To amend section 4928.61 and to enact section 4928.622 of the Revised Code to replace the current Advanced Energy Fund revenue rider on retail electric distribution service rates with a new rider that will terminate on January 1, 2025 and to permit aerospace institutes to receive Advanced Energy Fund money for advanced energy projects and economic development.

Section 1. That section 4928.61 be amended and section 4928.622 of the Revised Code be enacted to read as follows:

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

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

(1) Revenues remitted to the director after collection by each electric distribution utility in this state of a temporary rider on retail electric distribution service rates as such rates are determined by the public utilities commission pursuant to this chapter. The rider shall be a uniform amount statewide, determined by the director of development, after consultation with the public benefits advisory board created by section 4928.58 of the Revised Code. The amount shall be determined by dividing an aggregate revenue target for a given year as determined by the director, after consultation with the advisory board, by the number of customers of electric distribution utilities in this state in the prior year. Such aggregate revenue target shall not exceed more than fifteen million dollars in any year through 2005 and shall not exceed more than five million dollars in any year after 2005 imposed on residential, commercial, and industrial customers as defined by rules adopted by the public utilities commission. The amount of the rider shall be as follows:

(a) One dollar per month for residential customers;

(b) Ten dollars per month for commercial customers;

(c) Fifty dollars per month for industrial customers. The rider shall be imposed beginning on the effective date of the this amendment of this section by Sub. H.B. 251 of the 126th general assembly, January 4, 2007, and shall terminate at the end of ten years following the starting date of competitive retail electric service or until the advanced energy fund, including interest, reaches one hundred million dollars, whichever is first on January 1, 2025.

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

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

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

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

(6) Interest earnings on the advanced energy fund.

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

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

(3) All Except for remittances from revenues described in division (B)(1) of this section, all remittances under divisions (C)(1) and (2) of this section shall continue only until the end of ten years following the starting date of competitive retail electric service or until the advanced energy fund, including interest, reaches one hundred million dollars, whichever is first. Remittances from revenues described in division (B)(1) of this section shall continue until January 1, 2025.

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

Sec. 4928.622. Any aerospace institute in this state is eligible to receive up to two million five hundred thousand dollars in assistance annually for advanced energy projects and economic development from the director of development pursuant to section 4928.62 of the Revised Code provided that the institute meets the following requirements:

(A) Its mission is to develop the state's aerospace economy through research, technology, education, and collaboration;

(B) It is exempt from federal income taxation under section 501(c)(3) of the "Internal Revenue Code of 1986," as amended;

(C) It works in conjunction with the state and with federal research laboratories, private enterprises, and public and private institutions of higher education statewide;

(D) It offers its members access to seminars, workshops, and other aerospace education opportunities.

Section 2. That existing section 4928.61 of the Revised Code is hereby repealed.