To amend section 1571.01 and to enact sections 1572.01, 1572.02, 1572.03, 1572.04, 1572.05, 1572.06, 1572.07, 3706.31, 3706.32, 3706.33, 3706.34, 3706.35, 3706.36, 4928.64, 4928.65, 4928.66, 4928.68, and 5501.452 of the Revised Code to establish alternative energy benchmarks for electric distribution utilities and electric services companies, provide for the use of renewable energy credits, establish energy efficiency standards for electric distribution utilities and require the Department of Development to establish energy efficiency programs, create the Ohio Renewable Energy Authority to provide loans and grants to renewable energy businesses, establish policies regarding the geologic storage of carbon dioxide, and require greenhouse gas emission reporting and carbon control planning for generating facilities.

Section 1. That section 1571.01 be amended and sections 1572.01, 1572.02, 1572.03, 1572.04, 1572.05, 1572.06, 1572.07, 3706.31, 3706.32, 3706.33, 3706.34, 3706.35, 3706.36, 4928.64, 4928.65, 4928.66, 4928.68, and 5501.452 of the Revised Code be enacted to read as follows:

Sec. 1571.01.  As used in this chapter, unless other meaning is clearly indicated in the context:

(A) "Gas storage reservoir" or "storage reservoir" or "reservoir" means a continuous area of a subterranean porous sand or rock stratum or strata, any part of which or of the protective area of which, is within a coal bearing township, into which gas is or may be injected for the purpose of storing it therein and removing it therefrom, or for the purpose of testing whether such stratum is suitable for such storage purposes.

(B) "Gas" means any natural, manufactured, or by-product gas or any mixture thereof, but does not include carbon dioxide regulated under Chapter 1572. of the Revised Code.

(C) "Reservoir operator" or "operator," when used in referring to the operator of a gas storage reservoir, means a person who is engaged in the work of preparing to inject, or who injects gas into, or who stores gas in, or who removes gas from, a gas storage reservoir, and who owns the right to do so.

(D)(1) "Boundary," when used in referring to the boundary of a gas storage reservoir, means the boundary of such reservoir as shown on the map or maps thereof on file in the division of mineral resources management as required by this chapter.

(2) "Boundary," when used in referring to the boundary of a reservoir protective area, means the boundary of such reservoir protective area as shown on the map or maps thereof on file in the division as required by this chapter.

(E) "Reservoir protective area" or "reservoir's protective area" means the area of land outside the boundary of a gas storage reservoir shown as such on the map or maps thereof on file in the division as required by this chapter. The area of land shown on such map or maps as such reservoir protective area shall be outside the boundary of such reservoir, and shall encircle such reservoir and touch all parts of the boundary of such reservoir, and no part of the outside boundary of such protective area shall be less than two thousand nor more than five thousand linear feet distant from the boundary of such reservoir.

(F) "Coal bearing township" means a township designated as a coal bearing township by the chief of the division of mineral resources management as required by section 1561.06 of the Revised Code.

(G) "Coal mine" means the underground excavations of a mine that are being used or are usable or are being developed for use in connection with the extraction of coal from its natural deposit in the earth. "Underground excavations," when used in referring to the underground excavations of a coal mine, includes the abandoned underground excavations of such mine. It also includes the underground excavations of an abandoned coal mine if such abandoned mine is connected with underground excavations of a coal mine. "Coal mine" does not mean or include:

(1) A mine in which coal is extracted from its natural deposit in the earth by strip or open pit mining methods or by other methods by which individuals are not required to go underground in connection with the extraction of coal from its natural deposit in the earth;

(2) A mine in which not more than fourteen individuals are regularly employed underground.

(H) "Operator," when used in referring to the operator of a coal mine, means a person who engages in the work of developing such mine for use in extracting coal from its natural deposit in the earth, or who so uses such mine, and who owns the right to do so.

(I) "Boundary," when used in referring to the boundary of a coal mine, means the boundary of the underground excavations of such mine as shown on the maps of such mine on file in the division as required by sections 1563.03 to 1563.05 and 1571.03 of the Revised Code.

(J) "Mine protective area" or "mine's protective area" means the area of land that the operator of a coal mine designates and shows as such on the map or maps of such coal mine filed with the division as required by sections 1563.03 to 1563.05 and 1571.03 of the Revised Code. Such area of land shall be outside of the boundary of such coal mine, but some part of the boundary of such area of land shall abut upon a part of the boundary of such coal mine. Such area of land shall be comprised of such tracts of land in which such coal mine operator owns the right to extract coal therefrom by underground mining methods and in which underground excavations of such coal mine are likely to be made within the ensuing year for use in connection with the extraction of coal therefrom.

(K) "Pillar" means a solid block of coal or other material left unmined to support the overlying strata in a coal mine, or to protect a well.

(L) "Retreat mining" means the removal of pillars and ribs and stumps and other coal remaining in a section of a coal mine after the development mining has been completed in such section.

(M) "Linear feet," when used to indicate distance between two points that are not in the same plane, means the length in feet of the shortest horizontal line that connects two lines projected vertically upward or downward from the two points.

(N) "Map" means a graphic representation of the location and size of the existing or proposed items it is made to represent, accurately drawn according to a given scale.

(O) "Well" means any hole, drilled or bored, or being drilled or bored, into the earth, whether for the purpose of, or whether used for:

(1) Producing or extracting any gas or liquid mineral, or natural or artificial brines, or oil field waters;

(2) Injecting gas into or removing gas from an underground gas storage reservoir;

(3) Introducing water or other liquid pressure into an oil bearing sand to recover oil contained in such sand, provided that "well" does not mean a hole drilled or bored, or being drilled or bored, into the earth, whether for the purpose of, or whether used for, producing or extracting potable water to be used as such.

(P) "Testing" means injecting gas into, or storing gas in or removing gas from, a gas storage reservoir for the sole purpose of determining whether such reservoir is suitable for use as a gas storage reservoir.

(Q) "Casing" means a string or strings of pipe commonly placed in a well.

(R) "Inactivate" means to shut off temporarily all flow of gas from a well at a point below the horizon of the coal mine that might be affected by such flow of gas, by means of a plug or other suitable device or by injecting water, bentonite, or some other equally nonporous material into the well, or any other method approved by the mineral resources inspector.

(S) "Gas storage well inspector" means the gas storage well inspector in the division.

(T) The verb "open" or the noun "opening," when used in clauses relating to the time when a coal mine operator intends to open a new coal mine, or the time when a new coal mine is opened, or the time of the opening of a new coal mine, or when used in other similar clauses to convey like meanings, means that time and condition in the initial development of a new coal mine when the second opening required by section 1563.14 of the Revised Code is completed in such mine.

Sec. 1572.01. As used in sections 1572.01 to 1572.07 of the Revised Code:

(A) "Carbon dioxide" means anthropogenically sourced carbon dioxide of sufficient purity and quality as not to compromise the safety and efficiency of an underground reservoir to contain the carbon dioxide effectively.

(B) "Geologic storage" means the permanent or short-term underground storage of carbon dioxide in an underground reservoir.

(C) "Storage facility" means the underground reservoir, underground equipment, and surface buildings and equipment utilized in the subsurface storage of carbon dioxide, excluding any pipelines used to transport the carbon dioxide from one or more capture facilities to the storage facility. "Storage facility" may include an enhanced oil recovery or natural gas operation.

(D) "Storage operator" means an individual, corporation, partnership, limited liability company, or other entity authorized by the division of mineral resources management to operate a storage facility in this state.

(E) "Underground reservoir" means a subsurface sedimentary stratum, formation, aquifer, cavity, or void, naturally or artificially created, including, but not limited to, an oil or natural gas reservoir, saline formation, or coal seam suitable or capable of being made suitable for the injection and storage of carbon dioxide. "Underground reservoir" includes any necessary and reasonable areal buffer and subsurface monitoring zone designated by the division of mineral resources management for the purposes of ensuring the safe and efficient operation of a storage facility and protecting against pollution and the invasion, escape, or migration of carbon dioxide.

Sec. 1572.02. (A) The division of mineral resources management has exclusive authority to regulate the geologic storage of carbon dioxide in this state and shall administer the geologic carbon dioxide storage program established in sections 1572.01 to 1572.07 of the Revised Code.

(B) A person seeking to operate a storage facility in this state shall apply for a permit to do so from the chief of the division of mineral resources management in accordance with rules adopted under section 1572.03 of the Revised Code. The chief shall issue such a permit only if all of the following apply:

(1) The storage facility is suitable and feasible for the injection and storage of carbon dioxide.

(2) A good faith effort has been made by the applicant to obtain the consent of a majority of the owners of property interests that will be affected by the storage facility, and the applicant has obtained remaining property interests in accordance with section 1572.04 of the Revised Code.

(3) The use of the storage facility for the geologic storage of carbon dioxide will not contaminate resources containing fresh water, oil, natural gas, coal, or other commercial mineral deposits.

(4) The storage will not unduly endanger human health and the environment.

In issuing a permit under this section, the chief may include terms and conditions in the permit that the chief determines to be necessary.

(C) With respect to each parcel of property that is affected by the issuance of a permit under division (B) of this section, the chief shall cause a copy of the permit to be filed and recorded in the office of the county recorder of the county in which the parcel is located.

(D) Prior to injecting any carbon dioxide into a storage facility pursuant to a permit issued under this section, the storage operator shall cause to be filed and recorded in the office of the applicable county recorder and with the division of mineral resources management a statement that the storage operator has acquired by purchase, lease, eminent domain, or otherwise all of the necessary property rights with respect to the storage facility that is the subject of the permit. The filing shall include the date on which carbon dioxide will commence being injected into the storage facility.

Sec. 1572.03. The chief of the division of mineral resources management shall adopt rules in accordance with Chapter 119. of the Revised Code that do all of the following:

(A) Establish application procedures for permits issued under section 1572.02 of the Revised Code and procedures for the issuance or denial of an application for a permit. The rules shall establish the amount of the application fee that shall be submitted with the application. All money collected from the application fees shall be deposited to the credit of the carbon dioxide storage facility trust fund created in section 1572.06 of the Revised Code.

(B) Establish requirements applicable to storage operators for obtaining the approval of the chief prior to appropriating property interests under section 1572.04 of the Revised Code;

(C) Establish financial assurance requirements for the proper maintenance, well plugging, and abandonment of a storage facility by a storage operator and to protect the storage facility against pollution and the invasion, escape, or migration of carbon dioxide. The financial assurance requirements may include a requirement that a storage operator purchase a surety bond or other financial surety.

(D) Establish penalties and procedures for the enforcement of sections 1572.01 to 1572.07 of the Revised Code and rules adopted under those sections, including civil penalties that may be imposed on any person violating any provision of sections 1572.01 to 1572.07 of the Revised Code or of rules adopted or terms and conditions of a permit issued under those sections. All civil penalties collected under this section shall be deposited in the state treasury to the credit of the carbon dioxide storage facility trust fund.

(E) Establish the amount of a fee to be charged by the division of mineral resources management and paid by a storage operator for each ton of carbon dioxide that is injected into a storage facility by the storage operator. The rules shall require that the proceeds from the fee be deposited to the credit of the carbon dioxide storage facility trust fund created in section 1572.06 of the Revised Code.

(F) Establish closure requirements applicable to storage facilities upon the completion of carbon dioxide injection operations at a storage facility. The rules shall require the division to issue a certificate of completion of injection operations upon the termination of carbon dioxide injection at a storage facility and the successful closure of the storage facility. Additionally, the rules shall require that not later than ten years, or another time frame specified by rule, after the issuance of a certificate, upon a showing by the storage operator that the storage facility is reasonably expected to retain its mechanical integrity and remain emplaced, the ownership of the storage facility shall transfer to this state. The rules also shall provide that, upon transfer of ownership, the storage operator, and any generator of carbon dioxide that was injected into the storage facility by the storage operator, shall be released from liability with respect to the storage facility and that any long-term monitoring or remediation of any leakage at the storage facility shall become the responsibility of this state.

(G) Establish a long-term monitoring program for the purposes of the monitoring of storage facilities, remediation of mechanical problems associated with storage facilities and surface infrastructure, repair of mechanical leaks at storage facilities, and plugging and abandonment of wells that are associated with storage facilities;

(H) Establish procedures for allowing the conversion of enhanced recovery of oil or natural gas operations into a storage facility;

(I) Establish any other requirements or procedures that are determined necessary by the chief in order to implement sections 1572.01 to 1572.07 of the Revised Code.

Sec. 1572.04. (A) Subject to rules adopted under section 1572.03 of the Revised Code, a storage operator may appropriate, in the manner provided in sections 163.01 to 163.22 of the Revised Code, surface and subsurface rights and interests in land, including easements and rights-of-way, that are necessary for both of the following:

(1) The operation of a storage facility;

(2) The transporting of carbon dioxide among facilities constituting a storage facility.

(B) Notwithstanding division (A) of this section, no property rights in a storage facility shall be acquired pursuant to that division.

Sec. 1572.05. The director of natural resources may enter into cooperative agreements with the federal government and other states that the division of mineral resources management determines to be necessary for the purpose of regulating carbon dioxide storage projects.

Sec. 1572.06. There is hereby created in the state treasury the carbon dioxide storage facility trust fund to be administered by the division of mineral resources management. The fund shall consist of the proceeds of the fees established in rules adopted under section 1572.03 of the Revised Code. Money in the fund shall be used by the division for both of the following purposes:

(A) The administration of sections 1572.01 to 1572.07 of the Revised Code;

(B) Funding for the long-term monitoring of storage facilities as provided in rules adopted under section 1572.03 of the Revised Code.

Sec. 1572.07. Nothing in sections 1572.01 to 1572.07 of the Revised Code or rules adopted under those sections applies to the use of carbon dioxide as part of or in conjunction with any enhanced recovery of oil or natural gas where the sole purpose of the project is the recovery of oil or natural gas.

Sec. 3706.31. (A) As used in sections 3706.31 to 3706.36 of the Revised Code:

(1) "Renewable energy business" means a person that engages in the business of generating electricity using renewable energy facilities, in the business of manufacturing equipment for renewable energy facilities, or in the business of researching and developing such equipment or facilities.

(2) "Renewable energy facility" means any technology or structure that generates electricity using solely or primarily renewable energy resources.

(3) "Renewable energy resource" means solar photovoltaic energy, solar thermal energy, wind energy, hydropower, geothermal energy, municipal solid waste, biomass energy, biologically derived methane gas, and energy derived from byproducts of the pulping process or wood manufacturing process including bark, wood chips, sawdust, and lignin in spent pulping liquors.

(B) Sections 3706.01 to 3706.21 and 3706.99 of the Revised Code do not apply to sections 3706.31 to 3706.36 of the Revised Code.

Sec. 3706.32. (A) There is hereby created the Ohio renewable energy authority, a body corporate and politic, performing essential governmental functions of this state.

(B) The authority shall consist of eleven members as follows: three members appointed by the governor, not more than two of whom shall be members of the same political party, three members appointed by the speaker of the house of representatives, not more than two of whom shall be members of the same political party, three members appointed by the president of the senate, not more than two of whom shall be members of the same political party, and two nonvoting members appointed by the Ohio board of regents to represent Ohio colleges and universities.

Initial members of the authority shall be appointed by August 1, 2008. The terms of the members first appointed by the board of regents shall expire on June 30, 2010. The term of one of the members first appointed by the governor shall expire on that date, with the terms of the other two members appointed by the governor expiring on June 30, 2012. The terms of one of the members first appointed each by the speaker of the house of representatives and the president of the senate shall expire on June 30, 2010, with the terms of the other four members appointed by the speaker and the president expiring on June 30, 2011. Otherwise, members' terms of office shall be for two years, commencing on the first day of July and ending on the thirtieth day of June. Each member shall hold office from the date of appointment until the end of the term for which the member was appointed. A member appointed to fill a vacancy occurring prior to the expiration of the term for which the member's predecessor was appointed shall hold office for the remainder of such term. A member shall continue in office subsequent to the expiration date of the member's term until the member's successor takes office, or until a period of sixty days has elapsed, whichever occurs first. A member is eligible for reappointment.

(C) The appointing authority may remove a member at any time for misfeasance, nonfeasance, or malfeasance in office. In addition, by affirmative vote of six voting members, a member may be removed for malfeasance or misfeasance in office, for failing to attend authority meetings regularly, or for any cause that renders the member incapable or unfit to discharge the duties of the member or the authority.

(D) The members shall elect a chairperson, vice-chairperson, and secretary from among its voting members. A majority of the voting members shall constitute a quorum, except that the authority may require a vote of six voting members for an action the authority shall specify in its bylaws or otherwise in writing. No vacancy in the membership shall impair the right of a quorum by such vote to exercise all the rights and perform all the duties of the authority. The authority may establish subcommittees from among its members, which subcommittees shall exercise any power or duty of the authority that the authority shall delegate in writing. The authority shall meet at least six times per year, and shall meet at such other times as it considers appropriate or upon the call of the chairperson or the written request of a majority of its voting members. The authority shall determine the location of its offices.

(E) Members of the authority and authority employees shall file financial disclosure statements under section 102.02 of the Revised Code.

Sec. 3706.33. (A) The Ohio renewable energy authority may:

(1) Adopt bylaws for the regulation of its affairs and the conduct of its business;

(2) Adopt an official seal;

(3) Maintain a principal office and suboffices at such places within this state as it designates;

(4) Sue and plead in its own name and be sued and impleaded in its own name with respect to its contracts or the torts of its members, employees, or agents acting within the scope of their employment. Any such actions against the authority shall be brought in the court of common pleas of the county in which the principal office of the authority is located, or in the court of common pleas of the county in which the cause of action arose, provided that county is located within this state. All summonses, exceptions, and notices of every kind shall be served on the authority by leaving a copy at the authority's principal office with the person in charge or with the secretary of the authority.

(5) Acquire by gift or purchase, hold, and dispose of real and personal property in the exercise of the powers of the authority and the performance of its duties under sections 3706.31 to 3706.35 of the Revised Code;

(6) Make and enter into all contracts and agreements and execute all instruments necessary or incidental to the performance of its duties and the execution of its powers under sections 3706.31 to 3706.35 of the Revised Code;

(7) Receive and accept from any federal agency, subject to the approval of the governor, grants for or in aid of renewable energy development and investment, and receive and accept aid or contributions from any source of money, property, labor, or other things of value, to be held, used, and applied only for the purposes for which those grants and contributions are made;

(8) Provide coverage for its employees under Chapters 4123. and 4141. of the Revised Code;

(9) Do all acts necessary or proper to carry out the powers expressly granted in sections 3706.31 to 3706.35 of the Revised Code.

(B)(1) All minutes, resolutions, and official decisions of the authority shall be recorded, and a book of minutes, resolutions, and official decisions shall be authenticated by the signature of the authority secretary. The book of minutes, resolutions, and official decisions, as well as any report or financial statement of the authority, shall be public records under section 149.43 of the Revised Code. One copy of the book shall be sent annually to the governor.

(2) Annually, the authority shall submit a report to the general assembly pursuant to section 101.68 of the Revised Code, to the director of development, and to the governor regarding the authority's financial assistance program under section 3706.35 of the Revised Code, job development prospects in this state, and other information.

(C)(1) The authority shall be exempt from the levy of any real and personal property taxes upon any property of the authority acquired and used for its offices.

(2) The exemptions specified in division (C)(1) of this section shall not extend to persons or entities conducting business on the authority's property, for which payment of state and local taxes would otherwise be required.

(D) Nothing in sections 3706.31 to 3706.36 of the Revised Code authorizes the authority to sell the authority or any of its property or other assets or to merge the authority with another entity, without the prior approval of the general assembly.

Sec. 3706.34. (A) There is hereby created the renewable energy development and investment fund, which shall be in the custody of the treasurer of state but shall not be part of the state treasury. The fund shall consist of money transferred to it pursuant to divisions (C) and (D) of this section and revenue from alternative energy compliance payments under division (C) of section 4928.64 and forfeitures under section 4928.66 of the Revised Code. Interest on the fund shall be derived by the investment of the fund balance only in money market accounts and shall be deposited to the credit of the fund.

(B) The fund shall be used by the Ohio renewable energy authority to provide financial assistance as authorized under division (A) of section 3706.35 of the Revised Code. In addition, not more than six per cent of the annual transfer to the fund shall be used for administrative purposes, including for office space, office equipment and furnishings, service contracts, member and employee compensation, and member or employee expenses as shall be specified in the authority bylaws, including but not limited to, mileage and any other reasonable expenses of members in attending authority or authority subcommittee meetings, and any filing fee for the financial disclosure statements required by section 3706.32 of the Revised Code. The authority shall set the compensation of its members and employees, but the combined compensation and expenses paid to a member shall not exceed twenty thousand dollars per year.

(C) Immediately after the initial member appointments are made pursuant to section 3706.32 of the Revised Code, the treasurer of state shall transfer two and one-half million dollars from the state general revenue fund to the renewable energy development and investment fund. The treasurer shall so transfer ten million dollars in calendar year 2009.

(D) Each year beginning in 2010, the tax commissioner shall consult with the director of development and the authority to estimate the number of state income tax taxpayers that are employed by renewable energy businesses in that year. From that information, the tax commissioner shall estimate the amount of state income tax revenue that is generated during that year from those taxpayers, using any method the commissioner determines appropriate, such as the North American industry classification system codes, estimated state income tax withholdings, or any other reasonable process or method. The method shall be consistent from year to year. The tax commissioner may contract with any person to assist in deriving the taxpayer and tax revenue estimates required by this division. Subsequently, the tax commissioner shall certify the difference in such estimated tax revenue generated during the year compared to baseline year 2009. If the certified amount in any year is ten million dollars or more, the treasurer of state in that year shall transfer an amount equal to the certified amount from the state general revenue fund to the renewable energy development and investment fund. If the amount is less than ten million dollars, the treasurer shall so transfer ten million dollars.

Sec. 3706.35. (A) The Ohio renewable energy authority shall adopt a mission statement that shall govern its award of financial assistance provided pursuant to this division. That assistance shall be entirely directed at identifying, promoting, nurturing, and expanding job opportunities in renewable energy businesses located in this state and shall consist of grants, loans, loan guarantees, awards, or other forms of assistance provided to those businesses. The authority shall specify the terms and conditions, if any, for the repayment of the assistance it provides under this section and shall incorporate those terms and conditions into a repayment agreement that a recipient of the assistance shall sign.

(B) The authority shall maintain accounting records in accordance with generally accepted accounting principles and other required accounting standards and shall prepare a financial statement not later than ninety days after the close of the fiscal period. The financial statement shall be subject to audit by the auditor of state.

(C) The authority shall develop policies and guidelines for the administration of its financial assistance program under division (A) of this section and annually shall conduct at least one public hearing to obtain input from any interested party regarding the administration of the program. The hearing shall be held at such time and place as the authority determines and only when a quorum of the authority is present.

Sec. 3706.36. The Ohio renewable energy authority shall terminate on June 30, 2018, at which time the terms of office of the authority's members, as well as the employment of the authority's employees except as necessary to close the affairs and offices of the authority, shall terminate, and the authority shall cease to exist, unless the authority and those terms and employment are extended by an act of the general assembly. Upon that expiration, all property, money, and other assets of the authority hereby belong to this state, the obligations of the authority become obligations of this state, and the treasurer of state shall transfer to the general revenue fund the unused balances of the renewable energy development and investment fund created under section 3706.34 of the Revised Code. Nothing in sections 3706.31 to 3706.36 of the Revised Code abrogates or shall authorize the abrogation of any financial assistance provided by the authority prior to its expiration under this section or any related agreement entered into by the authority prior to that date.

Sec. 4928.64. (A) As used in sections 4928.64 to 4928.66 of the Revised Code:

(1) "Advanced energy resource" means a distributed generation system consisting of customer cogeneration of electricity and thermal output primarily to meet the energy needs of the customer's facilities, clean coal technology, nuclear technology, or energy efficiency, including demand-side management.

(2) "Alternative energy" means energy from advanced energy resources or from renewable energy resources or both.

(3) "Hydropower" means energy produced by a hydroelectric generating facility that is located at a dam within or on the border of this state and meets all of the following standards:

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

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

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

(d) The facility complies with the recommendations of the Ohio environmental protection agency and with the terms of its federal energy regulatory commission license regarding watershed protection, mitigation, or enhancement.

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

(f) The facility does not harm cultural resources of the area. This can be shown through compliance with the terms of its federal energy regulatory commission license or, if the facility is not regulated by that commission, through development of a plan approved by the Ohio historic preservation office.

(g) The facility complies with the terms of its federal energy regulatory commission license or exemption that are related to recreational access, accommodation, and facilities or, if the facility is not regulated by that commission, the facility complies with similar requirements as are recommended by resource agencies; and the facility provides access to water to the public without fee or charge.

(h) The facility is not recommended for removal by any federal agency or agency of any state.

(4) "Renewable energy resource" means solar photovoltaic or solar thermal energy, wind energy, hydropower, geothermal energy, fuel derived from municipal solid waste through a process other than combustion, biomass energy, biologically derived methane gas, or energy derived from non-treated byproducts of the pulping process or wood manufacturing process, including bark, wood chips, sawdust, and lignin in spent pulping liquors. "Renewable energy resource" includes, but is not limited to, a fuel cell powered by any such energy, any storage facility that will promote the better utilization of renewable energy resources and primarily operates off peak, or a distributed generation system used by a customer to generate electricity from any such energy.

(B) Subject to division (C) of this section and by the end of 2025, an electric distribution utility shall provide from alternative energy a portion of the electricity supply required for its standard service offer under section 4928.14 of the Revised Code, and an electric services company shall provide a portion of its electricity supply from alternative energy. That portion shall equal twenty-five per cent of the total number of kilowatt hours of electricity supplied by the utility or company to any and all electric consumers whose electric load centers are served by the utility and are located within the utility's certified territory or, in the case of an electric services company, are served by the company and are located within this state. However, nothing in this section precludes a utility or company from providing a greater percentage.

Of the alternative energy implemented by the utility or company by the end of 2025:

(1) At least half shall be generated from advanced energy resources;

(2) Half shall be generated from renewable energy resources, including one per cent from solar energy resources, in accordance with the following benchmarks:

(3) At least one-half of the renewable energy resources implemented by the utility or company by the end of 2025 shall be met through facilities located in this state.

(C)(1) The public utilities commission annually shall review a utility's or company's compliance with the most recent applicable benchmark under division (B)(2) of this section. If the commission determines, after notice and hearing, that the utility or company has failed to comply with any such benchmark, the commission shall impose a renewable energy compliance payment on the utility or company.

(a) The compliance payment pertaining to the solar energy resource benchmarks under division (B)(2) of this section shall be an amount per megawatt hour of undercompliance or noncompliance in the period under review, starting at four hundred fifty dollars for 2009, four hundred dollars for 2010 and 2011, and similarly reduced every two years thereafter through 2024 by fifty dollars.

(b) The compliance payment pertaining to the renewable energy resource benchmarks under division (B)(2) of this section shall equal forty-five dollars times the number of additional renewable energy credits that the utility or company would have needed to comply with the applicable benchmark in the period under review.

(c) The compliance payment shall not be passed through by the utility or company to consumers. The compliance payment shall be remitted to the commission, for deposit to the credit of the renewable energy development and investment fund created under section 3706.34 of the Revised Code. Payment of the compliance payment shall be subject to such collection and enforcement procedures as apply to the collection of a forfeiture under sections 4905.55 to 4905.60 and 4905.64 of the Revised Code.

(2) The commission shall establish a process to provide for at least an annual review of the alternative energy market in this state and in the service territories of the regional transmission organizations that manage transmission systems located in this state. The commission shall use the results of this study to identify any needed changes to the amount of the renewable energy compliance payment specified under divisions (C)(1)(a) and (b) of this section. Specifically, the commission may increase the amount to ensure that payment of compliance payments is not used to achieve compliance with this section in lieu of actually acquiring or realizing energy derived from renewable energy resources. However, if the commission finds that the amount of the compliance payment should be otherwise changed, the commission shall present this finding to the general assembly for legislative enactment.

(D)(1) The commission annually shall submit to the general assembly in accordance with section 101.68 of the Revised Code a report describing the compliance of electric distribution utilities and electric services companies with division (B) of this section and any strategy for utility and company compliance or for encouraging the use of alternative energy in supplying this state's electricity needs in a manner that considers available technology, costs, job creation, and economic impacts. The commission shall allow and consider public comments on the report prior to its submission to the general assembly. Nothing in the report shall be binding on any person, including any utility or company for the purpose of its compliance with any benchmark under division (B) of this section, or the enforcement of that provision under division (C) of this section.

(2) The governor, in consultation with the commission chairperson, shall appoint an alternative energy advisory committee. The committee shall examine available technology for and related timetables, goals, and costs of the alternative energy requirement under division (B) of this section and shall submit to the commission a semiannual report of its recommendations.

(E) All costs incurred by a utility in complying with the requirements of this section shall be bypassable by any consumer that has exercised choice of supplier under section 4928.03 of the Revised Code.

Sec. 4928.65. An electric distribution utility or electric services company may use renewable energy credits for the purpose of complying with the renewable energy and solar energy resource requirements of division (B)(2) of section 4928.64 of the Revised Code. The public utilities commission shall adopt rules specifying that one unit of credit shall equal one megawatt hour of electricity derived from renewable energy resources. The rules also shall provide for this state a system of registering renewable energy credits by specifying which of any generally available registries shall be used for that purpose and not by creating a registry.

Sec. 4928.66. (A)(1) Beginning in 2009, an electric distribution utility, as well as the director of development, shall implement energy efficiency programs designed to achieve reductions in energy usage by three-tenths of one per cent in that year, increasing by an additional five-tenths of one per cent in 2010, seven-tenths of one per cent in 2011, eight-tenths of one per cent in 2012, nine-tenths of one per cent in 2013, one per cent from 2014 to 2018, and two per cent each year thereafter, achieving a cumulative energy reduction in excess of twenty-two per cent by 2025.

(2) Beginning in 2009, an electric distribution utility shall implement peak demand reduction programs designed to achieve a one per cent reduction in peak demand in 2009 and an additional seventy-five hundredths of one per cent reduction each year through 2018. In 2018, the standing committees in the house of representatives and the senate primarily dealing with energy issues shall make recommendations to the general assembly regarding future peak demand reduction targets.

For the purposes of divisions (A)(1) and (2) of this section, programs implemented by a utility may include demand-response programs and transmission and distribution infrastructure improvements that reduce line losses.

(B) In accordance with rules it shall adopt, the public utilities commission shall produce and docket at the commission an annual report containing the results of its verification of the annual levels of energy usage and peak demand reductions achieved by each electric distribution utility pursuant to division (A) of this section. A copy of the report shall be provided to the consumers' counsel.

(C) If the commission determines, after notice and hearing and based upon its report under division (B) of this section, that an electric distribution utility has failed to comply with an energy usage or peak demand reduction required by division (A) of this section, the commission shall assess a forfeiture on the utility as provided under sections 4905.55 to 4905.60 and 4905.64 of the Revised Code, either in the amount, per day per undercompliance or noncompliance, relative to the period of the report, equal to that prescribed for noncompliances under section 4905.54 of the Revised Code, or in an amount equal to the then existing market value of one renewable energy credit per megawatt hour of undercompliance or noncompliance. Revenue from any forfeiture assessed under this division shall be deposited to the credit of the renewable energy development and investment fund created under section 3706.34 of the Revised Code.

(D) The commission additionally shall adopt rules that require an electric distribution utility to provide a customer upon request with two years' consumption data in an accessible form. The rules also may provide for a decoupling mechanism that shall provide a utility reasonable recovery of lost revenue resulting from its promotion of energy efficiency to consumers. In approving such mechanism for a utility, the commission shall consider whether the utility should maintain its weather risk and shall consider appropriate consumer protections that ensure that the utility's rates or prices are just and reasonable, including, but not limited to, such protections as a cap on any percentage rate or price increase under the mechanism or on any increase in overall rates or prices resulting from the mechanism. Additionally, the rules may provide, subject to notice and hearing, for a utility for which a decoupling mechanism has not been authorized to receive just and reasonable recovery of costs the utility incurs in meeting the reductions established under division (A) of this section.

Sec. 4928.68.  The public utilities commission shall adopt rules establishing greenhouse gas emission reporting requirements, including participation in the climate registry, and carbon control planning requirements for each electric generating facility located in this state that emits greenhouse gases, including facilities in operation on the effective date of this section.

Sec. 5501.452. In accordance with section 5501.45 of the Revised Code, the director of transportation shall implement a program allowing, by lease or permit, the use of lands owned by this state and acquired or used for the state highway system, for highways, in connection with highways, or as incidental to the acquisition of land for highways by any person operating a pipeline that is necessary for the operation of a storage facility regulated under sections 1572.01 to 1572.07 of the Revised Code. The program shall be operated in accordance with guidelines in effect on January 1, 1996. "Operation of a storage facility" under this section includes operation for the purpose of transporting carbon dioxide by pipeline from its source for injection into the storage facility.

Nothing in this section shall require the director to maintain a lease or permit at a specific location or prohibit the director from modifying the terms of a specific lease or permit.

Section 2. That existing section 1571.01 of the Revised Code is hereby repealed.