The online versions of legislation provided on this website are not official. Enrolled bills are the final version passed by the Ohio General Assembly and presented to the Governor for signature. The official version of acts signed by the Governor are available from the Secretary of State's Office in the Continental Plaza, 180 East Broad St., Columbus.
|
S. B. No. 232 As IntroducedAs Introduced
128th General Assembly | Regular Session | 2009-2010 |
| |
Cosponsors:
Senators Goodman, Jones, Wagoner
A BILL
To amend sections 3706.01 and 3706.041 of the Revised
Code to exempt from property taxation renewable
energy facilities that are not financed through
the Ohio Air Quality Development Authority and to
require a payment in lieu of taxes on the basis of
each megawatt of production capacity of such
facilities.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 3706.01 and 3706.041 of the Revised
Code be amended 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, fumes,
gas, mist, smoke, noise, vapor, heat, radioactivity, radiation, or
odorous substance, or any combination thereof.
(D) "Air pollution" means the presence in the ambient air of
one or more air contaminants in sufficient quantity and of such
characteristics and duration as to injure human health or welfare,
plant or animal life, or property, or that unreasonably interferes
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 atmosphere
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
adopted thereunder;
(2) Motor vehicle inspection stations operated in accordance
with, and any equipment used for motor vehicle inspections
conducted under, 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,
storage, treatment, utilization, processing, or final disposal of
a by-product or solid waste resulting from any method, process,
device, structure, or 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
energy conservation;
(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.
(9) Any property, device, or equipment that promotes the
reduction of emissions of air contaminants into the ambient air
through the generation of clean, renewable energy with renewable
energy resources or advanced energy resources as defined in
section 3706.25 of the Revised Code.
(10) Any property, device, structure or equipment necessary
for the manufacture and production of equipment described as an
air quality facility under this chapter.
"Air quality facility" further includes any property or
system to be used in whole or in part for any of the purposes in
divisions (G)(1) to (10) of this section, whether another purpose
is also served, and any property or system incidental to or that
has to do with, or the end purpose of which is, any of the
foregoing. Air quality facilities that are defined in this
division for industry, commerce, distribution, or research,
including public utility companies, are hereby determined to be
those that qualify as facilities for the control of air pollution
and thermal pollution related to air under Section 13 of Article
VIII, Ohio Constitution.
(H) "Project" or "air quality project" means any air quality
facility, including undivided or other interests therein, acquired
or to be acquired or constructed or to be constructed by the Ohio
air quality development authority under this chapter, or acquired
or to be acquired or constructed or to be constructed by a
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 or otherwise paid from the proceeds of air quality
revenue bonds, 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 or
structures on land so acquired, including the cost of acquiring
any lands to which such buildings or structures may be moved, the
cost of acquiring or constructing and equipping a principal office
and sub-offices of the authority, the cost of diverting highways,
interchange of highways, and access roads to private property,
including the cost of land or easements for such access roads, the
cost of public utility and common carrier relocation or
duplication, the cost of all machinery, furnishings, and
equipment, financing charges, interest prior to and during
construction and for no more than eighteen months after completion
of construction, engineering, expenses of research and development
with respect to air quality facilities, the cost of any commodity
contract, including fees and expenses related thereto, 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 construction, including the amount authorized in
the resolution of the authority providing for the issuance of air
quality revenue bonds 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 of plans and specifications, and other engineering
services, or any other cost described above, in connection with
the acquisition or 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
chapter.
(J) "Owner" includes an individual, copartnership,
association, limited liability company, 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 received
by the authority for the use or services of any air quality
project, any gift or grant received with respect to any air
quality project, any moneys received with respect to the lease,
sublease, sale, including installment sale or conditional sale, or
other disposition of an air quality project, moneys received in
repayment of and for interest on any loans made by the authority
to a person or governmental agency, whether from the United States
or any department, administration, or agency thereof, or
otherwise, proceeds of such bonds to the extent that use thereof
for payment of principal of, premium, if any, or interest on the
bonds is authorized by the authority, amounts received or
otherwise derived from a commodity contract or from the sale of
the related commodity under such a contract, 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 revenues.
(L) "Public roads" includes all public highways, roads, and
streets in the state, whether maintained by the state, county,
city, township, or other political subdivision.
(M) "Public utility facilities" includes tracks, pipes,
mains, conduits, cables, wires, towers, poles, and other equipment
and appliances of any public utility.
(N) "Construction," unless the context indicates a different
meaning or intent, includes reconstruction, enlargement,
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 notes or
renewal notes issued as the definitive obligation may be issued
maturing at such time or times with a maximum maturity of forty
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 solid
or dissolved material in domestic sewage, or solid or dissolved
material in irrigation return flows or industrial discharges that
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, as amended.
(Q) "Sludge" means any solid, semisolid, or liquid waste,
other than a recyclable 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
which ethanol or other biofuel is produced.
(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
biomass 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
testing and materials (ASTM) specification D 4806-88 and is
denatured as specified in Parts 20 and 21 of Title 27 of the Code
of Federal Regulations.
(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, including related research projects that support
the development and operation of the 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.
(V) "Commodity contract" means a contract or series of
contracts entered into in connection with the acquisition or
construction of air quality facilities for the purchase or sale of
a commodity that is eligible for prepayment with the proceeds of
federally tax exempt bonds under sections 103, 141, and 148 of the
Internal Revenue Code of 1986, as amended, and regulations adopted
under it.
(W) "Exempt energy air quality facility" means any renewable
energy project as defined by section 3706.25 of the Revised Code
for which an application is filed with the Ohio power siting
board, or upon which construction or installation is commenced, on
or after January 1, 2010, but on or before December 31, 2011, and
that is placed in service on or before December 31, 2012.
(X) "Job and economic development impact model" means the job
and economic development impact model published by the national
renewable energy laboratory of the United States department of
energy. "Job and economic development impact model" includes
economic models that project job creation and that are approved by
the air quality development authority in consultation with the
department of development for technologies for which the national
renewable energy laboratory has not developed an applicable model.
Sec. 3706.041. (A) With respect to projects, and the
financing thereof, for industry, commerce, distribution, or
research, including public utility companies, under agreements
whereby the person to whom the project is to be leased, subleased,
or sold, or to whom a loan is to be made for the project, is to
make payments sufficient to pay all of the principal of, premium,
if any, and interest on the air quality revenue bonds issued for
the project, or the counterparty under any related commodity
contract agrees to make payments sufficient in amount to pay all
of the principal of, premium, if any, and interest on the related
air quality revenue bonds, the Ohio air quality development
authority shall make appropriate provision for adequate
maintenance of the project and may, in addition to other powers
under this chapter:
(1) Make loans for the acquisition or construction of the
project to such person upon such terms as the authority may
determine or authorize, including secured or unsecured loans, and,
in connection therewith, enter into loan agreements and other
agreements, including commodity contracts, accept notes and other
forms of obligation to evidence such indebtedness and mortgages,
liens, pledges, assignments, or other security interests to secure
such indebtedness, which may be prior or subordinate to or on a
parity with other indebtedness, obligations, mortgages, pledges,
assignments, other security interests, or liens or encumbrances,
and take such actions as may be considered by it appropriate to
protect such security and safeguard against losses, including,
without limitation thereto, foreclosure and the bidding upon and
purchase of property upon foreclosure or other sale.
(2) Sell such project under such terms as it may determine,
including, without limitation thereto, sale by conditional sale or
installment sale, under which title may pass prior to or after
completion of the project or payment or provisions for payment of
all principal of, premium, if any, and interest on such bonds, or
at any other time provided in such agreement pertaining to such
sale, and including sale under an option to purchase at a price
which may be a nominal amount or less than true value at the time
of purchase.
(3) Grant a mortgage, lien, or other encumbrance on, or
pledge or assignment of, or other security interest with respect
to, all or any part of the project, revenues, reserve funds, or
other funds established in connection with such bonds, or on, of,
or with respect to any lease, sublease, sale, conditional sale or
installment sale agreement, loan agreement, or other agreement
pertaining to the lease, sublease, sale, or other disposition of a
project or pertaining to a loan made for a project, or any
guaranty or insurance agreement made with respect thereto, or any
interest of the authority therein, or any other interest granted,
assigned, or released to secure payments of the principal of,
premium, if any, or interest on the bonds or to secure any other
payments to be made by the authority, which mortgage, lien,
encumbrance, pledge, assignment, or other security interest may be
prior or subordinate to or on a parity with any other mortgage,
assignment, other security interest, or lien or encumbrance.
(4) Provide that the interest on such bonds may be at a
variable rate or rates changing from time to time in accordance
with a base or formula as authorized by the authority.
(5) Contract for the acquisition or construction of such
project or any part thereof, including any related commodity
contracts, and for the leasing, subleasing, sale or other
disposition of such project in a manner determined by the
authority in its sole discretion, without necessity for
competitive bidding or performance bonds.
(B) Property comprising a project shall not be subject to
taxes or assessments and so long as the bonds or notes issued to
finance the costs of such project are outstanding, and the
transfer of title to or possession of such property to the person
to whom a loan or installment sale or conditional sale with
respect to such project is made shall not be subject to the taxes
levied pursuant to Chapters 5739. and 5741. of the Revised Code.
The authority shall certify the property comprising a project
which is exempt from taxes and assessments pursuant to this
section, and shall send, by certified mail, copies of such
certification to the owner of such exempt property, to the tax
commissioner, and to the county auditor of the county or counties
in which any such exempt property is located.
Each county auditor shall maintain a separate list of all
property exempt pursuant to this section and sections 6121.044 and
6123.041 of the Revised Code, in addition to the list of exempt
property required to be maintained pursuant to section 5713.07 of
the Revised Code.
Any facility exempted from taxation under division (C) of
this section shall not also be exempted under this division.
(C) The authority, in the lease, sale or loan agreement with
respect to a project referred to in division (A) of this section,
shall make appropriate provision for adequate maintenance of the
project.
(1) Real and tangible personal property constituting an
exempt energy air quality facility shall not be subject to taxes
or assessments if the air quality development authority certifies
under this division that the construction and operation of the
facility creates and maintains the number of jobs as projected by
the job and economic development impact model during construction
and each year the facility is in service. The owner of the
facility shall apply to the authority for certification in the
manner prescribed by the authority. The application shall include
the facility's job creation and maintenance projection as
estimated by the job and economic development impact model. Any
facility exempted from taxation under division (B) of this section
shall not also be exempted under this division.
Within sixty days after receiving an application under this
division, the authority, in consultation with the department of
development, shall determine whether the facility qualifies for
exemption under this division and, if so, shall certify the
qualification in writing and shall send, by certified mail, copies
of the certification to the owner of the facility, to the tax
commissioner, and to the county auditor of the county or counties
in which any such exempt property is located.
(2) The owner of a facility that is exempted from taxes and
assessments under division (C) of this section shall make annual
service payments in lieu of taxes to the county treasurer of any
county in which the exempted property is located. Service payments
shall be required for each tax year for which the property is
exempt. If the facility is not owned by one or more public utility
companies, the payment shall equal six thousand dollars for each
megawatt of name plate capacity of the exempted property. If the
facility is owned by one or more public utility companies, the
payment shall equal five thousand dollars for each megawatt of
name plate capacity. The payment shall be charged, collected, and
distributed at the same time and in the same manner as the taxes
imposed on taxable property subject to assessment under Chapter
5727. of the Revised Code.
(3) The owner of an exempt energy air quality facility that
is exempted from taxation under division (C) of this section shall
do all of the following:
(a) Offer to sell power or renewable energy credits from the
exempted facility to electric distribution utilities or electric
service companies subject to renewable energy resource
requirements under section 4928.64 of the Revised Code that have
issued requests for proposal for such power or renewable energy
credits. If no electric distribution utility or electric service
company issues a request for proposal on or before December 31,
2010, or accepts an offer for power or renewable energy credits
within forty-five days after the offer is submitted, the owner of
the exempt energy air quality facility may sell the power or
renewable energy credits to other persons. Contracts made for the
sale of power or renewable energy credits before the effective
date of ..... . B. ..... of the 128th general assembly are not
subject to division (C)(3)(a) of this section.
(b) Repair all roads affected by construction as reasonably
required to restore them to their preconstruction condition;
(c) Provide or facilitate training for fire and emergency
responders to respond to emergency situations related to the
facility and, at the facility owner's expense, equip such fire and
emergency responders with proper equipment as reasonably required
to enable them to respond to such events.
(D) With respect to the projects referred to in this section,
the authority granted by this section is cumulative and
supplementary to all other authority granted in this chapter. The
authority granted by this section does not alter or impair any
similar authority granted elsewhere in this chapter for or with
respect to other projects.
Section 2. That existing sections 3706.01 and 3706.041 of
the Revised Code are hereby repealed.
|
|