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(126th General Assembly)
(Substitute House Bill Number 440)
To amend section 3706.01 and to enact section 3706.101 of the Revised Code and to amend Section 203.27 of Am. Sub. H.B. 66 of the 126th General Assembly to revise the definition of "air quality facility" under the Air Quality Development Authority Law, to create the FutureGen Initiative Fund, and to make an appropriation.
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1. That section 3706.01 be amended and section 3706.101 of the Revised Code be enacted to read as follows:
Sec. 3706.01. As used in this chapter:
(A) "Governmental agency" means a department, division, or
other unit of state government, a municipal corporation, county,
township, and other political subdivision, or any other public
corporation or agency having the power to acquire, construct, or
operate air quality facilities, the United States or any agency
thereof, and any agency, commission, or authority established
pursuant to an interstate compact or agreement.
(B) "Person" means any individual, firm, partnership,
association, or corporation, or any combination thereof.
(C) "Air contaminant" means particulate matter, dust,
gas, mist, smoke, noise, vapor, heat, radioactivity,
odorous substance, or any combination thereof.
(D) "Air pollution" means the presence in the ambient air
one or more air contaminants in sufficient quantity and of
characteristics and duration as to injure human health or
plant or animal life, or property, or that unreasonably
with the comfortable enjoyment of life or property.
(E) "Ambient air" means that portion of the atmosphere
outside of buildings and other enclosures, stacks, or ducts that
surrounds human, plant, or animal life, or property.
(F) "Emission" means the release into the outdoor
of an air contaminant.
(G) "Air quality facility" means any
of the following:
(1) Any method, modification
or replacement of property,
process, device, structure, or
equipment that removes, reduces,
prevents, contains, alters,
conveys, stores, disperses, or
disposes of air contaminants or
substances containing air
contaminants, or that renders less
noxious or reduces the
concentration of air contaminants in the
ambient air, including,
without limitation, facilities and
expenditures that qualify as
air pollution control facilities
under section 103 (C)(4)(F) of
the Internal Revenue Code of 1954,
as amended, and regulations
(2) Motor vehicle
inspection stations operated in accordance
with, and any
equipment used for motor vehicle inspections
section 3704.14 of the Revised Code and rules
adopted under it;
(3) Ethanol or other biofuel facilities, including any
equipment used at the
ethanol or other biofuel facility for the
production of ethanol or other biofuels;
(4) Any property or portion thereof used for the collection,
treatment, utilization, processing, or final disposal of a by-product or
waste resulting from any method, process, device, structure,
equipment that removes, reduces, prevents, contains, alters,
conveys, stores, disperses, or disposes of air contaminants, or
that renders less noxious or reduces the concentration of air
contaminants in the ambient air;
(5) Any property, device, or
equipment that promotes the
reduction of emissions of air
contaminants into the ambient air
through improvements in the
efficiency of energy utilization or
(6) Any coal research and development project conducted under Chapter 1555. of the Revised Code;
(7) As determined by the director of the Ohio coal development office, any property or portion thereof that is used for the collection, storage, treatment, utilization, processing, or final disposal of a by-product resulting from a coal research and development project as defined in section 1555.01 of the Revised Code or from the use of clean coal technology, excluding any property or portion thereof that is used primarily for other subsequent commercial purposes;
(8) Any property or portion thereof that is part of the FutureGen project of the United States department of energy or related to the siting of the FutureGen project.
"Air quality facility"
system to be used in whole or
in part for any of
divisions (G)(1) to
(5)(8) of this section,
served, and any property or system
incidental to or
do with, or the end purpose of
which is, any of the
quality facilities that are
defined in this
industry, commerce, distribution, or
utility companies, are hereby
determined to be
that qualify as facilities for the
control of air pollution
thermal pollution related to air
under Section 13 of Article
VIII, Ohio Constitution.
(H) "Project" or "air quality project" means any air
facility, including undivided or other interests therein,
or to be acquired or constructed or to be constructed by
air quality development authority under this chapter, or
or to be acquired or constructed or to be constructed by
governmental agency or person with all or a part of the cost
thereof being paid from a loan or grant from the authority under
this chapter, including all buildings and facilities that the
authority determines necessary for the operation of the project,
together with all property, rights, easements, and interests that
may be required for the operation of the project.
(I) "Cost" as applied to an air quality project means the
cost of acquisition and construction, the cost of acquisition of
all land, rights-of-way, property rights, easements, franchise
rights, and interests required for such acquisition and
construction, the cost of demolishing or removing any buildings
structures on land so acquired, including the cost of
any lands to which such buildings or structures may be
cost of acquiring or constructing and equipping a
and sub-offices of the authority, the cost of
interchange of highways, and access roads to
including the cost of land or easements for
such access roads, the
cost of public utility and common carrier
duplication, the cost of all machinery,
equipment, financing charges, interest prior to
construction and for no more than eighteen months
of construction, engineering, expenses of
research and development
with respect to air quality facilities,
legal expenses, plans,
specifications, surveys, studies,
estimates of cost and revenues,
working capital, other expenses
necessary or incident to
determining the feasibility or
practicability of acquiring or
constructing such project,
administrative expense, and such other
expense as may be
necessary or incident to the acquisition or
construction of the
project, the financing of such acquisition or
including the amount authorized in the resolution of
authority providing for the issuance of air quality revenue
to be paid into any special funds from the proceeds of such
bonds, and the financing of the placing of such project in
operation. Any obligation, cost, or expense incurred by any
governmental agency or person for surveys, borings, preparation
plans and specifications, and other engineering services, or
other cost described above, in connection with the
construction of a project may be regarded as a
part of the cost of
that project and may be reimbursed out of the
proceeds of air
quality revenue bonds as authorized by this
(J) "Owner" includes an individual, copartnership,
association, or corporation having any title or interest in any
property, rights, easements, or interests authorized to be
acquired by this chapter.
(K) "Revenues" means all rentals and other charges
by the authority for the use or services of any air
project, any gift or grant received with respect to any
quality project, any moneys received with respect to the
sublease, sale, including installment sale or conditional
other disposition of an air quality project, moneys
repayment of and for interest on any loans made by
to a person or governmental agency, whether from
the United States
or any department, administration, or agency
otherwise, proceeds of such bonds to the extent that
for payment of principal of, premium, if any, or
interest on the
bonds is authorized by the authority, proceeds
from any insurance,
condemnation, or guaranty pertaining to a
project or property
mortgaged to secure bonds or pertaining to
the financing of the
project, and income and profit from the
investment of the proceeds
of air quality revenue bonds or of any
(L) "Public roads" includes all public highways, roads,
streets in the state, whether maintained by the state,
city, township, or other political subdivision.
(M) "Public utility facilities" includes tracks, pipes,
mains, conduits, cables, wires, towers, poles, and other
and appliances of any public utility.
(N) "Construction," unless the context indicates a
meaning or intent, includes reconstruction,
improvement, or providing furnishings or equipment.
(O) "Air quality revenue bonds," unless the context
indicates a different meaning or intent, includes air quality
revenue notes, air quality revenue renewal notes, and air quality
revenue refunding bonds, except that notes issued in anticipation
of the issuance of bonds shall have a maximum maturity of five
years as provided in section 3706.05 of the Revised Code and
or renewal notes issued as the definitive obligation may be
maturing at such time or times with a maximum maturity of
years from the date of issuance of the original note.
(P) "Solid waste" means any garbage; refuse; sludge from a
waste water treatment plant, water supply treatment plant, or air
pollution control facility; and other discarded material,
including solid, liquid, semisolid, or contained gaseous material
resulting from industrial, commercial, mining, and agricultural
operations, and from community activities, but not including
or dissolved material in domestic sewage, or solid or
material in irrigation return flows or industrial
are point sources subject to permits under
section 402 of the
"Federal Water Pollution Control Act
Amendments of 1972," 86 Stat.
880, 33 U.S.C.A. 1342, as amended,
or source, special nuclear, or
byproduct material as defined by
the "Atomic Energy Act of 1954,"
68 Stat. 921, 42 U.S.C.A. 2011,
(Q) "Sludge" means any solid, semisolid, or liquid waste,
other than a recyclable
byproduct by-product, generated from a municipal,
commercial, or industrial waste water treatment plant, water
supply plant, or air pollution control facility or any other such
wastes having similar characteristics and effects.
(R) "Ethanol or other biofuel facility" means a plant at
ethanol or other biofuel is
(S) "Ethanol" means fermentation ethyl alcohol derived from
agricultural products, including potatoes, cereal, grains, cheese
whey, and sugar beets; forest products; or other renewable or
resources, including residue and waste generated from the
production, processing, and marketing of agricultural products,
forest products, and other renewable or biomass resources, that
meets all of
the specifications in the American society for
materials (ASTM) specification D 4806-88 and is
specified in Parts 20 and 21 of Title 27 of the Code
(T) "Biofuel" means any fuel that is made from cellulosic
biomass resources, including renewable organic matter, crop waste
residue, wood, aquatic plants and other crops, animal waste, solid
waste, or sludge, and that is used for the production of energy
for transportation or other purposes.
(U) "FutureGen project" means the buildings, equipment, and real property and functionally related buildings, equipment, and real property designated by the United States department of energy and the FutureGen industrial alliance, inc., as the coal-fueled, zero-emissions power plant designed to prove the technical and economic feasibility of producing electricity and hydrogen from coal and nearly eliminating carbon dioxide emissions through capture and permanent storage.
Sec. 3706.101. There is hereby created in the state treasury the FutureGen initiative fund. The fund shall consist of money appropriated to it and money from private donations, grants, gifts, bequests, and other sources. Money in the fund shall be used to make grants for the drilling of a test well to assist the state's efforts to secure the United States department of energy FutureGen initiative pursuant to section 3706.01 of the Revised Code.
SECTION 2. That existing section 3706.01 of the Revised Code is hereby repealed.
SECTION 3. In amending section 3706.01 of the Revised Code in this act, the General Assembly hereby declares its intent to secure the United States Department of Energy's FutureGen program, the first zero-emissions coal power plant in the world, for the citizens of the state of Ohio for all of the following reasons:
(A) This state meets the essential requirements for the FutureGen project because the state has all of the following:
(1) Deep geological formations, including depleted oil and gas wells and unmineable coal seams, that are suitable and available to sequester carbon dioxide that will be produced in the operation of the FutureGen plant;
(2) The coal feedstock that is essential for the future operation of the FutureGen plant because the state has the seventh largest coal reserves in the country, which are expected to last almost 250 years at present consumption levels;
(3) Markets for the products produced from the operation of the FutureGen plant. The state will use the electricity produced from the plant because the state is the country's fourth largest industrial consumer of energy. In addition, the state will use the hydrogen produced from FutureGen because the state is the home of leaders in fuel cell research and development.
(B) The state is nationally recognized in the area of clean coal research and development and implementation of new clean coal technologies and will contribute that expertise to the program. In addition, the state's long-term vision regarding and commitment to clean coal technology are evidenced by the creation of the Ohio Coal Development Office in 1984 and the investment of over $173 million in coal research since 1984.
(C) The Ohio Coal Research Consortium is a group of six internationally recognized universities that conduct research in clean coal technologies and will contribute that expertise to the program. The universities are Case Western Reserve University, Ohio University, The Ohio State University, the University of Akron, the University of Cincinnati, and the University of Dayton.
(D) The state has the following infrastructure that is necessary to support the FutureGen program: an existing permitting process for the timely siting and permitting of the FutureGen plant; an adequate supply of water for the operation of the plant; water, rail, and highway transportation systems for shipping coal to the plant; access to electric transmission lines for the distribution of electricity from the plant; and other infrastructure that will be beneficial to the program.
(E) The state is the home of leading researchers and research facilities that will assist in the program.
(F) The program will create in this state between 150 and 250 new jobs per year over a seven-year period. In addition, construction of the FutureGen plant will create approximately 1,100 jobs in this state over a three-year period.
(G) The program will provide a new zero-emissions baseload power plant for the citizens of this state.
(H) The program will enhance the state's national and international leadership in clean coal technologies.
(I) The program will build on the state's investment in the fuel cell industry.
SECTION 4. That Section 203.27 of Am. Sub. H.B. 66 of the 126th General Assembly be amended to read as follows:
Sec. 203.27. AIR AIR QUALITY DEVELOPMENT AUTHORITY
General Revenue Fund
Coal Development Office
|GRF||898-901||Coal R&D General
Obligation Debt Service||$||7,071,100||$||8,980,800|
|TOTAL GRF General Revenue Fund
State Special Revenue Fund Group
|TOTAL SSR State Special Revenue Fund Group||$||0||$||250,000
Agency Fund Group
|4Z9||898-602||Small Business Ombudsman||$||263,165||$||264,196
|5A0||898-603||Small Business Assistance||$||71,087||$||71,087
|TOTAL AGY Agency Fund Group||$||591,127||$||598,976
Coal Research/Development Fund
||Coal Research and Development
|TOTAL 046 Coal Research/Development
|TOTAL ALL BUDGET FUND GROUPS||$||18,231,041||$|20,153,590 21,403,590
COAL DEVELOPMENT OFFICE
The foregoing appropriation item GRF 898-402, Coal Development Office, shall be used for the administrative costs of the Coal Development Office.
COAL RESEARCH AND DEVELOPMENT GENERAL OBLIGATION DEBT SERVICE
The foregoing appropriation item GRF 898-901, Coal R & D General Obligation Debt Service, shall be used to pay all debt service and related financing costs at the times they are required to be made under sections 151.01 and 151.07 of the Revised Code during the period from July 1, 2005, to June 30, 2007. The Office of the Sinking Fund or the Director of Budget and Management shall effectuate the required payments by intrastate transfer voucher.
SCIENCE AND TECHNOLOGY COLLABORATION
The Air Quality Development Authority shall work in close collaboration with the Department of Development, the Board of Regents, and the Third Frontier Commission in relation to appropriation items and programs referred to as Alignment Programs in the following paragraph, and other technology-related appropriations and programs in the Department of Development, Air Quality Development Authority, and the Board of Regents as those agencies may designate, to ensure implementation of a coherent state strategy with respect to science and technology.
To the extent permitted by law, the Air Quality Development Authority shall assure that coal research and development programs, proposals, and projects consider or incorporate appropriate collaborations with Third Frontier Project programs and grantees and with Alignment Programs and grantees.
"Alignment Programs" means: appropriation items 195-401, Thomas Edison Program; 898-402, Coal Development Office; 195-422, Third Frontier Action Fund; 898-604, Coal Research and Development Fund; 235-433, Economic Growth Challenge; 235-508, Air Force Institute of Technology; 235-510, Ohio Supercomputer Center; 235-451, Eminent Scholars; 235-527, Ohio Aerospace Institute; 235-535, Ohio Agricultural Research and Development Center; 235-553, Dayton Area Graduate Studies Institute; 235-554, Priorities in Collaborative Graduate Education; 235-556, Ohio Academic Resources Network; and 195-435, Biomedical Research and Technology Transfer Trust.
Consistent with the recommendations of the Governor's Commission on Higher Education and the Economy, Alignment Programs shall be managed and administered (1) to build on existing competitive research strengths, (2) to encourage new and emerging discoveries and commercialization of ideas and products that will benefit the Ohio economy, and (3) to assure improved collaboration among Alignment Programs, with programs administered by the Third Frontier Commission, and with other state programs that are intended to improve economic growth and job creation.
As directed by the Third Frontier Commission, Alignment Program managers shall report to the Commission or to the Third Frontier Advisory Board on the contributions of their programs to achieving the objectives stated in the preceding paragraph.
Each alignment program shall be reviewed annually by the Third Frontier Commission with respect to its development of complementary relationships within a combined state science and technology investment portfolio and its overall contribution to the state's science and technology strategy, including the adoption of appropriately consistent criteria for: (1) the scientific merit of activities supported by the program; (2) the relevance of the program's activities to commercial opportunities in the private sector; (3) the private sector's involvement in a process that continually evaluates commercial opportunities to use the work supported by the program; and (4) the ability of the program and recipients of grant funding from the program to engage in activities that are collaborative, complementary, and efficient with respect to the expenditure of state funds. Each alignment program shall provide annual reports to the Third Frontier Commission discussing existing, planned, or possible collaborations between programs and recipients of grant funding related to technology, development, commercialization, and supporting Ohio's economic development. The annual review by the Third Frontier Commission shall be a comprehensive review of the entire state science and technology program portfolio rather than a review of individual programs.
Applicants for Third Frontier and Alignment Program funding shall identify their requirements for high-performance computing facilities and services, including both hardware and software, in all proposals. If an applicant's requirements exceed approximately $100,000 for a proposal, the Ohio Supercomputer Center shall convene a panel of experts. The panel shall review the proposal to determine whether the proposal's requirements can be met through Ohio Supercomputer Center facilities or through other means and report its conclusion to the Third Frontier Commission.
To ensure that the state receives the maximum benefit from its investment in the Third Frontier Project and the Third Frontier Network, organizations receiving Third Frontier awards and Alignment Program awards shall, as appropriate, be expected to have a connection to the Third Frontier Network that enables them and their collaborators to achieve award objectives through the Third Frontier Network.
The foregoing appropriation item GRF 898-401, FutureGen Assistance, shall be used to make grants for the drilling of a test well to assist the state's efforts to secure the United States Department of Energy FutureGen Initiative pursuant to section 3706.01 of the Revised Code, as amended by this act.
The foregoing appropriation item 5DR 898-606, FutureGen Initiative, shall be used to make grants for the drilling of a test well to assist the state's efforts to secure the United States Department of Energy FutureGen Initiative pursuant to section 3706.01 of the Revised Code, as amended by this act.
SECTION 5. That existing Section 203.27 of Am. Sub. H.B. 66 of the 126th General Assembly is hereby repealed.
SECTION 6. Within the limits set forth in Sections 4 and 5 of this act, the Director of Budget and Management shall establish accounts indicating the source and amount of funds for each appropriation made in those sections and shall determine the form and manner in which appropriation accounts shall be maintained. Expenditures from appropriations contained in those sections shall be accounted for as though made in Am. Sub. H.B. 66 of the 126th General Assembly.
The appropriations made in those sections are subject to all provisions of Am. Sub. H.B. 66 of the 126th General Assembly that are generally applicable to the appropriations made in that act.