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S. B. No. 34 As IntroducedAs Introduced
130th General Assembly | Regular Session | 2013-2014 |
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A BILL
To amend sections 4928.142, 4928.143, 4928.20,
4928.61, 4928.62, 5501.311, and 5727.75 and to
repeal sections 4928.64 and 4928.65 of the Revised
Code to repeal the requirement that electric
distribution utilities and electric services
companies provide 25% of their retail power
supplies from advanced and renewable energy
resources by 2025.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 4928.142, 4928.143, 4928.20,
4928.61, 4928.62, 5501.311, and 5727.75 be amended to read as
follows:
Sec. 4928.142. (A) For the purpose of complying with section
4928.141 of the Revised Code and subject to division (D) of this
section and, as applicable, subject to the rate plan requirement
of division (A) of section 4928.141 of the Revised Code, an
electric distribution utility may establish a standard service
offer price for retail electric generation service that is
delivered to the utility under a market-rate offer.
(1) The market-rate offer shall be determined through a
competitive bidding process that provides for all of the
following:
(a) Open, fair, and transparent competitive solicitation;
(b) Clear product definition;
(c) Standardized bid evaluation criteria;
(d) Oversight by an independent third party that shall design
the solicitation, administer the bidding, and ensure that the
criteria specified in division divisions (A)(1)(a) to (c) of this
section are met;
(e) Evaluation of the submitted bids prior to the selection
of the least-cost bid winner or winners.
No generation supplier shall be prohibited from participating
in the bidding process.
(2) The public utilities commission shall modify rules, or
adopt new rules as necessary, concerning the conduct of the
competitive bidding process and the qualifications of bidders,
which rules shall foster supplier participation in the bidding
process and shall be consistent with the requirements of division
(A)(1) of this section.
(B) Prior to initiating a competitive bidding process for a
market-rate offer under division (A) of this section, the electric
distribution utility shall file an application with the
commission. An electric distribution utility may file its
application with the commission prior to the effective date of the
commission rules required under division (A)(2) of this section,
and, as the commission determines necessary, the utility shall
immediately conform its filing to the rules upon their taking
effect.
An application under this division shall detail the electric
distribution utility's proposed compliance with the requirements
of division (A)(1) of this section and with commission rules under
division (A)(2) of this section and demonstrate that all of the
following requirements are met:
(1) The electric distribution utility or its transmission
service affiliate belongs to at least one regional transmission
organization that has been approved by the federal energy
regulatory commission; or there otherwise is comparable and
nondiscriminatory access to the electric transmission grid.
(2) Any such regional transmission organization has a
market-monitor function and the ability to take actions to
identify and mitigate market power or the electric distribution
utility's market conduct; or a similar market monitoring function
exists with commensurate ability to identify and monitor market
conditions and mitigate conduct associated with the exercise of
market power.
(3) A published source of information is available publicly
or through subscription that identifies pricing information for
traded electricity on- and off-peak energy products that are
contracts for delivery beginning at least two years from the date
of the publication and is updated on a regular basis.
The commission shall initiate a proceeding and, within ninety
days after the application's filing date, shall determine by order
whether the electric distribution utility and its market-rate
offer meet all of the foregoing requirements. If the finding is
positive, the electric distribution utility may initiate its
competitive bidding process. If the finding is negative as to one
or more requirements, the commission in the order shall direct the
electric distribution utility regarding how any deficiency may be
remedied in a timely manner to the commission's satisfaction;
otherwise, the electric distribution utility shall withdraw the
application. However, if such remedy is made and the subsequent
finding is positive and also if the electric distribution utility
made a simultaneous filing under this section and section 4928.143
of the Revised Code, the utility shall not initiate its
competitive bid until at least one hundred fifty days after the
filing date of those applications.
(C) Upon the completion of the competitive bidding process
authorized by divisions (A) and (B) of this section, including for
the purpose of division (D) of this section, the commission shall
select the least-cost bid winner or winners of that process, and
such selected bid or bids, as prescribed as retail rates by the
commission, shall be the electric distribution utility's standard
service offer unless the commission, by order issued before the
third calendar day following the conclusion of the competitive
bidding process for the market rate offer, determines that one or
more of the following criteria were not met:
(1) Each portion of the bidding process was oversubscribed,
such that the amount of supply bid upon was greater than the
amount of the load bid out.
(2) There were four or more bidders.
(3) At least twenty-five per cent of the load is bid upon by
one or more persons other than the electric distribution utility.
All costs incurred by the electric distribution utility as a
result of or related to the competitive bidding process or to
procuring generation service to provide the standard service
offer, including the costs of energy and capacity and the costs of
all other products and services procured as a result of the
competitive bidding process, shall be timely recovered through the
standard service offer price, and, for that purpose, the
commission shall approve a reconciliation mechanism, other
recovery mechanism, or a combination of such mechanisms for the
utility.
(D) The first application filed under this section by an
electric distribution utility that, as of July 31, 2008, directly
owns, in whole or in part, operating electric generating
facilities that had been used and useful in this state shall
require that a portion of that utility's standard service offer
load for the first five years of the market rate offer be
competitively bid under division (A) of this section as follows:
ten per cent of the load in year one, not more than twenty per
cent in year two, thirty per cent in year three, forty per cent in
year four, and fifty per cent in year five. Consistent with those
percentages, the commission shall determine the actual percentages
for each year of years one through five. The standard service
offer price for retail electric generation service under this
first application shall be a proportionate blend of the bid price
and the generation service price for the remaining standard
service offer load, which latter price shall be equal to the
electric distribution utility's most recent standard service offer
price, adjusted upward or downward as the commission determines
reasonable, relative to the jurisdictional portion of any known
and measurable changes from the level of any one or more of the
following costs as reflected in that most recent standard service
offer price:
(1) The electric distribution utility's prudently incurred
cost of fuel used to produce electricity;
(2) Its prudently incurred purchased power costs;
(3) Its prudently incurred costs of satisfying the supply and
demand portfolio requirements of this state, including, but not
limited to, renewable energy resource and energy efficiency
requirements;
(4) Its costs prudently incurred to comply with environmental
laws and regulations, with consideration of the derating of any
facility associated with those costs.
In making any adjustment to the most recent standard service
offer price on the basis of costs described in division (D) of
this section, the commission shall include the benefits that may
become available to the electric distribution utility as a result
of or in connection with the costs included in the adjustment,
including, but not limited to, the utility's receipt of emissions
credits or its receipt of tax benefits or of other benefits, and,
accordingly, the commission may impose such conditions on the
adjustment to ensure that any such benefits are properly aligned
with the associated cost responsibility. The commission shall also
determine how such adjustments will affect the electric
distribution utility's return on common equity that may be
achieved by those adjustments. The commission shall not apply its
consideration of the return on common equity to reduce any
adjustments authorized under this division unless the adjustments
will cause the electric distribution utility to earn a return on
common equity that is significantly in excess of the return on
common equity that is earned by publicly traded companies,
including utilities, that face comparable business and financial
risk, with such adjustments for capital structure as may be
appropriate. The burden of proof for demonstrating that
significantly excessive earnings will not occur shall be on the
electric distribution utility.
Additionally, the commission may adjust the electric
distribution utility's most recent standard service offer price by
such just and reasonable amount that the commission determines
necessary to address any emergency that threatens the utility's
financial integrity or to ensure that the resulting revenue
available to the utility for providing the standard service offer
is not so inadequate as to result, directly or indirectly, in a
taking of property without compensation pursuant to Section 19 of
Article I, Ohio Constitution. The electric distribution utility
has the burden of demonstrating that any adjustment to its most
recent standard service offer price is proper in accordance with
this division.
(E) Beginning in the second year of a blended price under
division (D) of this section and notwithstanding any other
requirement of this section, the commission may alter
prospectively the proportions specified in that division to
mitigate any effect of an abrupt or significant change in the
electric distribution utility's standard service offer price that
would otherwise result in general or with respect to any rate
group or rate schedule but for such alteration. Any such
alteration shall be made not more often than annually, and the
commission shall not, by altering those proportions and in any
event, including because of the length of time, as authorized
under division (C) of this section, taken to approve the market
rate offer, cause the duration of the blending period to exceed
ten years as counted from the effective date of the approved
market rate offer. Additionally, any such alteration shall be
limited to an alteration affecting the prospective proportions
used during the blending period and shall not affect any blending
proportion previously approved and applied by the commission under
this division.
(F) An electric distribution utility that has received
commission approval of its first application under division (C) of
this section shall not, nor ever shall be authorized or required
by the commission to, file an application under section 4928.143
of the Revised Code.
Sec. 4928.143. (A) For the purpose of complying with section
4928.141 of the Revised Code, an electric distribution utility may
file an application for public utilities commission approval of an
electric security plan as prescribed under division (B) of this
section. The utility may file that application prior to the
effective date of any rules the commission may adopt for the
purpose of this section, and, as the commission determines
necessary, the utility immediately shall conform its filing to
those rules upon their taking effect.
(B) Notwithstanding any other provision of Title XLIX of the
Revised Code to the contrary except division (D) of this section,
divisions (I), (J), and (K) of section 4928.20, division (E) of
section 4928.64, and section 4928.69 of the Revised Code:
(1) An electric security plan shall include provisions
relating to the supply and pricing of electric generation service.
In addition, if the proposed electric security plan has a term
longer than three years, it may include provisions in the plan to
permit the commission to test the plan pursuant to division (E) of
this section and any transitional conditions that should be
adopted by the commission if the commission terminates the plan as
authorized under that division.
(2) The plan may provide for or include, without limitation,
any of the following:
(a) Automatic recovery of any of the following costs of the
electric distribution utility, provided the cost is prudently
incurred: the cost of fuel used to generate the electricity
supplied under the offer; the cost of purchased power supplied
under the offer, including the cost of energy and capacity, and
including purchased power acquired from an affiliate; the cost of
emission allowances; and the cost of federally mandated carbon or
energy taxes;
(b) A reasonable allowance for construction work in progress
for any of the electric distribution utility's cost of
constructing an electric generating facility or for an
environmental expenditure for any electric generating facility of
the electric distribution utility, provided the cost is incurred
or the expenditure occurs on or after January 1, 2009. Any such
allowance shall be subject to the construction work in progress
allowance limitations of division (A) of section 4909.15 of the
Revised Code, except that the commission may authorize such an
allowance upon the incurrence of the cost or occurrence of the
expenditure. No such allowance for generating facility
construction shall be authorized, however, unless the commission
first determines in the proceeding that there is need for the
facility based on resource planning projections submitted by the
electric distribution utility. Further, no such allowance shall be
authorized unless the facility's construction was sourced through
a competitive bid process, regarding which process the commission
may adopt rules. An allowance approved under division (B)(2)(b) of
this section shall be established as a nonbypassable surcharge for
the life of the facility.
(c) The establishment of a nonbypassable surcharge for the
life of an electric generating facility that is owned or operated
by the electric distribution utility, was sourced through a
competitive bid process subject to any such rules as the
commission adopts under division (B)(2)(b) of this section, and is
newly used and useful on or after January 1, 2009, which surcharge
shall cover all costs of the utility specified in the application,
excluding costs recovered through a surcharge under division
(B)(2)(b) of this section. However, no surcharge shall be
authorized unless the commission first determines in the
proceeding that there is need for the facility based on resource
planning projections submitted by the electric distribution
utility. Additionally, if a surcharge is authorized for a facility
pursuant to plan approval under division (C) of this section and
as a condition of the continuation of the surcharge, the electric
distribution utility shall dedicate to Ohio consumers the capacity
and energy and the rate associated with the cost of that facility.
Before the commission authorizes any surcharge pursuant to this
division, it may consider, as applicable, the effects of any
decommissioning, deratings, and retirements.
(d) Terms, conditions, or charges relating to limitations on
customer shopping for retail electric generation service,
bypassability, standby, back-up, or supplemental power service,
default service, carrying costs, amortization periods, and
accounting or deferrals, including future recovery of such
deferrals, as would have the effect of stabilizing or providing
certainty regarding retail electric service;
(e) Automatic increases or decreases in any component of the
standard service offer price;
(f) Consistent with sections 4928.23 to 4928.2318 of the
Revised Code, both of the following:
(i) Provisions for the electric distribution utility to
securitize any phase-in, inclusive of carrying charges, of the
utility's standard service offer price, which phase-in is
authorized in accordance with section 4928.144 of the Revised
Code;
(ii) Provisions for the recovery of the utility's cost of
securitization.
(g) Provisions relating to transmission, ancillary,
congestion, or any related service required for the standard
service offer, including provisions for the recovery of any cost
of such service that the electric distribution utility incurs on
or after that date pursuant to the standard service offer;
(h) Provisions regarding the utility's distribution service,
including, without limitation and notwithstanding any provision of
Title XLIX of the Revised Code to the contrary, provisions
regarding single issue ratemaking, a revenue decoupling mechanism
or any other incentive ratemaking, and provisions regarding
distribution infrastructure and modernization incentives for the
electric distribution utility. The latter may include a long-term
energy delivery infrastructure modernization plan for that utility
or any plan providing for the utility's recovery of costs,
including lost revenue, shared savings, and avoided costs, and a
just and reasonable rate of return on such infrastructure
modernization. As part of its determination as to whether to allow
in an electric distribution utility's electric security plan
inclusion of any provision described in division (B)(2)(h) of this
section, the commission shall examine the reliability of the
electric distribution utility's distribution system and ensure
that customers' and the electric distribution utility's
expectations are aligned and that the electric distribution
utility is placing sufficient emphasis on and dedicating
sufficient resources to the reliability of its distribution
system.
(i) Provisions under which the electric distribution utility
may implement economic development, job retention, and energy
efficiency programs, which provisions may allocate program costs
across all classes of customers of the utility and those of
electric distribution utilities in the same holding company
system.
(C)(1) The burden of proof in the proceeding shall be on the
electric distribution utility. The commission shall issue an order
under this division for an initial application under this section
not later than one hundred fifty days after the application's
filing date and, for any subsequent application by the utility
under this section, not later than two hundred seventy-five days
after the application's filing date. Subject to division (D) of
this section, the commission by order shall approve or modify and
approve an application filed under division (A) of this section if
it finds that the electric security plan so approved, including
its pricing and all other terms and conditions, including any
deferrals and any future recovery of deferrals, is more favorable
in the aggregate as compared to the expected results that would
otherwise apply under section 4928.142 of the Revised Code.
Additionally, if the commission so approves an application that
contains a surcharge under division (B)(2)(b) or (c) of this
section, the commission shall ensure that the benefits derived for
any purpose for which the surcharge is established are reserved
and made available to those that bear the surcharge. Otherwise,
the commission by order shall disapprove the application.
(2)(a) If the commission modifies and approves an application
under division (C)(1) of this section, the electric distribution
utility may withdraw the application, thereby terminating it, and
may file a new standard service offer under this section or a
standard service offer under section 4928.142 of the Revised Code.
(b) If the utility terminates an application pursuant to
division (C)(2)(a) of this section or if the commission
disapproves an application under division (C)(1) of this section,
the commission shall issue such order as is necessary to continue
the provisions, terms, and conditions of the utility's most recent
standard service offer, along with any expected increases or
decreases in fuel costs from those contained in that offer, until
a subsequent offer is authorized pursuant to this section or
section 4928.142 of the Revised Code, respectively.
(D) Regarding the rate plan requirement of division (A) of
section 4928.141 of the Revised Code, if an electric distribution
utility that has a rate plan that extends beyond December 31,
2008, files an application under this section for the purpose of
its compliance with division (A) of section 4928.141 of the
Revised Code, that rate plan and its terms and conditions are
hereby incorporated into its proposed electric security plan and
shall continue in effect until the date scheduled under the rate
plan for its expiration, and that portion of the electric security
plan shall not be subject to commission approval or disapproval
under division (C) of this section, and the earnings test provided
for in division (F) of this section shall not apply until after
the expiration of the rate plan. However, that utility may include
in its electric security plan under this section, and the
commission may approve, modify and approve, or disapprove subject
to division (C) of this section, provisions for the incremental
recovery or the deferral of any costs that are not being recovered
under the rate plan and that the utility incurs during that
continuation period to comply with section 4928.141, division (B)
of section 4928.64, of the Revised Code or division (A) of section
4928.66 of the Revised Code.
(E) If an electric security plan approved under division (C)
of this section, except one withdrawn by the utility as authorized
under that division, has a term, exclusive of phase-ins or
deferrals, that exceeds three years from the effective date of the
plan, the commission shall test the plan in the fourth year, and
if applicable, every fourth year thereafter, to determine whether
the plan, including its then-existing pricing and all other terms
and conditions, including any deferrals and any future recovery of
deferrals, continues to be more favorable in the aggregate and
during the remaining term of the plan as compared to the expected
results that would otherwise apply under section 4928.142 of the
Revised Code. The commission shall also determine the prospective
effect of the electric security plan to determine if that effect
is substantially likely to provide the electric distribution
utility with a return on common equity that is significantly in
excess of the return on common equity that is likely to be earned
by publicly traded companies, including utilities, that face
comparable business and financial risk, with such adjustments for
capital structure as may be appropriate. The burden of proof for
demonstrating that significantly excessive earnings will not occur
shall be on the electric distribution utility. If the test results
are in the negative or the commission finds that continuation of
the electric security plan will result in a return on equity that
is significantly in excess of the return on common equity that is
likely to be earned by publicly traded companies, including
utilities, that will face comparable business and financial risk,
with such adjustments for capital structure as may be appropriate,
during the balance of the plan, the commission may terminate the
electric security plan, but not until it shall have provided
interested parties with notice and an opportunity to be heard. The
commission may impose such conditions on the plan's termination as
it considers reasonable and necessary to accommodate the
transition from an approved plan to the more advantageous
alternative. In the event of an electric security plan's
termination pursuant to this division, the commission shall permit
the continued deferral and phase-in of any amounts that occurred
prior to that termination and the recovery of those amounts as
contemplated under that electric security plan.
(F) With regard to the provisions that are included in an
electric security plan under this section, the commission shall
consider, following the end of each annual period of the plan, if
any such adjustments resulted in excessive earnings as measured by
whether the earned return on common equity of the electric
distribution utility is significantly in excess of the return on
common equity that was earned during the same period by publicly
traded companies, including utilities, that face comparable
business and financial risk, with such adjustments for capital
structure as may be appropriate. Consideration also shall be given
to the capital requirements of future committed investments in
this state. The burden of proof for demonstrating that
significantly excessive earnings did not occur shall be on the
electric distribution utility. If the commission finds that such
adjustments, in the aggregate, did result in significantly
excessive earnings, it shall require the electric distribution
utility to return to consumers the amount of the excess by
prospective adjustments; provided that, upon making such
prospective adjustments, the electric distribution utility shall
have the right to terminate the plan and immediately file an
application pursuant to section 4928.142 of the Revised Code. Upon
termination of a plan under this division, rates shall be set on
the same basis as specified in division (C)(2)(b) of this section,
and the commission shall permit the continued deferral and
phase-in of any amounts that occurred prior to that termination
and the recovery of those amounts as contemplated under that
electric security plan. In making its determination of
significantly excessive earnings under this division, the
commission shall not consider, directly or indirectly, the
revenue, expenses, or earnings of any affiliate or parent company.
Sec. 4928.20. (A) The legislative authority of a municipal
corporation may adopt an ordinance, or the board of township
trustees of a township or the board of county commissioners of a
county may adopt a resolution, under which, on or after the
starting date of competitive retail electric service, it may
aggregate in accordance with this section the retail electrical
loads located, respectively, within the municipal corporation,
township, or unincorporated area of the county and, for that
purpose, may enter into service agreements to facilitate for those
loads the sale and purchase of electricity. The legislative
authority or board also may exercise such authority jointly with
any other such legislative authority or board. For customers that
are not mercantile customers, an ordinance or resolution under
this division shall specify whether the aggregation will occur
only with the prior, affirmative consent of each person owning,
occupying, controlling, or using an electric load center proposed
to be aggregated or will occur automatically for all such persons
pursuant to the opt-out requirements of division (D) of this
section. The aggregation of mercantile customers shall occur only
with the prior, affirmative consent of each such person owning,
occupying, controlling, or using an electric load center proposed
to be aggregated. Nothing in this division, however, authorizes
the aggregation of the retail electric loads of an electric load
center, as defined in section 4933.81 of the Revised Code, that is
located in the certified territory of a nonprofit electric
supplier under sections 4933.81 to 4933.90 of the Revised Code or
an electric load center served by transmission or distribution
facilities of a municipal electric utility.
(B) If an ordinance or resolution adopted under division (A)
of this section specifies that aggregation of customers that are
not mercantile customers will occur automatically as described in
that division, the ordinance or resolution shall direct the board
of elections to submit the question of the authority to aggregate
to the electors of the respective municipal corporation, township,
or unincorporated area of a county at a special election on the
day of the next primary or general election in the municipal
corporation, township, or county. The legislative authority or
board shall certify a copy of the ordinance or resolution to the
board of elections not less than ninety days before the day of the
special election. No ordinance or resolution adopted under
division (A) of this section that provides for an election under
this division shall take effect unless approved by a majority of
the electors voting upon the ordinance or resolution at the
election held pursuant to this division.
(C) Upon the applicable requisite authority under divisions
(A) and (B) of this section, the legislative authority or board
shall develop a plan of operation and governance for the
aggregation program so authorized. Before adopting a plan under
this division, the legislative authority or board shall hold at
least two public hearings on the plan. Before the first hearing,
the legislative authority or board shall publish notice of the
hearings once a week for two consecutive weeks in a newspaper of
general circulation in the jurisdiction or as provided in section
7.16 of the Revised Code. The notice shall summarize the plan and
state the date, time, and location of each hearing.
(D) No legislative authority or board, pursuant to an
ordinance or resolution under divisions (A) and (B) of this
section that provides for automatic aggregation of customers that
are not mercantile customers as described in division (A) of this
section, shall aggregate the electrical load of any electric load
center located within its jurisdiction unless it in advance
clearly discloses to the person owning, occupying, controlling, or
using the load center that the person will be enrolled
automatically in the aggregation program and will remain so
enrolled unless the person affirmatively elects by a stated
procedure not to be so enrolled. The disclosure shall state
prominently the rates, charges, and other terms and conditions of
enrollment. The stated procedure shall allow any person enrolled
in the aggregation program the opportunity to opt out of the
program every three years, without paying a switching fee. Any
such person that opts out before the commencement of the
aggregation program pursuant to the stated procedure shall default
to the standard service offer provided under section 4928.14 or
division (D) of section 4928.35 of the Revised Code until the
person chooses an alternative supplier.
(E)(1) With respect to a governmental aggregation for a
municipal corporation that is authorized pursuant to divisions (A)
to (D) of this section, resolutions may be proposed by initiative
or referendum petitions in accordance with sections 731.28 to
731.41 of the Revised Code.
(2) With respect to a governmental aggregation for a township
or the unincorporated area of a county, which aggregation is
authorized pursuant to divisions (A) to (D) of this section,
resolutions may be proposed by initiative or referendum petitions
in accordance with sections 731.28 to 731.40 of the Revised Code,
except that:
(a) The petitions shall be filed, respectively, with the
township fiscal officer or the board of county commissioners, who
shall perform those duties imposed under those sections upon the
city auditor or village clerk.
(b) The petitions shall contain the signatures of not less
than ten per cent of the total number of electors in,
respectively, the township or the unincorporated area of the
county who voted for the office of governor at the preceding
general election for that office in that area.
(F) A governmental aggregator under division (A) of this
section is not a public utility engaging in the wholesale purchase
and resale of electricity, and provision of the aggregated service
is not a wholesale utility transaction. A governmental aggregator
shall be subject to supervision and regulation by the public
utilities commission only to the extent of any competitive retail
electric service it provides and commission authority under this
chapter.
(G) This section does not apply in the case of a municipal
corporation that supplies such aggregated service to electric load
centers to which its municipal electric utility also supplies a
noncompetitive retail electric service through transmission or
distribution facilities the utility singly or jointly owns or
operates.
(H) A governmental aggregator shall not include in its
aggregation the accounts of any of the following:
(1) A customer that has opted out of the aggregation;
(2) A customer in contract with a certified electric services
company;
(3) A customer that has a special contract with an electric
distribution utility;
(4) A customer that is not located within the governmental
aggregator's governmental boundaries;
(5) Subject to division (C) of section 4928.21 of the Revised
Code, a customer who appears on the "do not aggregate" list
maintained under that section.
(I) Customers that are part of a governmental aggregation
under this section shall be responsible only for such portion of a
surcharge under section 4928.144 of the Revised Code that is
proportionate to the benefits, as determined by the commission,
that electric load centers within the jurisdiction of the
governmental aggregation as a group receive. The proportionate
surcharge so established shall apply to each customer of the
governmental aggregation while the customer is part of that
aggregation. If a customer ceases being such a customer, the
otherwise applicable surcharge shall apply. Nothing in this
section shall result in less than full recovery by an electric
distribution utility of any surcharge authorized under section
4928.144 of the Revised Code. Nothing in this section shall result
in less than the full and timely imposition, charging, collection,
and adjustment by an electric distribution utility, its assignee,
or any collection agent, of the phase-in-recovery charges
authorized pursuant to a final financing order issued pursuant to
sections 4928.23 to 4928.2318 of the Revised Code.
(J) On behalf of the customers that are part of a
governmental aggregation under this section and by filing written
notice with the public utilities commission, the legislative
authority that formed or is forming that governmental aggregation
may elect not to receive standby service within the meaning of
division (B)(2)(d) of section 4928.143 of the Revised Code from an
electric distribution utility in whose certified territory the
governmental aggregation is located and that operates under an
approved electric security plan under that section. Upon the
filing of that notice, the electric distribution utility shall not
charge any such customer to whom competitive retail electric
generation service is provided by another supplier under the
governmental aggregation for the standby service. Any such
consumer that returns to the utility for competitive retail
electric service shall pay the market price of power incurred by
the utility to serve that consumer plus any amount attributable to
the utility's cost of compliance with the alternative energy
resource provisions of section 4928.64 of the Revised Code to
serve the consumer. Such market price shall include, but not be
limited to, capacity and energy charges; all charges associated
with the provision of that power supply through the regional
transmission organization, including, but not limited to,
transmission, ancillary services, congestion, and settlement and
administrative charges; and all other costs incurred by the
utility that are associated with the procurement, provision, and
administration of that power supply, as such costs may be approved
by the commission. The period of time during which the market
price and alternative energy resource amount shall be so assessed
on the consumer shall be from the time the consumer so returns to
the electric distribution utility until the expiration of the
electric security plan. However, if that period of time is
expected to be more than two years, the commission may reduce the
time period to a period of not less than two years.
(K) The commission shall adopt rules to encourage and promote
large-scale governmental aggregation in this state. For that
purpose, the commission shall conduct an immediate review of any
rules it has adopted for the purpose of this section that are in
effect on the effective date of the amendment of this section by
S.B. 221 of the 127th general assembly, July 31, 2008. Further,
within the context of an electric security plan under section
4928.143 of the Revised Code, the commission shall consider the
effect on large-scale governmental aggregation of any
nonbypassable generation charges, however collected, that would be
established under that plan, except any nonbypassable generation
charges that relate to any cost incurred by the electric
distribution utility, the deferral of which has been authorized by
the commission prior to the effective date of the amendment of
this section by S.B. 221 of the 127th general assembly, July 31,
2008.
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.
The rider shall be imposed beginning on the effective date of the
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.
(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)(5) Funds transferred pursuant to division (B) of Section
512.10 of S.B. 315 of the 129th general assembly;
(7)(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 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.
(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. 4928.62. (A) There is hereby created the advanced
energy program, which shall be administered by the director of
development. Under the program, the director may authorize the use
of moneys in the advanced energy fund for financial, technical,
and related assistance for advanced energy projects in this state
or for economic development assistance, in furtherance of the
purposes set forth in section 4928.63 of the Revised Code.
(1) To the extent feasible given approved applications for
assistance, the assistance shall be distributed among the
certified territories of electric distribution utilities and
participating electric cooperatives, and among the service areas
of participating municipal electric utilities, in amounts
proportionate to the remittances of each utility and cooperative
under divisions (B)(1) and (3) of section 4928.61 of the Revised
Code.
(2) The funds described in division (B)(6)(5) of section
4928.61 of the Revised Code shall not be subject to the
territorial requirements of division (A)(1) of this section.
(3) The director shall not authorize financial assistance for
an advanced energy project under the program unless the director
first determines that the project will create new jobs or preserve
existing jobs in this state or use innovative technologies or
materials.
(B) In carrying out sections 4928.61 to 4928.63 of the
Revised Code, the director may do all of the following to further
the public interest in advanced energy projects and economic
development:
(1) Award grants, contracts, loans, loan participation
agreements, linked deposits, and energy production incentives;
(2) Acquire in the name of the director any property of any
kind or character in accordance with this section, by purchase,
purchase at foreclosure, or exchange, on such terms and in such
manner as the director considers proper;
(3) Make and enter into all contracts and agreements
necessary or incidental to the performance of the director's
duties and the exercise of the director's powers under sections
4928.61 to 4928.63 of the Revised Code;
(4) Employ or enter into contracts with financial
consultants, marketing consultants, consulting engineers,
architects, managers, construction experts, attorneys, technical
monitors, energy evaluators, or other employees or agents as the
director considers necessary, and fix their compensation;
(5) Adopt rules prescribing the application procedures for
financial assistance under the advanced energy program; the fees,
charges, interest rates, payment schedules, local match
requirements, and other terms and conditions of any grants,
contracts, loans, loan participation agreements, linked deposits,
and energy production incentives; criteria pertaining to the
eligibility of participating lending institutions; and any other
matters necessary for the implementation of the program;
(6) Do all things necessary and appropriate for the operation
of the program.
(C) The department of development may hold ownership to any
unclaimed energy efficiency and renewable energy emission
allowances provided for in Chapter 3745-14 of the Administrative
Code or otherwise, that result from advanced energy projects that
receive funding from the advanced energy fund, and it may use the
allowances to further the public interest in advanced energy
projects or for economic development.
(D) Financial statements, financial data, and trade secrets
submitted to or received by the director from an applicant or
recipient of financial assistance under sections 4928.61 to
4928.63 of the Revised Code, or any information taken from those
statements, data, or trade secrets for any purpose, are not public
records for the purpose of section 149.43 of the Revised Code.
(E) Nothing in the amendments of sections 4928.61, 4928.62,
and 4928.63 of the Revised Code by Sub. H.B. 251 of the 126th
general assembly shall affect any pending or effected assistance,
pending or effected purchases or exchanges of property made, or
pending or effected contracts or agreements entered into pursuant
to division (A) or (B) of this section as the section existed
prior to the effective date of those amendments, January 4, 2007,
or shall affect the exemption provided under division (C) of this
section as the section existed prior to that effective date.
(F) Any assistance a school district receives for an advanced
energy project, including a geothermal heating, ventilating, and
air conditioning system, shall be in addition to any assistance
provided under Chapter 3318. of the Revised Code and shall not be
included as part of the district or state portion of the basic
project cost under that chapter.
Sec. 5501.311. (A) As used in this section, "alternative
energy generating facility" means a facility that uses advanced
energy or renewable energy resources to produce electricity.
"Advanced energy resource" and "renewable energy resources" have
the same meaning as in section 4928.01 of the Revised Code.
(B) Notwithstanding sections 123.01 and 127.16 of the Revised
Code the director of transportation may lease or lease-purchase
all or any part of a transportation facility to or from one or
more persons, one or more governmental agencies, a transportation
improvement district, or any combination thereof, and may grant
leases, easements, or licenses for lands under the control of the
department of transportation. The director may adopt rules
necessary to give effect to this section.
(B)(C) Plans and specifications for the construction of a
transportation facility under a lease or lease-purchase agreement
are subject to approval of the director and must meet or exceed
all applicable standards of the department.
(C)(D) Any lease or lease-purchase agreement under which the
department is the lessee shall be for a period not exceeding the
then current two-year period for which appropriations have been
made by the general assembly to the department, and such agreement
may contain such other terms as the department and the other
parties thereto agree, notwithstanding any other provision of law,
including provisions that rental payments in amounts sufficient to
pay bond service charges payable during the current two-year lease
term shall be an absolute and unconditional obligation of the
department independent of all other duties under the agreement
without set-off or deduction or any other similar rights or
defenses. Any such agreement may provide for renewal of the
agreement at the end of each term for another term, not exceeding
two years, provided that no renewal shall be effective until the
effective date of an appropriation enacted by the general assembly
from which the department may lawfully pay rentals under such
agreement. Any such agreement may include, without limitation, any
agreement by the department with respect to any costs of
transportation facilities to be included prior to acquisition and
construction of such transportation facilities. Any such agreement
shall not constitute a debt or pledge of the faith and credit of
the state, or of any political subdivision of the state, and the
lessor shall have no right to have taxes or excises levied by the
general assembly, or the taxing authority of any political
subdivision of the state, for the payment of rentals thereunder.
Any such agreement shall contain a statement to that effect.
(D)(E) A municipal corporation, township, or county may use
service payments in lieu of taxes credited to special funds or
accounts pursuant to sections 5709.43, 5709.75, and 5709.80 of the
Revised Code to provide its contribution to the cost of a
transportation facility, provided such facility was among the
purposes for which such service payments were authorized. The
contribution may be in the form of a lump sum or periodic
payments.
(E)(F) Pursuant to the "Telecommunications Act of 1996," 110
Stat. 152, 47 U.S.C. 332 note, the director may grant a lease,
easement, or license in a transportation facility to a
telecommunications service provider for construction, placement,
or operation of a telecommunications facility. An interest granted
under this division is subject to all of the following conditions:
(1) The transportation facility is owned in fee simple or
easement by this state at the time the lease, easement, or license
is granted to the telecommunications provider.
(2) The lease, easement, or license shall be granted on a
competitive basis in accordance with policies and procedures to be
determined by the director. The policies and procedures may
include provisions for master leases for multiple sites.
(3) The telecommunications facility shall be designed to
accommodate the state's multi-agency radio communication system,
the intelligent transportation system, and the department's
communication system as the director may determine is necessary
for highway or other departmental purposes.
(4) The telecommunications facility shall be designed to
accommodate such additional telecommunications equipment as may
feasibly be co-located thereon as determined in the discretion of
the director.
(5) The telecommunications service providers awarded the
lease, easement, or license, agree to permit other
telecommunications service providers to co-locate on the
telecommunications facility, and agree to the terms and conditions
of the co-location as determined in the discretion of the
director.
(6) The director shall require indemnity agreements in favor
of the department as a condition of any lease, easement, or
license granted under this division. Each indemnity agreement
shall secure this state and its agents from liability for damages
arising out of safety hazards, zoning, and any other matter of
public interest the director considers necessary.
(7) The telecommunications service provider fully complies
with any permit issued under section 5515.01 of the Revised Code
pertaining to land that is the subject of the lease, easement, or
license.
(8) All plans and specifications shall meet with the
director's approval.
(9) Any other conditions the director determines necessary.
(F)(G) In accordance with section 5501.031 of the Revised
Code, to further efforts to promote energy conservation and energy
efficiency, the director may grant a lease, easement, or license
in a transportation facility to a utility service provider that
has received its certificate from the Ohio power siting board or
appropriate local entity for construction, placement, or operation
of an alternative energy generating facility service provider as
defined in section 4928.64 of the Revised Code. An interest
granted under this division is subject to all of the following
conditions:
(1) The transportation facility is owned in fee simple or in
easement by this state at the time the lease, easement, or license
is granted to the utility service provider.
(2) The lease, easement, or license shall be granted on a
competitive basis in accordance with policies and procedures to be
determined by the director. The policies and procedures may
include provisions for master leases for multiple sites.
(3) The alternative energy generating facility shall be
designed to provide energy for the department's transportation
facilities with the potential for selling excess power on the
power grid, as the director may determine is necessary for highway
or other departmental purposes.
(4) The director shall require indemnity agreements in favor
of the department as a condition of any lease, easement, or
license granted under this division. Each indemnity agreement
shall secure this state from liability for damages arising out of
safety hazards, zoning, and any other matter of public interest
the director considers necessary.
(5) The alternative energy service generating facility and
utility service provider fully complies comply with any permit
issued by the Ohio power siting board under Chapter 4906. of the
Revised Code and complies comply with section 5515.01 of the
Revised Code pertaining to land that is the subject of the lease,
easement, or license.
(6) All plans and specifications shall meet with the
director's approval.
(7) Any other conditions the director determines necessary.
(G)(H) Money the department receives under divisions (E) and
(F) and (G) of this section shall be deposited into the state
treasury to the credit of the highway operating fund.
(H)(I) A lease, easement, or license granted under division
(E) or (F) or (G) of this section, and any telecommunications
facility or alternative energy generating facility relating to
such interest in a transportation facility, is hereby deemed to
further the essential highway purpose of building and maintaining
a safe, energy-efficient, and accessible transportation system.
Sec. 5727.75. (A) For purposes of this section:
(1) "Qualified energy project" means an energy project
certified by the director of development pursuant to this section.
(2) "Energy project" means a project to provide electric
power through the construction, installation, and use of an energy
facility.
(3) "Alternative energy zone" means a county declared as such
by the board of county commissioners under division (E)(1)(b) or
(c) of this section.
(4) "Full-time equivalent employee" means the total number of
employee-hours for which compensation was paid to individuals
employed at a qualified energy project for services performed at
the project during the calendar year divided by two thousand
eighty hours.
(5) "Solar energy project" means an energy project composed
of an energy facility using solar panels to generate electricity.
(B)(1) Tangible personal property of a qualified energy
project using renewable energy resources is exempt from taxation
for tax years 2011, 2012, 2013, and 2014 if all of the following
conditions are satisfied:
(a) On or before December 31, 2013, the owner or a lessee
pursuant to a sale and leaseback transaction of the project
submits an application to the power siting board for a certificate
under section 4906.20 of the Revised Code, or if that section does
not apply, submits an application for any approval, consent,
permit, or certificate or satisfies any condition required by a
public agency or political subdivision of this state for the
construction or initial operation of an energy project.
(b) Construction or installation of the energy facility
begins on or after January 1, 2009, and before January 1, 2014.
For the purposes of this division, construction begins on the
earlier of the date of application for a certificate or other
approval or permit described in division (B)(1)(a) of this
section, or the date the contract for the construction or
installation of the energy facility is entered into.
(c) For a qualified energy project with a nameplate capacity
of five megawatts or greater, a board of county commissioners of a
county in which property of the project is located has adopted a
resolution under division (E)(1)(b) or (c) of this section to
approve the application submitted under division (E) of this
section to exempt the property located in that county from
taxation. A board's adoption of a resolution rejecting an
application or its failure to adopt a resolution approving the
application does not affect the tax-exempt status of the qualified
energy project's property that is located in another county.
(2) If tangible personal property of a qualified energy
project using renewable energy resources was exempt from taxation
under this section beginning in any of tax years 2011, 2012, 2013,
or 2014, and the certification under division (E)(2) of this
section has not been revoked, the tangible personal property of
the qualified energy project is exempt from taxation for tax year
2015 and all ensuing tax years if the property was placed into
service before January 1, 2015, as certified in the construction
progress report required under division (F)(2) of this section.
Tangible personal property that has not been placed into service
before that date is taxable property subject to taxation. An
energy project for which certification has been revoked is
ineligible for further exemption under this section. Revocation
does not affect the tax-exempt status of the project's tangible
personal property for the tax year in which revocation occurs or
any prior tax year.
(C) Tangible personal property of a qualified energy project
using clean coal technology, advanced nuclear technology, or
cogeneration technology is exempt from taxation for the first tax
year that the property would be listed for taxation and all
subsequent years if all of the following circumstances are met:
(1) The property was placed into service before January 1,
2019. Tangible personal property that has not been placed into
service before that date is taxable property subject to taxation.
(2) For such a qualified energy project with a nameplate
capacity of five megawatts or greater, a board of county
commissioners of a county in which property of the qualified
energy project is located has adopted a resolution under division
(E)(1)(b) or (c) of this section to approve the application
submitted under division (E) of this section to exempt the
property located in that county from taxation. A board's adoption
of a resolution rejecting the application or its failure to adopt
a resolution approving the application does not affect the
tax-exempt status of the qualified energy project's property that
is located in another county.
(3) The certification for the qualified energy project issued
under division (E)(2) of this section has not been revoked. An
energy project for which certification has been revoked is
ineligible for exemption under this section. Revocation does not
affect the tax-exempt status of the project's tangible personal
property for the tax year in which revocation occurs or any prior
tax year.
(D) Except as otherwise provided in division (E)(1) of this
section, real property of a qualified energy project is exempt
from taxation for any tax year for which the tangible personal
property of the qualified energy project is exempted under this
section.
(E)(1)(a) A person may apply to the director of development
for certification of an energy project as a qualified energy
project on or before the following dates:
(i) December 31, 2013, for an energy project using renewable
energy resources;
(ii) December 31, 2015, for an energy project using clean
coal technology, advanced nuclear technology, or cogeneration
technology.
(b) The director shall forward a copy of each application for
certification of an energy project with a nameplate capacity of
five megawatts or greater to the board of county commissioners of
each county in which the project is located and to each taxing
unit with territory located in each of the affected counties. Any
board that receives from the director a copy of an application
submitted under this division shall adopt a resolution approving
or rejecting the application unless it has adopted a resolution
under division (E)(1)(c) of this section. A resolution adopted
under division (E)(1)(b) or (c) of this section may require an
annual service payment to be made in addition to the service
payment required under division (G) of this section. The sum of
the service payment required in the resolution and the service
payment required under division (G) of this section shall not
exceed nine thousand dollars per megawatt of nameplate capacity
located in the county. The resolution shall specify the time and
manner in which the payments required by the resolution shall be
paid to the county treasurer. The county treasurer shall deposit
the payment to the credit of the county's general fund to be used
for any purpose for which money credited to that fund may be used.
The board shall send copies of the resolution by certified
mail to the owner of the facility and the director within thirty
days after receipt of the application, or a longer period of time
if authorized by the director.
(c) A board of county commissioners may adopt a resolution
declaring the county to be an alternative energy zone and
declaring all applications submitted to the director of
development under this division after the adoption of the
resolution, and prior to its repeal, to be approved by the board.
All tangible personal property and real property of an energy
project with a nameplate capacity of five megawatts or greater is
taxable if it is located in a county in which the board of county
commissioners adopted a resolution rejecting the application
submitted under this division or failed to adopt a resolution
approving the application under division (E)(1)(b) or (c) of this
section.
(2) The director shall certify an energy project if all of
the following circumstances exist:
(a) The application was timely submitted.
(b) For an energy project with a nameplate capacity of five
megawatts or greater, a board of county commissioners of at least
one county in which the project is located has adopted a
resolution approving the application under division (E)(1)(b) or
(c) of this section.
(c) No portion of the project's facility was used to supply
electricity before December 31, 2009.
(3) The director shall deny a certification application if
the director determines the person has failed to comply with any
requirement under this section. The director may revoke a
certification if the director determines the person, or subsequent
owner or lessee pursuant to a sale and leaseback transaction of
the qualified energy project, has failed to comply with any
requirement under this section. Upon certification or revocation,
the director shall notify the person, owner, or lessee, the tax
commissioner, and the county auditor of a county in which the
project is located of the certification or revocation. Notice
shall be provided in a manner convenient to the director.
(F) The owner or a lessee pursuant to a sale and leaseback
transaction of a qualified energy project shall do each of the
following:
(1) Comply with all applicable regulations;
(2) File with the director of development a certified
construction progress report before the first day of March of each
year during the energy facility's construction or installation
indicating the percentage of the project completed, and the
project's nameplate capacity, as of the preceding thirty-first day
of December. Unless otherwise instructed by the director of
development, the owner or lessee of an energy project shall file a
report with the director on or before the first day of March each
year after completion of the energy facility's construction or
installation indicating the project's nameplate capacity as of the
preceding thirty-first day of December. Not later than sixty days
after June 17, 2010, the owner or lessee of an energy project, the
construction of which was completed before June 17, 2010, shall
file a certificate indicating the project's nameplate capacity.
(3) File with the director of development, in a manner
prescribed by the director, a report of the total number of
full-time equivalent employees, and the total number of full-time
equivalent employees domiciled in Ohio, who are employed in the
construction or installation of the energy facility;
(4) For energy projects with a nameplate capacity of five
megawatts or greater, repair all roads, bridges, and culverts
affected by construction as reasonably required to restore them to
their preconstruction condition, as determined by the county
engineer in consultation with the local jurisdiction responsible
for the roads, bridges, and culverts. In the event that the county
engineer deems any road, bridge, or culvert to be inadequate to
support the construction or decommissioning of the energy
facility, the road, bridge, or culvert shall be rebuilt or
reinforced to the specifications established by the county
engineer prior to the construction or decommissioning of the
facility. The owner or lessee of the facility shall post a bond in
an amount established by the county engineer and to be held by the
board of county commissioners to ensure funding for repairs of
roads, bridges, and culverts affected during the construction. The
bond shall be released by the board not later than one year after
the date the repairs are completed. The energy facility owner or
lessee pursuant to a sale and leaseback transaction shall post a
bond, as may be required by the Ohio power siting board in the
certificate authorizing commencement of construction issued
pursuant to section 4906.10 of the Revised Code, to ensure funding
for repairs to roads, bridges, and culverts resulting from
decommissioning of the facility. The energy facility owner or
lessee and the county engineer may enter into an agreement
regarding specific transportation plans, reinforcements,
modifications, use and repair of roads, financial security to be
provided, and any other relevant issue.
(5) Provide or facilitate training for fire and emergency
responders for response to emergency situations related to the
energy project and, for energy projects with a nameplate capacity
of five megawatts or greater, at the person's expense, equip the
fire and emergency responders with proper equipment as reasonably
required to enable them to respond to such emergency situations;
(6) Maintain a ratio of Ohio-domiciled full-time equivalent
employees employed in the construction or installation of the
energy project to total full-time equivalent employees employed in
the construction or installation of the energy project of not less
than eighty per cent in the case of a solar energy project, and
not less than fifty per cent in the case of any other energy
project. In the case of an energy project for which certification
from the power siting board is required under section 4906.20 of
the Revised Code, the number of full-time equivalent employees
employed in the construction or installation of the energy project
equals the number actually employed or the number projected to be
employed in the certificate application, if such projection is
required under regulations adopted pursuant to section 4906.03 of
the Revised Code, whichever is greater. For all other energy
projects, the number of full-time equivalent employees employed in
the construction or installation of the energy project equals the
number actually employed or the number projected to be employed by
the director of development, whichever is greater. To estimate the
number of employees to be employed in the construction or
installation of an energy project, the director shall use a
generally accepted job-estimating model in use for renewable
energy projects, including but not limited to the job and economic
development impact model. The director may adjust an estimate
produced by a model to account for variables not accounted for by
the model.
(7) For energy projects with a nameplate capacity in excess
of two megawatts, establish a relationship with a member of the
university system of Ohio as defined in section 3345.011 of the
Revised Code or with a person offering an apprenticeship program
registered with the employment and training administration within
the United States department of labor or with the apprenticeship
council created by section 4139.02 of the Revised Code, to educate
and train individuals for careers in the wind or solar energy
industry. The relationship may include endowments, cooperative
programs, internships, apprenticeships, research and development
projects, and curriculum development.
(8) Offer to sell power or renewable energy credits from the
energy project 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, power or
renewable energy credits from the energy project may be sold to
other persons. Division (F)(8) of this section does not apply if:
(a) The owner or lessee is a rural electric company or a
municipal power agency as defined in section 3734.058 of the
Revised Code.
(b) The owner or lessee is a person that, before completion
of the energy project, contracted for the sale of power or
renewable energy credits with a rural electric company or a
municipal power agency.
(c) The owner or lessee contracts for the sale of power or
renewable energy credits from the energy project before June 17,
2010.
(9) Make annual service payments as required by division (G)
of this section and as may be required in a resolution adopted by
a board of county commissioners under division (E) of this
section.
(G) The owner or a lessee pursuant to a sale and leaseback
transaction of a qualified energy project shall make annual
service payments in lieu of taxes to the county treasurer on or
before the final dates for payments of taxes on public utility
personal property on the real and public utility personal property
tax list for each tax year for which property of the energy
project is exempt from taxation under this section. The county
treasurer shall allocate the payment on the basis of the project's
physical location. Upon receipt of a payment, or if timely payment
has not been received, the county treasurer shall certify such
receipt or non-receipt to the director of development and tax
commissioner in a form determined by the director and
commissioner, respectively. Each payment shall be in the following
amount:
(1) In the case of a solar energy project, seven thousand
dollars per megawatt of nameplate capacity located in the county
as of December 31, 2010, for tax year 2011, as of December 31,
2011, for tax year 2012, as of December 31, 2012, for tax year
2013, as of December 31, 2013, for tax year 2014, and as of
December 31, 2014, for tax year 2015 and each tax year thereafter;
(2) In the case of any other energy project using renewable
energy resources, the following:
(a) If the project maintains during the construction or
installation of the energy facility a ratio of Ohio-domiciled
full-time equivalent employees to total full-time equivalent
employees of not less than seventy-five per cent, six thousand
dollars per megawatt of nameplate capacity located in the county
as of the thirty-first day of December of the preceding tax year;
(b) If the project maintains during the construction or
installation of the energy facility a ratio of Ohio-domiciled
full-time equivalent employees to total full-time equivalent
employees of less than seventy-five per cent but not less than
sixty per cent, seven thousand dollars per megawatt of nameplate
capacity located in the county as of the thirty-first day of
December of the preceding tax year;
(c) If the project maintains during the construction or
installation of the energy facility a ratio of Ohio-domiciled
full-time equivalent employees to total full-time equivalent
employees of less than sixty per cent but not less than fifty per
cent, eight thousand dollars per megawatt of nameplate capacity
located in the county as of the thirty-first day of December of
the preceding tax year.
(3) In the case of an energy project using clean coal
technology, advanced nuclear technology, or cogeneration
technology, the following:
(a) If the project maintains during the construction or
installation of the energy facility a ratio of Ohio-domiciled
full-time equivalent employees to total full-time equivalent
employees of not less than seventy-five per cent, six thousand
dollars per megawatt of nameplate capacity located in the county
as of the thirty-first day of December of the preceding tax year;
(b) If the project maintains during the construction or
installation of the energy facility a ratio of Ohio-domiciled
full-time equivalent employees to total full-time equivalent
employees of less than seventy-five per cent but not less than
sixty per cent, seven thousand dollars per megawatt of nameplate
capacity located in the county as of the thirty-first day of
December of the preceding tax year;
(c) If the project maintains during the construction or
installation of the energy facility a ratio of Ohio-domiciled
full-time equivalent employees to total full-time equivalent
employees of less than sixty per cent but not less than fifty per
cent, eight thousand dollars per megawatt of nameplate capacity
located in the county as of the thirty-first day of December of
the preceding tax year.
(H) The director of development in consultation with the tax
commissioner shall adopt rules pursuant to Chapter 119. of the
Revised Code to implement and enforce this section.
Section 2. That existing sections 4928.142, 4928.143,
4928.20, 4928.61, 4928.62, 5501.311, and 5727.75 and sections
4928.64 and
4928.65 of the Revised Code are hereby repealed.
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