To enact sections 4930.01, 4930.02, 4930.03, 4930.04, 4930.05, 4930.06, 4930.07, 4930.08, 4930.09, 4930.10, 4930.11, 4930.12, 4930.13, and 4930.14 of the Revised Code to create the Energy Efficiency Stakeholder Advisory Group to review energy efficiency and peak demand reduction programs and related matters and to require the group to make a recommendation regarding its continuation to the General Assembly by December 31, 2024.

Section 1. That sections 4930.01, 4930.02, 4930.03, 4930.04, 4930.05, 4930.06, 4930.07, 4930.08, 4930.09, 4930.10, 4930.11, 4930.12, 4930.13, and 4930.14 of the Revised Code be enacted to read as follows:

Sec. 4930.01. As used in this chapter:

(A) "Electric distribution utility" has the same meaning as in section 4928.01 of the Revised Code.

(B) "Natural gas company" has the same meaning as in section 4929.01 of the Revised Code.

(C) "Energy efficiency or peak demand reduction program" means a program designed so that an electric distribution utility or natural gas company achieves measurable energy savings or measurable reductions in peak demand for energy. An energy efficiency or peak demand reduction program includes an energy efficiency program or peak demand reduction program required under section 4928.66 of the Revised Code or by public utilities commission rule or order.

Sec. 4930.02.  (A) There is hereby created the energy efficiency stakeholder advisory group.

(B) The group shall consist of all electric distribution utilities and all natural gas companies operating within the state and any stakeholders interested in advising utilities about the design, selection, implementation, and criteria for compliance measurement and evaluation of energy efficiency and peak demand reduction programs. Stakeholders may include the following:

(1) Any person that has intervened in an electric distribution utility standard service offer application proceeding filed under section 4928.141 of the Revised Code for which there has been a final opinion and order issued by the public utilities commission;

(2) Any person that has intervened in a natural gas company rate case application proceeding filed under section 4909.18 or 4929.05 of the Revised Code for which there has been a final opinion and order issued by the commission;

(3) Any other person that, after petitioning the commission, receives commission approval to be a member of the group.

(C) The group shall meet at least once every two months and may meet more often as agreed to by its members.

(D) If the group determines it to be necessary, the group may establish subgroups that may meet to perform additional energy efficiency and peak demand reduction reviews.

Sec. 4930.03. A facilitator hired as provided in section 4930.10 of the Revised Code shall conduct all meetings of the energy efficiency stakeholder advisory group, provide expert analysis of energy efficiency and peak demand reduction programs, and perform other duties as determined by the group. The facilitator shall work for and, as appropriate, share information with all members of the group.

Sec. 4930.04. The energy efficiency stakeholder advisory group shall provide an opportunity for electric distribution utilities and natural gas companies to work with interested stakeholders to compare and review proposed and existing energy efficiency and peak demand reduction programs. The group shall review the following:

(A) Energy efficiency and peak demand reduction programs proposed by an electric distribution utility, a natural gas company, or a stakeholder;

(B) The status and outcome of existing energy efficiency and peak demand reduction programs conducted by an electric distribution utility, a natural gas company, or a stakeholder, including but not limited to, such information as energy savings and program costs;

(C) Any other matters related to energy efficiency or peak demand reduction that the group determines to be appropriate.

Sec. 4930.05. (A) Before an application for approval of an energy efficiency or peak demand reduction program may be filed with the public utilities commission, an electric distribution utility, a natural gas company, or a stakeholder shall request the energy efficiency stakeholder advisory group to conduct a review by submitting a written description of the program to the facilitator. The facilitator shall distribute the description to the members of the group at least two weeks prior to the next meeting of the group.

(B) When conducting a review, the group shall consider the compliance measurements for, and cost effectiveness of, the program in comparison to other potential programs, as well as the program's potential for energy efficiency or peak demand reduction. In order to determine whether there is a balanced allocation of energy efficiency and peak demand reduction programs among all customer classes, the group also shall consider the following:

(1) The percentage of such programs attributable to each customer class by the electric distribution company to meet the energy savings and peak demand reductions required under section 4928.66 of the Revised Code;

(2) The percentage of such programs attributable to each customer class by the natural gas company to meet the energy savings and peak demand reductions required under public utilities commission rule or order.

(C) Any member of the group may recommend alternative or additional energy efficiency or peak demand reduction programs to the electric distribution utility or natural gas company proposing a program that is under review by the group.

(D) Following its review of a program, the group shall record each member's vote to recommend the program's approval or disapproval. Each member of the group shall have one vote. For purposes of voting only, each organization or entity that is part of the group shall be considered one member regardless of the number of individuals representing that organization or entity at any group meeting.

Sec. 4930.06. After the energy efficiency stakeholder advisory group completes its review under section 4930.05 of the Revised Code, an electric distribution utility or a natural gas company may file an application for public utilities commission approval of the proposed energy efficiency or peak demand reduction program whether or not a majority of the members of the group that reviewed the program voted to recommend its approval. No electric distribution utility or natural gas company may file an application for commission approval of a program until the program has been reviewed by and has received from the group a record of participating members' recommendations for the program's approval or disapproval.

Sec. 4930.07. If an electric distribution utility or a natural gas company submits an energy efficiency or peak demand reduction program to the public utilities commission for approval after its review by the energy efficiency stakeholder advisory group, the group shall submit a record of participating members' recommendations to the commission that includes the following:

(A) A list detailing the members that voted to approve the program and those that voted to disapprove the program;

(B) Any written letters in support of or in opposition to the program;

(C) Any additional comments about the program.

Sec. 4930.08. Members of the energy efficiency stakeholder advisory group retain the right to file comments, to be docketed at the public utilities commission, regarding any application filed by an electric distribution utility or a natural gas company for approval of an energy efficiency or peak demand reduction program.

Sec. 4930.09. The public utilities commission shall docket all recommendations, comments, and accompanying written letters submitted by the energy efficiency stakeholder advisory group and its members in relation to an application filed by an electric distribution utility or a natural gas company for approval of an energy efficiency or peak demand reduction program.

Sec. 4930.10. (A) The public utilities commission shall submit a request for proposals to hire a facilitator for the energy efficiency stakeholder advisory group to perform the duties described in section 4930.03 of the Revised Code.

The commission shall publish a notice of a request for proposals in at least five major newspapers of general circulation in this state once each week for two consecutive weeks before a date specified by the commission as the date on which the commission will begin accepting proposals. The commission also shall publish the notice of the request for proposals in two or more trade papers or other publications designated by the commission. Such notice shall be published at least twice in each trade paper or publication at least two weeks prior to the date specified by the commission as the date on which the commission will begin accepting proposals. The notice shall contain a general description of the requirements for the position of facilitator and the location where the request for proposals may be obtained. The request for proposals shall include instructions and information for respondents concerning the submission of proposals, including the name and address of the office where proposals are to be submitted.

(B) The commission shall forward all responses to the request for proposals to the members of the group. The group shall select a facilitator from among the qualified respondents provided that the group shall not consider a submission from a respondent unless the following requirements are met:

(1) The respondent has submitted a resume, including references, listing the respondent's qualifications and experience evaluating energy efficiency and peak demand reduction programs.

(2) The respondent currently is not under any other contract with and, for the duration of employment as the facilitator, agrees not to enter into a contract with either of the following:

(a) An electric distribution utility that operates in this state or its subsidiary or parent or affiliated company that operates in this or another state;

(b) A natural gas company that operates in this state or its subsidiary or parent or affiliated company that operates in this or another state.

The group may establish other requirements for respondents as it considers necessary.

(C) If the members of the group are not able to reach an agreement about whom to select as a facilitator from among the qualified respondents, then the commission, after considering any comments made by members of the group, shall select the facilitator from among the qualified respondents.

Sec. 4930.11. The public utilities commission shall provide administrative support, including meeting space, necessary for the energy efficiency statewide advisory group to perform its duties.

Sec. 4930.12. (A) The energy efficiency statewide advisory group, with the assistance of the public utilities commission, may apply for and receive funds from a private foundation or other entity to support the facilitator and energy efficiency and peak demand reduction review and evaluation. The funds shall be deposited into the energy efficiency stakeholder advisory group fund created in section 4930.13 of the Revised Code.

(B) In the event that the group is unable to obtain sufficient funds from a private foundation or other entity, the group shall receive additional funds through an assessment that the commission shall apportion among and assess against electric distribution utilities and natural gas companies within the state for the sole purpose of funding the group. The assessment shall be an amount determined by the commission and may be recoverable from all electric distribution utility and natural gas company customers using a method of recovery approved by the commission.

The commission shall notify each electric distribution utility and natural gas company of the sum assessed against it, whereupon payment shall be made to the commission. Assessments collected pursuant to division (B) of this section shall be deposited into the energy efficiency stakeholder advisory group fund created under section 4930.13 of the Revised Code.

Sec. 4930.13.  (A) There is hereby created the energy efficiency stakeholder advisory group 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 the money received from the following:

(1) Grants or other money received from private foundations or other entities in support of evaluating energy efficiency and peak demand reduction programs and related matters pursuant to sections 4930.05 to 4930.08 and section 4930.12 of the Revised Code;

(2) Assessments collected pursuant to division (B) of section 4930.12 of the Revised Code.

All investment earnings of the fund shall be credited to the fund.

(B) The public utilities commission shall administer the fund and, for the members' review, shall provide members of the energy efficiency stakeholder advisory group with reports of fund expenditures and the fund's balance, as appropriate. All money in the fund shall be used by the group to do the following:

(1) Hire and pay reasonable compensation to the facilitator to assist the group;

(2) Pay the expenses incurred to evaluate proposed and existing energy efficiency and peak demand reduction programs and related matters pursuant to sections 4930.05 to 4930.08 of the Revised Code.

Sec. 4930.14. The energy efficiency stakeholder advisory group shall assess the effectiveness of its review of energy efficiency and peak demand reduction matters, including its review of programs proposed and conducted by electric distribution utilities, natural gas companies, and stakeholders under sections 4930.01 to 4930.14 of the Revised Code. Not later than December 31, 2024, the group shall issue a report to the general assembly recommending that the group continue in existence or cease to exist.