of the Revised Code and obtain a new certificate from an	2456
insurance company in accordance with division (A)(2)(e) of this	2457
section to reflect the change in the name of the business entity.	2458

(B) The chief shall issue an order denying an application for	2459
a registration certificate if the chief finds that either of the	2460
following applies:	2461

(1) The applicant, at the time of applying for the	2462
registration certificate, has been found liable by a final	2463
nonappealable order of a court of competent jurisdiction for	2464
damage to streets, roads, highways, bridges, culverts, or	2465
drainways pursuant to section 4513.34 or 5577.12 of the Revised	2466
Code until the applicant provides the chief with evidence of	2467
compliance with the order.	2468

(2) The applicant's plan for disposal does not provide for	2469
compliance with the requirements of this chapter and rules of the	2470
chief pertaining to the transportation of brine by vehicle and the	2471
disposal of brine so transported.	2472

(C) No applicant shall attempt to circumvent division (B) of	2473
this section by applying for a registration certificate under a	2474
different name or business organization name, by transferring	2475
responsibility to another person or entity, or by any similar act.	2476

(D) A registered transporter shall apply to revise a disposal	2477
plan under procedures that the chief shall prescribe by rule.	2478
However, at a minimum, an application for a revision shall list	2479
all sources and disposal sites of brine currently transported. The	2480
chief shall deny any application for a revision of a plan under	2481
this division if the chief finds that the proposed revised plan	2482
does not provide for compliance with the requirements of this	2483
chapter and rules of the chief pertaining to the transportation of	2484
brine by vehicle and the disposal of brine so transported.	2485
Approvals and denials of revisions shall be by order of the chief.	2486

(E) The chief may adopt rules, issue orders, and attach terms	2487
and conditions to registration certificates as may be necessary to	2488
administer, implement, and enforce sections 1509.222 to 1509.226	2489
of the Revised Code for protection of public health or safety or	2490
conservation of natural resources.	2491

Sec. 1509.223.  (A) No permit holder or owner of a well shall	2492
enter into an agreement with or permit any person to transport	2493
brine produced from the well who is not registered pursuant to	2494
section 1509.222 of the Revised Code or exempt from registration	2495
under section 1509.226 of the Revised Code.	2496

(B) Each registered transporter shall file with the chief of	2497
the division of oil and gas resources management, on or before the	2498
fifteenth day of April, a statement concerning brine transported,	2499
including quantities transported and source and delivery points,	2500
during the last preceding calendar year, and such other	2501
information in such form as the chief may prescribe.	2502

(C) Each registered transporter shall keep on each vehicle	2503
used to transport brine a daily log and have it available upon the	2504
request of the chief or an authorized representative of the chief	2505
or a peace officer. The log shall, at a minimum, include all of	2506
the following information:	2507

(1) The name of the owner or owners of the well or wells	2508
producing the brine to be transported;	2509

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

2510

(3) The name of the driver;

2511

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

2512

(5) The disposal location;

2513

(6) The date and time the brine is disposed of and the amount	2514
of brine disposed of at each location.	2515

The chief, by rule, may establish procedures for the	2516
electronic submission to the chief of the information that is	2517
required to be included in the daily log. No registered	2518
transporter shall falsify or fail to keep or submit the log	2519
required by this division.	2520

(D) Each registered transporter shall legibly identify with	2521
reflective paints all vehicles employed in transporting or	2522
disposing of brine. Letters shall be no less than four inches in	2523
height and shall indicate the identification number issued by the	2524
chief, the word "brine," and the name and telephone number of the	2525
transporter.	2526

(E) The chief shall maintain and keep a current list of	2527
persons registered to transport brine under section 1509.222 of	2528
the Revised Code. The list shall be open to public inspection. It	2529
is an affirmative defense to a charge under division (A) of this	2530
section that at the time the permit holder or owner of a well	2531
entered into an agreement with or permitted a person to transport	2532
brine, the person was shown on the list as currently registered to	2533
transport brine.	2534

Sec. 1509.23.  (A) Rules of the chief of the division of oil	2535
and gas resources management may specify practices to be followed	2536
in the drilling and treatment of wells, production of oil and gas,	2537
and plugging of wells for protection of public health or safety or	2538
to prevent damage to natural resources, including specification of	2539
the following:	2540

(1) Appropriate devices;

2541

(2) Minimum distances that wells and other excavations,	2542
structures, and equipment shall be located from water wells,	2543
streets, roads, highways, rivers, lakes, streams, ponds, other	2544
bodies of water, railroad tracks, public or private recreational	2545
areas, zoning districts, and buildings or other structures. Rules	2546
adopted under division (A)(2) of this section shall not conflict	2547
with section 1509.021 of the Revised Code.	2548

(3) Other methods of operation;

2549

(4) Procedures, methods, and equipment and other requirements	2550
for equipment to prevent and contain discharges of oil and brine	2551
from oil production facilities and oil drilling and workover	2552
facilities consistent with and equivalent in scope, content, and	2553
coverage to section 311(j)(1)(c) of the "Federal Water Pollution	2554
Control Act Amendments of 1972," 86 Stat. 886, 33 U.S.C.A. 1251,	2555
as amended, and regulations adopted under it. In addition, the	2556
rules may specify procedures, methods, and equipment and other	2557
requirements for equipment to prevent and contain surface and	2558
subsurface discharges of fluids, condensates, and gases.	2559

(5) Notifications;

2560

(6) Requirements governing the location and construction of	2561
fresh water impoundments that are part of a production operation.	2562

(B) The chief, in consultation with the emergency response	2563
commission created in section 3750.02 of the Revised Code, shall	2564
adopt rules in accordance with Chapter 119. of the Revised Code	2565
that specify the information that shall be included in an	2566
electronic database that the chief shall create and host. The	2567
information shall be that which the chief considers to be	2568
appropriate for the purpose of responding to emergency situations	2569
that pose a threat to public health or safety or the environment.	2570
At the minimum, the information shall include that which a person	2571
who is regulated under this chapter is required to submit under	2572
the "Emergency Planning and Community Right-To-Know Act of 1986,"	2573
100 Stat. 1728, 42 U.S.C.A. 11001, and regulations adopted under	2574
it.	2575

In addition, the rules shall specify whether and to what	2576
extent the database and the information that it contains will be	2577
made accessible to the public. The rules shall ensure that the	2578
database will be made available via the internet or a system of	2579
computer disks to the emergency response commission and to every	2580
local emergency planning committee and fire department in this	2581
state.	2582

Sec. 1509.28.  (A) The chief of the division of oil and gas	2583
resources management, upon the chief's own motion or upon	2584
application by the owners of sixty-five per cent of the land area	2585
overlying the pool, shall hold a hearing to consider the need for	2586
the operation as a unit of an entire pool or part thereof. An	2587
application by owners shall be accompanied by a nonrefundable fee	2588
of ten thousand dollars and by such information as the chief may	2589
request.	2590

The chief shall make an order providing for the unit	2591
operation of a pool or part thereof if the chief finds that such	2592
operation is reasonably necessary to increase substantially the	2593
ultimate recovery of oil and gas, and the value of the estimated	2594
additional recovery of oil or gas exceeds the estimated additional	2595
cost incident to conducting the operation. The order shall be upon	2596
terms and conditions that are just and reasonable and shall	2597
prescribe a plan for unit operations that shall include:	2598

(1) A description of the unitized area, termed the unit area;

2599

(2) A statement of the nature of the operations contemplated;

2600

(3) An allocation to the separately owned tracts in the unit	2601
area of all the oil and gas that is produced from the unit area	2602
and is saved, being the production that is not used in the conduct	2603
of operations on the unit area or not unavoidably lost. The	2604
allocation shall be in accord with the agreement, if any, of the	2605
interested parties. If there is no such agreement, the chief shall	2606
determine the value, from the evidence introduced at the hearing,	2607
of each separately owned tract in the unit area, exclusive of	2608
physical equipment, for development of oil and gas by unit	2609
operations, and the production allocated to each tract shall be	2610
the proportion that the value of each tract so determined bears to	2611
the value of all tracts in the unit area.	2612

(4) A provision for the credits and charges to be made in the	2613
adjustment among the owners in the unit area for their respective	2614
investments in wells, tanks, pumps, machinery, materials, and	2615
equipment contributed to the unit operations;	2616

(5) A provision providing how the expenses of unit	2617
operations, including capital investment, shall be determined and	2618
charged to the separately owned tracts and how the expenses shall	2619
be paid;	2620

(6) A provision, if necessary, for carrying or otherwise	2621
financing any person who is unable to meet the person's financial	2622
obligations in connection with the unit, allowing a reasonable	2623
interest charge for such service;	2624

(7) A provision for the supervision and conduct of the unit	2625
operations, in respect to which each person shall have a vote with	2626
a value corresponding to the percentage of the expenses of unit	2627
operations chargeable against the interest of that person;	2628

(8) The time when the unit operations shall commence, and the	2629
manner in which, and the circumstances under which, the unit	2630
operations shall terminate;	2631

(9) Such additional provisions as are found to be appropriate	2632
for carrying on the unit operations, and for the protection or	2633
adjustment of correlative rights.	2634

(B) No order of the chief providing for unit operations shall	2635
become effective unless and until the plan for unit operations	2636
prescribed by the chief has been approved in writing by those	2637
owners who, under the chief's order, will be required to pay at	2638
least sixty-five per cent of the costs of the unit operation, and	2639
also by the royalty or, with respect to unleased acreage, fee	2640
owners of sixty-five per cent of the acreage to be included in the	2641
unit. If the plan for unit operations has not been so approved by	2642
owners and royalty owners at the time the order providing for unit	2643
operations is made, the chief shall upon application and notice	2644
hold such supplemental hearings as may be required to determine if	2645
and when the plan for unit operations has been so approved. If the	2646
owners and royalty owners, or either, owning the required	2647
percentage of interest in the unit area do not approve the plan	2648
for unit operations within a period of six months from the date on	2649
which the order providing for unit operations is made, the order	2650
shall cease to be of force and shall be revoked by the chief.	2651

An order providing for unit operations may be amended by an	2652
order made by the chief, in the same manner and subject to the	2653
same conditions as an original order providing for unit	2654
operations, provided that:	2655

(1) If such an amendment affects only the rights and	2656
interests of the owners, the approval of the amendment by the	2657
royalty owners shall not be required.	2658

(2) No such order of amendment shall change the percentage	2659
for allocation of oil and gas as established for any separately	2660
owned tract by the original order, except with the consent of all	2661
persons owning interest in the tract.	2662

The chief, by an order, may provide for the unit operation of	2663
a pool or a part thereof that embraces a unit area established by	2664
a previous order of the chief. Such an order, in providing for the	2665
allocation of unit production, shall first treat the unit area	2666
previously established as a single tract, and the portion of the	2667
unit production so allocated thereto shall then be allocated among	2668
the separately owned tracts included in the previously established	2669
unit area in the same proportions as those specified in the	2670
previous order.	2671

Oil and gas allocated to a separately owned tract shall be	2672
deemed, for all purposes, to have been actually produced from the	2673
tract, and all operations, including, but not limited to, the	2674
commencement, drilling, operation of, or production from a well	2675
upon any portion of the unit area shall be deemed for all purposes	2676
the conduct of such operations and production from any lease or	2677
contract for lands any portion of which is included in the unit	2678
area. The operations conducted pursuant to the order of the chief	2679
shall constitute a fulfillment of all the express or implied	2680
obligations of each lease or contract covering lands in the unit	2681
area to the extent that compliance with such obligations cannot be	2682
had because of the order of the chief.	2683

Oil and gas allocated to any tract, and the proceeds from the	2684
sale thereof, shall be the property and income of the several	2685
persons to whom, or to whose credit, the same are allocated or	2686
payable under the order providing for unit operations.	2687

No order of the chief or other contract relating to the sale	2688
or purchase of production from a separately owned tract shall be	2689
terminated by the order providing for unit operations, but shall	2690
remain in force and apply to oil and gas allocated to the tract	2691
until terminated in accordance with the provisions thereof.	2692

Except to the extent that the parties affected so agree, no	2693
order providing for unit operations shall be construed to result	2694
in a transfer of all or any part of the title of any person to the	2695
oil and gas rights in any tract in the unit area. All property,	2696
whether real or personal, that may be acquired for the account of	2697
the owners within the unit area shall be the property of such	2698
owners in the proportion that the expenses of unit operations are	2699
charged.	2700

Sec. 1509.33.  (A) Whoever violates sections 1509.01 to	2701
1509.31 of the Revised Code, or any rules adopted or orders or	2702
terms or conditions of a permit or registration certificate issued	2703
pursuant to these sections for which no specific penalty is	2704
provided in this section, shall pay a civil penalty of not more	2705
than four thousand dollars for each offense.	2706

(B) Whoever violates section 1509.221 of the Revised Code or	2707
any rules adopted or orders or terms or conditions of a permit	2708
issued thereunder shall pay a civil penalty of not more than two	2709
thousand five hundred dollars for each violation.	2710

(C) Whoever violates division (D) of section 1509.22 or	2711
division (A)(1) of section 1509.222 of the Revised Code shall pay	2712
a civil penalty of not less than two thousand five hundred dollars	2713
nor more than twenty thousand dollars for each violation.	2714

(D) Whoever violates division (A) of section 1509.22 of the	2715
Revised Code shall pay a civil penalty of not less than two	2716
thousand five hundred dollars nor more than ten thousand dollars	2717
for each violation.	2718

(E) Whoever violates division (A) of section 1509.223 of the	2719
Revised Code shall pay a civil penalty of not more than ten	2720
thousand dollars for each violation.	2721

(F) Whoever violates section 1509.072 of the Revised Code or	2722
any rules adopted or orders issued to administer, implement, or	2723
enforce that section shall pay a civil penalty of not more than	2724
five thousand dollars for each violation.	2725

(G) In addition to any other penalties provided in this	2726
chapter, whoever violates division (B) of section 1509.22 or	2727
division (A)(1) of section 1509.222 or knowingly violates division	2728
(A) of section 1509.223 of the Revised Code is liable for any	2729
damage or injury caused by the violation and for the cost of	2730
rectifying the violation and conditions caused by the violation.	2731
If two or more persons knowingly violate one or more of those	2732
divisions in connection with the same event, activity, or	2733
transaction, they are jointly and severally liable under this	2734
division.	2735

(H) The attorney general, upon the request of the chief of	2736
the division of oil and gas resources management, shall commence	2737
an action under this section against any person who violates	2738
sections 1509.01 to 1509.31 of the Revised Code, or any rules	2739
adopted or orders or terms or conditions of a permit or	2740
registration certificate issued pursuant to these sections. Any	2741
action under this section is a civil action, governed by the Rules	2742
of Civil Procedure and other rules of practice and procedure	2743
applicable to civil actions. The remedy provided in this division	2744
is cumulative and concurrent with any other remedy provided in	2745
this chapter, and the existence or exercise of one remedy does not	2746
prevent the exercise of any other, except that no person shall be	2747
subject to both a civil penalty under division (A), (B), (C), or	2748
(D) of this section and a criminal penalty under section 1509.99	2749
of the Revised Code for the same offense.	2750

(I) For purposes of this section, each day of violation	2751
constitutes a separate offense.	2752

Sec. 1509.99.  (A) Whoever violates sections 1509.01 to	2753
1509.31 of the Revised Code or any rules adopted or orders or	2754
terms or conditions of a permit issued pursuant to these sections	2755
for which no specific penalty is provided in this section shall be	2756
fined not less than one hundred nor more than one thousand dollars	2757
for a first offense; for each subsequent offense suchthe person	2758
shall be fined not less than two hundred nor more than two	2759
thousand dollars.	2760

(B) Whoever violates section 1509.221 of the Revised Code or	2761
any rules adopted or orders or terms or conditions of a permit	2762
issued thereunder shall be fined not more than five thousand	2763
dollars for each day of violation.	2764

(C) Whoever knowingly violates section 1509.072, division	2765
(A), (B), or (D) of section 1509.22, division (A)(1) or (C) of	2766
section 1509.222, or division (A) or (D) of section 1509.223 of	2767
the Revised Code or any rules adopted or orders issued under	2768
division (C) of section 1509.22 or rules adopted or orders or	2769
terms or conditions of a registration certificate issued under	2770
division (E) of section 1509.222 of the Revised Code shall be	2771
fined ten thousand dollars or imprisoned for six months, or both	2772
for a first offense; for each subsequent offense suchthe person	2773
shall be fined twenty thousand dollars or imprisoned for two	2774
years, or both. Whoever negligently violates suchthose divisions,	2775
sections, rules, orders, or terms or conditions of a registration	2776
certificate shall be fined not more than five thousand dollars.	2777

(D) Whoever violates division (C) of section 1509.223 of the	2778
Revised Code shall be fined not more than five hundred dollars for	2779
a first offense norand not more than one thousand dollars for a	2780
subsequent offense.	2781

(E) The prosecuting attorney of the county in which the	2782
offense was committed or the attorney general may prosecute an	2783
action under this section.	2784

(F) For purposes of this section, each day of violation	2785
constitutes a separate offense.	2786

Sec. 1514.01.  As used in this chapter:

2787

(A) "Surface mining" means all or any part of a process	2788
followed in the production of minerals from the earth or from the	2789
surface of the land by surface excavation methods, such as open	2790
pit mining, dredging, placering, or quarrying, and includes the	2791
removal of overburden for the purpose of determining the location,	2792
quantity, or quality of mineral deposits, and the incidental	2793
removal of coal at a rate less than one-sixth the total weight of	2794
minerals and coal removed during the year, but does not include:	2795
test or exploration boring; mining operations carried out beneath	2796
the surface by means of shafts, tunnels, or similar mine openings;	2797
the extraction of minerals, other than coal, by a landowner for	2798
the landowner's own noncommercial use where such material is	2799
extracted and used in an unprocessed form on the same tract of	2800
land; the extraction of minerals, other than coal, from borrow	2801
pits for highway construction purposes, provided that the	2802
extraction is performed under a bond, a contract, and	2803
specifications that substantially provide for and require	2804
reclamation practices consistent with the requirements of this	2805
chapter; the removal of minerals incidental to construction work,	2806
provided that the owner or person having control of the land upon	2807
which the construction occurs, the contractor, or the construction	2808
firm possesses a valid building permit; the removal of minerals to	2809
a depth of not more than five feet, measured from the highest	2810
original surface elevation of the area to be excavated, where not	2811
more than one acre of land is excavated during twelve successive	2812
calendar months; routine dredging of a watercourse for purely	2813
navigational or flood control purposes during which materials are	2814
removed for noncommercial purposes, including activities conducted	2815
by or on behalf of a conservancy district, organized under Chapter	2816
6101. of the Revised Code, for flood control purposes that are	2817
exempt from permitting requirements under section 10 of the	2818
"Rivers and Harbors Act of 1899," 30 Stat. 1151, 33 U.S.C. 403, as	2819
amended; or the extraction or movement of soil or minerals within	2820
a solid waste facility, as defined in section 3734.01 of the	2821
Revised Code, that is a sanitary landfill when the soil or	2822
minerals are used exclusively for the construction, operation,	2823
closure, and post-closure care of the facility or for maintenance	2824
activities at the facility.	2825

(B) "Minerals" means sand, gravel, clay, shale, gypsum,	2826
halite, limestone, dolomite, sandstone, other stone, metalliferous	2827
or nonmetalliferous ore, or other material or substance of	2828
commercial value excavated in a solid state from natural deposits	2829
on or in the earth, but does not include coal or peat.	2830

(C) "Overburden" means all of the earth and other materials	2831
that cover a natural deposit of minerals and also means such earth	2832
and other materials after removal from their natural state in the	2833
process of surface mining.	2834

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

2835

(E) "Area of land affected" means the area of land that has	2836
been excavated, or upon which a spoil bank exists, or both.	2837

(F)(1) "Operation" or "surface mining operation" means all of	2838
the premises, facilities, and equipment used in the process of	2839
removing minerals, or minerals and incidental coal, by surface	2840
mining from a mining area in the creation of which mining area	2841
overburden or minerals, or minerals and incidental coal, are	2842
disturbed or removed, such surface mining area being located upon	2843
a single tract of land or upon two or more contiguous tracts of	2844
land. Separation by a stream or roadway shall not preclude the	2845
tracts from being considered contiguous.	2846

(2) When the context indicates, "operation" or "in-stream	2847
mining operation" means all of the premises, facilities, and	2848
equipment used in the process of removing minerals by in-stream	2849
mining from a mining area.	2850

(G) "Operator" means any person engaged in surface mining who	2851
removes minerals, or minerals and incidental coal, from the earth	2852
by surface mining or who removes overburden for the purpose of	2853
determining the location, quality, or quantity of a mineral	2854
deposit. "Operator" also means any person engaged in in-stream	2855
mining who removes minerals from the bottom of the channel of a	2856
watercourse by in-stream mining.	2857

(H) "Performance bond" means the surety bond required to be	2858
filed under section 1514.04 of the Revised Code and includes cash,	2859
an irrevocable letter of credit, and negotiable certificates of	2860
deposit authorized to be deposited in lieu of the surety bond	2861
under that section.	2862

(I) "Dewatering" means the withdrawal of ground water from an	2863
aquifer or saturated zone that may result in the lowering of the	2864
water level within the aquifer or saturated zone or a decline of	2865
the potentiometric surface within that aquifer or saturated zone.	2866

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

2867

(K) "Cone of depression" means a depression or low point in	2868
the water table or potentiometric surface of a body of ground	2869
water that develops around a location from which ground water is	2870
being withdrawn.	2871

(L) "High water mark" means the line on the shore that is	2872
established by the fluctuations of water and indicated by physical	2873
characteristics such as a natural line impressed on the bank;	2874
shelving; changes in the character of soil; destruction of	2875
terrestrial vegetation; the presence of litter and debris; or	2876
other appropriate means that consider the characteristics of the	2877
surrounding area.	2878

(M) "In-stream mining" means all or any part of a process	2879
followed in the production of minerals from the bottom of the	2880
channel of a watercourse that drains a surface area of more than	2881
one hundred square miles. "In-stream mining" may be accomplished	2882
by using any technique or by using surface excavation methods,	2883
such as open pit mining, dredging, placering, or quarrying, and	2884
includes the removal of overburden for the purpose of determining	2885
the location, quantity, or quality of mineral deposits. "In-stream	2886
mining" does not include either of the following:	2887

(1) Routine dredging for purely navigational or flood control	2888
purposes during which materials are removed for noncommercial	2889
purposes;	2890

(2) The extraction of minerals, other than coal, by a	2891
landowner for the landowner's own noncommercial use when the	2892
material is extracted and used in an unprocessed form on the same	2893
tract of land.	2894

For purposes of division (M) of this section, the number of	2895
square miles of surface area that a watercourse drains shall be	2896
determined by consulting the "gazetteer of Ohio streams," which is	2897
a portion of the Ohio water plan inventory published in 1960 by	2898
the division of water in the department of natural resources, or	2899
its successor, if any.	2900

(N) In provisions concerning in-stream mining, when the	2901
context is appropriate, "land" is deemed to include an area of a	2902
watercourse.	2903

(O) "Watercourse" means any naturally occurring perennial or	2904
intermittent stream, river, or creek flowing within a defined	2905
stream bed and banks.	2906

(P) "Certified mine foreperson" means the person whom the	2907
operator of a surface mining operation places in charge of the	2908
conditions and practices at the mine, who is responsible for	2909
conducting workplace examinations under 30 C.F.R. part 56, as	2910
amended, and who has passed an examination for the position	2911
administered by the division of mineral resources management.	2912

Sec. 1514.02.  (A) After the dates the chief of the division	2913
of mineral resources management prescribes by rule pursuant to	2914
section 1514.08 of the Revised Code, but not later than July 1,	2915
1977, nor earlier than July 1, 1975, no operator shall engage in	2916
surface mining or conduct a surface mining operation without a	2917
surface mining permit issued by the chief.	2918

No person shall engage in in-stream mining or conduct an	2919
in-stream mining operation without an in-stream mining permit	2920
issued by the chief. However, a person who, on the effective date	2921
of this amendmentMarch 15, 2002, holds a valid permit to conduct	2922
in-stream mining that is issued under section 10 of the "Rivers	2923
and Harbors Appropriation Act of 1899," 30 Stat. 1151, 33 U.S.C.	2924
403, as amended, shall not be required to obtain an in-stream	2925
mining permit from the chief under this section until the existing	2926
permit expires.	2927

An application for a surface or in-stream mining permit shall	2928
be upon the form that the chief prescribes and provides and shall	2929
contain all of the following:	2930

(1) The name and address of the applicant, of all partners if	2931
the applicant is a partnership, or of all officers and directors	2932
if the applicant is a corporation, and any other person who has a	2933
right to control or in fact controls the management of the	2934
applicant or the selection of officers, directors, or managers of	2935
the applicant;	2936

(2) A list of the minerals and coal, if any coal, sought to	2937
be extracted, an estimate of the annual production rates for each	2938
mineral and coal, and a description of the land upon which the	2939
applicant proposes to engage in a surface or in-stream mining	2940
operation, which description shall set forth the names of the	2941
counties, townships, and municipal corporations, if any, in which	2942
the land is located; the location of its boundaries; and a	2943
description of the land of sufficient certainty that it may be	2944
located and distinguished from other lands;	2945

(3) The name of each county, township, or municipal	2946
corporation, if any, that has in effect a zoning resolution or	2947
ordinance that would affect the proposed surface or in-stream	2948
mining operation or, if no such zoning resolution or ordinance is	2949
in effect, a statement attesting to that fact. The application	2950
also shall contain an explanation of how the applicant intends to	2951
comply with any applicable provisions of a zoning resolution or	2952
ordinance.	2953

(4) An estimate of the number of acres of land that will	2954
comprise the total area of land to be affected and an estimate of	2955
the number of acres of land to be affected during the first year	2956
of operation under the permit;	2957

(5) The name and address of the owner of surface rights in	2958
the land upon which the applicant proposes to engage in surface or	2959
in-stream mining;	2960

(6) A copy of the deed, lease, or other instrument that	2961
authorizes entry upon the land by the applicant or the applicant's	2962
agents if surface rights in the land are not owned by the	2963
applicant;	2964

(7) A statement of whether any surface or in-stream mining	2965
permits or coal mining and reclamation permits are now held by the	2966
applicant in this state and, if so, the numbers of the permits;	2967

(8) A statement of whether the applicant, any partner if the	2968
applicant is a partnership, any officer or director if the	2969
applicant is a corporation, or any other person who has a right to	2970
control or in fact controls the management of the applicant or the	2971
selection of officers, directors, or managers of the applicant has	2972
ever had a surface or in-stream mining permit or coal mining and	2973
reclamation permit issued by this or any other state suspended or	2974
revoked or has ever forfeited a surface or in-stream mining or	2975
coal mining and reclamation bond or cash, an irrevocable letter of	2976
credit, or a security deposited in lieu of a bond;	2977

(9) A report of the results of test borings that the operator	2978
has conducted on the area or otherwise has readily available,	2979
including, to the extent that the information is readily available	2980
to the operator, the nature and depth of overburden and material	2981
underlying each mineral or coal deposit, and the thickness and	2982
extent of each mineral or coal deposit. In the case of an	2983
application for an in-stream mining permit, the report	2984
additionally shall include sufficient information to show the	2985
approximate depth to bedrock. All information relating to test	2986
boring results submitted to the chief pursuant to this section	2987
shall be kept confidential and not made a matter of public record,	2988
except that the information may be disclosed by the chief in any	2989
legal action in which the truthfulness of the information is	2990
material.	2991

(10) A complete plan for surface or in-stream mining and	2992
reclamation of the area to be affected, which shall include a	2993
statement of the intended future uses of the area and show the	2994
approximate sequence in which mining and reclamation measures are	2995
to occur, the approximate intervals following mining during which	2996
the reclamation of all various parts of the area affected will be	2997
completed, and the measures the operator will perform to prevent	2998
damage to adjoining property and to achieve all of the following	2999
general performance standards for mining and reclamation:	3000

(a) Prepare the site adequately for its intended future uses	3001
upon completion of mining;	3002

(b) Where a plan of zoning or other comprehensive plan has	3003
been adopted that governs land uses or the construction of public	3004
improvements and utilities for an area that includes the area	3005
sought to be mined, ensure that future land uses within the site	3006
will not conflict with the plan. On and after the effective date	3007
of this amendmentMarch 15, 2002, division (A)(10)(b) of this	3008
section does not apply to any surface or in-stream mining permit	3009
or applications for a surface or in-stream mining permit, any	3010
renewal of an existing surface or in-stream mining permit or	3011
application for a renewal of an existing surface or in-stream	3012
mining permit, any amendment or application for an amendment to an	3013
existing surface or in-stream mining permit, or any modification	3014
or application for a modification of a mining and reclamation plan	3015
of an existing surface or in-stream mining permit unless the	3016
application for such a permit, renewal, amendment, or modification	3017
is a resubmission, revision, or reconsideration of an application	3018
that was pending before the chief or was first approved prior to	3019
the effective date of this amendmentMarch 15, 2002.	3020

(c) Grade, contour, or terrace final slopes, wherever needed,	3021
sufficient to achieve soil stability and control landslides,	3022
erosion, and sedimentation. Highwalls will be permitted if they	3023
are compatible with the future uses specified in the plan and	3024
measures will be taken to ensure public safety. Where ponds,	3025
impoundments, or other resulting bodies of water are intended for	3026
recreational use, establish banks and slopes that will ensure safe	3027
access to those bodies of water. Where such bodies of water are	3028
not intended for recreation, include measures to ensure public	3029
safety, but access need not be provided.	3030

(d) Resoil the area of land affected, wherever needed, with	3031
topsoil or suitable subsoil, fertilizer, lime, or soil amendments,	3032
as appropriate, in sufficient quantity and depth to raise and	3033
maintain a diverse growth of vegetation adequate to bind the soil	3034
and control soil erosion and sedimentation;	3035

(e) Establish a diverse vegetative cover of grass and legumes	3036
or trees, grasses, and legumes capable of self-regeneration and	3037
plant succession wherever required by the plan;	3038

(f) Remove or bury any metal, lumber, equipment, or other	3039
refuse resulting from mining, and remove or bury any unwanted or	3040
useless structures;	3041

(g) Reestablish boundary, section corner, government, and	3042
other survey monuments that were removed by the operator;	3043

(h) During mining and reclamation, ensure that contamination,	3044
resulting from mining, of underground water supplies is prevented.	3045
Upon completion of reclamation, ensure that any watercourse, lake,	3046
or pond located within the site boundaries is free of substances	3047
resulting from mining in amounts or concentrations that are	3048
harmful to persons, fish, waterfowl, or other beneficial species	3049
of aquatic life.	3050

(i) During mining and reclamation, control drainage so as to	3051
prevent the causing of flooding, landslides, and flood hazards to	3052
adjoining lands resulting from the mining operation. Leave any	3053
ponds in such condition as to avoid their constituting a hazard to	3054
adjoining lands.	3055

(j) During mining and reclamation, ensure that the effect of	3056
any reduction of the quantity of ground water is minimized;	3057

(k) Ensure that mining and reclamation are carried out in the	3058
sequence and manner set forth in the plan and that reclamation	3059
measures are performed in a timely manner. All reclamation of an	3060
area of land affected shall be completed no later than three years	3061
following the mining of the area unless the operator makes a	3062
showing satisfactory to the chief that the future use of the area	3063
requires a longer period for completing reclamation.	3064

(l) During mining, store topsoil or fill in quantities	3065
sufficient to complete the backfilling, grading, contouring,	3066
terracing, and resoiling that are specified in the plan. Stabilize	3067
the slopes of and plant each spoil bank to control soil erosion	3068
and sedimentation wherever substantial damage to adjoining	3069
property might occur.	3070

(m) During mining, promptly remove, store, or cover any coal,	3071
pyritic shale, or other acid producing materials in a manner that	3072
will minimize acid drainage and the accumulation of acid water;	3073

(n) During mining, detonate explosives in a manner that will	3074
prevent damage to adjoining property;	3075

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

3076

(i) Limit access to the channel of a watercourse to a single	3077
point of entry on one bank of the watercourse;	3078

(ii) Maintain riparian vegetation to the fullest extent	3079
possible;	3080

(iii) Upon cessation of in-stream mining, stabilize and	3081
reclaim to the pre-mined condition the banks of a watercourse	3082
affected by in-stream mining.	3083

(11) For any applicant, except an applicant for an in-stream	3084
mining permit, who intends to extract less than ten thousand tons	3085
of minerals per year and no incidental coal, a current tax map, in	3086
triplicate and notarized, and the appropriate United States	3087
geological survey seven and one-half minute topographic map. Each	3088
copy shall bear the applicant's name and shall identify the area	3089
of land to be affected corresponding to the application.	3090

(12) For any applicant for a surface mining permit who	3091
intends to extract ten thousand tons of minerals or more per year	3092
or who intends to extract any incidental coal irrespective of the	3093
tonnage of minerals intended to be mined, a map, in triplicate, on	3094
a scale of not more than four hundred feet to the inch, or three	3095
copies of an enlarged United States geological survey topographic	3096
map on a scale of not more than four hundred feet to the inch.	3097
Each application for an in-stream mining permit shall include such	3098
a map regardless of the tons of minerals that the applicant	3099
intends to extract.	3100

The map shall comply with all of the following:

3101

(a) Be prepared and certified by a professional engineer or	3102
surveyor registered under Chapter 4733. of the Revised Code;	3103

(b) Identify the area of land to be affected corresponding to	3104
the application;	3105

(c) Show the probable limits of subjacent and adjacent deep,	3106
strip, surface, or in-stream mining operations, whether active,	3107
inactive, or mined out;	3108

(d) Show the boundaries of the area of land to be affected	3109
during the period of the permit and the area of land estimated to	3110
be affected during the first year of operation, and name the	3111
surface and mineral owners of record of the area and the owners of	3112
record of adjoining surface properties;	3113

(e) Show the names and locations of all streams, creeks, or	3114
other bodies of water, roads, railroads, utility lines, buildings,	3115
cemeteries, and oil and gas wells on the area of land to be	3116
affected and within five hundred feet of the perimeter of the	3117
area;	3118

(f) Show the counties, municipal corporations, townships, and	3119
sections in which the area of land to be affected is located;	3120

(g) Show the drainage plan on, above, below, and away from	3121
the area of land to be affected, indicating the directional flow	3122
of water, constructed drainways, natural waterways used for	3123
drainage, and the streams or tributaries receiving or to receive	3124
this discharge;	3125

(h) Show the location of available test boring holes that the	3126
operator has conducted on the area of land to be affected or	3127
otherwise has readily available;	3128

(i) Show the date on which the map was prepared, the north	3129
direction and the quadrangle sketch, and the exact location of the	3130
operation;	3131

(j) Show the type, kind, location, and references of all	3132
existing boundary, section corner, government, and other survey	3133
monuments within the area to be affected and within five hundred	3134
feet of the perimeter of the area.	3135

The certification of the maps shall read: "I, the	3136
undersigned, hereby certify that this map is correct, and shows to	3137
the best of my knowledge and belief all of the information	3138
required by the surface or in-stream mining laws, as applicable,	3139
of the state." The certification shall be signed and attested	3140
before a notary public. The chief may reject any map as incomplete	3141
if its accuracy is not so certified and attested.	3142

(13) A certificate of public liability insurance issued by an	3143
insurance company authorized to do business in this state or	3144
obtained pursuant to sections 3905.30 to 3905.35 of the Revised	3145
Code covering all surface or in-stream mining operations of the	3146
applicant in this state and affording bodily injury and property	3147
damage protection in amounts not less than the following:	3148

(a) One hundred thousand dollars for all damages because of	3149
bodily injury sustained by one person as the result of any one	3150
occurrence, and three hundred thousand dollars for all damages	3151
because of bodily injury sustained by two or more persons as the	3152
result of any one occurrence;	3153

(b) One hundred thousand dollars for all claims arising out	3154
of damage to property as the result of any one occurrence, with an	3155
aggregate limit of three hundred thousand dollars for all property	3156
damage to which the policy applies.	3157

(14) A sworn statement by the applicant that, during the term	3158
of any permit issued under this chapter or of any renewal of such	3159
a permit, the applicant will comply with all applicable zoning	3160
resolutions or ordinances that are in effect at the time the	3161
application is filed unless the resolutions or ordinances	3162
subsequently become invalid during the term of the permit or	3163
renewal;	3164

(15) A copy of the advertisement that the applicant is	3165
required to have published in accordance with section 1514.022 of	3166
the Revised Code, if applicable;	3167

(16) For any applicant whose operation may result in	3168
dewatering, a compilation of data in a form that is prescribed by	3169
the chief and that is suitable to conduct ground water modeling in	3170
order to establish a projected cone of depression for purposes of	3171
section 1514.13 of the Revised Code. The chief shall adopt rules	3172
as provided in section 1514.08 of the Revised Code establishing	3173
the minimum requirements and standards governing the data required	3174
under this division.	3175

(17) A statement by the applicant certifying that the	3176
applicant has communicated with the county engineer of the county	3177
in which the proposed surface or in-stream mining operation will	3178
be located regarding any streets and roads under the county	3179
engineer's jurisdiction that will be used by vehicles entering and	3180
leaving the proposed surface or in-stream mining operation;	3181

(18) In the case of an application for an in-stream mining	3182
permit, and if required by the division of mineral resources	3183
management after review of an applicant's proposed in-stream	3184
mining plans, a hydraulic evaluation of the watercourse prepared	3185
by a professional engineer registered under Chapter 4733. of the	3186
Revised Code. TheIf the hydraulic evaluation is required, it	3187
shall include, without limitation, all of the following:	3188

(a) Soundings that depict the cross-sectional views of the	3189
channel bottom of the watercourse and water elevations for the	3190
watercourse;	3191

(b) A profile of the channel bottom;

3192

(c) An analysis of design flows and water surface profiles	3193
for the watercourse prior to in-stream mining and the proposed	3194
final mining condition;	3195

(d) An analysis of the expected changes in the roughness	3196
coefficient, resistance to water flow velocity, and hydraulic	3197
gradient in the channel bottom due to the proposed mining;	3198

(e) Any additional information that the chief requires in	3199
order to evaluate the potential impact of in-stream mining on the	3200
watercourse and to determine if any additional performance	3201
standards are required to protect the environment and property	3202
outside the limits of the operation as established in the permit.	3203

The chief may allow an applicant to deviate from the	3204
requirements of divisions (A)(18)(a) to (d) of this section if the	3205
chief determines that such a deviation is appropriate.	3206

(B) No permit application or amendment shall be approved by	3207
the chief if the chief finds that the reclamation described in the	3208
application will not be performed in full compliance with this	3209
chapter or that there is not reasonable cause to believe that	3210
reclamation as required by this chapter will be accomplished.	3211

The chief shall issue an order denying an application for an	3212
operating permit or an amendment if the chief determines that the	3213
measures set forth in the plan are likely to be inadequate to	3214
prevent damage to adjoining property or to achieve one or more of	3215
the performance standards required in division (A)(10) of this	3216
section.	3217

No permit application or amendment shall be approved if the	3218
approval would result in a violation of division (E), (F), or (G)	3219
of section 1514.10 of the Revised Code.	3220

No permit application or amendment shall be approved to	3221
surface mine land adjacent to a public road in violation of	3222
section 1563.11 of the Revised Code.	3223

To ensure adequate lateral support, no permit application or	3224
amendment shall be approved to engage in surface or in-stream	3225
mining on land that is closer than fifty feet of horizontal	3226
distance to any adjacent land or waters in which the operator	3227
making application does not own the surface or mineral rights	3228
unless the owners of the surface and mineral rights in and under	3229
the adjacent land or waters consent in writing to surface or	3230
in-stream mining closer than fifty feet of horizontal distance.	3231
The consent, or a certified copy thereof, shall be attached to the	3232
application as a part of the permanent record of the application	3233
for a surface or in-stream mining permit.	3234

The chief shall issue an order granting a permit upon the	3235
chief's approval of an application, as required by this section,	3236
filing of the performance bond required by section 1514.04 of the	3237
Revised Code, payment of an acreage fee in the amount of	3238
seventy-five dollars multiplied by the number of acres estimated	3239
in the application that will comprise the area of land to be	3240
affected within the first year of operation under the permit, and	3241
payment of a permit fee. The amount of the permit fee for a	3242
surface mining permit shall be five hundred dollars, and the	3243
amount of the permit fee for an in-stream mining permit shall be	3244
two hundred fifty dollars.	3245

The chief may issue an order denying a permit if the chief	3246
finds that the applicant, any partner if the applicant is a	3247
partnership, any officer or director if the applicant is a	3248
corporation, or any other person who has a right to control or in	3249
fact controls the management of the applicant or the selection of	3250
officers, directors, or managers of the applicant has	3251
substantially or materially failed to comply or continues to fail	3252
to comply with this chapter, which failure may consist of one or	3253
more violations thereof, a rule adopted thereunder, or an order of	3254
the chief or failure to perform reclamation as required by this	3255
chapter. The chief may deny or revoke the permit of any person who	3256
so violates or fails to comply or who purposely misrepresents or	3257
omits any material fact in the application for the permit or an	3258
amendment to a permit.	3259

If the chief denies the permit, the chief shall state the	3260
reasons for denial in the order denying the permit.	3261

Each permit shall be issued upon condition that the operator	3262
will comply with this chapter and perform the measures set forth	3263
in the operator's plan of mining and reclamation in a timely	3264
manner. The chief, mineral resources inspectors, or other	3265
authorized representatives of the chief may enter upon the	3266
premises of the operator at reasonable times for the purposes of	3267
determining whether or not there is compliance with this chapter.	3268

(C) If the chief approves an application for a surface mining	3269
permit, the order granting the permit shall authorize the person	3270
to whom the permit is issued to engage as the operator of a	3271
surface mining operation upon the land described in the permit	3272
during a period that shall expire fifteen years after the date of	3273
issuance of the permit, or upon the date when the chief, after	3274
inspection, orders the release of any remaining performance bond	3275
deposited to assure satisfactory performance of the reclamation	3276
measures required pursuant to this chapter, whichever occurs	3277
earlier.	3278

If the chief approves an application for an in-stream mining	3279
permit, the order granting the permit shall authorize the person	3280
to whom the permit is issued to engage as the operator of an	3281
in-stream mining operation on the land described in the permit	3282
during a period that shall expire twofive years after the date of	3283
issuance of the permit, or on the date when the chief, after	3284
inspection, orders the release of any remaining bond, cash,	3285
irrevocable letters of credit, or certificates of deposit that	3286
were deposited to ensure satisfactory performance of the	3287
reclamation measures required under this chapter, whichever occurs	3288
earlier.	3289

(D) Before an operator engages in a surface or in-stream	3290
mining operation on land not described in the operator's permit,	3291
but that is contiguous to the land described in the operator's	3292
permit, the operator shall file with the chief an application for	3293
an amendment to the operator's permit. Before approving an	3294
amendment, the chief shall require the information, maps, fees,	3295
and amount, except as otherwise provided by rule, of the	3296
performance bond as required for an original application under	3297
this section and shall apply the same prohibitions and	3298
restrictions applicable to land described in an original	3299
application for a permit. An applicant for a significant amendment	3300
to a permit, as "significant" is defined by rule, shall include a	3301
copy of the advertisement that the applicant is required to have	3302
published in accordance with section 1514.022 of the Revised Code.	3303
If the chief disapproves the amendment, the chief shall state the	3304
reasons for disapproval in the order disapproving the amendment.	3305
Upon the approval of an amendment by the chief, the operator shall	3306
be authorized to engage in surface mining on the land or in-stream	3307
mining in the watercourse described in the operator's original	3308
permit plus the land or area of the watercourse described in the	3309
amendment until the date when the permit expires, or when the	3310
chief, after inspection, orders the release of any remaining	3311
performance bond deposited to assure satisfactory performance of	3312
the reclamation measures required pursuant to this chapter,	3313
whichever occurs earlier.	3314

(E) An operator, at any time and upon application therefor	3315
and approval by the chief, may amend the plan of mining and	3316
reclamation filed with the application for a permit in order to	3317
change the reclamation measures to be performed, modify the	3318
interval after mining within which reclamation measures will be	3319
performed, change the sequence in which mining or reclamation will	3320
occur at specific locations within the area affected, mine acreage	3321
previously mined or reclaimed, or for any other purpose, provided	3322
that the plan, as amended, includes measures that the chief	3323
determines will be adequate to prevent damage to adjoining	3324
property and to achieve the performance standards set forth in	3325
division (A)(10) of this section. An application for a significant	3326
amendment to a plan, as "significant" is defined by rule, shall	3327
include a copy of the advertisement that the applicant is required	3328
to have published in accordance with section 1514.022 of the	3329
Revised Code.	3330

The chief may propose one or more amendments to the plan in	3331
writing within ninety days after the fifth anniversary of the date	3332
of issuance of a surface mining permit or within ninety days after	3333
the first anniversary of the date of issuance of an in-stream	3334
mining permit. The chief's proposal may be made upon a finding of	3335
any of the following conditions after a complete review of the	3336
plan and inspection of the area of land affected, and the plan	3337
shall be so amended upon written concurrence in the findings and	3338
approval of the amendments by the operator:	3339

(1) An alternate measure, in lieu of one previously approved	3340
in the plan, will more economically or effectively achieve one or	3341
more of the performance standards.	3342

(2) Developments in reclamation technology make an alternate	3343
measure to achieve one or more of the performance standards more	3344
economical, feasible, practical, or effective.	3345

(3) Changes in the use or development of adjoining lands	3346
require changes in the intended future uses of the area of land	3347
affected in order to prevent damage to adjoining property.	3348

(F) The holder of a surface or in-stream mining permit who	3349
desires to transfer the rights granted under the permit to another	3350
person at any time during the term of the permit or its renewal	3351
shall file with the chief an application for the transfer of the	3352
permit. The chief shall issue an order approving or disapproving	3353
the transfer of the permit in accordance with criteria and	3354
procedures established by rule.	3355

Sec. 1514.021.  (A) A permit holder who wishes to continue	3356
surface or in-stream mining operations after the expiration date	3357
of the existing permit or renewal permit shall file with the chief	3358
of the division of mineral resources management an applicationa	3359
notice of intent to renew for purposes of the renewal of a surface	3360
or in-stream mining permit or renewal permit at least ninety days	3361
before the expiration date of the existing permit or renewal	3362
permit. The applicationnotice of intent to renew shall be upon	3363
theon a form that the chief prescribes and provides and shall be	3364
accompanied by a permit renewal fee. The amount of the fee for	3365
renewal of a surface mining permit or renewal permit shall be one	3366
thousand dollars, and the amount of the fee for renewal of an	3367
in-stream mining permit or renewal permit shall be five hundred	3368
dollars.	3369

(B) Upon receipt of an application for renewala notice of	3370
intent to renew form and the permit renewal fee under division (A)	3371
of this section, the chief shall notify the applicantpermit	3372
holder to submit a renewal application package. The permit holder	3373
shall submit a complete renewal package to the chief at least	3374
thirty days prior to the expiration of the existing surface or	3375
in-stream mining permit or renewal permit. The renewal application	3376
package shall include all of the following:	3377

(1) A map that is a composite of the information required to	3378
be contained in the most recent annual report map under section	3379
1514.03 of the Revised Code and of all surface or in-stream mining	3380
and reclamation activities conducted under the existing permit or	3381
renewal permit; the	3382

(2) The annual report required under section 1514.03 of the	3383
Revised Code; in	3384

(3) In the case of an applicant proposing a significant	3385
change to the plan of mining and reclamation, as "significant" is	3386
defined by rule, a copy of the advertisement that the applicant is	3387
required to havebe published in accordance with section 1514.022	3388
of the Revised Code; and additional	3389

(4) Additional maps, plans, and revised or updated	3390
information that the chief determines to be necessary for permit	3391
renewal. Within sixty days after receipt of this notification, the	3392
applicant shall submit all the required information to the chief.	3393

For a renewal permit requiring minor or minimal updates to	3394
the existing permit, renewal permit, or accompanying information,	3395
the chief may authorize a permit holder to file updated	3396
information through a surface mining permit modification process	3397
using a surface mining permit modification form. However, the	3398
chief may require such a permit holder to submit a complete	3399
renewal application package.	3400

(C)(1) Upon receipt of the informationcomplete renewal	3401
application package required under division (B) of this section	3402
and except as otherwise provided in division (C)(2) of this	3403
section, the chief shall approve the application for renewal and	3404
issue an order granting a renewal permit unless the chief finds	3405
that any of the following applies:	3406

(a) The permit holder's operation is not in substantial or	3407
material compliance with this chapter, rules adopted and orders	3408
issued under it, and the plan of mining and reclamation under the	3409
existing permit or renewal permit.	3410

(b) The permit holder has not provided evidence that a	3411
performance bond filed under section 1514.04 of the Revised Code	3412
applicable to lands affected under the existing permit or renewal	3413
permit will remain effective until released under section 1514.05	3414
of the Revised Code.	3415

(c) The permit holder, any partner if the applicantpermit	3416
holder is a partnership, any officer or director if the applicant	3417
permit holder is a corporation, or any other person who has a	3418
right to control or in fact controls the management of the	3419
applicantpermit holder or the selection of officers, directors,	3420
or managers of the applicantpermit holder has failed	3421
substantially or materially to comply or continues to fail to	3422
comply with this chapter as provided in section 1514.02 of the	3423
Revised Code.	3424

(2) If the application for renewal proposes significant	3425
changes to the plan of mining and reclamation, as "significant" is	3426
defined by rule, the chief may, but is not required to, approve	3427
the application for renewal.	3428

(D) Within sixty days after receiving the information and	3429
permit renewal fees required under divisions (A) and (B) of this	3430
section, the chief shall approve the application for renewal and	3431
issue an order granting a renewal permit, issue an order denying	3432
the application, or notify the applicant that the time limit for	3433
issuing such an order has been extended. This extension of time	3434
shall not exceed sixty days(1) After receiving a complete renewal	3435
application package and permit renewal fees required under	3436
divisions (A) and (B) of this section, the chief shall do one of	3437
the following:	3438

(a) Approve the application for renewal and issue an order	3439
granting a renewal permit;	3440

(b) Issue an order denying a renewal permit;

3441

(c) Notify the applicant in accordance with division (D)(2)	3442
of this section that there are deficiencies in the renewal	3443
application package and that an extension of the time limit for	3444
issuing an order approving or disapproving the renewal permit has	3445
been granted.	3446

In making a decision regarding a renewal application package,	3447
the chief shall review the package for compliance with this	3448
chapter and rules adopted under it.	3449

(2) The chief shall notify a permit holder and, if	3450
applicable, the permit holder's consultant, surveyor, or engineer	3451
of deficiencies or errors in a renewal application package and	3452
shall include in the notification a discussion of the deficiencies	3453
or errors.	3454

A permit holder shall have up to one hundred eighty days	3455
after the expiration of the permit holder's permit or renewal	3456
permit to submit a revised renewal application package. A permit	3457
holder may request, in writing, an extension of the one	3458
hundred-eighty-day period for revisions to the renewal application	3459
package. The chief may approve a sixty-day extension. The chief	3460
shall notify the permit holder of the chief's decision to either	3461
grant or deny the extension.	3462

Upon the submission of a revised renewal application package	3463
that is determined to be complete by the chief, the chief shall	3464
proceed to approve or deny the application in accordance with	3465
division (D)(1)(a) or (b) of this section. If the revised renewal	3466
application package is not submitted within one hundred eighty	3467
days after the permit expiration date or, if an extension has been	3468
granted, within two hundred forty days after the permit expiration	3469
date, the chief shall issue an order denying the renewal permit in	3470
accordance with division (D)(1)(b) of this section.	3471

(E) If an applicant for a renewal permit has complied with	3472
division (A) of this section, the applicant may continue surface	3473
or in-stream mining operations under the existing permit or	3474
renewal permit after its expiration date until the sixty-daytime	3475
period for filing the information required by the chief under	3476
division (B) of this sectiona complete renewal application	3477
package has expired under division (D) of this section or until	3478
the chief issues an order under division (D) of this section	3479
denying the renewal permit.	3480

(F) A permit holder who fails to submit an applicationa	3481
notice of intent to renew form and required permit renewal fees	3482
within the time prescribed by division (A) of this section and a	3483
renewal application package under division (B) of this section	3484
shall cease surface or in-stream mining operations on the	3485
expiration date of the existing permit or renewal permit. If such	3486
a permit holder then submits a notice of intent to renew form, an	3487
application for renewal, and the permit renewal fees otherwise	3488
required by division (A) of this section on or before the	3489
thirtieth day after the expiration date of the expired permit or	3490
renewal permit and provides the information required by the chief	3491
under division (B) of this section within sixty days after being	3492
notified of the information required under that divisionthe	3493
permit expiration date, the permit holder need not submit the	3494
final map and report required by section 1514.03 of the Revised	3495
Code until the later of thirty days after the chief issues an	3496
order denying the application for renewal or thirty days after the	3497
chief's order is affirmed upon appeal under section 1513.13 or	3498
1513.14 of the Revised Code. An applicant under this division who	3499
fails to provide the information required by the chief under	3500
division (B) of this section within the prescribed time period	3501
shall submit the final map and report required by section 1514.03	3502
of the Revised Code within thirty days after the expiration of	3503
that prescribed period.	3504

(G) If the chief issues an order denying an application for	3505
renewal of a permit or renewal permit after the expiration date of	3506
the permit, the permit holder shall cease surface or in-stream	3507
mining operations immediately and, within thirty days after the	3508
issuance of the order, shall submit the final report and map	3509
required under section 1514.03 of the Revised Code. The chief	3510
shall state the reasons for denial in the order denying renewal of	3511
the applicationpermit. An applicantA permit holder may appeal	3512
the chief's order denying the renewal under section 1513.13 of the	3513
Revised Code and may continue surface or in-stream mining and	3514
reclamation operations under the expired permit until the	3515
reclamation commission affirms the chief's order under that	3516
section and, if the applicant elects to appeal the order of the	3517
commission under section 1513.14 of the Revised Code, until the	3518
court of appeals affirms the order.	3519

(H) The approval of an application for renewal under this	3520
section authorizes the continuation of an existing surface mining	3521
permit or renewal permit for a term of fifteen years from the	3522
expiration date of the existing permit.	3523

The approval of an application for renewal under this section	3524
authorizes the continuation of an existing in-stream mining permit	3525
or renewal permit for a term of twofive years from the expiration	3526
date of the existing permit.	3527

(I) Any renewal permit is subject to all the requirements of	3528
this chapter and rules adopted under it.	3529

Sec. 1514.03.  Within thirty days after each anniversary date	3530
of issuance of a surface or in-stream mining permit, the operator	3531
shall file with the chief of the division of mineral resources	3532
management an annual report, on a form prescribed and furnished by	3533
the chief, that, for the period covered by the report, shall state	3534
the amount of and identify the types of minerals and coal, if any	3535
coal, produced and shall state the number of acres affected and	3536
the number of acres estimated to be affected during the next year	3537
of operation. An annual report is not required to be filed if a	3538
final report is filed in lieu thereof.	3539

Each annual report for a surface mining operation shall	3540
include a progress map indicating the location of areas of land	3541
affected during the period of the report and the location of the	3542
area of land estimated to be affected during the next year. The	3543
map shall be prepared in accordance with division (A)(11) or (12)	3544
of section 1514.02 of the Revised Code, as appropriate, except	3545
that a map prepared in accordance with division (A)(12) of that	3546
section may be certified by the operator or authorized agent of	3547
the operator in lieu of certification by a professional engineer	3548
or surveyor registered under Chapter 4733. of the Revised Code.	3549
However, the chief may require that an annual progress map or a	3550
final map be prepared by a registered professional engineer or	3551
registered surveyor if the chief has reason to believe that the	3552
operator exceeded the boundaries of the permit area or, if the	3553
operator filed the map required under division (A)(11) of section	3554
1514.02 of the Revised Code, that the operator extracted ten	3555
thousand tons or more of minerals during the period covered by the	3556
report.	3557

Each annual report for an in-stream mining operation shall	3558
include a statement of the total tonnage removed by in-stream	3559
mining for each month and of the surface acreage and depth of	3560
material removed by in-stream mining and shall include a map that	3561
identifies the area affected by the in-stream mining if the	3562
in-stream mining for the year addressed by the report occurred	3563
beyond the area identified in the most recent approved map,	3564
soundings that depict the cross-sectional views of the channel	3565
bottom of the watercourse if the soundings depict a	3566
cross-sectional view of the channel bottom that is different from	3567
the most recent approved map, and water elevations for the	3568
watercourse if water elevations are different from those indicated	3569
on the most recent approved map.	3570

Each annual report shall be accompanied by a filing fee in	3571
the amount of five hundred dollars, except in the case of an	3572
annual report filed by a small operator or an in-stream mining	3573
operator. A small operator, which is a surface mine operator who	3574
intends to extract fewer than ten thousand tons of minerals and no	3575
coal during the next year of operation under the permit, or an	3576
in-stream mining operator shall include a filing fee in the amount	3577
of two hundred fifty dollars with each annual report. The annual	3578
report of any operator also shall be accompanied by an acreage fee	3579
in the amount of seventy-five dollars multiplied by the number of	3580
acres estimated in the report to be affected during the next year	3581
of operation under the permit. The acreage fee shall be adjusted	3582
by subtracting a credit of seventy-five dollars per excess acre	3583
paid for the preceding year if the acreage paid for the preceding	3584
year exceeds the acreage actually affected or by adding an	3585
additional amount of seventy-five dollars per excess acre affected	3586
if the acreage actually affected exceeds the acreage paid for the	3587
preceding year.	3588

With each annual report the operator shall file a performance	3589
bond in the amount, unless otherwise provided by rule, of five	3590
hundred dollars multiplied by the number of acres estimated to be	3591
affected during the next year of operation under the permit for	3592
which no performance bond previously was filed. Unless otherwise	3593
provided by rule, the bond shall be adjusted by subtracting a	3594
credit of five hundred dollars per excess acre for which bond was	3595
filed for the preceding year if the acreage for which the bond was	3596
filed for the preceding year exceeds the acreage actually	3597
affected, or by adding an amount of five hundred dollars per	3598
excess acre affected if the acreage actually affected exceeds the	3599
acreage for which bond was filed for the preceding year.	3600

Within thirty days after the expiration of the surface or	3601
in-stream mining permit, or completion or abandonment of the	3602
operation, whichever occurs earlier, the operator shall submit a	3603
final report containing the same information required in an annual	3604
report, but covering the time from the last annual report to the	3605
expiration of the permit, or completion or abandonment of the	3606
operation, whichever occurs earlier.	3607

Each final report shall include a map indicating the location	3608
of the area of land affected during the period of the report and	3609
the location of the total area of land affected under the permit.	3610
The map shall be prepared in accordance with division (A)(11) or	3611
(12) of section 1514.02 of the Revised Code, as appropriate.	3612

In the case of a final report for an in-stream mining	3613
operation, the map also shall include the information required	3614
under division (A)(18) of section 1514.02 of the Revised Code, as	3615
applicable.	3616

If the final report and certified map, as verified by the	3617
chief, show that the number of acres affected under the permit is	3618
larger than the number of acres for which the operator has paid an	3619
acreage fee or filed a performance bond, upon notification by the	3620
chief, the operator shall pay an additional acreage fee in the	3621
amount of seventy-five dollars multiplied by the difference	3622
between the number of acres affected under the permit and the	3623
number of acres for which the operator has paid an acreage fee and	3624
shall file an additional performance bond in the amount, unless	3625
otherwise provided by rule, of five hundred dollars multiplied by	3626
the difference between the number of acres affected under the	3627
permit and the number of acres for which the operator has filed	3628
bond.	3629

If the final report and certified map, as verified by the	3630
chief, show that the number of acres affected under the permit is	3631
smaller than the number of acres for which the operator has filed	3632
a performance bond, the chief shall order release of the excess	3633
bond. However, the chief shall retain a performance bond in a	3634
minimum amount of ten thousand dollars irrespective of the number	3635
of acres affected under the permit. The release of the excess bond	3636
shall be in an amount, unless otherwise provided by rule, equal to	3637
five hundred dollars multiplied by the difference between the	3638
number of acres affected under the permit and the number of acres	3639
for which the operator has filed bond.	3640

The fees collected pursuant to this section and section	3641
1514.02 of the Revised Code shall be deposited with the treasurer	3642
of state to the credit of the surface mining fund created under	3643
section 1514.06 of the Revised Code.	3644

If upon inspection the chief finds that any filing fee,	3645
acreage fee, performance bond, or part thereof is not paid when	3646
due or is paid on the basis of false or substantially inaccurate	3647
reports, the chief may request the attorney general to recover the	3648
unpaid amounts that are due the state, and the attorney general	3649
shall commence appropriate legal proceedings to recover the unpaid	3650
amounts.	3651

Sec. 1514.05.  (A) At any time within the period allowed an	3652
operator by section 1514.02 of the Revised Code to reclaim an area	3653
of land affected by surface or in-stream mining, the operator may	3654
file a request, on a form provided by the chief of the division of	3655
mineral resources management, for inspection of the area of land	3656
upon which the reclamation, other than any required planting, is	3657
completed. The request shall include all of the following:	3658

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

3659

(2) The permit number;

3660

(3) A map showing the location of the acres reclaimed,	3661
prepared and certified in accordance with division (A)(11) or (12)	3662
of section 1514.02 of the Revised Code, as appropriate. In the	3663
case of an in-stream mining operation, the map also shall include,	3664
as applicable, the information required under division (A)(18) of	3665
section 1514.02 of the Revised Code.	3666

The chief shall make an inspection and evaluation of the	3667
reclamation of the area of land for which the request was	3668
submitted within ninety days after receipt of the request or, if	3669
the operator fails to complete the reclamation or file the request	3670
as required, as soon as the chief learns of the default.	3671
Thereupon, if the chief approves the reclamation, other than any	3672
required planting, as meeting the requirements of this chapter,	3673
rules adopted thereunder, any orders issued during the mining or	3674
reclamation, and the specifications of the plan for mining and	3675
reclaiming, the chief shall issue an order to the operator and the	3676
operator's surety releasing them from liability for one-half of	3677
the total amount of their surety bond on deposit to ensure	3678
reclamation for the area upon which reclamation is completed. If	3679
the operator has deposited cash, an irrevocable letter of credit,	3680
or certificates of deposit in lieu of a surety bond to ensure	3681
reclamation, the chief shall issue an order to the operator	3682
releasing one-half of the amount so held and promptly shall	3683
transmit a certified copy of the order to the treasurer of state.	3684
Upon presentation of the order to the treasurer of state by the	3685
operator to whom it was issued, or by the operator's authorized	3686
agent, the treasurer of state shall deliver to the operator or the	3687
operator's authorized agent the cash, irrevocable letter of	3688
credit, or certificates of deposit designated in the order.	3689

If the chief does not approve the reclamation, other than any	3690
required planting, the chief shall notify the operator by	3691
certified mail. The notice shall be an order stating the reasons	3692
for unacceptability, ordering further actions to be taken, and	3693
setting a time limit for compliance. If the operator does not	3694
comply with the order within the time limit specified, the chief	3695
may order an extension of time for compliance after determining	3696
that the operator's noncompliance is for good cause, resulting	3697
from developments partially or wholly beyond the operator's	3698
control. If the operator complies within the time limit or the	3699
extension of time granted for compliance, the chief shall order	3700
release of the performance bond in the same manner as in the case	3701
of approval of reclamation, other than any required planting, by	3702
the chief, and the treasurer of state shall proceed as in that	3703
case. If the operator does not comply within the time limit and	3704
the chief does not order an extension, or if the chief orders an	3705
extension of time and the operator does not comply within the	3706
extension of time granted for compliance, the chief shall issue	3707
another order declaring that the operator has failed to reclaim	3708
and, if the operator's permit has not already expired or been	3709
revoked, revoking the operator's permit. The chief shall thereupon	3710
proceed under division (C) of this section.	3711

(B) At any time within the period allowed an operator by	3712
section 1514.02 of the Revised Code to reclaim an area affected by	3713
surface mining, the operator may file a request, on a form	3714
provided by the chief, for inspection of the area of land on which	3715
all reclamation, including the successful establishment of any	3716
required planting, is completed. The request shall include all of	3717
the following:	3718

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

3719

(2) The permit number;

3720

(3) The type and date of any required planting of vegetative	3721
cover and the degree of success of growth;	3722

(4) A map showing the location of the acres reclaimed,	3723
prepared and certified in accordance with division (A)(11) or (12)	3724
of section 1514.02 of the Revised Code, as appropriate. In the	3725
case of an in-stream mining operation, the map also shall include	3726
the information required under division (A)(18) of section 1514.02	3727
of the Revised Code.	3728

The chief shall make an inspection and evaluation of the	3729
reclamation of the area of land for which the request was	3730
submitted within ninety days after receipt of the request or, if	3731
the operator fails to complete the reclamation or file the request	3732
as required, as soon as the chief learns of the default.	3733
Thereupon, if the chief finds that the reclamation meets the	3734
requirements of this chapter, rules adopted under it, any orders	3735
issued during the mining and reclamation, and the specifications	3736
of the plan for mining and reclaiming and decides to release any	3737
remaining performance bond on deposit to ensure reclamation of the	3738
area on which reclamation is completed, within ten days of	3739
completing the inspection and evaluation, the chief shall order	3740
release of the remaining performance bond in the same manner as in	3741
the case of approval of reclamation other than required planting,	3742
and the treasurer of state shall proceed as in that case.	3743

If the chief does not approve the reclamation performed by	3744
the operator, the chief shall notify the operator by certified	3745
mail within ninety days of the filing of the application for	3746
inspection or of the date when the chief learns of the default.	3747
The notice shall be an order stating the reasons for	3748
unacceptability, ordering further actions to be taken, and setting	3749
a time limit for compliance. If the operator does not comply with	3750
the order within the time limit specified, the chief may order an	3751
extension of time for compliance after determining that the	3752
operator's noncompliance is for good cause, resulting from	3753
developments partially or wholly beyond the operator's control. If	3754
the operator complies within the time limit or the extension of	3755
time granted for compliance, the chief shall order release of the	3756
remaining performance bond in the same manner as in the case of	3757
approval of reclamation by the chief, and the treasurer of state	3758
shall proceed as in that case. If the operator does not comply	3759
within the time limit and the chief does not order an extension,	3760
or if the chief orders an extension of time and the operator does	3761
not comply within the extension of time granted for compliance,	3762
the chief shall issue another order declaring that the operator	3763
has failed to reclaim and, if the operator's permit has not	3764
already expired or been revoked, revoking the operator's permit.	3765
The chief then shall proceed under division (C) of this section.	3766

(C) Upon issuing an order under division (A) or (B) of this	3767
section declaring that the operator has failed to reclaim, the	3768
chief shall make a finding as to the number and location of the	3769
acres of land that the operator has failed to reclaim in the	3770
manner required by this chapter. The chief shall order the release	3771
of the performance bond in the amount of five hundred dollars per	3772
acre for those acres that the chief finds to have been reclaimed	3773
in the manner required by this chapter. The release shall be	3774
ordered in the same manner as in the case of other approval of	3775
reclamation by the chief, and the treasurer of state shall proceed	3776
as in that case. If the operator has on deposit cash, an	3777
irrevocable letter of credit, or certificates of deposit to ensure	3778
reclamation of the area of the land affected, the chief at the	3779
same time shall issue an order declaring that the remaining cash,	3780
irrevocable letter of credit, or certificates of deposit are the	3781
property of the state and are available for use by the chief in	3782
performing reclamation of the area and shall proceed in accordance	3783
with section 1514.06 of the Revised Code.	3784

If the operator has on deposit a surety bond to ensure	3785
reclamation of the area of land affected, the chief shall notify	3786
the surety in writing of the operator's default and shall request	3787
the surety to perform the surety's obligation and that of the	3788
operator. The surety, within ten days after receipt of the notice,	3789
shall notify the chief as to whether it intends to perform those	3790
obligations.	3791

If the surety chooses to perform, it shall arrange for work	3792
to begin within thirty days of the day on which it notifies the	3793
chief of its decision. If the surety completes the work as	3794
required by this chapter, the chief shall issue an order to the	3795
surety releasing the surety from liability under the bond in the	3796
same manner as if the surety were an operator proceeding under	3797
this section. If, after the surety begins the work, the chief	3798
determines that the surety is not carrying the work forward with	3799
reasonable progress, or that it is improperly performing the work,	3800
or that it has abandoned the work or otherwise failed to perform	3801
its obligation and that of the operator, the chief shall issue an	3802
order terminating the right of the surety to perform the work and	3803
demanding payment of the amount due as required by this chapter.	3804

If the surety chooses not to perform and so notifies the	3805
chief, does not respond to the chief's notice within ten days of	3806
receipt thereof, or fails to begin work within thirty days of the	3807
day it timely notifies the chief of its decision to perform its	3808
obligation and that of the operator, the chief shall issue an	3809
order terminating the right of the surety to perform the work and	3810
demanding payment of the amount due, as required by this chapter.	3811

Upon receipt of an order of the chief demanding payment of	3812
the amount due, the surety immediately shall deposit with the	3813
chief cash in the full amount due under the order for deposit with	3814
the treasurer of state. If the surety fails to make an immediate	3815
deposit, the chief shall certify it to the attorney general for	3816
collection. When the chief has issued an order terminating the	3817
right of the surety and has the cash on deposit, the cash is the	3818
property of the state and is available for use by the chief, who	3819
shall proceed in accordance with section 1514.06 of the Revised	3820
Code.	3821

Sec. 3706.27. (A) There is hereby created in the state	3822
treasury the advanced energy research and development fund to	3823
provide grants for advanced energy projects. There is hereby	3824
created in the state treasury the advanced energy research and	3825
development taxable fund to provide loans for advanced energy	3826
projects.	3827

(B)(1) The advanced energy research and development fund and	3828
the advanced energy research and development taxable fund shall	3829
consist of the proceeds of obligations issued under section 166.08	3830
of the Revised Code. Money shall be credited to the respective	3831
funds in the proportion that the executive director of the Ohio	3832
air quality development authority, with the affirmative vote of a	3833
majority of the members of the authority, determines appropriate.	3834

(2) Any investment earnings from the money in the advanced	3835
energy research and development fund and in the advanced energy	3836
research and development taxable fund shall be credited to those	3837
funds, respectively. Any repayment of loans made from money in the	3838
advanced energy research and development taxable fund shall be	3839
credited to the facilities establishmentalternative fuel	3840
transportation fund created in section 166.03122.075 of the	3841
Revised Code.	3842

(C) The director of budget and management shall establish and	3843
maintain records or accounts for or within these funds in such a	3844
manner as to show the amount credited to the funds pursuant to	3845
section 166.08 of the Revised Code and that the amounts so	3846
credited have been expended for the purposes set forth in Section	3847
2p or 13 of Article VIII, Ohio Constitution, and sections 166.08,	3848
166.30, and 3706.26 of the Revised Code.	3849

Sec. 3737.832. (A) As used in this section: (1) "Natural gas	3850
processing facilities" means installations, including associated	3851
buildings, pipes, valves, tanks, and other equipment, used to	3852
separate various fluids, hydrocarbons, natural gas liquids, and	3853
impurities from the raw natural gas, manufacturing residue gas	3854
suitable for transmission and distribution to end users.	3855

(2) "Natural gas liquids fractionation facilities" means	3856
installations, including associated buildings, pipes, valves,	3857
tanks, and other equipment, used for the separation of mixtures of	3858
light hydrocarbons or natural gas liquids into individual, purity	3859
natural gas liquid products, which include ethane, propane, normal	3860
butane, iso-butane, and natural gasolines.	3861

(3) "Shale oil processing premise" means a single parcel or	3862
contiguous parcels of real estate, including any structures,	3863
facilities, appurtenances, equipment, devices, and activities	3864
thereon, where the processing of substances extracted from the	3865
Point Pleasant, Utica, and Marcellus formations occurs at a	3866
natural gas liquids fractionation or natural gas processing	3867
facility. "Shale oil processing premise" does not include a well	3868
pad or a production operation, as those terms are defined in	3869
section 1509.01 of the Revised Code, that is regulated under	3870
Chapter 1509. of the Revised Code.	3871

(B) Notwithstanding any other provision of the Revised Code,	3872
the state fire marshal and the board of building standards shall	3873
have the exclusive authority to adopt fire safety standards	3874
relating to the construction at a shale oil processing premise of	3875
any structure subject to the nonresidential building codes	3876
established pursuant to section 3781.10 of the Revised Code.	3877
Notwithstanding any other provisions of the Revised Code, the	3878
state fire marshal shall have the sole and exclusive authority to	3879
adopt all other fire safety standards relating to a shale oil	3880
processing premise. Any standards established by the state fire	3881
marshal under this section shall be part of the state fire code.	3882

(C) Notwithstanding any other provision of the Revised Code,	3883
the state fire marshal shall have sole and exclusive authority to	3884
enforce all fire safety standards adopted pursuant to this	3885
section, any other fire safety standards existing in the state	3886
fire code that are applicable to shale oil processing premises,	3887
and any actions authorized by sections 3737.41 to 3737.51 of the	3888
Revised Code at a shale oil processing premise.	3889

(D) The state fire marshal may establish and collect	3890
reasonable permit and inspection fees for the regulation of a	3891
shale oil processing premise.	3892

Sec. 4905.03.  As used in this chapter:

3893

(A) Any person, firm, copartnership, voluntary association,	3894
joint-stock association, company, or corporation, wherever	3895
organized or incorporated, is:	3896

(1) A telephone company, when engaged in the business of	3897
transmitting telephonic messages to, from, through, or in this	3898
state;	3899

(2) A motor transportation company, when engaged in the	3900
business of carrying and transporting persons or property or the	3901
business of providing or furnishing such transportation service,	3902
for hire, in or by motor-propelled vehicles of any kind, including	3903
trailers, for the public in general, over any public street, road,	3904
or highway in this state, except as provided in section 4921.02 of	3905
the Revised Code;	3906

(3) An electric light company, when engaged in the business	3907
of supplying electricity for light, heat, or power purposes to	3908
consumers within this state, including supplying electric	3909
transmission service for electricity delivered to consumers in	3910
this state, but excluding a regional transmission organization	3911
approved by the federal energy regulatory commission;	3912

(4) A gas company, when engaged in the business of supplying	3913
artificial gas for lighting, power, or heating purposes to	3914
consumers within this state or when engaged in the business of	3915
supplying artificial gas to gas companies or to natural gas	3916
companies within this state, but a producer engaged in supplying	3917
to one or more gas or natural gas companies, only such artificial	3918
gas as is manufactured by that producer as a by-product of some	3919
other process in which the producer is primarily engaged within	3920
this state is not thereby a gas company. All rates, rentals,	3921
tolls, schedules, charges of any kind, or agreements between any	3922
gas company and any other gas company or any natural gas company	3923
providing for the supplying of artificial gas and for compensation	3924
for the same are subject to the jurisdiction of the public	3925
utilities commission.	3926

(5) A natural gas company, when engaged in the business of	3927
supplying natural gas for lighting, power, or heating purposes to	3928
consumers within this state. Notwithstanding the above, neither	3929
the delivery nor sale of Ohio-produced natural gas or	3930
Ohio-produced raw natural gas liquids by a producer or gatherer	3931
under a public utilities commission-ordered exemption, adopted	3932
before, as to producers, or after, as to producers or gatherers,	3933
January 1, 1996, or the delivery or sale of Ohio-produced natural	3934
gas or Ohio-produced raw natural gas liquids by a producer or	3935
gatherer of Ohio-produced natural gas or Ohio-produced raw natural	3936
gas liquids, either to a lessor under an oil and gas lease of the	3937
land on which the producer's drilling unit is located, or the	3938
grantor incident to a right-of-way or easement to the producer or	3939
gatherer, shall cause the producer or gatherer to be a natural gas	3940
company for the purposes of this section.	3941

All rates, rentals, tolls, schedules, charges of any kind, or	3942
agreements between a natural gas company and other natural gas	3943
companies or gas companies providing for the supply of natural gas	3944
and for compensation for the same are subject to the jurisdiction	3945
of the public utilities commission. The commission, upon	3946
application made to it, may relieve any producer or gatherer of	3947
natural gas, defined in this section as a gas company or a natural	3948
gas company, of compliance with the obligations imposed by this	3949
chapter and Chapters 4901., 4903., 4907., 4909., 4921., and 4923.	3950
of the Revised Code, so long as the producer or gatherer is not	3951
affiliated with or under the control of a gas company or a natural	3952
gas company engaged in the transportation or distribution of	3953
natural gas, or so long as the producer or gatherer does not	3954
engage in the distribution of natural gas to consumers.	3955

Nothing in division (A)(5) of this section limits the	3956
authority of the commission to enforce sections 4905.90 to 4905.96	3957
of the Revised Code.	3958

(6) A pipe-line company, when engaged in the business of	3959
transporting natural gas, oil, or coal or its derivatives through	3960
pipes or tubing, either wholly or partly within this state, but	3961
not when engaged in the business of the transport associated with	3962
gathering lines, raw natural gas liquids, or finished product	3963
natural gas liquids;	3964

(7) A water-works company, when engaged in the business of	3965
supplying water through pipes or tubing, or in a similar manner,	3966
to consumers within this state;	3967

(8) A heating or cooling company, when engaged in the	3968
business of supplying water, steam, or air through pipes or tubing	3969
to consumers within this state for heating or cooling purposes;	3970

(9) A messenger company, when engaged in the business of	3971
supplying messengers for any purpose;	3972

(10) A street railway company, when engaged in the business	3973
of operating as a common carrier, a railway, wholly or partly	3974
within this state, with one or more tracks upon, along, above, or	3975
below any public road, street, alleyway, or ground, within any	3976
municipal corporation, operated by any motive power other than	3977
steam and not a part of an interurban railroad, whether the	3978
railway is termed street, inclined-plane, elevated, or underground	3979
railway;	3980

(11) A suburban railroad company, when engaged in the	3981
business of operating as a common carrier, whether wholly or	3982
partially within this state, a part of a street railway	3983
constructed or extended beyond the limits of a municipal	3984
corporation, and not a part of an interurban railroad;	3985

(12) An interurban railroad company, when engaged in the	3986
business of operating a railroad, wholly or partially within this	3987
state, with one or more tracks from one municipal corporation or	3988
point in this state to another municipal corporation or point in	3989
this state, whether constructed upon the public highways or upon	3990
private rights-of-way, outside of municipal corporations, using	3991
electricity or other motive power than steam power for the	3992
transportation of passengers, packages, express matter, United	3993
States mail, baggage, and freight. Such an interurban railroad	3994
company is included in the term "railroad" as used in section	3995
4907.02 of the Revised Code.	3996

(13) A sewage disposal system company, when engaged in the	3997
business of sewage disposal services through pipes or tubing, and	3998
treatment works, or in a similar manner, within this state.	3999

(B) "Motor-propelled vehicle" means any automobile,	4000
automobile truck, motor bus, or any other self-propelled vehicle	4001
not operated or driven upon fixed rails or tracks.	4002

(C) As used in this section:

4003

(1) "Gathering lines" has the same meaning as in section	4004
4905.90 of the Revised Code.	4005

(2) "Raw natural gas liquids" and "finished product natural	4006
gas liquids" have the same meanings as in section 4906.01 of the	4007
Revised Code.	4008

Sec. 4905.90.  As used in sections 4905.90 to 4905.96 of the	4009
Revised Code:	4010

(A) "Contiguous property" includes, but is not limited to, a	4011
manufactured home park as defined in section 3733.01 of the	4012
Revised Code; a public or publicly subsidized housing project; an	4013
apartment complex; a condominium complex; a college or university;	4014
an office complex; a shopping center; a hotel; an industrial park;	4015
and a race track.	4016

(B) "Gas" means natural gas, flammable gas, or gas which is	4017
toxic or corrosive.	4018

(C) "Gathering linesline" and the "gathering of gas" have	4019
the same meaning as in the Natural Gas Pipeline Safety Act and the	4020
rules adopted by the United States department of transportation	4021
pursuant to the Natural Gas Pipeline Safety Act, including 49	4022
C.F.R. part 192, as amended.	4023

(D) "Gas gathering pipeline" means a gathering line that is	4024
not regulated under the Natural Gas Pipeline Safety Act and the	4025
rules adopted by the United States department of transportation	4026
pursuant to the Natural Gas Pipeline Safety Act, including 49	4027
C.F.R. part 192, as amended. "Gas gathering pipeline" includes a	4028
pipeline used to collect and transport raw natural gas or	4029
transmission quality gas to the inlet of a gas processing plant,	4030
the inlet of a distribution system, or to a transmission line.	4031

(E) "Gas processing plant" means a plant that processes raw	4032
natural gas into merchantable products, including transmission	4033
quality gas or natural gas liquids and also may include a plant	4034
that treats raw natural gas to remove impurities such as carbon	4035
dioxide, helium, nitrogen or water.	4036

(F) "Intrastate pipe-line transportation" has the same	4037
meaning as in 82 Stat. 720 (1968), 49 U.S.C.A. App. 1671, as	4038
amended, but excludes the gathering of gas exempted by the Natural	4039
Gas Pipeline Safety Act.	4040

(E)(G) "MAOP" means the maximum pressure at which a gas	4041
gathering pipeline, a processing plant gas stub pipeline, or any	4042
segment of such a pipeline may be operated under sections 4905.90	4043
to 4905.96 of the Revised Code.	4044

(H) "Master-meter system" means a pipe-line system that	4045
distributes gas within a contiguous property for which the system	4046
operator purchases gas for resale to consumers, including tenants.	4047
Such pipe-line system supplies consumers who purchase the gas	4048
directly through a meter, or by paying rent, or by other means.	4049
The term includes a master-meter system as defined in 49 C.F.R.	4050
191.3, as amended. The term excludes a pipeline within a	4051
manufactured home, mobile home, or a building.	4052

(F)(I) "Natural Gas Pipeline Safety Act" means the "Natural	4053
Gas Pipeline Safety Act of 1968," 82 Stat. 720, 49 U.S.C.A. App.	4054
1671 et seq., as amended.	4055

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

4056

(1) A gas company or natural gas company as defined in	4057
section 4905.03 of the Revised Code, except that division (A)(5)	4058
of that section does not authorize the public utilities commission	4059
to relieve any producer of gas, as a gas company or natural gas	4060
company, of compliance with sections 4905.90 to 4905.96 of the	4061
Revised Code or the pipe-line safety code created under section	4062
4905.91 of the Revised Code;	4063

(2) A pipe-line company, as defined in section 4905.03 of the	4064
Revised Code, when engaged in the business of transporting gas by	4065
pipeline;	4066

(3) A public utility that is excepted from the definition of	4067
"public utility" under division (B) or (C) of section 4905.02 of	4068
the Revised Code, when engaged in supplying or transporting gas by	4069
pipeline within this state;	4070

(4) Any person that owns, operates, manages, controls, or	4071
leases any of the following:	4072

(a) Intrastate pipe-line transportation facilities within	4073
this state;	4074

(b) Gas gathering lines within this state which are not	4075
exempted by the Natural Gas Pipeline Safety Act;	4076

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

4077

"Operator" does not include an ultimate consumer who owns a	4078
service line, as defined in 49 C.F.R. 192.3, as amended, on the	4079
real property of that ultimate consumer.	4080

(H)(K) "Operator of a master-meter system" means a person	4081
described under division (F)(J)(4)(c) of this section. An operator	4082
of a master-meter system is not a public utility under section	4083
4905.02 or a gas or natural gas company under section 4905.03 of	4084
the Revised Code.	4085

(I)(L) "Person" means:

4086

(1) In addition to those defined in division (C) of section	4087
1.59 of the Revised Code, a joint venture or a municipal	4088
corporation;	4089

(2) Any trustee, receiver, assignee, or personal	4090
representative of persons defined in division (H)(L)(1) of this	4091
section.	4092

(J)(M) "Processing plant gas stub pipeline" means a gas	4093
pipeline that transports transmission quality gas from the	4094
tailgate of a gas processing plant to the inlet of an interstate	4095
or intrastate transmission line and that is considered an	4096
extension of the gas processing plant, is not for public use, and	4097
is not regulated under the Natural Gas Pipeline Safety Act and the	4098
rules adopted by the United States department of transportation	4099
pursuant to the Natural Gas Pipeline Safety Act, including 49	4100
C.F.R. part 92, as amended.	4101

(N) "Safety audit" means the public utilities commission's	4102
audit of the premises, pipe-line facilities, and the records,	4103
maps, and other relevant documents of a master-meter system to	4104
determine the operator's compliance with sections 4905.90 to	4105
4905.96 of the Revised Code and the pipe-line safety code.	4106

(K)(O) "Safety inspection" means any inspection, survey, or	4107
testing of a master-meter system which is authorized or required	4108
by sections 4905.90 to 4905.96 of the Revised Code and the	4109
pipe-line safety code. The term includes, but is not limited to,	4110
leak surveys, inspection of regulators and critical valves, and	4111
monitoring of cathodic protection systems, where applicable.	4112

(L)(P) "Safety-related condition" means any safety-related	4113
condition defined in 49 C.F.R. 191.23, as amended.	4114

(M)(Q) "Total Mcfs of gas it supplied or delivered" means the	4115
sum of the following volumes of gas that an operator supplied or	4116
delivered, measured in units per one thousand cubic feet:	4117

(1) Residential sales;

4118

(2) Commercial and industrial sales;

4119

(3) Other sales to public authorities;

4120

(4) Interdepartmental sales;

4121

(5) Sales for resale;

4122

(6) Transportation of gas.

4123

(R) "Transmission quality gas" means gas consisting	4124
predominantly of methane that meets all downstream specifications	4125
for transportation in an intrastate or interstate transmission	4126
pipeline and that is suitable for use by public consumers.	4127

(S) "Raw natural gas" has the same meaning as in section	4128
4906.01 of the Revised Code.	4129

Sec. 4905.91.  For the purpose of protecting the public	4130
safety with respect to intrastate pipe-line transportation	4131
pipe-lines used by any operator:	4132

(A) The public utilities commission shall:

4133

(1) Adopt, and may amend or rescind, rules to carry out	4134
sections 4905.90 to 4905.96 of the Revised Code, including rules	4135
concerning pipe-line safety, drug testing, and enforcement	4136
procedures. The commission shall adopt these rules only after	4137
notice and opportunity for public comment. The rules adopted under	4138
this division and any orders issued under sections 4905.90 to	4139
4905.96 of the Revised Code constitute the pipe-line safety code.	4140
The commission shall administer and enforce that code.	4141

(2) Make certifications and reports to the United States	4142
department of transportation as required under the Natural Gas	4143
Pipeline Safety Act;	4144

(3) Perform all regulatory and enforcement duties required	4145
under sections 4905.90 to 4905.96 of the Revised Code.	4146

(B) The commission may:

4147

(1) Investigate any service, act, practice, policy, or	4148
omission by any operator to determine its compliance with sections	4149
4905.90 to 4905.96 of the Revised Code and the pipe-line safety	4150
code;	4151

(2) Investigate any intrastate pipe-line transportation	4152
facility to determine if it is hazardous to life or property, as	4153
provided in 82 Stat. 720 (1968), 49 U.S.C.A. App. 1679b(b)(2) and	4154
(3);	4155

(3) Investigate the existence or report of any safety-related	4156
condition that involves any intrastate pipe-line transportation	4157
facility;	4158

(4) Enter into and perform contracts or agreements with the	4159
United States department of transportation to inspect interstate	4160
transmission facilities pursuant to the Natural Gas Pipeline	4161
Safety Act;	4162

(5) Accept grants-in-aid, cash, and reimbursements provided	4163
for or made available to this state by the federal government to	4164
carry out the Natural Gas Pipeline Safety Act or to enforce	4165
sections 4905.90 to 4905.96 of the Revised Code and the pipe-line	4166
safety code. All such grants-in-aid, cash, and reimbursements	4167
shall be deposited to the credit of the gas pipe-line safety fund,	4168
which is hereby created in the state treasury, to be used by the	4169
commission for the purpose of carrying out this section.	4170

(6) Enter into a cooperative agreement or a memorandum of	4171
understanding with another state agency for consultation services	4172
and the exchange of advice and technical expertise to assist the	4173
commission in exercising its regulatory authority under section	4174
4905.04 of the Revised Code, provided that no such agreement or	4175
memorandum of understanding shall:	4176

(a) Confer on the state agency any regulatory authority over	4177
the activities subject to sections 4905.90 to 4905.96 of the	4178
Revised Code;	4179

(b) Diminish the sole and exclusive authority of the	4180
commission under section 4905.04 of the Revised Code.	4181

(C) TheWith the exception of gas gathering pipelines and	4182
processing plant gas stub pipelines, the commission's regulation	4183
of gathering lines shall conform to the regulation of gathering	4184
lines in 49 C.F.R. 192 and 199, as amended, and the commission's	4185
annual certification agreements with the United States department	4186
of transportation, except that rule 4901:1-16-03, paragraph (D) of	4187
rule 4901:1-16-05, and rule 4901:1-16-06 of the Ohio	4188
Administrative Code shall also apply to gathering lines. The	4189
procedural rules under chapter 4901:1-16 of the Ohio	4190
Administrative Code shall also apply to operators of gathering	4191
lines that are not gathering pipelines or processing plant gas	4192
stub pipelines.	4193

Sec. 4905.911.  (A)(1) The public utilities commission shall	4194
require an operator of either of the following types of pipelines	4195
that was completely constructed on or after the effective date of	4196
this section and that transports gas produced by a horizontal well	4197
to comply with the applicable pipe design requirements of 49	4198
C.F.R. 192 subpart C:	4199

(a) A gas gathering pipeline;

4200

(b) A processing plant gas stub pipeline.

4201

(2) The commission shall also require the operator to do all	4202
of the following regarding that pipeline:	4203

(a) Design, install, construct, initially inspect, and	4204
initially test the pipeline in accordance with the requirements of	4205
49 C.F.R. 192 if the pipeline is new, replaced, relocated, or	4206
otherwise changed;	4207

(b) Control corrosion according to requirements of 49 C.F.R.	4208
192 subpart I if the pipeline is metallic;	4209

(c) Establish and carry out a damage prevention program under	4210
49 C.F.R. 192.614;	4211

(d) Establish and carry out a public education program under	4212
49 C.F.R. 192.616;	4213

(e) Establish the MAOP of the pipeline under 49 C.F.R.	4214
192.619;	4215

(f) Install and maintain pipeline markers according to the	4216
requirements for transmission lines under 49 C.F.R. 192.707;	4217

(g) Perform leakage surveys according to requirements in 49	4218
C.F.R. 192.706;	4219

(h) Retain a record of each required leakage survey conducted	4220
under division (A)(2)(g) of this section and 49 C.F.R. 192.706 for	4221
five years or until the next leakage survey is completed,	4222
whichever time period is longer.	4223

(B)(1) Any person who plans to construct a pipeline subject	4224
to division (A) of this section after the effective date of this	4225
section shall file with the public utilities commission division	4226
of pipeline safety a form approved by the division that includes	4227
all of the following information:	4228

(a) The route of the proposed pipeline;

4229

(b) The MAOP of the pipeline;

4230

(c) The outside diameter of the pipeline;

4231

(d) The wall thickness of the pipeline;

4232

(e) The material that the pipeline will be made of;

4233

(f) The yield strength of the pipeline.

4234

The form shall be filed with the division not later than	4235
twenty-one days prior to the commencement of construction of the	4236
pipeline.	4237

(2) Not later than sixty days after the completion of	4238
construction of a pipeline subject to division (B)(1) of this	4239
section, the operator of the pipeline shall file with the public	4240
utilities commission division of pipeline safety an explanation of	4241
the constructed pipeline's route and operating information.	4242

(C) For purposes of this section:

4243

(1) "Horizontal well" has the same meaning as in section	4244
1509.01 of the Revised Code.	4245

(2) "Operator" means any person that owns, operates, manages,	4246
controls, or leases a gas gathering pipeline or a processing plant	4247
gas stub pipeline.	4248

Sec. 4905.95.  (A) Except as otherwise provided in division	4249
(C) of this section:	4250

(1) The public utilities commission, regarding any proceeding	4251
under this section, shall provide reasonable notice and the	4252
opportunity for a hearing in accordance with rules adopted under	4253
section 4901.13 of the Revised Code.	4254

(2) Sections 4903.02 to 4903.082, 4903.09 to 4903.16, and	4255
4903.20 to 4903.23 of the Revised Code apply to all proceedings	4256
and orders of the commission under this section and to all	4257
operators subject to those proceedings and orders.	4258

(B) If, pursuant to a proceeding it specially initiates or to	4259
any other proceeding and after the hearing provided for under	4260
division (A) of this section, the commission finds that:	4261

(1) An operator has violated or failed to comply with, or is	4262
violating or failing to comply with, sections 4905.90 to 4905.96	4263
of the Revised Code or the pipe-line safety code, the commission	4264
by order:	4265

(a) Shall require the operator to comply and to undertake	4266
corrective action necessary to protect the public safety;	4267

(b) May assess upon the operator forfeitures of not more than	4268
one hundred thousand dollars for each day of each violation or	4269
noncompliance, except that the aggregate of such forfeitures shall	4270
not exceed five hundred thousandone million dollars for any	4271
related series of violations or noncompliances. In determining the	4272
amount of any such forfeiture, the commission shall consider all	4273
of the following:	4274

(i) The gravity of the violation or noncompliance;

4275

(ii) The operator's history of prior violations or	4276
noncompliances;	4277

(iii) The operator's good faith efforts to comply and	4278
undertake corrective action;	4279

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

4280

(v) The effect of the forfeiture on the operator's ability to	4281
continue as an operator;	4282

(vi) Such other matters as justice may require.

4283

All forfeitures collected under this division or section 4905.96	4284
of the Revised Code shall be deposited in the state treasury to	4285
the credit of the general revenue fund.	4286

(c) May direct the attorney general to seek the remedies	4287
provided in section 4905.96 of the Revised Code.	4288

(2) An intrastate pipe-line transportation facility is	4289
hazardous to life or property, the commission by order:	4290

(a) Shall require the operator of the facility to take	4291
corrective action to remove the hazard. Such corrective action may	4292
include suspended or restricted use of the facility, physical	4293
inspection, testing, repair, replacement, or other action.	4294

(b) May direct the attorney general to seek the remedies	4295
provided in section 4905.96 of the Revised Code.	4296

(C) If, pursuant to a proceeding it specially initiates or to	4297
any other proceeding, the commission finds that an emergency	4298
exists due to a condition on an intrastate pipe-line	4299
transportation facility posing a clear and immediate danger to	4300
life or health or threatening a significant loss of property and	4301
requiring immediate corrective action to protect the public	4302
safety, the commission may issue, without notice or prior hearing,	4303
an order reciting its finding and may direct the attorney general	4304
to seek the remedies provided in section 4905.96 of the Revised	4305
Code. The order shall remain in effect for not more than forty	4306
days after the date of its issuance. The order shall provide for a	4307
hearing as soon as possible, but not later than thirty days after	4308
the date of its issuance. After the hearing the commission shall	4309
continue, revoke, or modify the order and may make findings under	4310
and seek appropriate remedies as provided in division (B) of this	4311
section.	4312

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

4313

(A) "Person" means an individual, corporation, business	4314
trust, association, estate, trust, or partnership or any officer,	4315
board, commission, department, division, or bureau of the state or	4316
a political subdivision of the state, or any other entity.	4317

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

4318

(a) Electric generating plant and associated facilities	4319
designed for, or capable of, operation at a capacity of fifty	4320
megawatts or more;	4321

(b) An electric transmission line and associated facilities	4322
of a design capacity of one hundred twenty-five kilovolts or more;	4323

(c) A gas or natural gas transmission line andpipeline that	4324
is greater than five hundred feet in length, and its associated	4325
facilities, is more than nine inches in outside diameter and is	4326
designed for, or capable of, transporting gas or natural gas at	4327
pressuresa maximum allowable operating pressure in excess of one	4328
hundred twenty-five pounds per square inch.	4329

(2) "Major utility facility" does not include gas or natural	4330
gasany of the following:	4331

(a) Gas transmission lines over which an agency of the United	4332
States has exclusive jurisdiction, any;	4333

(b) Any solid waste facilities as defined in section 6123.01	4334
of the Revised Code, or either of the following as defined by the	4335
power siting board:;	4336

(a)(c) Electric, gas, natural gas distributing lines and gas	4337
or natural gas gathering lines and associated facilities as	4338
defined by the power siting board;	4339

(b)(d) Any manufacturing facility that creates byproducts	4340
that may be used in the generation of electricity as defined by	4341
the power siting board;	4342

(e) Gathering lines, gas gathering pipelines, and processing	4343
plant gas stub pipelines as those terms are defined in section	4344
4905.90 of the Revised Code and associated facilities;	4345

(f) Any gas processing plant as defined in section 4905.90 of	4346
the Revised Code;	4347

(g) Natural gas liquids finished product pipelines;

4348

(h) Pipelines from a gas processing plant as defined in	4349
section 4905.90 of the Revised Code to a natural gas liquids	4350
fractionation plant, including a raw natural gas liquids pipeline,	4351
or to an interstate or intrastate gas pipeline;	4352

(i) Any natural gas liquids fractionation plant;

4353

(j) A production operation as defined in section 1509.01 of	4354
the Revised Code, including all pipelines upstream of any	4355
gathering lines;	4356

(k) Any compressor stations used by the following:

4357

(i) A gathering line, a gas gathering pipeline, a processing	4358
plant gas stub pipeline, or a gas processing plant as those terms	4359
are defined in section 4905.90 of the Revised Code;	4360

(ii) A natural gas liquids finished product pipeline, a	4361
natural gas liquids fractionation plant, or any pipeline upstream	4362
of a natural gas liquids fractionation plant; or	4363

(iii) A production operation as defined in section 1509.01 of	4364
the Revised Code.	4365

(C) "Commence to construct" means any clearing of land,	4366
excavation, or other action that would adversely affect the	4367
natural environment of the site or route of a major utility	4368
facility, but does not include surveying changes needed for	4369
temporary use of sites or routes for nonutility purposes, or uses	4370
in securing geological data, including necessary borings to	4371
ascertain foundation conditions.	4372

(D) "Certificate" means a certificate of environmental	4373
compatibility and public need issued by the power siting board	4374
under section 4906.10 of the Revised Code or a construction	4375
certificate issued by the board under rules adopted under division	4376
(E) or (F) of section 4906.03 of the Revised Code.	4377

(E) "Gas" means natural gas, flammable gas, or gas that is	4378
toxic or corrosive.	4379

(F) "Natural gas liquids finished product pipeline" means a	4380
pipeline that carries finished product natural gas liquids to the	4381
inlet of an interstate or intrastate finished product natural gas	4382
liquid transmission pipeline, rail loading facility, or other	4383
petrochemical or refinery facility.	4384

(G) "Natural gas liquids fractionation plant" means a	4385
facility that takes a feed of raw natural gas liquids and produces	4386
finished product natural gas liquids.	4387

(H) "Raw natural gas" means hydrocarbons that are produced in	4388
a gaseous state from gas wells and that generally include methane,	4389
ethane, propane, butanes, pentanes, hexanes, heptanes, octanes,	4390
nonanes, and decanes, plus other naturally occurring impurities	4391
like water, carbon dioxide, hydrogen sulfide, nitrogen, oxygen,	4392
and helium.	4393

(I) "Raw natural gas liquids" means naturally occurring	4394
hydrocarbons contained in raw natural gas that are extracted in a	4395
gas processing plant and liquefied and generally include mixtures	4396
of ethane, propane, butanes, and natural gasoline.	4397

(J) "Finished product natural gas liquids" means an	4398
individual finished product produced by a natural gas liquids	4399
fractionation plant as a liquid that meets the specifications for	4400
commercial products as defined by the gas processors association.	4401
Those products include ethane, propane, iso-butane, normal butane,	4402
and natural gasoline.	4403

Sec. 4906.03.  The power siting board shall:

4404

(A) Require such information from persons subject to its	4405
jurisdiction as it considers necessary to assist in the conduct of	4406
hearings and any investigations or studies it may undertake;	4407

(B) Conduct any studies or investigations that it considers	4408
necessary or appropriate to carry out its responsibilities under	4409
this chapter;	4410

(C) Adopt rules establishing criteria for evaluating the	4411
effects on environmental values of proposed and alternative sites,	4412
and projected needs for electric power, and such other rules as	4413
are necessary and convenient to implement this chapter, including	4414
rules governing application fees, supplemental application fees,	4415
and other reasonable fees to be paid by persons subject to the	4416
board's jurisdiction. The board shall make an annual accounting of	4417
its collection and use of these fees and shall issue an annual	4418
report of its accounting, in the form and manner prescribed by its	4419
rules, not later than the last day of June of the year following	4420
the calendar year to which the report applies.	4421

(D) Approve or, disapprove, or modify and approve	4422
applications for certificates;	4423

(E) Notwithstanding sections 4906.06 to 4906.14 of the	4424
Revised Code, the board may adopt rules to provide for an	4425
abbreviatedaccelerated review of an application for a	4426
construction certificate for construction of a major utility	4427
facility related to a coal research and development project as	4428
defined in section 1555.01 of the Revised Code, or to a coal	4429
development project as defined in section 1551.30 of the Revised	4430
Code, submitted to the Ohio coal development office for review	4431
under division (B)(7) of section 1551.33 of the Revised Code.	4432
Applications for construction certificates for construction of	4433
major utility facilities for Ohio coal research and development	4434
shall be filed with the board on the same day as the proposed	4435
facility or project is submitted to the Ohio coal development	4436
office for review.	4437

The board shall render a decision on an application for a	4438
construction certificate within ninety days after receipt of the	4439
application and all of the data and information it may require	4440
from the applicant. In rendering a decision on an application for	4441
a construction certificate, the board shall only consider the	4442
criteria and make the findings and determinations set forth in	4443
divisions (A)(2), (3), (5), and (7) and division (B) of section	4444
4906.10 of the Revised Code.	4445

(F) Notwithstanding sections 4906.06 to 4906.14 of the	4446
Revised Code, the board shall adopt rules to provide for an	4447
accelerated review of an application for a construction	4448
certificate for any of the following:	4449

(1) An electric transmission line that is:

4450

(a) Not more than two miles in length;

4451

(b) Primarily needed to attract or meet the requirements of a	4452
specific customer or specific customers;	4453

(c) Necessary to maintain reliable electric service as a	4454
result of the retirement or shutdown of an electric generating	4455
facility located within the state; or	4456

(d) A rebuilding of an existing transmission line.

4457

(2) An electric generating facility that uses waste heat or	4458
natural gas and is primarily within the current boundary of an	4459
existing industrial or electric generating facility;	4460

(3) A gas pipeline that is not more than five miles in length	4461
or is primarily needed to meet the requirements of a specific	4462
customer or specific customers.	4463

The board shall adopt rules that provide for the automatic	4464
certification to any entity described in this division when an	4465
application by any such entity is not suspended by the board, an	4466
administrative law judge, or the chairperson or executive director	4467
of the board for good cause shown, within ninety days of	4468
submission of the application. If an application is suspended, the	4469
board shall approve, disapprove, or modify and approve the	4470
application not later than ninety days after the date of the	4471
suspension.	4472

Sec. 4906.05.  No certificate is required for a major utility	4473
facility on which construction had already commenced on October	4474
23, 1972, or within two years thereafter. This section does not	4475
exempt such a facility from any other requirements of state and	4476
local laws and regulations.	4477

No certificate is required for any major utility facility	4478
already in operation on October 23, 1972, and the facility shall	4479
not be exempt from any applicable state or local laws or	4480
regulations. A certificate is required for any substantial	4481
addition to a facility already in operation. "Substantial	4482
addition" shall be defined by the power siting board.	4483

Any electric generating plant and associated facilities,	4484
electric transmission line and associated facilities, or gas or	4485
natural gas transmission linepipeline and associated facilities	4486
which is not a major utility facility is not exempt from state or	4487
local laws or regulations.	4488

Sec. 4906.06.  (A) An applicant for a certificate shall file	4489
with the office of the chairperson of the power siting board an	4490
application, in such form as the board prescribes, containing the	4491
following information:	4492

(1) A description of the location and of the major utility	4493
facility;	4494

(2) A summary of any studies that have been made by or for	4495
the applicant of the environmental impact of the facility;	4496

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

4497

(4) A statement of the reasons why the proposed location is	4498
best suited for the facility;	4499

(5) A statement of how the facility fits into the applicant's	4500
forecast contained in the report submitted under section 4935.04	4501
of the Revised Code;	4502

(6) Such other information as the applicant may consider	4503
relevant or as the board by rule or order may require. Copies of	4504
the studies referred to in division (A)(2) of this section shall	4505
be filed with the office of the chairperson, if ordered, and shall	4506
be available for public inspection.	4507

The application shall be filed not less than one year nor	4508
more than five years prior to the planned date of commencement of	4509
construction. EitherThe five-year period may be waived by the	4510
board for good cause shown.	4511

(B) Each application shall be accompanied by proof of service	4512
of a copy of such application on the chief executive officer of	4513
each municipal corporation and county, and the head of each public	4514
agency charged with the duty of protecting the environment or of	4515
planning land use, in the area in which any portion of such	4516
facility is to be located.	4517

(C) Each applicant within fifteen days after the date of the	4518
filing of the application shall give public notice to persons	4519
residing in the municipal corporations and counties entitled to	4520
receive notice under division (B) of this section, by the	4521
publication of a summary of the application in newspapers of	4522
general circulation in such area. Proof of such publication shall	4523
be filed with the office of the chairperson.	4524

(D) Inadvertent failure of service on, or notice to, any of	4525
the persons identified in divisions (B) and (C) of this section	4526
may be cured pursuant to orders of the board designed to afford	4527
them adequate notice to enable them to participate effectively in	4528
the proceeding. In addition, the board, after filing, may require	4529
the applicant to serve notice of the application or copies thereof	4530
or both upon such other persons, and file proof thereof, as the	4531
board considers appropriate.	4532

(E) An application for an amendment of a certificate shall be	4533
in such form and contain such information as the board prescribes.	4534
Notice of such an application shall be given as required in	4535
divisions (B) and (C) of this section.	4536

(F) Each application for certificate or an amendment shall be	4537
accompanied by the application fee prescribed by board rule. All	4538
application fees, supplemental application fees, and other fees	4539
collected by the board shall be deposited in the state treasury to	4540
the credit of the power siting board fund, which is hereby	4541
created. The chairperson shall administer and authorize	4542
expenditures from the fund for any of the purposes of this	4543
chapter. If the chairperson determines that moneys credited to the	4544
fund from an applicant's fee are not sufficient to pay the board's	4545
expenses associated with its review of the application, the	4546
chairperson shall request the approval of the controlling board to	4547
assess a supplemental application fee upon an applicant to pay	4548
anticipated additional expenses associated with the board's review	4549
of the application or an amendment to an application. If the	4550
chairperson finds that an application fee exceeds the amount	4551
needed to pay the board's expenses for review of the application,	4552
the chairperson shall cause a refund of the excess amount to be	4553
issued to the applicant from the fund.	4554

Sec. 4906.07.  (A) Upon the receipt of an application	4555
complying with section 4906.06 of the Revised Code, the power	4556
siting board shall promptly fix a date for a public hearing	4557
thereon, not less than sixty nor more than ninety days after such	4558
receipt, and shall conclude the proceeding as expeditiously as	4559
practicable.	4560

(B) On an application for an amendment of a certificate, the	4561
board shall hold a hearing in the same manner as a hearing is held	4562
on an application for a certificate if the proposed change in the	4563
facility would result in any material increase in any	4564
environmental impact of the facility or a substantial change in	4565
the location of all or a portion of such facility other than as	4566
provided in the alternates set forth in the application.	4567

(C) The chairmanchairperson of the power siting board shall	4568
cause each application filed with the board to be investigated and	4569
shall, not less than fifteen days prior to the date any	4570
application is set for hearing submit a written report to the	4571
board and to the applicant. A copy of such report shall be made	4572
available to any person upon request. Such report shall set forth	4573
the nature of the investigation, and shall contain recommended	4574
findings with regard to division (A) of section 4906.10 of the	4575
Revised Code and shall become part of the record and served upon	4576
all parties to the proceeding.	4577

Sec. 4906.10.  (A) The power siting board shall render a	4578
decision upon the record either granting or denying the	4579
application as filed, or granting it upon such terms, conditions,	4580
or modifications of the construction, operation, or maintenance of	4581
the major utility facility as the board considers appropriate. The	4582
certificate shall be conditioned upon the facility being in	4583
compliance with standards and rules adopted under sections	4584
1501.33, 1501.34, and 4561.32 and Chapters 3704., 3734., and 6111.	4585
of the Revised Code. An applicant may withdraw an application if	4586
the board grants a certificate on terms, conditions, or	4587
modifications other than those proposed by the applicant in the	4588
application. The period of initial operation under a certificate	4589
shall expire two years after the date on which electric power is	4590
first generated by the facility. During the period of initial	4591
operation, the facility shall be subject to the enforcement and	4592
monitoring powers of the director of environmental protection	4593
under Chapters 3704., 3734., and 6111. of the Revised Code and to	4594
the emergency provisions under those chapters. If a major utility	4595
facility constructed in accordance with the terms and conditions	4596
of its certificate is unable to operate in compliance with all	4597
applicable requirements of state laws, rules, and standards	4598
pertaining to air pollution, the facility may apply to the	4599
director of environmental protection for a conditional operating	4600
permit under division (G) of section 3704.03 of the Revised Code	4601
and the rules adopted thereunder. The operation of a major utility	4602
facility in compliance with a conditional operating permit is not	4603
in violation of its certificate. After the expiration of the	4604
period of initial operation of a major utility facility, the	4605
facility shall be under the jurisdiction of the environmental	4606
protection agency and shall comply with all laws, rules, and	4607
standards pertaining to air pollution, water pollution, and solid	4608
and hazardous waste disposal.	4609

The board shall not grant a certificate for the construction,	4610
operation, and maintenance of a major utility facility, either as	4611
proposed or as modified by the board, unless it finds and	4612
determines all of the following:	4613

(1) The basis of the need for the facility if the facility is	4614
an electric transmission line or gas or natural gas transmission	4615
linepipeline;	4616

(2) The nature of the probable environmental impact;

4617

(3) That the facility represents the minimum adverse	4618
environmental impact, considering the state of available	4619
technology and the nature and economics of the various	4620
alternatives, and other pertinent considerations;	4621

(4) In the case of an electric transmission line or	4622
generating facility, that the facility is consistent with regional	4623
plans for expansion of the electric power grid of the electric	4624
systems serving this state and interconnected utility systems and	4625
that the facility will serve the interests of electric system	4626
economy and reliability;	4627

(5) That the facility will comply with Chapters 3704., 3734.,	4628
and 6111. of the Revised Code and all rules and standards adopted	4629
under those chapters and under sections 1501.33, 1501.34, and	4630
4561.32 of the Revised Code. In determining whether the facility	4631
will comply with all rules and standards adopted under section	4632
4561.32 of the Revised Code, the board shall consult with the	4633
office of aviation of the division of multi-modal planning and	4634
programs of the department of transportation under section	4635
4561.341 of the Revised Code.	4636

(6) That the facility will serve the public interest,	4637
convenience, and necessity;	4638

(7) In addition to the provisions contained in divisions	4639
(A)(1) to (6) of this section and rules adopted under those	4640
divisions, what its impact will be on the viability as	4641
agricultural land of any land in an existing agricultural district	4642
established under Chapter 929. of the Revised Code that is located	4643
within the site and alternative site of the proposed major utility	4644
facility. Rules adopted to evaluate impact under division (A)(7)	4645
of this section shall not require the compilation, creation,	4646
submission, or production of any information, document, or other	4647
data pertaining to land not located within the site and	4648
alternative site.	4649

(8) That the facility incorporates maximum feasible water	4650
conservation practices as determined by the board, considering	4651
available technology and the nature and economics of the various	4652
alternatives.	4653

(B) If the board determines that the location of all or a	4654
part of the proposed facility should be modified, it may condition	4655
its certificate upon that modification, provided that the	4656
municipal corporations and counties, and persons residing therein,	4657
affected by the modification shall have been given reasonable	4658
notice thereof.	4659

(C) A copy of the decision and any opinion issued therewith	4660
shall be served upon each party.	4661

Sec. 4906.20. (A) No person shall commence to construct an	4662
economically significant wind farm in this state without first	4663
having obtained a certificate from the power siting board. An	4664
economically significant wind farm with respect to which such a	4665
certificate is required shall be constructed, operated, and	4666
maintained in conformity with that certificate and any terms,	4667
conditions, and modifications it contains. A certificate shall be	4668
issued only pursuant to this section. The certificate may be	4669
transferred, subject to the approval of the board, to a person	4670
that agrees to comply with those terms, conditions, and	4671
modifications.	4672

(B) The board shall adopt rules governing the certificating	4673
of economically significant wind farms under this section. Initial	4674
rules shall be adopted within one hundred twenty days after this	4675
section's effective dateJune 24, 2008.	4676

(1) The rules shall provide for an application process for	4677
certificating economically significant wind farms that is	4678
identical to the extent practicable to the process applicable to	4679
certificating major utility facilities under sections 4906.06,	4680
4906.07, 4906.08, 4906.09, 4906.10, 4906.11, and 4906.12 of the	4681
Revised Code and shall prescribe a reasonable schedule of	4682
application filing fees structured in the manner of the schedule	4683
of filing fees required for major utility facilities.	4684

(2) Additionally, the rules shall prescribe reasonable	4685
regulations regarding any wind turbines and associated facilities	4686
of an economically significant wind farm, including, but not	4687
limited to, their location, erection, construction,	4688
reconstruction, change, alteration, maintenance, removal, use, or	4689
enlargement and including erosion control, aesthetics,	4690
recreational land use, wildlife protection, interconnection with	4691
power lines and with regional transmission organizations,	4692
independent transmission system operators, or similar	4693
organizations, ice throw, sound and noise levels, blade shear,	4694
shadow flicker, decommissioning, and necessary cooperation for	4695
site visits and enforcement investigations. The rules also shall	4696
prescribe a minimum setback for a wind turbine of an economically	4697
significant wind farm. That minimum shall be equal to a horizontal	4698
distance, from the turbine's base to the property line of the wind	4699
farm property, equal to one and one-tenth times the total height	4700
of the turbine structure as measured from its base to the tip of	4701
its highest blade and be at least seven hundred fifty feet in	4702
horizontal distance from the tip of the turbine's nearest blade at	4703
ninety degrees to the exterior of the nearest, habitable,	4704
residential structure, if any, located on adjacent property at the	4705
time of the certification application. The setback shall apply in	4706
all cases except those in which all owners of property adjacent to	4707
the wind farm property waive application of the setback to that	4708
property pursuant to a procedure the board shall establish by rule	4709
and except in which, in a particular case, the board determines	4710
that a setback greater than the minimum is necessary.	4711

(C) The board shall approve, or may modify and approve, an	4712
application for economically significant wind farm certification	4713
if it finds that the construction, operation, and maintenance of	4714
the economically significant wind farm will comply with the rules	4715
adopted under division (B) of this section. The certificate shall	4716
be conditioned upon the economically significant wind farm	4717
complying with rules adopted under section 4561.32 of the Revised	4718
Code.	4719

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

4720

(1) "Ancillary service" means any function necessary to the	4721
provision of electric transmission or distribution service to a	4722
retail customer and includes, but is not limited to, scheduling,	4723
system control, and dispatch services; reactive supply from	4724
generation resources and voltage control service; reactive supply	4725
from transmission resources service; regulation service; frequency	4726
response service; energy imbalance service; operating	4727
reserve-spinning reserve service; operating reserve-supplemental	4728
reserve service; load following; back-up supply service;	4729
real-power loss replacement service; dynamic scheduling; system	4730
black start capability; and network stability service.	4731

(2) "Billing and collection agent" means a fully independent	4732
agent, not affiliated with or otherwise controlled by an electric	4733
utility, electric services company, electric cooperative, or	4734
governmental aggregator subject to certification under section	4735
4928.08 of the Revised Code, to the extent that the agent is under	4736
contract with such utility, company, cooperative, or aggregator	4737
solely to provide billing and collection for retail electric	4738
service on behalf of the utility company, cooperative, or	4739
aggregator.	4740

(3) "Certified territory" means the certified territory	4741
established for an electric supplier under sections 4933.81 to	4742
4933.90 of the Revised Code.	4743

(4) "Competitive retail electric service" means a component	4744
of retail electric service that is competitive as provided under	4745
division (B) of this section.	4746

(5) "Electric cooperative" means a not-for-profit electric	4747
light company that both is or has been financed in whole or in	4748
part under the "Rural Electrification Act of 1936," 49 Stat. 1363,	4749
7 U.S.C. 901, and owns or operates facilities in this state to	4750
generate, transmit, or distribute electricity, or a not-for-profit	4751
successor of such company.	4752

(6) "Electric distribution utility" means an electric utility	4753
that supplies at least retail electric distribution service.	4754

(7) "Electric light company" has the same meaning as in	4755
section 4905.03 of the Revised Code and includes an electric	4756
services company, but excludes any self-generator to the extent	4757
that it consumes electricity it so produces, sells that	4758
electricity for resale, or obtains electricity from a generating	4759
facility it hosts on its premises.	4760

(8) "Electric load center" has the same meaning as in section	4761
4933.81 of the Revised Code.	4762

(9) "Electric services company" means an electric light	4763
company that is engaged on a for-profit or not-for-profit basis in	4764
the business of supplying or arranging for the supply of only a	4765
competitive retail electric service in this state. "Electric	4766
services company" includes a power marketer, power broker,	4767
aggregator, or independent power producer but excludes an electric	4768
cooperative, municipal electric utility, governmental aggregator,	4769
or billing and collection agent.	4770

(10) "Electric supplier" has the same meaning as in section	4771
4933.81 of the Revised Code.	4772

(11) "Electric utility" means an electric light company that	4773
has a certified territory and is engaged on a for-profit basis	4774
either in the business of supplying a noncompetitive retail	4775
electric service in this state or in the businesses of supplying	4776
both a noncompetitive and a competitive retail electric service in	4777
this state. "Electric utility" excludes a municipal electric	4778
utility or a billing and collection agent.	4779

(12) "Firm electric service" means electric service other	4780
than nonfirm electric service.	4781

(13) "Governmental aggregator" means a legislative authority	4782
of a municipal corporation, a board of township trustees, or a	4783
board of county commissioners acting as an aggregator for the	4784
provision of a competitive retail electric service under authority	4785
conferred under section 4928.20 of the Revised Code.	4786

(14) A person acts "knowingly," regardless of the person's	4787
purpose, when the person is aware that the person's conduct will	4788
probably cause a certain result or will probably be of a certain	4789
nature. A person has knowledge of circumstances when the person is	4790
aware that such circumstances probably exist.	4791

(15) "Level of funding for low-income customer energy	4792
efficiency programs provided through electric utility rates" means	4793
the level of funds specifically included in an electric utility's	4794
rates on October 5, 1999, pursuant to an order of the public	4795
utilities commission issued under Chapter 4905. or 4909. of the	4796
Revised Code and in effect on October 4, 1999, for the purpose of	4797
improving the energy efficiency of housing for the utility's	4798
low-income customers. The term excludes the level of any such	4799
funds committed to a specific nonprofit organization or	4800
organizations pursuant to a stipulation or contract.	4801

(16) "Low-income customer assistance programs" means the	4802
percentage of income payment plan program, the home energy	4803
assistance program, the home weatherization assistance program,	4804
and the targeted energy efficiency and weatherization program.	4805

(17) "Market development period" for an electric utility	4806
means the period of time beginning on the starting date of	4807
competitive retail electric service and ending on the applicable	4808
date for that utility as specified in section 4928.40 of the	4809
Revised Code, irrespective of whether the utility applies to	4810
receive transition revenues under this chapter.	4811

(18) "Market power" means the ability to impose on customers	4812
a sustained price for a product or service above the price that	4813
would prevail in a competitive market.	4814

(19) "Mercantile customer" means a commercial or industrial	4815
customer if the electricity consumed is for nonresidential use and	4816
the customer consumes more than seven hundred thousand kilowatt	4817
hours per year or is part of a national account involving multiple	4818
facilities in one or more states.	4819

(20) "Municipal electric utility" means a municipal	4820
corporation that owns or operates facilities to generate,	4821
transmit, or distribute electricity.	4822

(21) "Noncompetitive retail electric service" means a	4823
component of retail electric service that is noncompetitive as	4824
provided under division (B) of this section.	4825

(22) "Nonfirm electric service" means electric service	4826
provided pursuant to a schedule filed under section 4905.30 of the	4827
Revised Code or pursuant to an arrangement under section 4905.31	4828
of the Revised Code, which schedule or arrangement includes	4829
conditions that may require the customer to curtail or interrupt	4830
electric usage during nonemergency circumstances upon notification	4831
by an electric utility.	4832

(23) "Percentage of income payment plan arrears" means funds	4833
eligible for collection through the percentage of income payment	4834
plan rider, but uncollected as of July 1, 2000.	4835

(24) "Person" has the same meaning as in section 1.59 of the	4836
Revised Code.	4837

(25) "Advanced energy project" means any technologies,	4838
products, activities, or management practices or strategies that	4839
facilitate the generation or use of electricity or energy and that	4840
reduce or support the reduction of energy consumption or support	4841
the production of clean, renewable energy for industrial,	4842
distribution, commercial, institutional, governmental, research,	4843
not-for-profit, or residential energy users, including, but not	4844
limited to, advanced energy resources and renewable energy	4845
resources. "Advanced energy project" also includes any project	4846
described in division (A), (B), or (C) of section 4928.621 of the	4847
Revised Code.	4848

(26) "Regulatory assets" means the unamortized net regulatory	4849
assets that are capitalized or deferred on the regulatory books of	4850
the electric utility, pursuant to an order or practice of the	4851
public utilities commission or pursuant to generally accepted	4852
accounting principles as a result of a prior commission	4853
rate-making decision, and that would otherwise have been charged	4854
to expense as incurred or would not have been capitalized or	4855
otherwise deferred for future regulatory consideration absent	4856
commission action. "Regulatory assets" includes, but is not	4857
limited to, all deferred demand-side management costs; all	4858
deferred percentage of income payment plan arrears;	4859
post-in-service capitalized charges and assets recognized in	4860
connection with statement of financial accounting standards no.	4861
109 (receivables from customers for income taxes); future nuclear	4862
decommissioning costs and fuel disposal costs as those costs have	4863
been determined by the commission in the electric utility's most	4864
recent rate or accounting application proceeding addressing such	4865
costs; the undepreciated costs of safety and radiation control	4866
equipment on nuclear generating plants owned or leased by an	4867
electric utility; and fuel costs currently deferred pursuant to	4868
the terms of one or more settlement agreements approved by the	4869
commission.	4870

(27) "Retail electric service" means any service involved in	4871
supplying or arranging for the supply of electricity to ultimate	4872
consumers in this state, from the point of generation to the point	4873
of consumption. For the purposes of this chapter, retail electric	4874
service includes one or more of the following "service	4875
components": generation service, aggregation service, power	4876
marketing service, power brokerage service, transmission service,	4877
distribution service, ancillary service, metering service, and	4878
billing and collection service.	4879

(28) "Starting date of competitive retail electric service"	4880
means January 1, 2001.	4881

(29) "Customer-generator" means a user of a net metering	4882
system.	4883

(30) "Net metering" means measuring the difference in an	4884
applicable billing period between the electricity supplied by an	4885
electric service provider and the electricity generated by a	4886
customer-generator that is fed back to the electric service	4887
provider.	4888

(31) "Net metering system" means a facility for the	4889
production of electrical energy that does all of the following:	4890

(a) Uses as its fuel either solar, wind, biomass, landfill	4891
gas, or hydropower, or uses a microturbine or a fuel cell;	4892

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

4893

(c) Operates in parallel with the electric utility's	4894
transmission and distribution facilities;	4895

(d) Is intended primarily to offset part or all of the	4896
customer-generator's requirements for electricity.	4897

(32) "Self-generator" means an entity in this state that owns	4898
or hosts on its premises an electric generation facility that	4899
produces electricity primarily for the owner's consumption and	4900
that may provide any such excess electricity to another entity,	4901
whether the facility is installed or operated by the owner or by	4902
an agent under a contract.	4903

(33) "Rate plan" means the standard service offer in effect	4904
on the effective date of the amendment of this section by S.B. 221	4905
of the 127th general assembly, July 31, 2008.	4906

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

4907

(a) Any method or any modification or replacement of any	4908
property, process, device, structure, or equipment that increases	4909
the generation output of an electric generating facility to the	4910
extent such efficiency is achieved without additional carbon	4911
dioxide emissions by that facility;	4912

(b) Any distributed generation system consisting of customer	4913
cogeneration technology;	4914

(c) Clean coal technology that includes a carbon-based	4915
product that is chemically altered before combustion to	4916
demonstrate a reduction, as expressed as ash, in emissions of	4917
nitrous oxide, mercury, arsenic, chlorine, sulfur dioxide, or	4918
sulfur trioxide in accordance with the American society of testing	4919
and materials standard D1757A or a reduction of metal oxide	4920
emissions in accordance with standard D5142 of that society, or	4921
clean coal technology that includes the design capability to	4922
control or prevent the emission of carbon dioxide, which design	4923
capability the commission shall adopt by rule and shall be based	4924
on economically feasible best available technology or, in the	4925
absence of a determined best available technology, shall be of the	4926
highest level of economically feasible design capability for which	4927
there exists generally accepted scientific opinion;	4928

(d) Advanced nuclear energy technology consisting of	4929
generation III technology as defined by the nuclear regulatory	4930
commission; other, later technology; or significant improvements	4931
to existing facilities;	4932

(e) Any fuel cell used in the generation of electricity,	4933
including, but not limited to, a proton exchange membrane fuel	4934
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or	4935
solid oxide fuel cell;	4936

(f) Advanced solid waste or construction and demolition	4937
debris conversion technology, including, but not limited to,	4938
advanced stoker technology, and advanced fluidized bed	4939
gasification technology, that results in measurable greenhouse gas	4940
emissions reductions as calculated pursuant to the United States	4941
environmental protection agency's waste reduction model (WARM).;	4942

(g) Demand-side management and any energy efficiency	4943
improvement;	4944

(h) Any new, retrofitted, refueled, or repowered generating	4945
facility located in Ohio, including a simple or combined-cycle	4946
natural gas generating facility or a generating facility that uses	4947
biomass, coal, modular nuclear, or any other fuel as its input;	4948

(i) Any uprated capacity of an existing electric generating	4949
facility if the uprated capacity results from the deployment of	4950
advanced technology.	4951

"Advanced energy resource" does not include a waste energy	4952
recovery system that is, or has been, included in an energy	4953
efficiency program of an electric distribution utility pursuant to	4954
requirements under section 4928.66 of the Revised Code.	4955

(35) "Air contaminant source" has the same meaning as in	4956
section 3704.01 of the Revised Code.	4957

(36) "Cogeneration technology" means technology that produces	4958
electricity and useful thermal output simultaneously.	4959

(37)(a) "Renewable energy resource" means solarany of the	4960
following:	4961

(i) Solar photovoltaic or solar thermal energy, wind;

4962

(ii) Wind energy, power;

4963

(iii) Power produced by a hydroelectric facility, geothermal;

4964

(iv) Geothermal energy, fuel;

4965

(v) Fuel derived from solid wastes, as defined in section	4966
3734.01 of the Revised Code, through fractionation, biological	4967
decomposition, or other process that does not principally involve	4968
combustion, biomass;	4969

(vi) Biomass energy, energy;

4970

(vii) Energy produced by cogeneration technology that is	4971
placed into service on or before December 31, 2015, and for which	4972
more than ninety per cent of the total annual energy input is from	4973
combustion of a waste or byproduct gas from an air contaminant	4974
source in this state, which source has been in operation since on	4975
or before January 1, 1985, provided that the cogeneration	4976
technology is a part of a facility located in a county having a	4977
population of more than three hundred sixty-five thousand but less	4978
than three hundred seventy thousand according to the most recent	4979
federal decennial census, biologically;	4980

(viii) Biologically derived methane gas, or energy;

4981

(ix) Energy derived from nontreated by-products of the	4982
pulping process or wood manufacturing process, including bark,	4983
wood chips, sawdust, and lignin in spent pulping liquors.	4984
"Renewable"Renewable energy resource" includes, but is not	4985
limited to, any fuel cell used in the generation of electricity,	4986
including, but not limited to, a proton exchange membrane fuel	4987
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or	4988
solid oxide fuel cell; wind turbine located in the state's	4989
territorial waters of Lake Erie; methane gas emitted from an	4990
abandoned coal mine; waste energy recovery system placed into	4991
service or retrofitted on or after the effective date of the	4992
amendment of this section by S.B. 315 of the 129th general	4993
assembly, except that a waste energy recovery system described in	4994
division (A)(38)(b) of this section may have been placed into	4995
service or retrofitted before that date; storage facility that	4996
will promote the better utilization of a renewable energy resource	4997
that primarily generates off peak; or distributed generation	4998
system used by a customer to generate electricity from any such	4999
energy. As	5000

"Renewable energy resource" does not include a waste energy	5001
recovery system that is, or was, on or after January 1, 2012,	5002
included in an energy efficiency program of an electric	5003
distribution utility pursuant to requirements under section	5004
4928.66 of the Revised Code.	5005

(b) As used in division (A)(37) of this section,	5006
"hydroelectric facility" means a hydroelectric generating facility	5007
that is located at a dam on a river, or on any water discharged to	5008
a river, that is within or bordering this state or within or	5009
bordering an adjoining state and meets all of the following	5010
standards:	5011

(a)(i) The facility provides for river flows that are not	5012
detrimental for fish, wildlife, and water quality, including	5013
seasonal flow fluctuations as defined by the applicable licensing	5014
agency for the facility.	5015

(b)(ii) The facility demonstrates that it complies with the	5016
water quality standards of this state, which compliance may	5017
consist of certification under Section 401 of the "Clean Water Act	5018
of 1977," 91 Stat. 1598, 1599, 33 U.S.C. 1341, and demonstrates	5019
that it has not contributed to a finding by this state that the	5020
river has impaired water quality under Section 303(d) of the	5021
"Clean Water Act of 1977," 114 Stat. 870, 33 U.S.C. 1313.	5022

(c)(iii) The facility complies with mandatory prescriptions	5023
regarding fish passage as required by the federal energy	5024
regulatory commission license issued for the project, regarding	5025
fish protection for riverine, anadromous, and catadromous fish.	5026

(d)(iv) The facility complies with the recommendations of the	5027
Ohio environmental protection agency and with the terms of its	5028
federal energy regulatory commission license regarding watershed	5029
protection, mitigation, or enhancement, to the extent of each	5030
agency's respective jurisdiction over the facility.	5031

(e)(v) The facility complies with provisions of the	5032
"Endangered Species Act of 1973," 87 Stat. 884, 16 U.S.C. 1531 to	5033
1544, as amended.	5034

(f)(vi) The facility does not harm cultural resources of the	5035
area. This can be shown through compliance with the terms of its	5036
federal energy regulatory commission license or, if the facility	5037
is not regulated by that commission, through development of a plan	5038
approved by the Ohio historic preservation office, to the extent	5039
it has jurisdiction over the facility.	5040

(g)(vii) The facility complies with the terms of its federal	5041
energy regulatory commission license or exemption that are related	5042
to recreational access, accommodation, and facilities or, if the	5043
facility is not regulated by that commission, the facility	5044
complies with similar requirements as are recommended by resource	5045
agencies, to the extent they have jurisdiction over the facility;	5046
and the facility provides access to water to the public without	5047
fee or charge.	5048

(h)(viii) The facility is not recommended for removal by any	5049
federal agency or agency of any state, to the extent the	5050
particular agency has jurisdiction over the facility.	5051

(38) "Waste energy recovery system" means either of the	5052
following:	5053

(a) A facility that generates electricity through the	5054
conversion of energy from either of the following:	5055

(i) Exhaust heat from engines or manufacturing, industrial,	5056
commercial, or institutional sites, except for exhaust heat from a	5057
facility whose primary purpose is the generation of electricity;	5058

(ii) Reduction of pressure in gas pipelines before gas is	5059
distributed through the pipeline, provided that the conversion of	5060
energy to electricity is achieved without using additional fossil	5061
fuels.	5062

(b) A facility at a state institution of higher education as	5063
defined in section 3345.011 of the Revised Code that recovers	5064
waste heat from electricity-producing engines or combustion	5065
turbines and that simultaneously uses the recovered heat to	5066
produce steam.	5067

(39) "Smart grid" means capital improvements to an electric	5068
distribution utility's distribution infrastructure that improve	5069
reliability, efficiency, resiliency, or reduce energy demand or	5070
use, including, but not limited to, advanced metering and	5071
automation of system functions.	5072

(40) "Combined heat and power system" means the coproduction	5073
of electricity and useful thermal energy from the same fuel source	5074
designed to achieve thermal-efficiency levels of at least sixty	5075
per cent, with at least twenty per cent of the system's total	5076
useful energy in the form of thermal energy.	5077

(B) For the purposes of this chapter, a retail electric	5078
service component shall be deemed a competitive retail electric	5079
service if the service component is competitive pursuant to a	5080
declaration by a provision of the Revised Code or pursuant to an	5081
order of the public utilities commission authorized under division	5082
(A) of section 4928.04 of the Revised Code. Otherwise, the service	5083
component shall be deemed a noncompetitive retail electric	5084
service.	5085

Sec. 4928.02.  It is the policy of this state to do the	5086
following throughout this state:	5087

(A) Ensure the availability to consumers of adequate,	5088
reliable, safe, efficient, nondiscriminatory, and reasonably	5089
priced retail electric service;	5090

(B) Ensure the availability of unbundled and comparable	5091
retail electric service that provides consumers with the supplier,	5092
price, terms, conditions, and quality options they elect to meet	5093
their respective needs;	5094

(C) Ensure diversity of electricity supplies and suppliers,	5095
by giving consumers effective choices over the selection of those	5096
supplies and suppliers and by encouraging the development of	5097
distributed and small generation facilities;	5098

(D) Encourage innovation and market access for cost-effective	5099
supply- and demand-side retail electric service including, but not	5100
limited to, demand-side management, time-differentiated pricing,	5101
waste energy recovery systems, smart grid programs, and	5102
implementation of advanced metering infrastructure;	5103

(E) Encourage cost-effective and efficient access to	5104
information regarding the operation of the transmission and	5105
distribution systems of electric utilities in order to promote	5106
both effective customer choice of retail electric service and the	5107
development of performance standards and targets for service	5108
quality for all consumers, including annual achievement reports	5109
written in plain language;	5110

(F) Ensure that an electric utility's transmission and	5111
distribution systems are available to a customer-generator or	5112
owner of distributed generation, so that the customer-generator or	5113
owner can market and deliver the electricity it produces;	5114

(G) Recognize the continuing emergence of competitive	5115
electricity markets through the development and implementation of	5116
flexible regulatory treatment;	5117

(H) Ensure effective competition in the provision of retail	5118
electric service by avoiding anticompetitive subsidies flowing	5119
from a noncompetitive retail electric service to a competitive	5120
retail electric service or to a product or service other than	5121
retail electric service, and vice versa, including by prohibiting	5122
the recovery of any generation-related costs through distribution	5123
or transmission rates;	5124

(I) Ensure retail electric service consumers protection	5125
against unreasonable sales practices, market deficiencies, and	5126
market power;	5127

(J) Provide coherent, transparent means of giving appropriate	5128
incentives to technologies that can adapt successfully to	5129
potential environmental mandates;	5130

(K) Encourage implementation of distributed generation across	5131
customer classes through regular review and updating of	5132
administrative rules governing critical issues such as, but not	5133
limited to, interconnection standards, standby charges, and net	5134
metering;	5135

(L) Protect at-risk populations, including, but not limited	5136
to, when considering the implementation of any new advanced energy	5137
or renewable energy resource;	5138

(M) Encourage the education of small business owners in this	5139
state regarding the use of, and encourage the use of, energy	5140
efficiency programs and alternative energy resources in their	5141
businesses;	5142

(N) Facilitate the state's effectiveness in the global	5143
economy.	5144

In carrying out this policy, the commission shall consider	5145
rules as they apply to the costs of electric distribution	5146
infrastructure, including, but not limited to, line extensions,	5147
for the purpose of development in this state.	5148

Sec. 4928.111.  The public utilities commission shall consult	5149
with electric distribution utilities to review the distribution	5150
infrastructure in this state and shall consult with regional	5151
transmission organizations and entities that own or control	5152
transmission facilities to review the transmission infrastructure	5153
in this state.	5154

Sec. 4928.2314.  (A) The transfer and ownership of	5155
phase-in-recovery property and the imposition, charging,	5156
collection, and receipt of phase-in-recovery revenues under	5157
sections 4928.231 to 4928.2317 of the Revised Code are exempt from	5158
all taxes and similar charges imposed by the state or any county,	5159
municipal corporation, school district, local authority, or other	5160
subdivision.	5161

(B) Phase-in-recovery bonds issued under a final financing	5162
order shall not constitute a debt or a pledge of the faith and	5163
credit or taxing power of this state or of any county, municipal	5164
corporation, or any other political subdivision of this state.	5165
Bondholders shall have no right to have taxes levied by this state	5166
or the taxing authority of any county, municipal corporation, or	5167
any other political subdivision of this state for the payment of	5168
the principal of or interest on the bonds. The issuance of	5169
phase-in-recovery bonds does not, directly, indirectly, or	5170
contingently, obligate this state or any county, municipal	5171
corporation, or political subdivision of this state to levy any	5172
tax or make any appropriation for payment of the principal of or	5173
interest on the bonds.	5174

(C) Nothing in this section prohibits the levy of the tax	5175
imposed under Chapter 5751. of the Revised Code.	5176

Sec. 4928.61.  (A) There is hereby established in the state	5177
treasury the advanced energy fund, into which shall be deposited	5178
all advanced energy revenues remitted to the director of	5179
development under division (B) of this section, for the exclusive	5180
purposes of funding the advanced energy program created under	5181
section 4928.62 of the Revised Code and paying the program's	5182
administrative costs. Interest on the fund shall be credited to	5183
the fund.	5184

(B) Advanced energy revenues shall include all of the	5185
following:	5186

(1) Revenues remitted to the director after collection by	5187
each electric distribution utility in this state of a temporary	5188
rider on retail electric distribution service rates as such rates	5189
are determined by the public utilities commission pursuant to this	5190
chapter. The rider shall be a uniform amount statewide, determined	5191
by the director of development, after consultation with the public	5192
benefits advisory board created by section 4928.58 of the Revised	5193
Code. The amount shall be determined by dividing an aggregate	5194
revenue target for a given year as determined by the director,	5195
after consultation with the advisory board, by the number of	5196
customers of electric distribution utilities in this state in the	5197
prior year. Such aggregate revenue target shall not exceed more	5198
than fifteen million dollars in any year through 2005 and shall	5199
not exceed more than five million dollars in any year after 2005.	5200
The rider shall be imposed beginning on the effective date of the	5201
amendment of this section by Sub. H.B. 251 of the 126th general	5202
assembly, January 4, 2007, and shall terminate at the end of ten	5203
years following the starting date of competitive retail electric	5204
service or until the advanced energy fund, including interest,	5205
reaches one hundred million dollars, whichever is first.	5206

(2) Revenues from payments, repayments, and collections under	5207
the advanced energy program and from program income;	5208

(3) Revenues remitted to the director after collection by a	5209
municipal electric utility or electric cooperative in this state	5210
upon the utility's or cooperative's decision to participate in the	5211
advanced energy fund;	5212

(4) Revenues from renewable energy compliance payments as	5213
provided under division (C)(2) of section 4928.64 of the Revised	5214
Code;	5215

(5) Revenue from forfeitures under division (C) of section	5216
4928.66 of the Revised Code;	5217

(6) Funds transferred pursuant to division (B) of Section	5218
512.10 of S.B. 315 of the 129th general assembly;	5219

(7) Interest earnings on the advanced energy fund.

5220

(C)(1) Each electric distribution utility in this state shall	5221
remit to the director on a quarterly basis the revenues described	5222
in divisions (B)(1) and (2) of this section. Such remittances	5223
shall occur within thirty days after the end of each calendar	5224
quarter.	5225

(2) Each participating electric cooperative and participating	5226
municipal electric utility shall remit to the director on a	5227
quarterly basis the revenues described in division (B)(3) of this	5228
section. Such remittances shall occur within thirty days after the	5229
end of each calendar quarter. For the purpose of division (B)(3)	5230
of this section, the participation of an electric cooperative or	5231
municipal electric utility in the energy efficiency revolving loan	5232
program as it existed immediately prior to the effective date of	5233
the amendment of this section by Sub. H.B. 251 of the 126th	5234
general assembly, January 4, 2007, does not constitute a decision	5235
to participate in the advanced energy fund under this section as	5236
so amended.	5237

(3) All remittances under divisions (C)(1) and (2) of this	5238
section shall continue only until the end of ten years following	5239
the starting date of competitive retail electric service or until	5240
the advanced energy fund, including interest, reaches one hundred	5241
million dollars, whichever is first.	5242

(D) Any moneys collected in rates for non-low-income customer	5243
energy efficiency programs, as of October 5, 1999, and not	5244
contributed to the energy efficiency revolving loan fund	5245
authorized under this section prior to the effective date of its	5246
amendment by Sub. H.B. 251 of the 126th general assembly, January	5247
4, 2007, shall be used to continue to fund cost-effective,	5248
residential energy efficiency programs, be contributed into the	5249
universal service fund as a supplement to that required under	5250
section 4928.53 of the Revised Code, or be returned to ratepayers	5251
in the form of a rate reduction at the option of the affected	5252
electric distribution utility.	5253

Sec. 4928.62.  (A) There is hereby created the advanced	5254
energy program, which shall be administered by the director of	5255
development. Under the program, the director may authorize the use	5256
of moneys in the advanced energy fund for financial, technical,	5257
and related assistance for advanced energy projects in this state	5258
or for economic development assistance, in furtherance of the	5259
purposes set forth in section 4928.63 of the Revised Code. To	5260

(1) To the extent feasible given approved applications for	5261
assistance, the assistance shall be distributed among the	5262
certified territories of electric distribution utilities and	5263
participating electric cooperatives, and among the service areas	5264
of participating municipal electric utilities, in amounts	5265
proportionate to the remittances of each utility and cooperative	5266
under divisions (B)(1) and (3) of section 4928.61 of the Revised	5267
Code.	5268

(2) The funds described in division (B)(6) of section 4928.61	5269
of the Revised Code shall not be subject to the territorial	5270
requirements of division (A)(1) of this section.	5271

(3) The director shall not authorize financial assistance for	5272
an advanced energy project under the program unless the director	5273
first determines that the project will create new jobs or preserve	5274
existing jobs in this state or use innovative technologies or	5275
materials.	5276

(B) In carrying out sections 4928.61 to 4928.63 of the	5277
Revised Code, the director may do all of the following to further	5278
the public interest in advanced energy projects and economic	5279
development:	5280

(1) Award grants, contracts, loans, loan participation	5281
agreements, linked deposits, and energy production incentives;	5282

(2) Acquire in the name of the director any property of any	5283
kind or character in accordance with this section, by purchase,	5284
purchase at foreclosure, or exchange, on such terms and in such	5285
manner as the director considers proper;	5286

(3) Make and enter into all contracts and agreements	5287
necessary or incidental to the performance of the director's	5288
duties and the exercise of the director's powers under sections	5289
4928.61 to 4928.63 of the Revised Code;	5290

(4) Employ or enter into contracts with financial	5291
consultants, marketing consultants, consulting engineers,	5292
architects, managers, construction experts, attorneys, technical	5293
monitors, energy evaluators, or other employees or agents as the	5294
director considers necessary, and fix their compensation;	5295

(5) Adopt rules prescribing the application procedures for	5296
financial assistance under the advanced energy program; the fees,	5297
charges, interest rates, payment schedules, local match	5298
requirements, and other terms and conditions of any grants,	5299
contracts, loans, loan participation agreements, linked deposits,	5300
and energy production incentives; criteria pertaining to the	5301
eligibility of participating lending institutions; and any other	5302
matters necessary for the implementation of the program;	5303

(6) Do all things necessary and appropriate for the operation	5304
of the program.	5305

(C) The department of development may hold ownership to any	5306
unclaimed energy efficiency and renewable energy emission	5307
allowances provided for in Chapter 3745-14 of the Administrative	5308
Code or otherwise, that result from advanced energy projects that	5309
receive funding from the advanced energy fund, and it may use the	5310
allowances to further the public interest in advanced energy	5311
projects or for economic development.	5312

(D) Financial statements, financial data, and trade secrets	5313
submitted to or received by the director from an applicant or	5314
recipient of financial assistance under sections 4928.61 to	5315
4928.63 of the Revised Code, or any information taken from those	5316
statements, data, or trade secrets for any purpose, are not public	5317
records for the purpose of section 149.43 of the Revised Code.	5318

(E) Nothing in the amendments of sections 4928.61, 4928.62,	5319
and 4928.63 of the Revised Code by Sub. H.B. 251 of the 126th	5320
general assembly shall affect any pending or effected assistance,	5321
pending or effected purchases or exchanges of property made, or	5322
pending or effected contracts or agreements entered into pursuant	5323
to division (A) or (B) of this section as the section existed	5324
prior to the effective date of those amendments, January 4, 2007,	5325
or shall affect the exemption provided under division (C) of this	5326
section as the section existed prior to that effective date.	5327

(F) Any assistance a school district receives for an advanced	5328
energy project, including a geothermal heating, ventilating, and	5329
air conditioning system, shall be in addition to any assistance	5330
provided under Chapter 3318. of the Revised Code and shall not be	5331
included as part of the district or state portion of the basic	5332
project cost under that chapter.	5333

Sec. 4928.64. (A)(1) As used in sections 4928.64 and 4928.65	5334
of the Revised Code, "alternative energy resource" means an	5335
advanced energy resource or renewable energy resource, as defined	5336
in section 4928.01 of the Revised Code that has a	5337
placed-in-service date of January 1, 1998, or after; a renewable	5338
energy resource created on or after January 1, 1998, by the	5339
modification or retrofit of any facility placed in service prior	5340
to January 1, 1998; or a mercantile customer-sited advanced energy	5341
resource or renewable energy resource, whether new or existing,	5342
that the mercantile customer commits for integration into the	5343
electric distribution utility's demand-response, energy	5344
efficiency, or peak demand reduction programs as provided under	5345
division (A)(2)(c) of section 4928.66 of the Revised Code,	5346
including, but not limited to, any of the following:	5347

(a) A resource that has the effect of improving the	5348
relationship between real and reactive power;	5349

(b) A resource that makes efficient use of waste heat or	5350
other thermal capabilities owned or controlled by a mercantile	5351
customer;	5352

(c) Storage technology that allows a mercantile customer more	5353
flexibility to modify its demand or load and usage	5354
characteristics;	5355

(d) Electric generation equipment owned or controlled by a	5356
mercantile customer that uses an advanced energy resource or	5357
renewable energy resource;	5358

(e) Any advanced energy resource or renewable energy resource	5359
of the mercantile customer that can be utilized effectively as	5360
part of any advanced energy resource plan of an electric	5361
distribution utility and would otherwise qualify as an alternative	5362
energy resource if it were utilized directly by an electric	5363
distribution utility.	5364

(2) For the purpose of this section and as it considers	5365
appropriate, the public utilities commission may classify any new	5366
technology as such an advanced energy resource or a renewable	5367
energy resource.	5368

(B) By 2025 and thereafter, an electric distribution utility	5369
shall provide from alternative energy resources, including, at its	5370
discretion, alternative energy resources obtained pursuant to an	5371
electricity supply contract, a portion of the electricity supply	5372
required for its standard service offer under section 4928.141 of	5373
the Revised Code, and an electric services company shall provide a	5374
portion of its electricity supply for retail consumers in this	5375
state from alternative energy resources, including, at its	5376
discretion, alternative energy resources obtained pursuant to an	5377
electricity supply contract. That portion shall equal twenty-five	5378
per cent of the total number of kilowatt hours of electricity sold	5379
by the subject utility or company to any and all retail electric	5380
consumers whose electric load centers are served by that utility	5381
and are located within the utility's certified territory or, in	5382
the case of an electric services company, are served by the	5383
company and are located within this state. However, nothing in	5384
this section precludes a utility or company from providing a	5385
greater percentage. The baseline for a utility's or company's	5386
compliance with the alternative energy resource requirements of	5387
this section shall be the average of such total kilowatt hours it	5388
sold in the preceding three calendar years, except that the	5389
commission may reduce a utility's or company's baseline to adjust	5390
for new economic growth in the utility's certified territory or,	5391
in the case of an electric services company, in the company's	5392
service area in this state.	5393

Of the alternative energy resources implemented by the	5394
subject utility or company by 2025 and thereafter:	5395

(1) Half may be generated from advanced energy resources;

5396

(2) At least half shall be generated from renewable energy	5397
resources, including one-half per cent from solar energy	5398
resources, in accordance with the following benchmarks:	5399

By end of year	Renewable energy resources	Solar energy resources		5400
2009	0.25%	0.004%		5401
2010	0.50%	0.010%		5402
2011	1%	0.030%		5403
2012	1.5%	0.060%		5404
2013	2%	0.090%		5405
2014	2.5%	0.12%		5406
2015	3.5%	0.15%		5407
2016	4.5%	0.18%		5408
2017	5.5%	0.22%		5409
2018	6.5%	0.26%		5410
2019	7.5%	0.3%		5411
2020	8.5%	0.34%		5412
2021	9.5%	0.38%		5413
2022	10.5%	0.42%		5414
2023	11.5%	0.46%		5415
2024 and each calendar year thereafter	12.5%	0.5%		5416

(3) At least one-half of the renewable energy resources	5417
implemented by the utility or company shall be met through	5418
facilities located in this state; the remainder shall be met with	5419
resources that can be shown to be deliverable into this state.	5420

(C)(1) The commission annually shall review an electric	5421
distribution utility's or electric services company's compliance	5422
with the most recent applicable benchmark under division (B)(2) of	5423
this section and, in the course of that review, shall identify any	5424
undercompliance or noncompliance of the utility or company that it	5425
determines is weather-related, related to equipment or resource	5426
shortages for advanced energy or renewable energy resources as	5427
applicable, or is otherwise outside the utility's or company's	5428
control.	5429

(2) Subject to the cost cap provisions of division (C)(3) of	5430
this section, if the commission determines, after notice and	5431
opportunity for hearing, and based upon its findings in that	5432
review regarding avoidable undercompliance or noncompliance, but	5433
subject to division (C)(4) of this section, that the utility or	5434
company has failed to comply with any such benchmark, the	5435
commission shall impose a renewable energy compliance payment on	5436
the utility or company.	5437

(a) The compliance payment pertaining to the solar energy	5438
resource benchmarks under division (B)(2) of this section shall be	5439
an amount per megawatt hour of undercompliance or noncompliance in	5440
the period under review, starting at four hundred fifty dollars	5441
for 2009, four hundred dollars for 2010 and 2011, and similarly	5442
reduced every two years thereafter through 2024 by fifty dollars,	5443
to a minimum of fifty dollars.	5444

(b) The compliance payment pertaining to the renewable energy	5445
resource benchmarks under division (B)(2) of this section shall	5446
equal the number of additional renewable energy credits that the	5447
electric distribution utility or electric services company would	5448
have needed to comply with the applicable benchmark in the period	5449
under review times an amount that shall begin at forty-five	5450
dollars and shall be adjusted annually by the commission to	5451
reflect any change in the consumer price index as defined in	5452
section 101.27 of the Revised Code, but shall not be less than	5453
forty-five dollars.	5454

(c) The compliance payment shall not be passed through by the	5455
electric distribution utility or electric services company to	5456
consumers. The compliance payment shall be remitted to the	5457
commission, for deposit to the credit of the advanced energy fund	5458
created under section 4928.61 of the Revised Code. Payment of the	5459
compliance payment shall be subject to such collection and	5460
enforcement procedures as apply to the collection of a forfeiture	5461
under sections 4905.55 to 4905.60 and 4905.64 of the Revised Code.	5462

(3) An electric distribution utility or an electric services	5463
company need not comply with a benchmark under division (B)(1) or	5464
(2) of this section to the extent that its reasonably expected	5465
cost of that compliance exceeds its reasonably expected cost of	5466
otherwise producing or acquiring the requisite electricity by	5467
three per cent or more. The cost of compliance shall be calculated	5468
as though any exemption from taxes and assessments had not been	5469
granted under section 5727.75 of the Revised Code.	5470

(4)(a) An electric distribution utility or electric services	5471
company may request the commission to make a force majeure	5472
determination pursuant to this division regarding all or part of	5473
the utility's or company's compliance with any minimum benchmark	5474
under division (B)(2) of this section during the period of review	5475
occurring pursuant to division (C)(2) of this section. The	5476
commission may require the electric distribution utility or	5477
electric services company to make solicitations for renewable	5478
energy resource credits as part of its default service before the	5479
utility's or company's request of force majeure under this	5480
division can be made.	5481

(b) Within ninety days after the filing of a request by an	5482
electric distribution utility or electric services company under	5483
division (C)(4)(a) of this section, the commission shall determine	5484
if renewable energy resources are reasonably available in the	5485
marketplace in sufficient quantities for the utility or company to	5486
comply with the subject minimum benchmark during the review	5487
period. In making this determination, the commission shall	5488
consider whether the electric distribution utility or electric	5489
services company has made a good faith effort to acquire	5490
sufficient renewable energy or, as applicable, solar energy	5491
resources to so comply, including, but not limited to, by banking	5492
or seeking renewable energy resource credits or by seeking the	5493
resources through long-term contracts. Additionally, the	5494
commission shall consider the availability of renewable energy or	5495
solar energy resources in this state and other jurisdictions in	5496
the PJM interconnection regional transmission organization or its	5497
successor and the midwest system operator or its successor.	5498

(c) If, pursuant to division (C)(4)(b) of this section, the	5499
commission determines that renewable energy or solar energy	5500
resources are not reasonably available to permit the electric	5501
distribution utility or electric services company to comply,	5502
during the period of review, with the subject minimum benchmark	5503
prescribed under division (B)(2) of this section, the commission	5504
shall modify that compliance obligation of the utility or company	5505
as it determines appropriate to accommodate the finding.	5506
Commission modification shall not automatically reduce the	5507
obligation for the electric distribution utility's or electric	5508
services company's compliance in subsequent years. If it modifies	5509
the electric distribution utility or electric services company	5510
obligation under division (C)(4)(c) of this section, the	5511
commission may require the utility or company, if sufficient	5512
renewable energy resource credits exist in the marketplace, to	5513
acquire additional renewable energy resource credits in subsequent	5514
years equivalent to the utility's or company's modified obligation	5515
under division (C)(4)(c) of this section.	5516

(5) The commission shall establish a process to provide for	5517
at least an annual review of the alternative energy resource	5518
market in this state and in the service territories of the	5519
regional transmission organizations that manage transmission	5520
systems located in this state. The commission shall use the	5521
results of this study to identify any needed changes to the amount	5522
of the renewable energy compliance payment specified under	5523
divisions (C)(2)(a) and (b) of this section. Specifically, the	5524
commission may increase the amount to ensure that payment of	5525
compliance payments is not used to achieve compliance with this	5526
section in lieu of actually acquiring or realizing energy derived	5527
from renewable energy resources. However, if the commission finds	5528
that the amount of the compliance payment should be otherwise	5529
changed, the commission shall present this finding to the general	5530
assembly for legislative enactment.	5531

(D)(1) The commission annually shall submit to the general	5532
assembly in accordance with section 101.68 of the Revised Code a	5533
report describing theall of the following:	5534

(a) The compliance of electric distribution utilities and	5535
electric services companies with division (B) of this section and	5536
any;	5537

(b) The average annual cost of renewable energy credits	5538
purchased by utilities and companies for the year covered in the	5539
report;	5540

(c) Any strategy for utility and company compliance or for	5541
encouraging the use of alternative energy resources in supplying	5542
this state's electricity needs in a manner that considers	5543
available technology, costs, job creation, and economic impacts.	5544
The	5545

The commission shall begin providing the information	5546
described in division (D)(1)(b) of this section in each report	5547
submitted after the effective date of the amendment of this	5548
section by S.B. 315 of the 129th general assembly. The commission	5549
shall allow and consider public comments on the report prior to	5550
its submission to the general assembly. Nothing in the report	5551
shall be binding on any person, including any utility or company	5552
for the purpose of its compliance with any benchmark under	5553
division (B) of this section, or the enforcement of that provision	5554
under division (C) of this section.	5555

(2) The governor, in consultation with the commission	5556
chairperson, shall appoint an alternative energy advisory	5557
committee. The committee shall examine available technology for	5558
and related timetables, goals, and costs of the alternative energy	5559
resource requirements under division (B) of this section and shall	5560
submit to the commission a semiannual report of its	5561
recommendations.	5562

(E) All costs incurred by an electric distribution utility in	5563
complying with the requirements of this section shall be	5564
bypassable by any consumer that has exercised choice of supplier	5565
under section 4928.03 of the Revised Code.	5566

Sec. 4928.66. (A)(1)(a) Beginning in 2009, an electric	5567
distribution utility shall implement energy efficiency programs	5568
that achieve energy savings equivalent to at least three-tenths of	5569
one per cent of the total, annual average, and normalized	5570
kilowatt-hour sales of the electric distribution utility during	5571
the preceding three calendar years to customers in this state. An	5572
energy efficiency program may include a combined heat and power	5573
system placed into service or retrofitted on or after the	5574
effective date of the amendment of this section by S.B. 315 of the	5575
129th general assembly, or a waste energy recovery system placed	5576
into service or retrofitted on or after the same date, except that	5577
a waste energy recovery system described in division (A)(38)(b) of	5578
section 4928.01 of the Revised Code may have been placed into	5579
service or retrofitted before that date. For a waste energy	5580
recovery or combined heat and power system, the savings shall be	5581
as estimated by the public utilities commission. The savings	5582
requirement, using such a three-year average, shall increase to an	5583
additional five-tenths of one per cent in 2010, seven-tenths of	5584
one per cent in 2011, eight-tenths of one per cent in 2012,	5585
nine-tenths of one per cent in 2013, one per cent from 2014 to	5586
2018, and two per cent each year thereafter, achieving a	5587
cumulative, annual energy savings in excess of twenty-two per cent	5588
by the end of 2025. For purposes of a waste energy recovery or	5589
combined heat and power system, an electric distribution utility	5590
shall not apply more than the total annual percentage of the	5591
electric distribution utility's industrial-customer load, relative	5592
to the electric distribution utility's total load, to the annual	5593
energy savings requirement.	5594

(b) Beginning in 2009, an electric distribution utility shall	5595
implement peak demand reduction programs designed to achieve a one	5596
per cent reduction in peak demand in 2009 and an additional	5597
seventy-five hundredths of one per cent reduction each year	5598
through 2018. In 2018, the standing committees in the house of	5599
representatives and the senate primarily dealing with energy	5600
issues shall make recommendations to the general assembly	5601
regarding future peak demand reduction targets.	5602

(2) For the purposes of divisions (A)(1)(a) and (b) of this	5603
section:	5604

(a) The baseline for energy savings under division (A)(1)(a)	5605
of this section shall be the average of the total kilowatt hours	5606
the electric distribution utility sold in the preceding three	5607
calendar years, and the baseline for a peak demand reduction under	5608
division (A)(1)(b) of this section shall be the average peak	5609
demand on the utility in the preceding three calendar years,	5610
except that the commission may reduce either baseline to adjust	5611
for new economic growth in the utility's certified territory.	5612

(b) The commission may amend the benchmarks set forth in	5613
division (A)(1)(a) or (b) of this section if, after application by	5614
the electric distribution utility, the commission determines that	5615
the amendment is necessary because the utility cannot reasonably	5616
achieve the benchmarks due to regulatory, economic, or	5617
technological reasons beyond its reasonable control.	5618

(c) Compliance with divisions (A)(1)(a) and (b) of this	5619
section shall be measured by including the effects of all	5620
demand-response programs for mercantile customers of the subject	5621
electric distribution utility, all waste energy recovery systems	5622
and all combined heat and power systems, and all such mercantile	5623
customer-sited energy efficiency, including waste energy recovery	5624
and combined heat and power, and peak demand reduction programs,	5625
adjusted upward by the appropriate loss factors. Any mechanism	5626
designed to recover the cost of energy efficiency, including waste	5627
energy recovery and combined heat and power, and peak demand	5628
reduction programs under divisions (A)(1)(a) and (b) of this	5629
section may exempt mercantile customers that commit their	5630
demand-response or other customer-sited capabilities, whether	5631
existing or new, for integration into the electric distribution	5632
utility's demand-response, energy efficiency, including waste	5633
energy recovery and combined heat and power, or peak demand	5634
reduction programs, if the commission determines that that	5635
exemption reasonably encourages such customers to commit those	5636
capabilities to those programs. If a mercantile customer makes	5637
such existing or new demand-response, energy efficiency, including	5638
waste energy recovery and combined heat and power, or peak demand	5639
reduction capability available to an electric distribution utility	5640
pursuant to division (A)(2)(c) of this section, the electric	5641
utility's baseline under division (A)(2)(a) of this section shall	5642
be adjusted to exclude the effects of all such demand-response,	5643
energy efficiency, including waste energy recovery and combined	5644
heat and power, or peak demand reduction programs that may have	5645
existed during the period used to establish the baseline. The	5646
baseline also shall be normalized for changes in numbers of	5647
customers, sales, weather, peak demand, and other appropriate	5648
factors so that the compliance measurement is not unduly	5649
influenced by factors outside the control of the electric	5650
distribution utility.	5651

(d) Programs implemented by a utility may include	5652
demand-response programs, smart grid investment programs, provided	5653
that such programs are demonstrated to be cost-beneficial,	5654
customer-sited programs, including waste energy recovery and	5655
combined heat and power systems, and transmission and distribution	5656
infrastructure improvements that reduce line losses. Division	5657
(A)(2)(c) of this section shall be applied to include facilitating	5658
efforts by a mercantile customer or group of those customers to	5659
offer customer-sited demand-response, energy efficiency, including	5660
waste energy recovery and combined heat and power, or peak demand	5661
reduction capabilities to the electric distribution utility as	5662
part of a reasonable arrangement submitted to the commission	5663
pursuant to section 4905.31 of the Revised Code.	5664

(e) No programs or improvements described in division	5665
(A)(2)(d) of this section shall conflict with any statewide	5666
building code adopted by the board of building standards.	5667

(B) In accordance with rules it shall adopt, the public	5668
utilities commission shall produce and docket at the commission an	5669
annual report containing the results of its verification of the	5670
annual levels of energy efficiency and of peak demand reductions	5671
achieved by each electric distribution utility pursuant to	5672
division (A) of this section. A copy of the report shall be	5673
provided to the consumers' counsel.	5674

(C) If the commission determines, after notice and	5675
opportunity for hearing and based upon its report under division	5676
(B) of this section, that an electric distribution utility has	5677
failed to comply with an energy efficiency or peak demand	5678
reduction requirement of division (A) of this section, the	5679
commission shall assess a forfeiture on the utility as provided	5680
under sections 4905.55 to 4905.60 and 4905.64 of the Revised Code,	5681
either in the amount, per day per undercompliance or	5682
noncompliance, relative to the period of the report, equal to that	5683
prescribed for noncompliances under section 4905.54 of the Revised	5684
Code, or in an amount equal to the then existing market value of	5685
one renewable energy credit per megawatt hour of undercompliance	5686
or noncompliance. Revenue from any forfeiture assessed under this	5687
division shall be deposited to the credit of the advanced energy	5688
fund created under section 4928.61 of the Revised Code.	5689

(D) The commission may establish rules regarding the content	5690
of an application by an electric distribution utility for	5691
commission approval of a revenue decoupling mechanism under this	5692
division. Such an application shall not be considered an	5693
application to increase rates and may be included as part of a	5694
proposal to establish, continue, or expand energy efficiency or	5695
conservation programs. The commission by order may approve an	5696
application under this division if it determines both that the	5697
revenue decoupling mechanism provides for the recovery of revenue	5698
that otherwise may be foregoneforgone by the utility as a result	5699
of or in connection with the implementation by the electric	5700
distribution utility of any energy efficiency or energy	5701
conservation programs and reasonably aligns the interests of the	5702
utility and of its customers in favor of those programs.	5703

(E) The commission additionally shall adopt rules that	5704
require an electric distribution utility to provide a customer	5705
upon request with two years' consumption data in an accessible	5706
form.	5707

Sec. 4928.70.  (A) The public utilities commission may	5708
periodically review any green pricing program offered in this	5709
state as part of competitive retail electric service. At the	5710
conclusion of a review, the commission may make recommendations to	5711
improve or expand the program subject of the review.	5712

(B) The commission shall adopt rules necessary to carry out	5713
purposes of this section.	5714

Sec. 4928.71.  The public utilities commission shall study	5715
whether increased energy efficiency, demand response, generation,	5716
and transmission provide increased opportunities for customer	5717
choice. The commission shall include in the study an evaluation of	5718
emerging technologies. The commission shall commence the study not	5719
later than eighteen months after the effective date of this	5720
section. At the conclusion of the study, the commission shall	5721
prepare a report of its findings and make the report available on	5722
its web site.	5723

Sec. 4928.72. The public utilities commission may, in	5724
cooperation with the department of transportation, work with other	5725
states to develop a multi-state study on the development of	5726
compressed natural gas infrastructures for transportation.	5727

Sec. 4935.04.  (A) As used in this chapter:

5728

(1) "Major utility facility" means:

5729

(a) An electric transmission line and associated facilities	5730
of a design capacity of one hundred twenty-five kilovolts or more;	5731

(b) A gas or natural gas transmission line and associated	5732
facilities designed for, or capable of, transporting gas or	5733
natural gas at pressures in excess of one hundred twenty-five	5734
pounds per square inch.	5735

"Major utility facility" does not include electric, gas, or	5736
natural gas distributing lines and gas or natural gas gathering	5737
lines and associated facilities as defined by the public utilities	5738
commission; facilities owned or operated by industrial firms,	5739
persons, or institutions that produce or transmit gas or natural	5740
gas, or electricity primarily for their own use or as a byproduct	5741
of their operations; gas or natural gas transmission lines and	5742
associated facilities over which an agency of the United States	5743
has certificate jurisdiction; facilities owned or operated by a	5744
person furnishing gas or natural gas directly to fifteen thousand	5745
or fewer customers within this state.	5746

(2) "Person" has the meaning set forth in section 4906.01 of	5747
the Revised Code.	5748

(B) Each person owning or operating a gas or natural gas	5749
transmission line and associated facilities within this state over	5750
which an agency of the United States has certificate jurisdiction	5751
shall furnish to the commission a copy of the energy information	5752
filed by the person with that agency of the United States.	5753

(C) Each person owning or operating a major utility facility	5754
within this state, or furnishing gas, natural gas, or electricity	5755
directly to more than fifteen thousand customers within this state	5756
shall furnish a report to the commission for its review. The	5757
report shall be furnished annually, except that for a gas or	5758
natural gas company the report shall be furnished every three	5759
years. The report shall be termed the long-term forecast report	5760
and shall contain:	5761

(1) A year-by-year, ten-year forecast of annual energy	5762
demand, peak load, reserves, and a general description of the	5763
resource planplanning projections to meet demand;	5764

(2) A range of projected loads during the period;

5765

(3) A description of major utility facilities planned to be	5766
added or taken out of service in the next ten years, including, to	5767
the extent the information is available, prospective sites for	5768
transmission line locations;	5769

(4) For gas and natural gas, a projection of anticipated	5770
supply, supply prices, and sources of supply over the forecast	5771
period;	5772

(5) A description of proposed changes in the transmission	5773
system planned for the next five years;	5774

(6) A month-by-month forecast of both energy demand and peak	5775
load for electric utilities, and gas sendout for gas and natural	5776
gas utilities, for the next two years. The report shall describe	5777
the major utility facilities that, in the judgment of such person,	5778
will be required to supply system demands during the forecast	5779
period. The report from a gas or natural gas utility shall cover	5780
the ten- and five-year periods next succeeding the date of the	5781
report, and the report from an electric utility shall cover the	5782
twenty-, ten-, and five-year periods next succeeding the date of	5783
the report. Each report shall be made available to the public and	5784
furnished upon request to municipal corporations and governmental	5785
agencies charged with the duty of protecting the environment or of	5786
planning land use. The report shall be in such form and shall	5787
contain such information as may be prescribed by the commission.	5788

Each person not owning or operating a major utility facility	5789
within this state and serving fifteen thousand or fewer gas or	5790
natural gas, or electric customers within this state shall furnish	5791
such information as the commission requires.	5792

(D) The commission shall:

5793

(1) Review and comment on the reports filed under division	5794
(C) of this section, and make the information contained in the	5795
reports readily available to the public and other interested	5796
government agencies;	5797

(2) Compile and publish each year the general locations of	5798
proposed and existing transmission line routes within its	5799
jurisdiction as identified in the reports filed under division (C)	5800
of this section, identifying the general location of such sites	5801
and routes and the approximate year when construction is expected	5802
to commence, and to make such information readily available to the	5803
public, to each newspaper of daily or weekly circulation within	5804
the area affected by the proposed site and route, and to	5805
interested federal, state, and local agencies;	5806

(3) Hold a public hearing upon the showing of good cause to	5807
the commission by an interested party.	5808

If a hearing is held, the commission shall fix a time for the	5809
hearing, which shall be not later than ninety days after the	5810
report is filed, and publish notice of the date, time of day, and	5811
location of the hearing in a newspaper of general circulation in	5812
each county in which the person furnishing the report has or	5813
intends to locate a major utility facility and will provide	5814
service during the period covered by the report. The notice shall	5815
be published not less than fifteen nor more than thirty days	5816
before the hearing and shall state the matters to be considered.	5817

(4) Require such information from persons subject to its	5818
jurisdiction as necessary to assist in the conduct of hearings and	5819
any investigation or studies it may undertake;	5820

(5) Conduct any studies or investigations that are necessary	5821
or appropriate to carry out its responsibilities under this	5822
section.	5823

(E)(1) The scope of the hearing held under division (D)(3) of	5824
this section shall be limited to issues relating to forecasting.	5825
The power siting board, the office of consumers' counsel, and all	5826
other persons having an interest in the proceedings shall be	5827
afforded the opportunity to be heard and to be represented by	5828
counsel. The commission may adjourn the hearing from time to time.	5829

(2) The hearing shall include, but not be limited to, a	5830
review of:	5831

(a) The projected loads and energy requirements for each year	5832
of the period;	5833

(b) The estimated installed capacity and supplies to meet the	5834
projected load requirements.	5835

(F) Based upon the report furnished pursuant to division (C)	5836
of this section and the hearing record, the commission, within	5837
ninety days from the close of the record in the hearing, shall	5838
determine if:	5839

(1) All information relating to current activities,	5840
facilities agreements, and published energy policies of the state	5841
has been completely and accurately represented;	5842

(2) The load requirements are based on substantially accurate	5843
historical information and adequate methodology;	5844

(3) The forecasting methods consider the relationships	5845
between price and energy consumption;	5846

(4) The report identifies and projects reductions in energy	5847
demands due to energy conservation measures in the industrial,	5848
commercial, residential, transportation, and energy production	5849
sectors in the service area;	5850

(5) Utility company forecasts of loads and resources are	5851
reasonable in relation to population growth estimates made by	5852
state and federal agencies, transportation, and economic	5853
development plans and forecasts, and make recommendations where	5854
possible for necessary and reasonable alternatives to meet	5855
forecasted electric power demand;	5856

(6) The report considers plans for expansion of the regional	5857
power grid and the planned facilities of other utilities in the	5858
state;	5859

(7) All assumptions made in the forecast are reasonable and	5860
adequately documented.	5861

(G) The commission shall adopt rules under section 111.15 of	5862
the Revised Code to establish criteria for evaluating the	5863
long-term forecasts of needs for gas and electric transmission	5864
service, to conduct hearings held under this section, to establish	5865
reasonable fees to defray the direct cost of the hearings and the	5866
review process, and such other rules as are necessary and	5867
convenient to implement this section.	5868

(H) The hearing record produced under this section and the	5869
determinations of the commission shall be introduced into evidence	5870
and shall be considered in determining the basis of need for power	5871
siting board deliberations under division (A)(1) of section	5872
4906.10 of the Revised Code. The hearing record produced under	5873
this section shall be introduced into evidence and shall be	5874
considered by the public utilities commission in its initiation of	5875
programs, examinations, and findings under section 4905.70 of the	5876
Revised Code, and shall be considered in the commission's	5877
determinations with respect to the establishment of just and	5878
reasonable rates under section 4909.15 of the Revised Code and	5879
financing utility facilities and authorizing issuance of all	5880
securities under sections 4905.40, 4905.401, 4905.41, and 4905.42	5881
of the Revised Code. The forecast findings also shall serve as the	5882
basis for all other energy planning and development activities of	5883
the state government where electric and gas data are required.	5884

(I)(1) No court other than the supreme court shall have power	5885
to review, suspend, or delay any determination made by the	5886
commission under this section, or enjoin, restrain, or interfere	5887
with the commission in the performance of official duties. A writ	5888
of mandamus shall not be issued against the commission by any	5889
court other than the supreme court.	5890

(2) A final determination made by the commission shall be	5891
reversed, vacated, or modified by the supreme court on appeal, if,	5892
upon consideration of the record, such court is of the opinion	5893
that such determination was unreasonable or unlawful.	5894

The proceeding to obtain such reversal, vacation, or	5895
modification shall be by notice of appeal, filed with the	5896
commission by any party to the proceeding before it, against the	5897
commission, setting forth the determination appealed from and	5898
errors complained of. The notice of appeal shall be served, unless	5899
waived, upon the commission by leaving a copy at the office of the	5900
chairperson of the commission at Columbus. The court may permit an	5901
interested party to intervene by cross-appeal.	5902

(3) No proceeding to reverse, vacate, or modify a	5903
determination of the commission is commenced unless the notice of	5904
appeal is filed within sixty days after the date of the	5905
determination.	5906

Sec. 5703.21.  (A) Except as provided in divisions (B) and	5907
(C) of this section, no agent of the department of taxation,	5908
except in the agent's report to the department or when called on	5909
to testify in any court or proceeding, shall divulge any	5910
information acquired by the agent as to the transactions,	5911
property, or business of any person while acting or claiming to	5912
act under orders of the department. Whoever violates this	5913
provision shall thereafter be disqualified from acting as an	5914
officer or employee or in any other capacity under appointment or	5915
employment of the department.	5916

(B)(1) For purposes of an audit pursuant to section 117.15 of	5917
the Revised Code, or an audit of the department pursuant to	5918
Chapter 117. of the Revised Code, or an audit, pursuant to that	5919
chapter, the objective of which is to express an opinion on a	5920
financial report or statement prepared or issued pursuant to	5921
division (A)(7) or (9) of section 126.21 of the Revised Code, the	5922
officers and employees of the auditor of state charged with	5923
conducting the audit shall have access to and the right to examine	5924
any state tax returns and state tax return information in the	5925
possession of the department to the extent that the access and	5926
examination are necessary for purposes of the audit. Any	5927
information acquired as the result of that access and examination	5928
shall not be divulged for any purpose other than as required for	5929
the audit or unless the officers and employees are required to	5930
testify in a court or proceeding under compulsion of legal	5931
process. Whoever violates this provision shall thereafter be	5932
disqualified from acting as an officer or employee or in any other	5933
capacity under appointment or employment of the auditor of state.	5934

(2) For purposes of an internal audit pursuant to section	5935
126.45 of the Revised Code, the officers and employees of the	5936
office of internal auditing in the office of budget and management	5937
charged with conducting the internal audit shall have access to	5938
and the right to examine any state tax returns and state tax	5939
return information in the possession of the department to the	5940
extent that the access and examination are necessary for purposes	5941
of the internal audit. Any information acquired as the result of	5942
that access and examination shall not be divulged for any purpose	5943
other than as required for the internal audit or unless the	5944
officers and employees are required to testify in a court or	5945
proceeding under compulsion of legal process. Whoever violates	5946
this provision shall thereafter be disqualified from acting as an	5947
officer or employee or in any other capacity under appointment or	5948
employment of the office of internal auditing.	5949

(3) As provided by section 6103(d)(2) of the Internal Revenue	5950
Code, any federal tax returns or federal tax information that the	5951
department has acquired from the internal revenue service, through	5952
federal and state statutory authority, may be disclosed to the	5953
auditor of state or the office of internal auditing solely for	5954
purposes of an audit of the department.	5955

(4) For purposes of Chapter 3739. of the Revised Code, an	5956
agent of the department of taxation may share information with the	5957
division of state fire marshal that the agent finds during the	5958
course of an investigation.	5959

(C) Division (A) of this section does not prohibit any of the	5960
following:	5961

(1) Divulging information contained in applications,	5962
complaints, and related documents filed with the department under	5963
section 5715.27 of the Revised Code or in applications filed with	5964
the department under section 5715.39 of the Revised Code;	5965

(2) Providing information to the office of child support	5966
within the department of job and family services pursuant to	5967
section 3125.43 of the Revised Code;	5968

(3) Disclosing to the board of motor vehicle collision repair	5969
registration any information in the possession of the department	5970
that is necessary for the board to verify the existence of an	5971
applicant's valid vendor's license and current state tax	5972
identification number under section 4775.07 of the Revised Code;	5973

(4) Providing information to the administrator of workers'	5974
compensation pursuant to sections 4123.271 and 4123.591 of the	5975
Revised Code;	5976

(5) Providing to the attorney general information the	5977
department obtains under division (J) of section 1346.01 of the	5978
Revised Code;	5979

(6) Permitting properly authorized officers, employees, or	5980
agents of a municipal corporation from inspecting reports or	5981
information pursuant to rules adopted under section 5745.16 of the	5982
Revised Code;	5983

(7) Providing information regarding the name, account number,	5984
or business address of a holder of a vendor's license issued	5985
pursuant to section 5739.17 of the Revised Code, a holder of a	5986
direct payment permit issued pursuant to section 5739.031 of the	5987
Revised Code, or a seller having a use tax account maintained	5988
pursuant to section 5741.17 of the Revised Code, or information	5989
regarding the active or inactive status of a vendor's license,	5990
direct payment permit, or seller's use tax account;	5991

(8) Releasing invoices or invoice information furnished under	5992
section 4301.433 of the Revised Code pursuant to that section;	5993

(9) Providing to a county auditor notices or documents	5994
concerning or affecting the taxable value of property in the	5995
county auditor's county. Unless authorized by law to disclose	5996
documents so provided, the county auditor shall not disclose such	5997
documents;	5998

(10) Providing to a county auditor sales or use tax return or	5999
audit information under section 333.06 of the Revised Code;	6000

(11) Subject to section 4301.441 of the Revised Code,	6001
disclosing to the appropriate state agency information in the	6002
possession of the department of taxation that is necessary to	6003
verify a permit holder's gallonage or noncompliance with taxes	6004
levied under Chapter 4301. or 4305. of the Revised Code;	6005

(12) Disclosing to the department of natural resources	6006
information in the possession of the department that is necessary	6007
to verify the taxpayer's compliance with division (A)(1), (5),	6008
(6), (8), or (9) of section 5749.02 of the Revised Code and	6009
information received pursuant to section 1509.50 of the Revised	6010
Code concerning the amount due under that section;	6011

(13) Disclosing to the department of job and family services,	6012
industrial commission, and bureau of workers' compensation	6013
information in the possession of the department of taxation solely	6014
for the purpose of identifying employers that misclassify	6015
employees as independent contractors or that fail to properly	6016
report and pay employer tax liabilities. The department of	6017
taxation shall disclose only such information that is necessary to	6018
verify employer compliance with law administered by those	6019
agencies.	6020

(14) Disclosing to the Ohio casino control commission	6021
information in the possession of the department of taxation that	6022
is necessary to verify a taxpayer's compliance with section	6023
5753.02 of the Revised Code and sections related thereto.	6024

Sec. 5751.01.  As used in this chapter:

6025

(A) "Person" means, but is not limited to, individuals,	6026
combinations of individuals of any form, receivers, assignees,	6027
trustees in bankruptcy, firms, companies, joint-stock companies,	6028
business trusts, estates, partnerships, limited liability	6029
partnerships, limited liability companies, associations, joint	6030
ventures, clubs, societies, for-profit corporations, S	6031
corporations, qualified subchapter S subsidiaries, qualified	6032
subchapter S trusts, trusts, entities that are disregarded for	6033
federal income tax purposes, and any other entities.	6034

(B) "Consolidated elected taxpayer" means a group of two or	6035
more persons treated as a single taxpayer for purposes of this	6036
chapter as the result of an election made under section 5751.011	6037
of the Revised Code.	6038

(C) "Combined taxpayer" means a group of two or more persons	6039
treated as a single taxpayer for purposes of this chapter under	6040
section 5751.012 of the Revised Code.	6041

(D) "Taxpayer" means any person, or any group of persons in	6042
the case of a consolidated elected taxpayer or combined taxpayer	6043
treated as one taxpayer, required to register or pay tax under	6044
this chapter. "Taxpayer" does not include excluded persons.	6045

(E) "Excluded person" means any of the following:

6046

(1) Any person with not more than one hundred fifty thousand	6047
dollars of taxable gross receipts during the calendar year.	6048
Division (E)(1) of this section does not apply to a person that is	6049
a member of a consolidated elected taxpayer;	6050

(2) A public utility that paid the excise tax imposed by	6051
section 5727.24 or 5727.30 of the Revised Code based on one or	6052
more measurement periods that include the entire tax period under	6053
this chapter, except that a public utility that is a combined	6054
company is a taxpayer with regard to the following gross receipts:	6055

(a) Taxable gross receipts directly attributed to a public	6056
utility activity, but not directly attributed to an activity that	6057
is subject to the excise tax imposed by section 5727.24 or 5727.30	6058
of the Revised Code;	6059

(b) Taxable gross receipts that cannot be directly attributed	6060
to any activity, multiplied by a fraction whose numerator is the	6061
taxable gross receipts described in division (E)(2)(a) of this	6062
section and whose denominator is the total taxable gross receipts	6063
that can be directly attributed to any activity;	6064

(c) Except for any differences resulting from the use of an	6065
accrual basis method of accounting for purposes of determining	6066
gross receipts under this chapter and the use of the cash basis	6067
method of accounting for purposes of determining gross receipts	6068
under section 5727.24 of the Revised Code, the gross receipts	6069
directly attributed to the activity of a natural gas company shall	6070
be determined in a manner consistent with division (D) of section	6071
5727.03 of the Revised Code.	6072

As used in division (E)(2) of this section, "combined	6073
company" and "public utility" have the same meanings as in section	6074
5727.01 of the Revised Code.	6075

(3) A financial institution, as defined in section 5725.01 of	6076
the Revised Code, that paid the corporation franchise tax charged	6077
by division (D) of section 5733.06 of the Revised Code based on	6078
one or more taxable years that include the entire tax period under	6079
this chapter;	6080

(4) A dealer in intangibles, as defined in section 5725.01 of	6081
the Revised Code, that paid the dealer in intangibles tax levied	6082
by division (D) of section 5707.03 of the Revised Code based on	6083
one or more measurement periods that include the entire tax period	6084
under this chapter;	6085

(5) A financial holding company as defined in the "Bank	6086
Holding Company Act," 12 U.S.C. 1841(p);	6087

(6) A bank holding company as defined in the "Bank Holding	6088
Company Act," 12 U.S.C. 1841(a);	6089

(7) A savings and loan holding company as defined in the	6090
"Home Owners Loan Act," 12 U.S.C. 1467a(a)(1)(D) that is engaging	6091
only in activities or investments permissible for a financial	6092
holding company under 12 U.S.C. 1843(k);	6093

(8) A person directly or indirectly owned by one or more	6094
financial institutions, financial holding companies, bank holding	6095
companies, or savings and loan holding companies described in	6096
division (E)(3), (5), (6), or (7) of this section that is engaged	6097
in activities permissible for a financial holding company under 12	6098
U.S.C. 1843(k), except that any such person held pursuant to	6099
merchant banking authority under 12 U.S.C. 1843(k)(4)(H) or 12	6100
U.S.C. 1843(k)(4)(I) is not an excluded person, or a person	6101
directly or indirectly owned by one or more insurance companies	6102
described in division (E)(9) of this section that is authorized to	6103
do the business of insurance in this state.	6104

For the purposes of division (E)(8) of this section, a person	6105
owns another person under the following circumstances:	6106

(a) In the case of corporations issuing capital stock, one	6107
corporation owns another corporation if it owns fifty per cent or	6108
more of the other corporation's capital stock with current voting	6109
rights;	6110

(b) In the case of a limited liability company, one person	6111
owns the company if that person's membership interest, as defined	6112
in section 1705.01 of the Revised Code, is fifty per cent or more	6113
of the combined membership interests of all persons owning such	6114
interests in the company;	6115

(c) In the case of a partnership, trust, or other	6116
unincorporated business organization other than a limited	6117
liability company, one person owns the organization if, under the	6118
articles of organization or other instrument governing the affairs	6119
of the organization, that person has a beneficial interest in the	6120
organization's profits, surpluses, losses, or distributions of	6121
fifty per cent or more of the combined beneficial interests of all	6122
persons having such an interest in the organization;	6123

(d) In the case of multiple ownership, the ownership	6124
interests of more than one person may be aggregated to meet the	6125
fifty per cent ownership tests in this division only when each	6126
such owner is described in division (E)(3), (5), (6), or (7) of	6127
this section and is engaged in activities permissible for a	6128
financial holding company under 12 U.S.C. 1843(k) or is a person	6129
directly or indirectly owned by one or more insurance companies	6130
described in division (E)(9) of this section that is authorized to	6131
do the business of insurance in this state.	6132

(9) A domestic insurance company or foreign insurance	6133
company, as defined in section 5725.01 of the Revised Code, that	6134
paid the insurance company premiums tax imposed by section 5725.18	6135
or Chapter 5729. of the Revised Code based on one or more	6136
measurement periods that include the entire tax period under this	6137
chapter;	6138

(10) A person that solely facilitates or services one or more	6139
securitizations or similar transactions for any person described	6140
in division (E)(3), (5), (6), (7), (8), or (9) of this section, or	6141
a person that solely facilitates or services one or more	6142
securitizations of phase-in-recovery property pursuant to a final	6143
financing order as those terms are defined in section 4928.23 of	6144
the Revised Code. For purposes of this division, "securitization"	6145
means transferring one or more assets to one or more persons and	6146
then issuing securities backed by the right to receive payment	6147
from the asset or assets so transferred.	6148

(11) Except as otherwise provided in this division, a	6149
pre-income tax trust as defined in division (FF)(4) of section	6150
5747.01 of the Revised Code and any pass-through entity of which	6151
such pre-income tax trust owns or controls, directly, indirectly,	6152
or constructively through related interests, more than five per	6153
cent of the ownership or equity interests. If the pre-income tax	6154
trust has made a qualifying pre-income tax trust election under	6155
division (FF)(3) of section 5747.01 of the Revised Code, then the	6156
trust and the pass-through entities of which it owns or controls,	6157
directly, indirectly, or constructively through related interests,	6158
more than five per cent of the ownership or equity interests,	6159
shall not be excluded persons for purposes of the tax imposed	6160
under section 5751.02 of the Revised Code.	6161

(12) Nonprofit organizations or the state and its agencies,	6162
instrumentalities, or political subdivisions.	6163

(F) Except as otherwise provided in divisions (F)(2), (3),	6164
and (4) of this section, "gross receipts" means the total amount	6165
realized by a person, without deduction for the cost of goods sold	6166
or other expenses incurred, that contributes to the production of	6167
gross income of the person, including the fair market value of any	6168
property and any services received, and any debt transferred or	6169
forgiven as consideration.	6170

(1) The following are examples of gross receipts:

6171

(a) Amounts realized from the sale, exchange, or other	6172
disposition of the taxpayer's property to or with another;	6173

(b) Amounts realized from the taxpayer's performance of	6174
services for another;	6175

(c) Amounts realized from another's use or possession of the	6176
taxpayer's property or capital;	6177

(d) Any combination of the foregoing amounts.

6178

(2) "Gross receipts" excludes the following amounts:

6179

(a) Interest income except interest on credit sales;

6180

(b) Dividends and distributions from corporations, and	6181
distributive or proportionate shares of receipts and income from a	6182
pass-through entity as defined under section 5733.04 of the	6183
Revised Code;	6184

(c) Receipts from the sale, exchange, or other disposition of	6185
an asset described in section 1221 or 1231 of the Internal Revenue	6186
Code, without regard to the length of time the person held the	6187
asset. Notwithstanding section 1221 of the Internal Revenue Code,	6188
receipts from hedging transactions also are excluded to the extent	6189
the transactions are entered into primarily to protect a financial	6190
position, such as managing the risk of exposure to (i) foreign	6191
currency fluctuations that affect assets, liabilities, profits,	6192
losses, equity, or investments in foreign operations; (ii)	6193
interest rate fluctuations; or (iii) commodity price fluctuations.	6194
As used in division (F)(2)(c) of this section, "hedging	6195
transaction" has the same meaning as used in section 1221 of the	6196
Internal Revenue Code and also includes transactions accorded	6197
hedge accounting treatment under statement of financial accounting	6198
standards number 133 of the financial accounting standards board.	6199
For the purposes of division (F)(2)(c) of this section, the actual	6200
transfer of title of real or tangible personal property to another	6201
entity is not a hedging transaction.	6202

(d) Proceeds received attributable to the repayment,	6203
maturity, or redemption of the principal of a loan, bond, mutual	6204
fund, certificate of deposit, or marketable instrument;	6205

(e) The principal amount received under a repurchase	6206
agreement or on account of any transaction properly characterized	6207
as a loan to the person;	6208

(f) Contributions received by a trust, plan, or other	6209
arrangement, any of which is described in section 501(a) of the	6210
Internal Revenue Code, or to which Title 26, Subtitle A, Chapter	6211
1, Subchapter (D) of the Internal Revenue Code applies;	6212

(g) Compensation, whether current or deferred, and whether in	6213
cash or in kind, received or to be received by an employee, former	6214
employee, or the employee's legal successor for services rendered	6215
to or for an employer, including reimbursements received by or for	6216
an individual for medical or education expenses, health insurance	6217
premiums, or employee expenses, or on account of a dependent care	6218
spending account, legal services plan, any cafeteria plan	6219
described in section 125 of the Internal Revenue Code, or any	6220
similar employee reimbursement;	6221

(h) Proceeds received from the issuance of the taxpayer's own	6222
stock, options, warrants, puts, or calls, or from the sale of the	6223
taxpayer's treasury stock;	6224

(i) Proceeds received on the account of payments from	6225
insurance policies, except those proceeds received for the loss of	6226
business revenue;	6227

(j) Gifts or charitable contributions received; membership	6228
dues received by trade, professional, homeowners', or condominium	6229
associations; and payments received for educational courses,	6230
meetings, meals, or similar payments to a trade, professional, or	6231
other similar association; and fundraising receipts received by	6232
any person when any excess receipts are donated or used	6233
exclusively for charitable purposes;	6234

(k) Damages received as the result of litigation in excess of	6235
amounts that, if received without litigation, would be gross	6236
receipts;	6237

(l) Property, money, and other amounts received or acquired	6238
by an agent on behalf of another in excess of the agent's	6239
commission, fee, or other remuneration;	6240

(m) Tax refunds, other tax benefit recoveries, and	6241
reimbursements for the tax imposed under this chapter made by	6242
entities that are part of the same combined taxpayer or	6243
consolidated elected taxpayer group, and reimbursements made by	6244
entities that are not members of a combined taxpayer or	6245
consolidated elected taxpayer group that are required to be made	6246
for economic parity among multiple owners of an entity whose tax	6247
obligation under this chapter is required to be reported and paid	6248
entirely by one owner, pursuant to the requirements of sections	6249
5751.011 and 5751.012 of the Revised Code;	6250

(n) Pension reversions;

6251

(o) Contributions to capital;

6252

(p) Sales or use taxes collected as a vendor or an	6253
out-of-state seller on behalf of the taxing jurisdiction from a	6254
consumer or other taxes the taxpayer is required by law to collect	6255
directly from a purchaser and remit to a local, state, or federal	6256
tax authority;	6257

(q) In the case of receipts from the sale of cigarettes or	6258
tobacco products by a wholesale dealer, retail dealer,	6259
distributor, manufacturer, or seller, all as defined in section	6260
5743.01 of the Revised Code, an amount equal to the federal and	6261
state excise taxes paid by any person on or for such cigarettes or	6262
tobacco products under subtitle E of the Internal Revenue Code or	6263
Chapter 5743. of the Revised Code;	6264

(r) In the case of receipts from the sale of motor fuel by a	6265
licensed motor fuel dealer, licensed retail dealer, or licensed	6266
permissive motor fuel dealer, all as defined in section 5735.01 of	6267
the Revised Code, an amount equal to federal and state excise	6268
taxes paid by any person on such motor fuel under section 4081 of	6269
the Internal Revenue Code or Chapter 5735. of the Revised Code;	6270

(s) In the case of receipts from the sale of beer or	6271
intoxicating liquor, as defined in section 4301.01 of the Revised	6272
Code, by a person holding a permit issued under Chapter 4301. or	6273
4303. of the Revised Code, an amount equal to federal and state	6274
excise taxes paid by any person on or for such beer or	6275
intoxicating liquor under subtitle E of the Internal Revenue Code	6276
or Chapter 4301. or 4305. of the Revised Code;	6277

(t) Receipts realized by a new motor vehicle dealer or used	6278
motor vehicle dealer, as defined in section 4517.01 of the Revised	6279
Code, from the sale or other transfer of a motor vehicle, as	6280
defined in that section, to another motor vehicle dealer for the	6281
purpose of resale by the transferee motor vehicle dealer, but only	6282
if the sale or other transfer was based upon the transferee's need	6283
to meet a specific customer's preference for a motor vehicle;	6284

(u) Receipts from a financial institution described in	6285
division (E)(3) of this section for services provided to the	6286
financial institution in connection with the issuance, processing,	6287
servicing, and management of loans or credit accounts, if such	6288
financial institution and the recipient of such receipts have at	6289
least fifty per cent of their ownership interests owned or	6290
controlled, directly or constructively through related interests,	6291
by common owners;	6292

(v) Receipts realized from administering anti-neoplastic	6293
drugs and other cancer chemotherapy, biologicals, therapeutic	6294
agents, and supportive drugs in a physician's office to patients	6295
with cancer;	6296

(w) Funds received or used by a mortgage broker that is not a	6297
dealer in intangibles, other than fees or other consideration,	6298
pursuant to a table-funding mortgage loan or warehouse-lending	6299
mortgage loan. Terms used in division (F)(2)(w) of this section	6300
have the same meanings as in section 1322.01 of the Revised Code,	6301
except "mortgage broker" means a person assisting a buyer in	6302
obtaining a mortgage loan for a fee or other consideration paid by	6303
the buyer or a lender, or a person engaged in table-funding or	6304
warehouse-lending mortgage loans that are first lien mortgage	6305
loans.	6306

(x) Property, money, and other amounts received by a	6307
professional employer organization, as defined in section 4125.01	6308
of the Revised Code, from a client employer, as defined in that	6309
section, in excess of the administrative fee charged by the	6310
professional employer organization to the client employer;	6311

(y) In the case of amounts retained as commissions by a	6312
permit holder under Chapter 3769. of the Revised Code, an amount	6313
equal to the amounts specified under that chapter that must be	6314
paid to or collected by the tax commissioner as a tax and the	6315
amounts specified under that chapter to be used as purse money;	6316

(z) Qualifying distribution center receipts.

6317

(i) For purposes of division (F)(2)(z) of this section:

6318

(I) "Qualifying distribution center receipts" means receipts	6319
of a supplier from qualified property that is delivered to a	6320
qualified distribution center, multiplied by a quantity that	6321
equals one minus the Ohio delivery percentage.	6322

(II) "Qualified property" means tangible personal property	6323
delivered to a qualified distribution center that is shipped to	6324
that qualified distribution center solely for further shipping by	6325
the qualified distribution center to another location in this	6326
state or elsewhere. "Further shipping" includes storing and	6327
repackaging such property into smaller or larger bundles, so long	6328
as such property is not subject to further manufacturing or	6329
processing.	6330

(III) "Qualified distribution center" means a warehouse or	6331
other similar facility in this state that, for the qualifying	6332
year, is operated by a person that is not part of a combined	6333
taxpayer group and that has a qualifying certificate. However, all	6334
warehouses or other similar facilities that are operated by	6335
persons in the same taxpayer group and that are located within one	6336
mile of each other shall be treated as one qualified distribution	6337
center.	6338

(IV) "Qualifying year" means the calendar year to which the	6339
qualifying certificate applies.	6340

(V) "Qualifying period" means the period of the first day of	6341
July of the second year preceding the qualifying year through the	6342
thirtieth day of June of the year preceding the qualifying year.	6343

(VI) "Qualifying certificate" means the certificate issued by	6344
the tax commissioner after the operator of a distribution center	6345
files an annual application with the commissioner. The application	6346
and annual fee shall be filed and paid for each qualified	6347
distribution center on or before the first day of September before	6348
the qualifying year or within forty-five days after the	6349
distribution center opens, whichever is later.	6350

The applicant must substantiate to the commissioner's	6351
satisfaction that, for the qualifying period, all persons	6352
operating the distribution center have more than fifty per cent of	6353
the cost of the qualified property shipped to a location such that	6354
it would be sitused outside this state under the provisions of	6355
division (E) of section 5751.033 of the Revised Code. The	6356
applicant must also substantiate that the distribution center	6357
cumulatively had costs from its suppliers equal to or exceeding	6358
five hundred million dollars during the qualifying period. (For	6359
purposes of division (F)(2)(z)(i)(VI) of this section, "supplier"	6360
excludes any person that is part of the consolidated elected	6361
taxpayer group, if applicable, of the operator of the qualified	6362
distribution center.) The commissioner may require the applicant	6363
to have an independent certified public accountant certify that	6364
the calculation of the minimum thresholds required for a qualified	6365
distribution center by the operator of a distribution center has	6366
been made in accordance with generally accepted accounting	6367
principles. The commissioner shall issue or deny the issuance of a	6368
certificate within sixty days after the receipt of the	6369
application. A denial is subject to appeal under section 5717.02	6370
of the Revised Code. If the operator files a timely appeal under	6371
section 5717.02 of the Revised Code, the operator shall be granted	6372
a qualifying certificate, provided that the operator is liable for	6373
any tax, interest, or penalty upon amounts claimed as qualifying	6374
distribution center receipts, other than those receipts exempt	6375
under division (C)(1) of section 5751.011 of the Revised Code,	6376
that would have otherwise not been owed by its suppliers if the	6377
qualifying certificate was valid.	6378

(VII) "Ohio delivery percentage" means the proportion of the	6379
total property delivered to a destination inside Ohio from the	6380
qualified distribution center during the qualifying period	6381
compared with total deliveries from such distribution center	6382
everywhere during the qualifying period.	6383

(ii) If the distribution center is new and was not open for	6384
the entire qualifying period, the operator of the distribution	6385
center may request that the commissioner grant a qualifying	6386
certificate. If the certificate is granted and it is later	6387
determined that more than fifty per cent of the qualified property	6388
during that year was not shipped to a location such that it would	6389
be sitused outside of this state under the provisions of division	6390
(E) of section 5751.033 of the Revised Code or if it is later	6391
determined that the person that operates the distribution center	6392
had average monthly costs from its suppliers of less than forty	6393
million dollars during that year, then the operator of the	6394
distribution center shall be liable for any tax, interest, or	6395
penalty upon amounts claimed as qualifying distribution center	6396
receipts, other than those receipts exempt under division (C)(1)	6397
of section 5751.011 of the Revised Code, that would have not	6398
otherwise been owed by its suppliers during the qualifying year if	6399
the qualifying certificate was valid. (For purposes of division	6400
(F)(2)(z)(ii) of this section, "supplier" excludes any person that	6401
is part of the consolidated elected taxpayer group, if applicable,	6402
of the operator of the qualified distribution center.)	6403

(iii) When filing an application for a qualifying certificate	6404
under division (F)(2)(z)(i)(VI) of this section, the operator of a	6405
qualified distribution center also shall provide documentation, as	6406
the commissioner requires, for the commissioner to ascertain the	6407
Ohio delivery percentage. The commissioner, upon issuing the	6408
qualifying certificate, also shall certify the Ohio delivery	6409
percentage. The operator of the qualified distribution center may	6410
appeal the commissioner's certification of the Ohio delivery	6411
percentage in the same manner as an appeal is taken from the	6412
denial of a qualifying certificate under division (F)(2)(z)(i)(VI)	6413
of this section.	6414

Within thirty days after all appeals have been exhausted, the	6415
operator of the qualified distribution center shall notify the	6416
affected suppliers of qualified property that such suppliers are	6417
required to file, within sixty days after receiving notice from	6418
the operator of the qualified distribution center, amended reports	6419
for the impacted calendar quarter or quarters or calendar year,	6420
whichever the case may be. Any additional tax liability or tax	6421
overpayment shall be subject to interest but shall not be subject	6422
to the imposition of any penalty so long as the amended returns	6423
are timely filed. The supplier of tangible personal property	6424
delivered to the qualified distribution center shall include in	6425
its report of taxable gross receipts the receipts from the total	6426
sales of property delivered to the qualified distribution center	6427
for the calendar quarter or calendar year, whichever the case may	6428
be, multiplied by the Ohio delivery percentage for the qualifying	6429
year. Nothing in division (F)(2)(z)(iii) of this section shall be	6430
construed as imposing liability on the operator of a qualified	6431
distribution center for the tax imposed by this chapter arising	6432
from any change to the Ohio delivery percentage.	6433

(iv) In the case where the distribution center is new and not	6434
open for the entire qualifying period, the operator shall make a	6435
good faith estimate of an Ohio delivery percentage for use by	6436
suppliers in their reports of taxable gross receipts for the	6437
remainder of the qualifying period. The operator of the facility	6438
shall disclose to the suppliers that such Ohio delivery percentage	6439
is an estimate and is subject to recalculation. By the due date of	6440
the next application for a qualifying certificate, the operator	6441
shall determine the actual Ohio delivery percentage for the	6442
estimated qualifying period and proceed as provided in division	6443
(F)(2)(z)(iii) of this section with respect to the calculation and	6444
recalculation of the Ohio delivery percentage. The supplier is	6445
required to file, within sixty days after receiving notice from	6446
the operator of the qualified distribution center, amended reports	6447
for the impacted calendar quarter or quarters or calendar year,	6448
whichever the case may be. Any additional tax liability or tax	6449
overpayment shall be subject to interest but shall not be subject	6450
to the imposition of any penalty so long as the amended returns	6451
are timely filed.	6452

(v) Qualifying certificates and Ohio delivery percentages	6453
issued by the commissioner shall be open to public inspection and	6454
shall be timely published by the commissioner. A supplier relying	6455
in good faith on a certificate issued under this division shall	6456
not be subject to tax on the qualifying distribution center	6457
receipts under division (F)(2)(z) of this section. A person	6458
receiving a qualifying certificate is responsible for paying the	6459
tax, interest, and penalty upon amounts claimed as qualifying	6460
distribution center receipts that would not otherwise have been	6461
owed by the supplier if the qualifying certificate were available	6462
when it is later determined that the qualifying certificate should	6463
not have been issued because the statutory requirements were in	6464
fact not met.	6465

(vi) The annual fee for a qualifying certificate shall be one	6466
hundred thousand dollars for each qualified distribution center.	6467
If a qualifying certificate is not issued, the annual fee is	6468
subject to refund after the exhaustion of all appeals provided for	6469
in division (F)(2)(z)(i)(VI) of this section. The fee imposed	6470
under this division may be assessed in the same manner as the tax	6471
imposed under this chapter. The first one hundred thousand dollars	6472
of the annual application fees collected each calendar year shall	6473
be credited to the commercial activity tax administrative fund.	6474
The remainder of the annual application fees collected shall be	6475
distributed in the same manner required under section 5751.20 of	6476
the Revised Code.	6477

(vii) The tax commissioner may require that adequate security	6478
be posted by the operator of the distribution center on appeal	6479
when the commissioner disagrees that the applicant has met the	6480
minimum thresholds for a qualified distribution center as set	6481
forth in divisions (F)(2)(z)(i)(VI) and (F)(2)(z)(ii) of this	6482
section.	6483

(aa) Receipts of an employer from payroll deductions relating	6484
to the reimbursement of the employer for advancing moneys to an	6485
unrelated third party on an employee's behalf;	6486

(bb) Cash discounts allowed and taken;

6487

(cc) Returns and allowances;

6488

(dd) Bad debts from receipts on the basis of which the tax	6489
imposed by this chapter was paid in a prior quarterly tax payment	6490
period. For the purpose of this division, "bad debts" means any	6491
debts that have become worthless or uncollectible between the	6492
preceding and current quarterly tax payment periods, have been	6493
uncollected for at least six months, and that may be claimed as a	6494
deduction under section 166 of the Internal Revenue Code and the	6495
regulations adopted under that section, or that could be claimed	6496
as such if the taxpayer kept its accounts on the accrual basis.	6497
"Bad debts" does not include repossessed property, uncollectible	6498
amounts on property that remains in the possession of the taxpayer	6499
until the full purchase price is paid, or expenses in attempting	6500
to collect any account receivable or for any portion of the debt	6501
recovered;	6502

(ee) Any amount realized from the sale of an account	6503
receivable to the extent the receipts from the underlying	6504
transaction giving rise to the account receivable were included in	6505
the gross receipts of the taxpayer;	6506

(ff) Any receipts directly attributed to providing public	6507
services pursuant to sections 126.60 to 126.605 of the Revised	6508
Code, or any receipts directly attributed to a transfer agreement	6509
or to the enterprise transferred under that agreement under	6510
section 4313.02 of the Revised Code.	6511

(gg) Any receipts for which the tax imposed by this chapter	6512
is prohibited by the Constitution or laws of the United States or	6513
the Constitution of Ohio.	6514

(hh)(i) As used in this division:

6515

(I) "Qualified uranium receipts" means receipts from the	6516
sale, exchange, lease, loan, production, processing, or other	6517
disposition of uranium within a uranium enrichment zone certified	6518
by the tax commissioner under division (F)(2)(hh)(ii) of this	6519
section. "Qualified uranium receipts" does not include any	6520
receipts with a situs in this state outside a uranium enrichment	6521
zone certified by the tax commissioner under division	6522
(F)(2)(hh)(ii) of this section.	6523

(II) "Uranium enrichment zone" means all real property that	6524
is part of a uranium enrichment facility licensed by the United	6525
States nuclear regulatory commission and that was or is owned or	6526
controlled by the United States department of energy or its	6527
successor.	6528

(ii) Any person that owns, leases, or operates real or	6529
tangible personal property constituting or located within a	6530
uranium enrichment zone may apply to the tax commissioner to have	6531
the uranium enrichment zone certified for the purpose of excluding	6532
qualified uranium receipts under division (F)(2)(hh) of this	6533
section. The application shall include such information that the	6534
tax commissioner prescribes. Within sixty days after receiving the	6535
application, the tax commissioner shall certify the zone for that	6536
purpose if the commissioner determines that the property qualifies	6537
as a uranium enrichment zone as defined in division (F)(2)(hh) of	6538
this section, or, if the tax commissioner determines that the	6539
property does not qualify, the commissioner shall deny the	6540
application or request additional information from the applicant.	6541
If the tax commissioner denies an application, the commissioner	6542
shall state the reasons for the denial. The applicant may appeal	6543
the denial of an application to the board of tax appeals pursuant	6544
to section 5717.02 of the Revised Code. If the applicant files a	6545
timely appeal, the tax commissioner shall conditionally certify	6546
the applicant's property. The conditional certification shall	6547
expire when all of the applicant's appeals are exhausted. Until	6548
final resolution of the appeal, the applicant shall retain the	6549
applicant's records in accordance with section 5751.12 of the	6550
Revised Code, notwithstanding any time limit on the preservation	6551
of records under that section.	6552

(ii) Amounts realized by licensed motor fuel dealers or	6553
licensed permissive motor fuel dealers from the exchange of	6554
petroleum products, including motor fuel, between such dealers,	6555
provided that delivery of the petroleum products occurs at a	6556
refinery, terminal, pipeline, or marine vessel and that the	6557
exchanging dealers agree neither dealer shall require monetary	6558
compensation from the other for the value of the exchanged	6559
petroleum products other than such compensation for differences in	6560
product location or grade. Division (F)(2)(ii) of this section	6561
does not apply to amounts realized as a result of differences in	6562
location or grade of exchanged petroleum products or from	6563
handling, lubricity, dye, or other additive injections fees,	6564
pipeline security fees, or similar fees. As used in this division,	6565
"motor fuel," "licensed motor fuel dealer," "licensed permissive	6566
motor fuel dealer," and "terminal" have the same meanings as in	6567
section 5735.01 of the Revised Code.	6568

(hh)(jj) In the case of amounts collected by a licensed	6569
casino operator from casino gaming, amounts in excess of the	6570
casino operator's gross casino revenue. In this division, "casino	6571
operator" and "casino gaming" have the meanings defined in section	6572
3772.01 of the Revised Code, and "gross casino revenue" has the	6573
meaning defined in section 5753.01 of the Revised Code.	6574

(3) In the case of a taxpayer when acting as a real estate	6575
broker, "gross receipts" includes only the portion of any fee for	6576
the service of a real estate broker, or service of a real estate	6577
salesperson associated with that broker, that is retained by the	6578
broker and not paid to an associated real estate salesperson or	6579
another real estate broker. For the purposes of this division,	6580
"real estate broker" and "real estate salesperson" have the same	6581
meanings as in section 4735.01 of the Revised Code.	6582

(4) A taxpayer's method of accounting for gross receipts for	6583
a tax period shall be the same as the taxpayer's method of	6584
accounting for federal income tax purposes for the taxpayer's	6585
federal taxable year that includes the tax period. If a taxpayer's	6586
method of accounting for federal income tax purposes changes, its	6587
method of accounting for gross receipts under this chapter shall	6588
be changed accordingly.	6589

(G) "Taxable gross receipts" means gross receipts sitused to	6590
this state under section 5751.033 of the Revised Code.	6591

(H) A person has "substantial nexus with this state" if any	6592
of the following applies. The person:	6593

(1) Owns or uses a part or all of its capital in this state;

6594

(2) Holds a certificate of compliance with the laws of this	6595
state authorizing the person to do business in this state;	6596

(3) Has bright-line presence in this state;

6597

(4) Otherwise has nexus with this state to an extent that the	6598
person can be required to remit the tax imposed under this chapter	6599
under the Constitution of the United States.	6600

(I) A person has "bright-line presence" in this state for a	6601
reporting period and for the remaining portion of the calendar	6602
year if any of the following applies. The person:	6603

(1) Has at any time during the calendar year property in this	6604
state with an aggregate value of at least fifty thousand dollars.	6605
For the purpose of division (I)(1) of this section, owned property	6606
is valued at original cost and rented property is valued at eight	6607
times the net annual rental charge.	6608

(2) Has during the calendar year payroll in this state of at	6609
least fifty thousand dollars. Payroll in this state includes all	6610
of the following:	6611

(a) Any amount subject to withholding by the person under	6612
section 5747.06 of the Revised Code;	6613

(b) Any other amount the person pays as compensation to an	6614
individual under the supervision or control of the person for work	6615
done in this state; and	6616

(c) Any amount the person pays for services performed in this	6617
state on its behalf by another.	6618

(3) Has during the calendar year taxable gross receipts of at	6619
least five hundred thousand dollars.	6620

(4) Has at any time during the calendar year within this	6621
state at least twenty-five per cent of the person's total	6622
property, total payroll, or total gross receipts.	6623

(5) Is domiciled in this state as an individual or for	6624
corporate, commercial, or other business purposes.	6625

(J) "Tangible personal property" has the same meaning as in	6626
section 5739.01 of the Revised Code.	6627

(K) "Internal Revenue Code" means the Internal Revenue Code	6628
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term used in	6629
this chapter that is not otherwise defined has the same meaning as	6630
when used in a comparable context in the laws of the United States	6631
relating to federal income taxes unless a different meaning is	6632
clearly required. Any reference in this chapter to the Internal	6633
Revenue Code includes other laws of the United States relating to	6634
federal income taxes.	6635

(L) "Calendar quarter" means a three-month period ending on	6636
the thirty-first day of March, the thirtieth day of June, the	6637
thirtieth day of September, or the thirty-first day of December.	6638

(M) "Tax period" means the calendar quarter or calendar year	6639
on the basis of which a taxpayer is required to pay the tax	6640
imposed under this chapter.	6641

(N) "Calendar year taxpayer" means a taxpayer for which the	6642
tax period is a calendar year.	6643

(O) "Calendar quarter taxpayer" means a taxpayer for which	6644
the tax period is a calendar quarter.	6645

(P) "Agent" means a person authorized by another person to	6646
act on its behalf to undertake a transaction for the other,	6647
including any of the following:	6648

(1) A person receiving a fee to sell financial instruments;

6649

(2) A person retaining only a commission from a transaction	6650
with the other proceeds from the transaction being remitted to	6651
another person;	6652

(3) A person issuing licenses and permits under section	6653
1533.13 of the Revised Code;	6654

(4) A lottery sales agent holding a valid license issued	6655
under section 3770.05 of the Revised Code;	6656

(5) A person acting as an agent of the division of liquor	6657
control under section 4301.17 of the Revised Code.	6658

(Q) "Received" includes amounts accrued under the accrual	6659
method of accounting.	6660

(R) "Reporting person" means a person in a consolidated	6661
elected taxpayer or combined taxpayer group that is designated by	6662
that group to legally bind the group for all filings and tax	6663
liabilities and to receive all legal notices with respect to	6664
matters under this chapter, or, for the purposes of section	6665
5751.04 of the Revised Code, a separate taxpayer that is not a	6666
member of such a group.	6667

Sec. 6301.12.  (A) The office of workforce development within	6668
the department of job and family services shall comprehensively	6669
review the direct and indirect economic impact of businesses	6670
engaged in the production of horizontal wells in this state and,	6671
based on its findings, prepare an annual Ohio workforce report.	6672
The report shall include at least all of the following with	6673
respect to the industry:	6674

(1) The total number of jobs created or retained during the	6675
previous year;	6676

(2) The total number of Ohio-based contractors that employ	6677
skilled construction trades;	6678

(3) The number of employees who are residents of this state;

6679

(4) The total economic impact;

6680

(5) A review of the state's regional workforce development	6681
plans required by the "Workforce Investment Act of 1998," 112	6682
Stat. 936, 29 U.S.C.A. 2801, as amended, that outline workforce	6683
development efforts including goals and benchmarks toward	6684
maximizing job training, education, and job creation opportunities	6685
in the state.	6686

(B) The office shall submit its annual Ohio workforce report	6687
to the members of the general assembly and post it on the office's	6688
internet web site.	6689

Section 101.02. That existing sections 122.075, 123.011,	6690
125.836, 131.50, 133.06, 156.01, 156.02, 156.03, 156.04, 303.213,	6691
905.40, 905.461, 1509.01, 1509.02, 1509.03, 1509.04, 1509.06,	6692
1509.07, 1509.10, 1509.11, 1509.22, 1509.221, 1509.222, 1509.223,	6693
1509.23, 1509.28, 1509.33, 1509.99, 1514.01, 1514.02, 1514.021,	6694
1514.03, 1514.05, 3706.27, 4905.03, 4905.90, 4905.91, 4905.95,	6695
4906.01, 4906.03, 4906.05, 4906.06, 4906.07, 4906.10, 4906.20,	6696
4928.01, 4928.02, 4928.2314, 4928.61, 4928.62, 4928.64, 4928.66,	6697
4935.04, 5703.21, and 5751.01 of the Revised Code are hereby	6698
repealed.	6699

Section 512.10. As soon as possible after the effective date	6700
of this section, the Director of Budget and Management shall do	6701
both of the following:	6702

(A) Transfer any unexpended and unencumbered amounts received	6703
from the repayment of loans made from money in the Advanced Energy	6704
Research and Development Taxable Fund (Fund 7004), except for such	6705
amounts in the Facilities Establishment Fund (Fund 7037), to the	6706
Alternative Fuel Transportation Fund (Fund 5CG0); and	6707

(B) Transfer any unexpended and unencumbered amounts in the	6708
Advanced Energy Research and Development Taxable Fund (Fund 7004)	6709
and the Advanced Energy Research and Development Fund (Fund 7005)	6710
to the Advanced Energy Fund (Fund 5M50).	6711

Section 701.10. The Department of Administrative Services and	6712
the Department of Transportation cooperatively shall analyze their	6713
respective motor vehicle fleets to determine whether it is	6714
beneficial to establish standards for vehicle replacement in order	6715
to increase the overall efficiency of the state motor vehicle	6716
fleet. Not later than September 1, 2012, the Department of	6717
Administrative Services and the Department of Transportation shall	6718
produce a joint report with their findings and shall deliver the	6719
report to the Speaker of the House of Representatives, the	6720
Minority Leader of the House of Representatives, the President of	6721
the Senate, the Minority Leader of the Senate, and the Governor.	6722

Section 715.10. The injection well disposal fees levied by	6723
section 1509.22 of the Revised Code, as amended by this act, are a	6724
continuation of the injection well disposal fees levied by section	6725
1509.221 of the Revised Code as that section existed prior to its	6726
amendment by this act.	6727

Section 715.20. (A) Not later than eighteen months after the	6728
effective date of this section, the Directors of Natural Resources	6729
and Transportation jointly shall prepare a report analyzing the	6730
effectiveness of agreements executed pursuant to division	6731
(A)(11)(b) of section 1509.06 of the Revised Code, as amended by	6732
this act.	6733

(B) The Directors shall prepare the report with input from	6734
all of the following:	6735

(1) A statewide organization representing county	6736
commissioners;	6737

(2) A statewide organization representing county engineers;

6738

(3) A statewide organization representing municipal	6739
corporations;	6740

(4) A statewide organization representing township trustees;

6741

(5) A statewide organization representing the oil and gas	6742
industry.	6743

(C) The Directors shall provide the report to each member of	6744
the General Assembly and to the Governor.	6745

Section 737.10. (A) The Director of Environmental Protection,	6746
in coordination with the Department of Natural Resources, the	6747
United States Environmental Protection Agency, and other entities	6748
as determined appropriate by the Director, shall coordinate the	6749
evaluation of emerging wastewater treatment and recycling	6750
technologies that may reduce reliance on underground injection	6751
wells and may assist in the advancement of industry in this state,	6752
including the exploration and production of oil and gas. As part	6753
of the evaluation, the Director may initiate, participate in,	6754
oversee, or consult on pilot projects regarding wastewater	6755
treatment and recycling technologies.	6756

(B) The Director of Environmental Protection, in coordination	6757
with the Public Utilities Commission of Ohio, the United States	6758
Environmental Protection Agency, and other entities as determined	6759
appropriate by the Director, shall conduct a study that identifies	6760
current and future environmental regulatory requirements and how	6761
those requirements may impact current and future power generation	6762
and transmission in this state.	6763

Section 755.10. The Department of Transportation and the	6764
Public Utilities Commission cooperatively shall analyze the cost	6765
effectiveness of purchasing vehicles that operate on compressed	6766
natural gas and the conversion of certain state motor vehicles to	6767
operate on compressed natural gas. Not later than January 30,	6768
2013, the Department and the Commission shall produce a joint	6769
report with their findings and shall deliver the report to the	6770
Speaker of the House of Representatives, the Minority Leader of	6771
the House of Representatives, the President of the Senate, the	6772
Minority Leader of the Senate, and the Governor.	6773

Section 812.20. Section exempt from referendum: general	6774
effective date. The amendment by this act of section 133.06 of the	6775
Revised Code and Sections 601.10, 601.11, and 701.10 of this act	6776
are exempt from the referendum under Ohio Constitution, Article	6777
II, Section 1d and section 1.471 of the Revised Code and therefore	6778
take effect immediately when this act becomes law.	6779

Section 815.10.  The General Assembly, applying the principle	6780
stated in division (B) of section 1.52 of the Revised Code that	6781
amendments are to be harmonized if reasonably capable of	6782
simultaneous operation, finds that the following section,	6783
presented in this act as a composite of the section as amended by	6784
the acts indicated, is the resulting version of the section in	6785
effect prior to the effective date of the section as presented in	6786
this act:	6787

Section 5751.01 of the Revised Code as amended by Am. Sub.	6788
H.B. 153 and Sub. H.B. 277 of the 129th General Assembly.	6789