SB 2 — Increase power generation; improve Ohio’s electric grid

3313.372.3706.51.

(A) As used in this section, "energy"public school" 202 conservation measure" means ana installationschool district or modificationother ofpublic 203school anas installationdefined in,in or203 remodelingsection of,3301.0711 aof building,the toRevised reduceCode. 204 energy consumption.

It204 includes:(B) The Ohio air quality development authority, in 205 consultation with the Ohio facilities construction commission, 206 shall establish a school energy efficiency loan program that 207 issues loans to public schools from funds in the school energy 208 efficiency loan fund created in section 3706.52 of the Revised 209 Code for purposes of improving energy efficiency in schools.

205210 (1)(C) InsulationA ofpublic school may apply to the buildingauthority structureto andreceive systems211 206a withinloan under the building;school energy efficiency loan program.

207212 (2)(D) StormNothing windowsin andthis doors,section multiglazedprohibits windowsa andpublic 208school doors,that heat213 absorbingreceives ora heatloan reflectiveunder glazedthis andsection coatedfrom 209utilizing windowany and door systems, additional glazing, reductions in glass 210 area, and other window214 and door system modifications that reduce 211 energy consumption;efficiency program.

212215 (3)(E) AutomaticThe energyterms controlof systems;a loan issued under this section shall be 216 as follows:

213217 (4)(1) Heating,Two ventilating,per orcent airannual conditioninginterest systemon 214the modificationsloan; or replacements;

215218 (5)(2) CaulkingThe andfull weatherstripping;loan amount, plus interest, shall be repaid 219 in not more than ten years;

216220 (6)(3) ReplacementRepayment oron modification of lighting fixtures to 217 increase the energyloan efficiencybegins ofsix themonths systemafter without increasing 218 the overall221 illuminationimplementation of aall facility,energy unlessefficiency suchimprovements increase in 219 illumination is necessary222 tocompleted; conform to the applicable state or 220 local building code for the proposed lighting system;

221223 (7)(4) EnergyAny recoveryother systems;provision considered appropriate by the 224 Sub.

222 Am.

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2 Page 9 As PassedPending byin the Senate (8)Energy CogenerationCommittee systemsauthority. that produce steam or forms of 223 energy such as heat, as well as electricity, for use primarily 224 within a building or complex of buildings;

225 (9)(F) SolarAll panels;repayment amounts for any loans issued under this 226 section shall be made to the authority.

226The (10)authority Anyshall other227 modification,deposit installation,all orrepayment remodelingamounts 227received approvedin by the Ohioschool facilitiesenergy construction228 commissionefficiency asloan anfund 228created energyin conservationsection measure.3706.52 of the Revised 229 Code.

229230 (B)(G) AIf boardthe ofauthority educationenters ofinto an agreement with a city,231 exemptedpublic village,school 230for local,a orloan jointunder vocationalthis schoolsection, districtthe mayauthority entershall into232 anpromptly 231direct installmentthe paymenttreasurer contractof forstate theto purchaseremit andmoney installationfrom 232the of233 school energy conservationefficiency measures.loan fund to the school as provided in 234 the terms of the agreement.

The provisions of such 233 installment payment contracts dealing with interest charges and 234 financing terms shall not be subject to the competitive bidding 235 requirements(H) ofThe sectionauthority 3313.46 of the Revised Code, and shall 236adopt berules onunder theChapter following119. terms:

237of (1)236 Notthe lessRevised thanCode one-fifteenthto ofimplement thethis costssection, thereofincluding shallan 238237 beapplication paidfor withinthe twoschool yearsenergy fromefficiency theloan dateprogram. of purchase.

239238 (2)Sec. The remaining balance of the costs thereof shall be 240 paid within fifteen years from the date of purchase.

2413706.52. The provisions of any installment payment contract entered 242 into pursuant to this section shall provide that all payments, 243 except payments for repairs and obligations on termination of 244 the contract prior to its expiration, shall not exceed the 245 calculated energy, water, or waste water cost savings, avoided 246 operating costs, and avoided capital costs attributable to the 247 one or more measures over a defined period of time.

Those(A) 248The paymentsschool shallenergy beefficiency madeloan onlyfund to239 is created in the extentcustody thatof the savingsstate 249treasurer, describedbut inis thisnot division240 actuallypart occur.of the state treasury.

The energymoney servicesin 250the companyfund shall warrantbe andused guarantee241 thatfor purposes of the school energy conservationefficiency 251loan Am.program under 242 section 3706.51 of the Revised Code to fund loans under the 243 program and to administer the program.

Sub.The fund shall consist of 244 the funds transferred from the solar generation fund, repayments 245 of loans from this fund, interest on amounts in the school 246 energy efficiency loan fund, and any appropriations, grants, or 247 gifts made to the program or the fund.

248 (B) The fund shall be administered by the Ohio air quality 249 development authority, and the authority shall request the 250 treasurer of state to create the account for the fund.

The 251 treasurer of state shall distribute the money in the fund in 252 accordance with directions provided by the authority.

253 Sub.

2 Page 10 As PassedPending byin the Senate measuresEnergy shallCommittee realizeSec. guaranteed savings and shall be 252 responsible to pay an amount equal to any savings shortfall.

253 An installment payment contract entered into by a board of 254 education under this section shall require the board to contract 255 in accordance with division (A) of section 3313.46 of the 256 Revised Code for the installation, modification, or remodeling 257 of energy conservation measures unless division (A) of section 258 3313.46 of the Revised Code does not apply pursuant to division 259 (B)(3) of that section, in which case the contract shall be 260 awarded through a competitive selection process pursuant to 261 rules adopted by the facilities construction commission.

262 An installment payment contract entered into by a board of 263 education under this section may include services for 264 measurement and verification of energy savings associated with 265 the guarantee.

The annual cost of measurement and verification 266 services shall not exceed ten per cent of the guaranteed savings 267 in any year of the installment payment contract.

268 (C) If a board of education determines that a surety bond 269 is necessary to secure energy, water, or waste water cost 270 savings guaranteed in a contract entered into by the board of 271 education under this section, the energy services company shall 272 provide a surety bond that satisfies all of the following 273 requirements:

274 (1) The penal sum of the surety bond for the first 275 guarantee year shall equal the amount of savings included in the 276 annual guaranteed savings amount that is measured and calculated 277 in accordance with the measurement and verification plan 278 included in the contract, but may not include guaranteed savings 279 that are not measured or that are stipulated in the contract.

280 The annual guaranteed savings amount shall include only the 281 Am.

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2 Page 11 As Passed by the Senate savings guaranteed in the contract for the one-year term that 282 begins on the first day of the first savings guarantee year and 283 may not include amounts from subsequent years.

284 (2) The surety bond shall have a term of not more than one 285 year unless renewed.

At the option of the board of education, 286 the surety bond may be renewed for one or two additional terms, 287 each term not to exceed one year.

The surety bond may not be 288 renewed or extended so that it is in effect for more than three 289 consecutive years.

290 In the event of a renewal, the penal sum of the surety 291 bond for each renewed year shall be revised so that the penal 292 sum equals the annual guaranteed savings amount for such renewal 293 year that is measured and calculated in accordance with the 294 measurement and verification plan included in the contract, but 295 may not include guaranteed savings that are not measured or that 296 are stipulated in the contract.

Regardless of the number of 297 renewals of the bond, the aggregate liability under each renewed 298 bond may not exceed the penal sum stated in the renewal 299 certificate for the applicable renewal year.

300 (3) The surety bond for the first year shall be issued 301 within thirty days of the commencement of the first savings 302 guarantee year under the contract.

303 In the event of renewal, the surety shall deliver to the 304 board of education a renewal certificate reflecting the revised 305 penal sum within thirty days of the board of education's 306 request.

The board of education shall deliver the request for 307 renewal not less than thirty days prior to the expiration date 308 of the surety bond then in existence.

A surety bond furnished 309 pursuant to section 153.54 of the Revised Code shall not secure 310 obligations related to energy, water, or waste water cost 311 Am.

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2 Page 12 As Passed by the Senate savings as referenced in division (C) of this section.

312 (D) The board may issue the notes of the school district 313 signed by the president and the treasurer of the board and 314 specifying the terms of the purchase and securing the deferred 315 payments provided in this section, payable at the times provided 316 and bearing interest at a rate not exceeding the rate determined 317 as provided in section 9.95 of the Revised Code.

The notes may 318 contain an option for prepayment and shall not be subject to 319 Chapter 133.

of the Revised Code.

In the resolution authorizing 320 the notes, the board may provide, without the vote of the 321 electors of the district, for annually levying and collecting 322 taxes in amounts sufficient to pay the interest on and retire 323 the notes, except that the total net indebtedness of the 324 district without a vote of the electors incurred under this and 325 all other sections of the Revised Code, except section 3318.052 326 of the Revised Code, shall not exceed one per cent of the 327 district's tax valuation.

Revenues derived from local taxes or 328 otherwise, for the purpose of conserving energy or for defraying 329 the current operating expenses of the district, may be applied 330 to the payment of interest and the retirement of such notes.

The 331 notes may be sold at private sale or given to the energy 332 services company under the installment payment contract 333 authorized by division (B) of this section.

334 (E) Debt incurred under this section shall not be included 335 in the calculation of the net indebtedness of a school district 336 under section 133.06 of the Revised Code.

337 (F) No school district board shall enter into an 338 installment payment contract under division (B) of this section 339 unless it first obtains a report of the costs of the energy 340 conservation measures and the savings thereof as described under 341 Am.

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2 Page 13 As Passed by the Senate division (G)(1) of section 133.06 of the Revised Code as a 342 requirement for issuing energy securities, makes a finding that 343 the amount spent on such measures is not likely to exceed the 344 amount of money it would save in energy costs and resultant 345 operational and maintenance costs as described in that division, 346 except that that finding shall cover the ensuing fifteen years, 347 and the facilities construction commission determines that the 348 district board's findings are reasonable and approves the 349 contract as described in that division.

350 The district board shall monitor the savings and maintain 351 a report of those savings, which shall be submitted to the 352 commission in the same manner as required by division (G) of 353 section 133.06 of the Revised Code in the case of energy 354 securities.

355 (G) A board of education may apply to the Ohio facilities 356 construction commission for a loan from the school energy 357 performance contracting loan fund, established by section 358 3313.378 of the Revised Code, for purposes of paying for all or 359 part of an installment contract under division (B) of this 360 section.

361 Sec.

3313.373.

(A) As used in this section:

362 (1) "Energy saving measure" means both of the following:

363 (a) The acquisition and installation, by purchase, lease, 364 lease purchase, lease with an option to buy, or installment 365 purchase, of an energy conservation measure as defined in 366 section 3313.372 of the Revised Code and any attendant 367 architectural and engineering consulting services.

368 (b) Architectural and engineering consulting services 369 related to energy conservation.

370 Am.

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2 Page 14 As Passed by the Senate (2) "Shared-savings contract" means a contract for one or 371 more energy savings measures, which contract provides that all 372 payments, except payments for maintenance and repairs and 373 obligations on termination of the contract prior to its 374 expiration, are to be a stated percentage of calculated savings 375 of energy costs attributable to the energy saving measure over a 376 defined period of time and are to be made only to the extent 377 that such savings occur.

A contract that requires any additional 378 capital investment or contribution of funds, other than funds 379 available from state or federal energy grants, or that is for an 380 initial term of longer than ten years is not a shared-savings 381 contract.

382 (B) The board of education of a city, local, exempted 383 village, or joint vocational school district may enter into a 384 shared-savings contract with any person experienced in the 385 design and implementation of energy saving measures for 386 buildings owned or rented by the board.

Such contract is not 387 subject to section 3313.46 of the Revised Code.

If the contract 388 is for a term extending beyond the fiscal year, it shall be 389 considered to be a continuing contract within the meaning of 390 division (D) of section 5705.41 of the Revised Code.

A board of 391 education entering into an installment contract under this 392 section shall also comply with section 3313.372 of the Revised 393 Code.

394 (C) In the case of a shared-savings contract running 395 beyond the fiscal year in which it is entered into, the board 396 shall include in its annual appropriations measure for each 397 subsequent year any amounts payable under shared-savings 398 contracts during such year and shall furnish the certification 399 required by section 5705.44 of the Revised Code, but the failure 400 of a board to make such an appropriation or furnish the 401 Am.

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2 Page 15 As Passed by the Senate certificates referred to in division (D) of section 5705.41, or 402 5705.412 or 5705.44 of the Revised Code, shall not affect the 403 validity of the shared-savings contract or the board's 404 obligations under the contract.

405 (D) A board of education may apply to the Ohio facilities 406 construction commission for a loan from the school energy 407 performance contracting loan fund, established by section 408 3313.378 of the Revised Code, for purposes of paying for all or 409 part of a shared-savings contract under this section.

410 Sec.

3313.377.

(A) As used in this section:

411 (1) "Energy conservation measure" has the same meaning as 412 in section 3313.372 of the Revised Code;

413 (2) "Energy saving measure" has the same meaning as in 414 section 3313.373 of the Revised Code.

415 (B) The Ohio facilities construction commission may issue 416 a loan from funds in the school energy performance contracting 417 loan fund created in section 3313.378 of the Revised Code to a 418 board of education of a city, exempted village, local, or joint 419 vocational school district that applies for a loan under section 420 3313.372 or 3313.373 of the Revised Code.

421 (C) Nothing in this section prohibits a board of education 422 that receives a loan under this section from utilizing any other 423 energy efficiency program.

424 (D) The terms of a loan issued under this section shall be 425 as follows:

426 (1) Two per cent annual interest on the loan;

427 (2) The full loan amount, plus interest, shall be repaid 428 in not more than ten years from the issuance of the loan;

429 Am.

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2 Page 16 As Passed by the Senate (3) Repayment on the loan begins six months after the 430 installation of the energy conservation measures is complete or 431 the implementation of energy savings measures is completed;

432 (4) Any other provision considered appropriate by the 433 commission.

434 (E) All repayment amounts for any loans issued under this 435 section shall be made to the commission.

The commission shall 436 deposit all repayment amounts received in the school energy 437 performance contracting loan fund created in section 3313.378 of 438 the Revised Code.

439 (F) If the commission enters into an agreement with a 440 board for a loan under this section, the commission shall 441 promptly direct the treasurer of state to remit money from the 442 school energy performance contracting loan fund to the board as 443 provided in the terms of the agreement.

444 (G) The commission shall adopt rules to implement this 445 section, including a loan application.

446 Sec.

3313.378.

(A) The school energy performance 447 contracting loan fund is created in the custody of the state 448 treasurer, but is not part of the state treasury.

The money in 449 the fund shall be used for purposes of funding loans issued 450 under section 3313.377 of the Revised Code.

The fund shall 451 consist of the funds transferred from the solar generation fund, 452 repayments of loans from this fund, interest on amounts in the 453 school energy performance contracting loan fund, and any 454 appropriations, grants, or gifts made to the fund.

455 (B) The fund shall be administered by the Ohio facilities 456 construction commission, and the commission shall request the 457 treasurer of state to create the account for the fund.

The 458 Am.

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2 Page 17 As Passed by the Senate treasurer of state shall distribute the money in the fund in 459 accordance with directions provided by the commission.

460 Sec.

For all cases involving an application 461254 pursuant to section 4909.18 of the Revised Code, the public 462255 utilities commission shall not permit any new discovery 463256 beginning not later than two hundred fifteen days after the 464257 application is submitted.

465258 Sec.

As used in this chapter, any person, firm, 466259 copartnership, voluntary association, joint-stock association, 467260 company, or corporation, wherever organized or incorporated, is:

468261 (A) A telephone company, when engaged in the business of 469262 transmitting telephonic messages to, from, through, or in this 470263 state;

471264 (B) A for-hire motor carrier, when engaged in the business 472265 of transporting persons or property by motor vehicle for 473266 compensation, except when engaged in any of the operations in 474267 intrastate commerce described in divisions (B)(1) to (9) of 475268 section 4921.01 of the Revised Code, but including the carrier's 476269 agents, officers, and representatives, as well as employees 477270 responsible for hiring, supervising, training, assigning, or 478271 dispatching drivers and employees concerned with the 479272 installation, inspection, and maintenance of motor-vehicle 480273 equipment and accessories;

481274 (C) An electric light company, when engaged in the 482275 business of supplying electricity for light, heat, or power 483276 purposes to consumers within this state, including supplying 484277 electric transmission service for electricity delivered to 485278 consumers in this state, but excluding a regional transmission 486279 organization approved by the federal energy regulatory 487280 Am.commission;

281 An electric light company does not include a self- 282 Sub.

2 Page 1811 As PassedPending byin the Senate commission;Energy Committee generator or mercantile customer self-power system.

488283 An(D) electricA lightgas companycompany, doeswhen notengaged includein the business of 284 supplying artificial gas for lighting, power, or heating 285 purposes to consumers within this state or when engaged in the 286 business of supplying artificial gas to gas companies or to 287 natural gas companies within this state, but a self-producer 489engaged generator288 in supplying to one or mercantilemore customergas self-poweror system.natural gas companies, only 289 such artificial gas as is manufactured by that producer as a by- 290 product of some other process in which the producer is primarily 291 engaged within this state is not thereby a gas company.

490All (D)292 Arates, gasrentals, company,tolls, whenschedules, engagedcharges in the business of 491any supplyingkind, artificial gas for lighting, power, or heating293 492agreements purposesbetween toany consumersgas withincompany thisand stateany orother when engaged in the 493 business of supplying artificial gas tocompany gas companies or to294 494any natural gas companiescompany withinproviding thisfor state,the but a producer engaged 495 in supplying toof one295 or more gas or natural gas companies, only 496 such artificial gas asand isfor manufacturedcompensation byfor thatthe producersame asare asubject by-to 497296 productthe jurisdiction of some other process in which the producerpublic isutilities primarilycommission. 498 engaged within this state is not thereby a gas company.

All297 499(E) rates,A rentals,natural tolls, schedules, charges of any kind, or 500 agreements between any gas companycompany, andwhen anyengaged otherin gasthe companybusiness orof 501298 anysupplying natural gas company providing for thelighting, supplyingpower, ofor 502heating artificialpurposes gas299 and for compensation for the same are subject to 503consumers thewithin jurisdictionthis ofstate. the public utilities commission.

504Notwithstanding (E)the Aabove, 300 neither the delivery nor sale of Ohio-produced natural gas company,or when301 engagedOhio-produced inraw natural gas liquids by a producer or gatherer 302 under a public utilities commission-ordered exemption, adopted 303 before, as to producers, or after, as to producers or gatherers, 304 January 1, 1996, or the businessdelivery or sale of 505Ohio-produced supplying305 natural gas foror lighting,Ohio-produced power,raw natural gas liquids by a 306 producer or heatinggatherer purposesof 506Ohio-produced natural gas or Ohio- 307 produced raw natural gas liquids, either to consumersa withinlessor under an 308 oil and gas lease of the land on which the producer's drilling 309 unit is located, or the grantor incident to a right-of-way or 310 easement to the producer or gatherer, shall cause the producer 311 or gatherer to be a natural gas company for the purposes of this state.312 section.

Notwithstanding313 theSub. above, 507 neither the delivery nor sale of Ohio-produced natural gas or 508 Ohio-produced raw natural gas liquids by a producer or gatherer 509 under a public utilities commission-ordered exemption, adopted 510 before, as to producers, or after, as to producers or gatherers, 511 January 1, 1996, or the delivery or sale of Ohio-produced 512 natural gas or Ohio-produced raw natural gas liquids by a 513 producer or gatherer of Ohio-produced natural gas or Ohio- 514 produced raw natural gas liquids, either to a lessor under an 515 oil and gas lease of the land on which the producer's drilling 516 unit is located, or the grantor incident to a right-of-way or 517 Am.

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2 Page 1912 As PassedPending byin the Senate easementEnergy toCommittee theAll producerrates, orrentals, gatherer,tolls, shallschedules, causecharges theof producerany 518kind, 314 or gathereragreements tobetween be a natural gas company and other natural 315 gas companies or gas companies providing for the purposessupply of this316 519natural section.gas and for compensation for the same are subject to the 317 jurisdiction of the public utilities commission.

520The Allcommission, rates,318 rentals,upon tolls,application schedules,made chargesto ofit, anymay kind,relieve 521any producer or agreements319 betweengatherer aof natural gasgas, companydefined andin otherthis naturalsection 522as a gas companies320 company or gasa companiesnatural providinggas forcompany, the supply of 523compliance naturalwith gasthe and321 forobligations compensationimposed forby thethis samechapter areand subjectChapters to4901., the4903., 524322 jurisdiction4907., of4909., the4921., publicand utilities4923. commission.

Theof commission,the 525Revised uponCode, applicationso madelong toas it,323 maythe relieve any producer or 526 gatherer ofis naturalnot gas,affiliated definedwith inor thisunder sectionthe as324 control of a gas 527 company or a natural gas company,company engaged in the 325 transportation or distribution of compliancenatural withgas, or so long as the 528326 obligationsproducer imposedor bygatherer thisdoes chapternot andengage Chaptersin 4901.,the 4903.,distribution 529of 4907.,327 4909.,natural 4921.,gas andto 4923.consumers.

of328 theNothing Revisedin Code,division so(E) long as 530 the producer or gatherer is not affiliated with or under the 531 control of athis gassection companylimits or a natural gas company engaged in the 532329 transportationauthority or distribution of natural gas, or so long as the 533commission producerto orenforce gatherersections does4905.90 notto engage330 in4905.96 the distribution of 534the naturalRevised gasCode. to consumers.

535331 Nothing(F) A pipe-line company, when engaged in divisionthe (E)business of 332 transporting natural gas, oil, or coal or its derivatives 333 through pipes or tubing, either wholly or partly within this section334 limitsstate, thebut 536not authoritywhen engaged in the business of the commissiontransport to335 enforceassociated sectionswith 4905.90gathering tolines, 537raw 4905.96natural ofgas theliquids, Revisedor Code.336 finished product natural gas liquids;

538337 (F)(G) A pipe-linewater-works company, when engaged in the business of 539338 transportingsupplying naturalwater gas, oil, or coal or its derivatives 540 through pipes or tubing, either wholly or partly within this 541 state, but not when engaged in thea businesssimilar ofmanner, the339 transportto 542consumers associatedwithin withthis gatheringstate; lines, raw natural gas liquids, or 543 finished product natural gas liquids;

544340 (G)(H) A water-worksheating or cooling company, when engaged in the 341 business of 545 supplying waterwater, throughsteam, pipes or tubing,air orthrough inpipes aor similar342 manner,tubing 546 to consumers within this state;state for heating or cooling 343 Sub.

547 Am.

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2 Page 2013 As PassedPending byin the Senate (H)Energy ACommittee heating or cooling company, when engaged in the 548 business of supplying water, steam, or air through pipes or 549 tubing to consumers within this state for heating or cooling 550 purposes;

551344 (I) A messenger company, when engaged in the business of 552345 supplying messengers for any purpose;

553346 (J) A street railway company, when engaged in the business 554347 of operating as a common carrier, a railway, wholly or partly 555348 within this state, with one or more tracks upon, along, above, 556349 or below any public road, street, alleyway, or ground, within 557350 any municipal corporation, operated by any motive power other 558351 than steam and not a part of an interurban railroad, whether the 559352 railway is termed street, inclined-plane, elevated, or 560353 underground railway;

561354 (K) A suburban railroad company, when engaged in the 562355 business of operating as a common carrier, whether wholly or 563356 partially within this state, a part of a street railway 564357 constructed or extended beyond the limits of a municipal 565358 corporation, and not a part of an interurban railroad;

566359 (L) An interurban railroad company, when engaged in the 567360 business of operating a railroad, wholly or partially within 568361 this state, with one or more tracks from one municipal 569362 corporation or point in this state to another municipal 570363 corporation or point in this state, whether constructed upon the 571364 public highways or upon private rights-of-way, outside of 572365 municipal corporations, using electricity or other motive power 573366 than steam power for the transportation of passengers, packages, 574367 express matter, United States mail, baggage, and freight.

Such 575368 an interurban railroad company is included in the term 576369 "railroad" as used in section 4907.02 of the Revised Code.

577370 Am.(M) A sewage disposal system company, when engaged in the 371 business of sewage disposal services through pipes or tubing, 372 Sub.

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2 Page 2114 As PassedPending byin the Senate (M)Energy ACommittee sewage disposal system company, when engaged in the 578 business of sewage disposal services through pipes or tubing, 579 and treatment works, or in a similar manner, within this state.

580373 As used in division (E) of this section, "natural gas" 581374 includes natural gas that has been processed to enable 582375 consumption or to meet gas quality standards or that has been 583376 blended with propane, hydrogen, biologically derived methane 584377 gas, or any other artificially produced or processed gas.

585378 As used in this section, "gathering lines" has the same 586379 meaning as in section 4905.90 of the Revised Code, and "raw 587380 natural gas liquids" and "finished product natural gas liquids" 588381 have the same meanings as in section 4906.01 of the Revised 589382 Code.

590383 As used in this section, "self-generator" has the same 591384 meaning as in section 4928.01 of the Revised Code, and 592385 "mercantile customer self-power system" has the same meaning as 593386 in section 4928.73 of the Revised Code.

594387 Sec.

(A) As used in this section, "base load 595388 electric generating facility" means an electric generating plant 596389 and associated facilities located in this state that primarily 597390 uses a nonrenewable fuel source to generate electricity, 598391 including natural gas and nuclearnuclear, reaction, and that is not 599 owned or 392 operated by a public utility, municipal corporation, or 600 electric 393 cooperative.

601394 (B) No person shall enter into a settlement to abandon, 602395 close, or shut down a base load electric generating facility or 603396 a generating plant owned or operated by a public utility.

604397 Sec.

(A) As used in this section, "electric 605398 distribution utility" has the same meaning as in section 4928.01 606399 Am.of the Revised Code.

400 (B) Notwithstanding any provision of the Revised Code to 401 Sub.

2 Page 2215 As PassedPending byin the Senate ofEnergy Committee the Revisedcontrary, Code.an electric distribution utility may supply behind 402 the meter electric generation service, provided that, for any 403 behind the meter electric generation facilities that the utility 404 intends to use to supply such service, the utility has entered 405 into any necessary agreements with the customer and filed for 406 any necessary permits prior to the effective date of this 407 section.

607408 (B)(C) NotwithstandingNo anyelectric provisiondistribution ofutility theshall Revisedrecover Codeany toof 608409 the contrary,following ancosts electricthrough distributionany utilityrate, maycharge, supplyor behindrecovery 609from the410 meterretail electric generationservice service,customers provided that anyare not receiving behind 610411 the meter electric generation facilities that the utility 611 intends to use to supply such service werefrom in operation prior to 612 the effectiveutility: date of this section.

613412 (C)(1) NoCosts electricassociated distributionwith utilitysupplying shall recover any of 614 the following costs through any rate, charge, or recovery from 615 retail electric service customers that are not receiving behind 616 the meter 413 electric generation serviceservice; from the utility:

617414 (1)(2) Costs associated with supplyingany behind the meter 618 electric 415 generation service;service facility;

619416 (2)(3) CostsStranded costs associated with the closing of any 417 behind the meter electric 620generation service facility or an end- 418 use customer of the behind the meter electric generation service facility;419 ceasing operations.

621420 (3)(D) StrandedNo costselectric associateddistribution withutility theshall closingoffer ofdirect, any421 622associated behindinducements thefor metercontracting electricwith generationthe serviceutility facilityfor orany an422 end- 623 use customer of the behind the meter electric generation serviceservice. 624 ceasing operations.

625423 (D)(E) NoThe electricpublic distributionutilities utilitycommission shall offerperiodically direct,424 626audit associatedall inducementselectric fordistribution contractingutilities withthat theprovide utility for any 627425 behind the meter electric generation service.service to ensure 426 compliance with this section.

628427 (E)Sec. The public utilities commission shall periodically 629 audit all electric distribution utilities that provide any 630 behind the meter electric generation service to ensure 631 compliance with this section.

632 Sec.

(A) Notwithstanding section 4905.32 of the 633428 Revised Code, all revenues collected from customers by a public 634429 Am.utility as part of a rider or rates that are later found to be 430 Sub.

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2 Page 2316 As PassedPending byin the Senate utilityEnergy asCommittee part of a rider or rates that are later found to be 635 unreasonable, unlawful, or otherwise improper by the supreme 636431 court shall be subject to refund from the date of the issuance 637432 of the supreme court's decision until the date when, on remand, 638433 the public utilities commission makes changes to the rider or 639434 rates to implement the supreme court's decision.

640435 (B) The commission shall order the payment of the refunds 641436 described in division (A) of this section in a manner designed 642437 to allocate the refunds to customer classes in the same 643438 proportion as the charges were originally collected.

644439 (C) The commission shall determine how to allocate any 645440 remaining funds described in division (A) of this section that 646441 cannot be refunded for whatever reason.

647442 (D) The commission shall order the payment of the funds 648443 described in division (A) of this section and shall determine 649444 how to allocate any remaining funds that cannot be refunded not 650445 more than thirty days after the date of the issuance of the 651446 supreme court's decision.

652447 Sec.

653448 (1) "Electric distribution utility" has the same meaning 654449 as in section 4928.01 of the Revised Code.

655450 (2) "Electric service" means any service involved in 656451 supplying or arranging for the supply of electricity to ultimate 657452 consumers in this state.

"Electric service" includes "retail 658453 electric service" as defined in section 4928.01 of the Revised 659454 Code.

660455 (3) "Proceeding" includes a proceeding relating to 661456 electric service under Chapters 4909.

of the Revised 662457 Code.

663458 Am.Sub.

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2 Page 2417 As PassedPending byin the Senate Energy Committee (B) No electric distribution utility or its affiliate may 664459 do either of the following to induce any party to a public 665460 utilities commission proceeding to enter into a settlement of a 666461 matter pending before the commission:

667462 (1) Make a cash payment to that party;

668463 (2) Enter into any agreement or any financial or private 669464 arrangement with that party that is not made part of the public 670465 case record.

671466 (C) Notwithstanding division (B) of this section, the 672467 commission may do any of the following:

673468 (1) Reasonably allocate costs among rate schedules;

674469 (2) Reasonably design rates within a rate schedule;

675470 (3) Approve reasonable rates designed for particular 676471 customers or classes of customers;

677472 (4) Approve a resolution of a proceeding under section 678473 4905.26 of the Revised Code;

679474 (5) Approve payments to any governmental entity, nonprofit 680475 organization, or other association for implementing low-income 681476 weatherization service programs, subject to the following 682477 conditions:

683478 (a) The payments are at a rate that is reasonably tailored 684479 to the costs of providing the programs.

685480 (b) The payments are for programs that are subject to an 686481 existing or new audit procedure.

687482 (c) The payments are not for low-income weatherization 688483 education programs.

689484 Sec.

of the Revised 690485 Am.Sub.

Sub.

2 Page 2518 As PassedPending byin the Senate Energy Committee Code:

691486 (A) "Person" means an individual, corporation, business 692487 trust, association, estate, trust, or partnership or any 693488 officer, board, commission, department, division, or bureau of 694489 the state or a political subdivision of the state, or any other 695490 entity.

696491 (B)(1) "Major utility facility" means:

697492 (a) Electric generating plant and associated facilities 698493 designed for, or capable of, operation at a capacity of fifty 699494 megawatts or more;

700495 (b) An electric transmission line and associated 701496 facilities of a design capacity of one hundred kilovolts or 702497 more;

703498 (c) A gas pipeline that is greater than five hundred feet 704499 in length, and its associated facilities, is more than nine 705500 inches in outside diameter and is designed for transporting gas 706501 at a maximum allowable operating pressure in excess of one 707502 hundred twenty-five pounds per square inch.

708503 (2) "Major utility facility" does not include any of the 709504 following:

710505 (a) Gas transmission lines over which an agency of the 711506 United States has exclusive jurisdiction;

712507 (b) Any solid waste facilities as defined in section 713508 6123.01 of the Revised Code;

714509 (c) Electric distributing lines and associated facilities 715510 as defined by the power siting board;

716511 (d) Any manufacturing facility that creates byproducts 717512 Am.Sub.

Sub.

2 Page 2619 As PassedPending byin the Senate Energy Committee that may be used in the generation of electricity as defined by 718513 the power siting board;

719514 (e) Gathering lines, gas gathering pipelines, and 720515 processing plant gas stub pipelines as those terms are defined 721516 in section 4905.90 of the Revised Code and associated 722517 facilities;

723518 (f) Any gas processing plant as defined in section 4905.90 724519 of the Revised Code;

725520 (g) Natural gas liquids finished product pipelines;

726521 (h) Pipelines from a gas processing plant as defined in 727522 section 4905.90 of the Revised Code to a natural gas liquids 728523 fractionation plant, including a raw natural gas liquids 729524 pipeline, or to an interstate or intrastate gas pipeline;

730525 (i) Any natural gas liquids fractionation plant;

731526 (j) A production operation as defined in section 1509.01 732527 of the Revised Code, including all pipelines upstream of any 733528 gathering lines;

734529 (k) Any compressor stations used by the following:

735530 (i) A gathering line, a gas gathering pipeline, a 736531 processing plant gas stub pipeline, or a gas processing plant as 737532 those terms are defined in section 4905.90 of the Revised Code;

738533 (ii) A natural gas liquids finished product pipeline, a 739534 natural gas liquids fractionation plant, or any pipeline 740535 upstream of a natural gas liquids fractionation plant;

or 741536 (iii) A production operation as defined in section 1509.01 742537 of the Revised Code.

743538 (C) "Commence to construct" means any clearing of land, 744539 Am.Sub.

Sub.

2 Page 2720 As PassedPending byin the Senate Energy Committee excavation, or other action that would adversely affect the 745540 natural environment of the site or route of a major utility 746541 facility, but does not include surveying changes needed for 747542 temporary use of sites or routes for nonutility purposes, or 748543 uses in securing geological data, including necessary borings to 749544 ascertain foundation conditions.

750545 (D) "Certificate" means a certificate of environmental 751546 compatibility and public need issued by the power siting board 752547 under section 4906.10 of the Revised Code or a construction 753548 certificate issued by the board under rules adopted under 754549 division divisions (E) or (F) to (H) of section 4906.03 of the 755550 Revised Code.

756551 (E) "Gas" means natural gas, flammable gas, or gas that is 757552 toxic or corrosive.

758553 (F) "Natural gas liquids finished product pipeline" means 759554 a pipeline that carries finished product natural gas liquids to 760555 the inlet of an interstate or intrastate finished product 761556 natural gas liquid transmission pipeline, rail loading facility, 762557 or other petrochemical or refinery facility.

763558 (G) "Large solar facility" means an electric generating 764559 plant that consists of solar panels and associated facilities 765560 with a single interconnection to the electrical grid that is a 766561 major utility facility.

767562 (H) "Large wind farm" means an electric generating plant 768563 that consists of wind turbines and associated facilities with a 769564 single interconnection to the electrical grid that is a major 770565 utility facility.

771566 (I) "Natural gas liquids fractionation plant" means a 772567 facility that takes a feed of raw natural gas liquids and 773568 Am.Sub.

Sub.

2 Page 2821 As PassedPending byin the Senate Energy Committee produces finished product natural gas liquids.

774569 (J) "Raw natural gas" means hydrocarbons that are produced 775570 in a gaseous state from gas wells and that generally include 776571 methane, ethane, propane, butanes, pentanes, hexanes, heptanes, 777572 octanes, nonanes, and decanes, plus other naturally occurring 778573 impurities like water, carbon dioxide, hydrogen sulfide, 779574 nitrogen, oxygen, and helium.

780575 (K) "Raw natural gas liquids" means naturally occurring 781576 hydrocarbons contained in raw natural gas that are extracted in 782577 a gas processing plant and liquefied and generally include 783578 mixtures of ethane, propane, butanes, and natural gasoline.

784579 (L) "Finished product natural gas liquids" means an 785580 individual finished product produced by a natural gas liquids 786581 fractionation plant as a liquid that meets the specifications 787582 for commercial products as defined by the gas processors 788583 association.

Those products include ethane, propane, iso-butane, 789584 normal butane, and natural gasoline.

790585 Sec.

791586 (A) Require such information from persons subject to its 792587 jurisdiction as it considers necessary to assist in the conduct 793588 of hearings and any investigations or studies it may undertake;

794589 (B) Conduct any studies or investigations that it 795590 considers necessary or appropriate to carry out its 796591 responsibilities under this chapter;

797592 (C) Adopt rules establishing criteria for evaluating the 798593 effects on environmental values of proposed and alternative 799594 sites, and projected needs for electric power, and such other 800595 rules as are necessary and convenient to implement this chapter, 801596 including rules governing application fees, supplemental 802597 Am.Sub.

Sub.

2 Page 2922 As PassedPending byin the Senate Energy Committee application fees, and other reasonable fees to be paid by 803598 persons subject to the board's jurisdiction.

The board shall 804599 make an annual accounting of its collection and use of these 805600 fees and shall issue an annual report of its accounting, in the 806601 form and manner prescribed by its rules, not later than the last 807602 day of June of the year following the calendar year to which the 808603 report applies.

809604 (D) Approve, disapprove, or modify and approve 810605 applications for certificates;

811606 (E) Notwithstanding sections 4906.06 to 4906.14 of the 812607 Revised Code, the board may adopt rules to provide for an 813608 accelerated review of an application for a construction 814609 certificate for construction of a major utility facility related 815610 to a coal research and development project as defined in section 816611 1555.01 of the Revised Code, or to a coal development project as 817612 defined in section 1551.30 of the Revised Code, submitted to the 818613 Ohio coal development office for review under division (B)(7) of 819614 section 1551.33 of the Revised Code.

Applications for 820615 construction certificates for construction of major utility 821616 facilities for Ohio coal research and development shall be filed 822617 with the board on the same day as the proposed facility or 823618 project is submitted to the Ohio coal development office for 824619 review.

825620 The board shall render a decision on an application for a 826621 construction certificate within ninety days after receipt of the 827622 application and all of the data and information it may require 828623 from the applicant.

In rendering a decision on an application 829624 for a construction certificate, the board shall only consider 830625 the criteria and make the findings and determinations set forth 831626 in divisions (A)(2), (3), (5), and (7) and division (B) of 832627 Am.Sub.

Sub.

2 Page 3023 As PassedPending byin the Senate Energy Committee section 4906.10 of the Revised Code.

833628 (F) Notwithstanding sections 4906.06 to 4906.14 of the 834629 Revised Code, the board shall adopt rules to provide for an 835630 accelerated review of an application for a construction 836631 certificate for any of the following:

837632 (1) An electric transmission line that is:

838633 (a) Not more than two miles in length;

839634 (b) Primarily needed to attract or meet the requirements 840635 of a specific customer or specific customers;

841636 (c) Necessary to maintain reliable electric service as a 842637 result of the retirement or shutdown of an electric generating 843638 facility located within the state;

or 844639 (d) A rebuilding of an existing transmission line.

845640 (2) An electric generating facility that uses waste heat 846641 or natural gas and is primarily within the current boundary of 847642 an existing industrial or electric generating facility;

848643 (3) A gas pipeline that is not more than five miles in 849644 length or is primarily needed to meet the requirements of a 850645 specific customer or specific customers.

851646 The board shall adopt rules that provide for the automatic 852647 certification to any entity described in this division when an 853648 application by any such entity is not suspended by the board, an 854649 administrative law judge, or the chairperson or executive 855650 director of the board for good cause shown, within ninety days 856651 of submission of the application.

If an application is 857652 suspended, the board shall approve, disapprove, or modify and 858653 approve the application not later than ninety days after the 859654 date of the suspension.

860655 Am.Sub.

Sub.

2 Page 3124 As PassedPending byin the Senate Energy Committee (G) Notwithstanding sections 4906.06 to 4906.14 of the 861656 Revised Code, the board shall adopt rules to provide for the 862657 accelerated review of an application for a construction 863658 certificate for any of the following that are located in a 864659 priority investment area designated and approved under section 865660 122.161 of the Revised Code:

866661 (1) An electric generating plant and associated 867662 facilities;

868663 (2) An electric transmission line and associated 869664 facilities;

870665 (3) Gas Pipeline infrastructure.

871666 The chairperson of the board, not later than forty-five 872667 days after receipt of an application submitted under division 873668 (G) of this section, shall determine if it complies with all 874669 application requirements set by the public utilities commission 875670 by rule.

If the chairperson does not issue a determination 876671 within the time period required by this division, the 877672 application shall be deemed in compliance by operation of law.

878673 The board shall render a decision on an application 879674 submitted under this division not later than forty-five days 880675 after the application is determined in compliance with all 881676 requirements set by the commission.

If the board does not render 882677 a decision within forty-five days, the application shall be 883678 considered approved by operation of law, and the board shall 884679 issue a certificate to the applicant.

885680 The board shall adopt rules to implement this division, 886681 including rules that prioritize applications for construction on 887682 areas negatively impacted by the decline of the coal industry.

888683 (H) Notwithstanding sections 4906.06 to 4906.14 of the 889684 Am.Sub.

Sub.

2 Page 3225 As PassedPending byin the Senate Energy Committee Revised Code, the board shall adopt rules to provide for the 890685 accelerated review of an application for a construction 891686 certificate for a major utility facility if at the time the 892687 application is filed the construction will be located, in whole, 893688 on property owned by, or under a lease with a term of twenty- 894689 five years or more with, the applicant;

in whole or in part, on 895690 an easement or right-of-way;

or on any combination of such 896691 property, easement, or right-of-way.

897692 No accelerated application shall be granted under the 898693 rules adopted under division (H) of this section for 899694 construction of a major utility facility, in whole or in part, 900695 on property under a lease with or an easement or right-of-way, 696 if 901 additional consent for construction on the property, 697 easement, 902 or right-of-way is required by any person or entity 698 other than 903 the power siting board.

904699 The board shall render a decision on an application 905700 submitted under this division not later than forty-five days 906701 after receipt of the application.

If the board does not render a 907702 decision within forty-five days, the application shall be 908703 considered approved by operation of law, and the board shall 909704 issue a certificate to the applicant.

910705 Sec.

(A) An applicant for a certificate shall 911706 file with the office of the chairperson of the power siting 912707 board an application, in such form as the board prescribes, 913708 containing the following information:

914709 (1) A description of the location and of the major utility 915710 facility;

916711 (2) A summary of any studies that have been made by or for 917712 the applicant of the environmental impact of the facility;

918713 Am.Sub.

Sub.

2 Page 3326 As PassedPending byin the Senate Energy Committee (3) A statement explaining the need for the facility;

919714 (4) A statement of the reasons why the proposed location 920715 is best suited for the facility;

921716 (5) A statement of how the facility fits into the 922717 applicant's forecast contained in the report submitted under 923718 section 4935.04 of the Revised Code;

924719 (6) Such other information as the applicant may consider 925720 relevant or as the board by rule or order may require.

Copies of 926721 the studies referred to in division (A)(2) of this section shall 927722 be filed with the office of the chairperson, if ordered, and 928723 shall be available for public inspection.

929724 The application shall be filed not more than five years 930725 prior to the planned date of commencement of construction.

The 931726 five-year period may be waived by the board for good cause 932727 shown.

933728 (B) Each application shall be accompanied by proof of 934729 service of a copy of such application on the chief executive 935730 officer of each municipal corporation and county, and the head 936731 of each public agency charged with the duty of protecting the 937732 environment or of planning land use, in the area in which any 938733 portion of such facility is to be located.

939734 (C) Each applicant within fifteen days after the date of 940735 the filing of the application shall give public notice to 941736 persons residing in the municipal corporations and counties 942737 entitled to receive notice under division (B) of this section, 943738 by the publication of a summary of the application in newspapers 944739 of general circulation in such area.

Proof of such publication 945740 shall be filed with the office of the chairperson.

946741 (D) Inadvertent failure of service on, or notice to, any 947742 Am.Sub.

Sub.

2 Page 3427 As PassedPending byin the Senate Energy Committee of the persons identified in divisions (B) and (C) of this 948743 section may be cured pursuant to orders of the board designed to 949744 afford them adequate notice to enable them to participate 950745 effectively in the proceeding.

In addition, the board, after 951746 filing, may require the applicant to serve notice of the 952747 application or copies thereof or both upon such other persons, 953748 and file proof thereof, as the board considers appropriate.

954749 (E) An application for an amendment of a certificate shall 955750 be in such form and contain such information as the board 956751 prescribes.

Notice of such an application shall be given as 957752 required in divisions (B) and (C) of this section.

958753 (F) Each application for certificate or an amendment shall 959754 be accompanied by the application fee prescribed by board rule.

960755 All application fees, supplemental application fees, and other 961756 fees collected by the board shall be deposited in the state 962757 treasury to the credit of the power siting board fund, which is 963758 hereby created.

The chairperson shall administer and authorize 964759 expenditures from the fund for any of the purposes of this 965760 chapter.

If the chairperson determines that moneys credited to 966761 the fund from an applicant's fee are not sufficient to pay the 967762 board's expenses associated with its review of the application, 968763 the chairperson shall request the approval of the controlling 969764 board to assess a supplemental application fee upon an applicant 970765 to pay anticipated additional expenses associated with the 971766 board's review of the application or an amendment to an 972767 application.

If the chairperson finds that an application fee 973768 exceeds the amount needed to pay the board's expenses for review 974769 of the application, the chairperson shall cause a refund of the 975770 excess amount to be issued to the applicant from the fund.

976771 (G) The chairperson shall determine whether an application 977772 Am.Sub.

Sub.

2 Page 3528 As PassedPending byin the Senate Energy Committee is in compliance with this section not more than forty-five days 978773 after the application is filed.

If the chairperson does not 979774 issue a determination within the time period required by this 980775 division, the application shall be deemed in compliance by 981776 operation of law.

982777 Sec.

(A) Upon the receipt of an application 983778 complying with section 4906.06 of the Revised Code, the power 984779 siting board shall promptly fix a date for a public hearing 985780 thereon, not less than sixty forty-five nor more than ninety 986781 sixty days after such receipt, and shall conclude the proceeding 987782 as expeditiously as practicable.

988783 (B) On an application for an amendment of a certificate, 989784 the board shall hold a hearing in the same manner as a hearing 990785 is held on an application for a certificate if the proposed 991786 change in the facility would result in any material increase in 992787 any environmental impact of the facility or a substantial change 993788 in the location of all or a portion of such facility other than 994789 as provided in the alternates set forth in the application.

995790 (C) The chairperson of the power siting board shall cause 996791 each application filed with the board to be investigated and 997792 shall, not less than fifteen five days prior to the date any 998793 application is set for hearing submit a written report to the 999794 board and to the applicant.

A copy of such report shall be made 1000795 available to any person upon request.

Such report shall set 1001796 forth the nature of the investigation, and shall contain 1002797 recommended findings with regard to division (A) of section 1003798 4906.10 of the Revised Code and shall become part of the record 1004799 and served upon all parties to the proceeding.

1005800 Sec.

(A) The power siting board shall render a 1006801 decision upon the record either granting or denying the 1007802 Am.Sub.

Sub.

2 Page 3629 As PassedPending byin the Senate Energy Committee application as filed, or granting it upon such terms, 1008803 conditions, or modifications of the construction, operation, or 1009804 maintenance of the major utility facility as the board considers 1010805 appropriate.

The certificate shall be subject to sections 1011806 4906.101, 4906.102, and 4906.103 of the Revised Code and 1012807 conditioned upon the facility being in compliance with standards 1013808 and rules adopted under section 4561.32 and Chapters 3704., 1014809 3734., and 6111.

An applicant may withdraw 1015810 an application if the board grants a certificate on terms, 1016811 conditions, or modifications other than those proposed by the 1017812 applicant in the application.

1018813 The board shall not grant a certificate for the 1019814 construction, operation, and maintenance of a major utility 1020815 facility, either as proposed or as modified by the board, unless 1021816 it finds and determines all of the following:

1022817 (1) The basis of the need for the facility if the facility 1023818 is an electric transmission line or gas pipeline;

1024819 (2) The nature of the probable environmental impact;

1025820 (3) That the facility represents the minimum adverse 1026821 environmental impact, considering the state of available 1027822 technology and the nature and economics of the various 1028823 alternatives, and other pertinent considerations;

1029824 (4) In the case of an electric transmission line or 1030825 generating facility, that the facility is consistent with 1031826 regional plans for expansion of the electric power grid of the 1032827 electric systems serving this state and interconnected utility 1033828 systems and that the facility will serve the interests of 1034829 electric system economy and reliability;

1035830 (5) That the facility will comply with Chapters 3704., 1036831 Am.Sub.

Sub.

2 Page 3730 As PassedPending byin the Senate Energy Committee 3734., and 6111.

of the Revised Code and all rules and standards 1037832 adopted under those chapters and under section 4561.32 of the 1038833 Revised Code.

In determining whether the facility will comply 1039834 with all rules and standards adopted under section 4561.32 of 1040835 the Revised Code, the board shall consult with the office of 1041836 aviation of the division of multi-modal planning and programs of 1042837 the department of transportation under section 4561.341 of the 1043838 Revised Code.

1044839 (6) That the facility will serve the public interest, 1045840 convenience, and necessity;

1046841 (7) In addition to the provisions contained in divisions 1047842 (A)(1) to (6) of this section and rules adopted under those 1048843 divisions, what its impact will be on the viability as 1049844 agricultural land of any land in an existing agricultural 1050845 district established under Chapter 929.

of the Revised Code that 1051846 is located within the site and alternative site of the proposed 1052847 major utility facility.

Rules adopted to evaluate impact under 1053848 division (A)(7) of this section shall not require the 1054849 compilation, creation, submission, or production of any 1055850 information, document, or other data pertaining to land not 1056851 located within the site and alternative site.

1057852 (8) That the facility incorporates maximum feasible water 1058853 conservation practices as determined by the board, considering 1059854 available technology and the nature and economics of the various 1060855 alternatives.

1061856 (B) If the board determines that the location of all or a 1062857 part of the proposed facility should be modified, it may 1063858 condition its certificate upon that modification, provided that 1064859 the municipal corporations and counties, and persons residing 1065860 therein, affected by the modification shall have been given 1066861 Am.Sub.

Sub.

2 Page 3831 As PassedPending byin the Senate Energy Committee reasonable notice thereof.

1067862 (C) A copy of the decision and any opinion issued 1068863 therewith shall be served upon each party.

1069864 (D) The board shall render a decision under this section 1070865 not later than one hundred twenty days after the date the 1071866 application is found in compliance with section 4906.06 of the 1072867 Revised Code.

If the board does not render a decision within the 1073868 time period required by this division, the application shall be 1074869 deemed approved by operation of law, and the board shall issue a 1075870 certificate to the applicant subject to the conditions contained 1076871 within the staff report issued under section 4906.07 of the 1077872 Revised Code.

1078873 Sec.

(A) The public utilities commission, for the 1079874 purpose of ascertaining the reasonableness and justice of rates 1080875 and charges for the service rendered by public utilities or 1081876 railroads, or for any other purpose authorized by law, may 1082877 investigate and ascertain the value of the property of any 1083878 public utility or railroad in this state used or useful for the 1084879 service and convenience of the public, using the same criteria 1085880 that are set forth in section sections 4909.042 and 4909.05 of 1086881 the Revised Code.

At the request of the legislative authority of 1087882 any municipal corporation, the commission, after hearing and 1088883 determining that such a valuation is necessary, may also 1089884 investigate and ascertain the value of the property of any 1090885 public utility used and useful for the service and convenience 1091886 of the public where the whole or major portion of such public 1092887 utility is situated in such municipal corporation.

1093888 (B) To assist the commission in preparing such a 1094889 valuation, every public utility or railroad shall:

1095890 Am.Sub.

Sub.

2 Page 3932 As PassedPending byin the Senate Energy Committee (1) Furnish to the commission, or to its agents, as the 1096891 commission requires, maps, profiles, schedules of rates and 1097892 tariffs, contracts, reports of engineers, and other documents, 1098893 records, and papers, or copies of any of them, in aid of any 1099894 investigation and ascertainment of the value of its property;

1100895 (2) Grant to the commission or its agents free access to 1101896 all of its premises and property and its accounts, records, and 1102897 memoranda whenever and wherever requested by any such authorized 1103898 agent;

1104899 (3) Cooperate with and aid the commission and its agents 1105900 in the work of the valuation of its property in such further 1106901 particulars and to such extent as the commission requires and 1107902 directs.

1108903 (C) The commission may make all rules which seem necessary 1109904 to ascertain the value of the property and plant of each public 1110905 utility or railroad.

1111906 Sec.

As used in sections 4909.041, 4909.042, and 1112907 4909.05 of the Revised Code:

1113908 (A) A "lease purchase agreement" is an agreement pursuant 1114909 to which a public utility leasing property is required to make 1115910 rental payments for the term of the agreement and either the 1116911 utility is granted the right to purchase the property upon the 1117912 completion of the term of the agreement and upon the payment of 1118913 an additional fixed sum of money or title to the property vests 1119914 in the utility upon the making of the final rental payment.

1120915 (B) A "leaseback" is the sale or transfer of property by a 1121916 public utility to another person contemporaneously followed by 1122917 the leasing of the property to the public utility on a long-term 1123918 basis.

1124919 Am.Sub.

Sub.

2 Page 4033 As PassedPending byin the Senate Energy Committee Sec.

(A) With respect to an electric light 1125920 company that chooses to file a forecasted test period under 1126921 section 4909.18 of the Revised Code, the public utilities 1127922 commission shall prescribe the form and details of the valuation 1128923 report of the property of the utility.

Such report shall include 1129924 all the kinds and classes of property, with the value of each, 1130925 owned, held, or projected to be owned or held during the test 1131926 period, by the utility for the service and convenience of the 1132927 public.

1133928 (B) Such report shall contain the following facts in 1134929 detail:

1135930 (1) The original cost of each parcel of land owned in fee 1136931 and projected to be owned in fee and in use during the test 1137932 period, determined by the commission;

and also a statement of 1138933 the conditions of acquisition, whether by direct purchase, by 1139934 donation, by exercise of the power of eminent domain, or 1140935 otherwise;

1141936 (2) The actual acquisition cost, not including periodic 1142937 rental fees, of rights-of-way, trailways, or other land rights 1143938 projected to be held during the test period, by virtue of 1144939 easements, leases, or other forms of grants of rights as to 1145940 usage;

1146941 (3) The original cost of all other kinds and classes of 1147942 property projected to be used and useful during the test period, 1148943 in the rendition of service to the public.

Such original costs 1149944 of property, other than land owned in fee, shall be the cost, as 1150945 determined to be reasonable by the commission, to the person 1151946 that first dedicated or dedicates the property to the public use 1152947 and shall be set forth in property accounts and subaccounts as 1153948 prescribed by the commission;

1154949 Am.Sub.

Sub.

2 Page 4134 As PassedPending byin the Senate Energy Committee (4) The cost of property constituting all or part of a 1155950 project projected to be leased to or used by the utility during 1156951 the test period, under Chapter 165., 3706., 6121., or 6123.

of 1157952 the Revised Code and not included under division (B)(3) of this 1158953 section exclusive of any interest directly or indirectly paid by 1159954 the utility with respect thereto whether or not capitalized;

1160955 (5) In the discretion of the commission, the cost to a 1161956 utility, in an amount determined to be reasonable by the 1162957 commission, of property constituting all or part of a project 1163958 projected to be leased to the utility during the test period, 1164959 under a lease purchase agreement or a leaseback and not included 1165960 under division (B)(3) of this section exclusive of any interest 1166961 directly or indirectly paid by the utility with respect thereto 1167962 whether or not capitalized;

1168963 (6) The proper and adequate reserve for depreciation, as 1169964 determined to be reasonable by the commission;

1170965 (7) Any sums of money or property that the utility is 1171966 projected to receive during the test period, as total or partial 1172967 defrayal of the cost of its property;

1173968 (8) The valuation of the property of the utility, which 1174969 shall be the sum of the amounts contained in the report pursuant 1175970 to divisions (B)(1) to (5) of this section, less the sum of the 1176971 amounts contained in the report pursuant to divisions (B)(6) and 1177972 (7) of this section.

1178973 (C) The report shall show separately the property 1179974 projected to be used and useful to or held by the utility during 1180975 the test period, and such other items as the commission 1181976 considers proper.

The commission may require an additional 1182977 report showing the extent to which the property is projected to 1183978 Am.Sub.

Sub.

2 Page 4235 As PassedPending byin the Senate Energy Committee be used and useful during the test period.

Such reports shall be 1184979 filed in the office of the commission for the information of the 1185980 governor and the general assembly.

1186981 Sec.

1187982 (A) A "lease purchase agreement" is an agreement pursuant 1188983 to which a public utility leasing property is required to make 1189984 rental payments for the term of the agreement and either the 1190985 utility is granted the right to purchase the property upon the 1191986 completion of the term of the agreement and upon the payment of 1192987 an additional fixed sum of money or title to the property vests 1193988 in the utility upon the making of the final rental payment.

1194989 (B) A "leaseback" is the sale or transfer of property by a 1195990 public utility to another person contemporaneously followed by 1196991 the leasing of the property to the public utility on a long-term 1197992 basis.

1198993 (C) The With respect to every public utility, other than 1199994 an electric light company that chooses to file a forecasted test 1200995 period under section 4909.18 of the Revised Code, the public 1201996 utilities commission shall prescribe the form and details of the 1202997 valuation report of the property of each public utility or 1203998 railroad in the state.

Such report shall include all the kinds 1204999 and classes of property, with the value of each, owned, held, 12051000 or, with respect to a natural gas, water-works, or sewage 12061001 disposal system company, projected to be owned or held as of the 12071002 date certain, by each public utility or railroad used and 12081003 useful, or, with respect to a natural gas, water-works, or 12091004 sewage disposal system company, projected to be used and useful 12101005 as of the date certain, for the service and convenience of the 12111006 public.

Such 12121007 Am.Sub.

Sub.

2 Page 4336 As PassedPending byin the Senate Energy Committee (B) Such report shall contain the following facts in 12131008 detail:

12141009 (1) The original cost of each parcel of land owned in fee 12151010 and in use, or, with respect to a natural gas, water-works, or 12161011 sewage disposal system company, projected to be owned in fee and 12171012 in use as of the date certain, determined by the commission;

and 12181013 also a statement of the conditions of acquisition, whether by 12191014 direct purchase, by donation, by exercise of the power of 12201015 eminent domain, or otherwise;

12211016 (2) The actual acquisition cost, not including periodic 12221017 rental fees, of rights-of-way, trailways, or other land rights 12231018 held, or, with respect to a natural gas, water-works, or sewage 12241019 disposal system company, projected to be held as of the date 12251020 certain, by virtue of easements, leases, or other forms of 12261021 grants of rights as to usage;

12271022 (3) The original cost of all other kinds and classes of 12281023 property used and useful, or, with respect to a natural gas, 12291024 water-works, or sewage disposal system company, projected to be 12301025 used and useful as of the date certain, in the rendition of 12311026 service to the public.

Subject to section 4909.052 of the 12321027 Revised Code, such original costs of property, other than land 12331028 owned in fee, shall be the cost, as determined to be reasonable 12341029 by the commission, to the person that first dedicated or 12351030 dedicates the property to the public use and shall be set forth 12361031 in property accounts and subaccounts as prescribed by the 12371032 commission.

To the extent that the costs of property comprising 12381033 a coal research and development facility, as defined in section 12391034 1555.01 of the Revised Code, or a coal development project, as 12401035 defined in section 1551.30 of the Revised Code, have been 12411036 allowed for recovery as Ohio coal research and development costs 12421037 Am.Sub.

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2 Page 4437 As PassedPending byin the Senate Energy Committee under section 4905.304 of the Revised Code, none of those costs 12431038 shall be included as a cost of property under this division.

12441039 (4) The cost of property constituting all or part of a 12451040 project leased to or used by the utility, or, with respect to a 12461041 natural gas, water-works, or sewage disposal system company, 12471042 projected to be leased to or used by the utility as of the date 12481043 certain, under Chapter 165., 3706., 6121., or 6123.

of the 12491044 Revised Code and not included under division (C)(3)(B)(3) of 12501045 this section exclusive of any interest directly or indirectly 12511046 paid by the utility with respect thereto whether or not 12521047 capitalized;

12531048 (5) In the discretion of the commission, the cost to a 12541049 utility, in an amount determined to be reasonable by the 12551050 commission, of property constituting all or part of a project 12561051 leased to the utility, or, with respect to a natural gas, water- 12571052 works, or sewage disposal system company, projected to be leased 12581053 to the utility as of the date certain, under a lease purchase 12591054 agreement or a leaseback and not included under division (C)(3) 12601055 (B)(3) of this section exclusive of any interest directly or 12611056 indirectly paid by the utility with respect thereto whether or 12621057 not capitalized;

12631058 (6) The cost of the replacement of water service lines 12641059 incurred by a water-works company under section 4909.173 of the 12651060 Revised Code and the water service line replacement 12661061 reimbursement amounts provided to customers under section 12671062 4909.174 of the Revised Code;

12681063 (7) The proper and adequate reserve for depreciation, as 12691064 determined to be reasonable by the commission;

12701065 (8) Any sums of money or property that the company may 12711066 Am.Sub.

Sub.

2 Page 4538 As PassedPending byin the Senate Energy Committee have received, or, with respect to a natural gas, water-works, 12721067 or sewage disposal system company, is projected to receive as of 12731068 the date certain, as total or partial defrayal of the cost of 12741069 its property;

12751070 (9) The valuation of the property of the company, which 12761071 shall be the sum of the amounts contained in the report pursuant 12771072 to divisions (C)(1)(B)(1) to (6) of this section, less the sum 12781073 of the amounts contained in the report pursuant to divisions (C) 12791074 (7)(B)(7) and (8) of this section.

12801075 (C) The report shall show separately the property used and 12811076 useful to such public utility or railroad in the furnishing of 12821077 the service to the public, the property held by such public 12831078 utility or railroad for other purposes, and the property 12841079 projected to be used and useful to or held by a natural gas, 12851080 water-works, or sewage disposal system company as of the date 12861081 certain, and such other items as the commission considers 12871082 proper.

The commission may require an additional report showing 12881083 the extent to which the property is used and useful, or, with 12891084 respect to a natural gas, water-works, or sewage disposal system 12901085 company, projected to be used and useful as of the date certain.

12911086 Such reports shall be filed in the office of the commission for 12921087 the information of the governor and the general assembly.

12931088 Sec.

Subject to a finding that such costs are 12941089 just and reasonable, the public utilities commission in 12951090 evaluating a petition submitted under section 4905.481 of the 12961091 Revised Code shall accept the original cost, reported under 12971092 division (C)(3) (B)(3) of section 4909.05 of the Revised Code, 12981093 of the acquisition of a municipal water-works or sewage disposal 12991094 system company that is acquired by a large water-works or sewage 13001095 disposal system company, provided that the original cost is 13011096 Am.Sub.

Sub.

2 Page 4639 As PassedPending byin the Senate Energy Committee determined according to all of the following requirements:

13021097 (A) The acquiring company has three appraisals performed 13031098 on the property of the company being acquired.

13041099 (B) The three appraisals are performed by three 13051100 independent utility-valuation experts mutually selected by the 13061101 acquiring company and the company being acquired from the list 13071102 maintained under section 4909.054 of the Revised Code.

13081103 (C) The average of the three appraisals is used as the 13091104 fair market value of the company being acquired.

13101105 (D) Each utility-valuation expert does all of the 13111106 following:

13121107 (1) Determines the fair market value of the company to be 13131108 acquired by establishing the amount for which the company would 13141109 be sold in a voluntary transaction between a willing buyer and a 13151110 willing seller under no obligation to buy or sell;

13161111 (2) Determines the fair market value in compliance with 13171112 the uniform standards of professional appraisal practice;

13181113 (3) Employs the cost, market, and income approach to 13191114 independently quantify the future benefits of the company to be 13201115 acquired;

13211116 (4) Incorporates the assessment described in division (D) 13221117 (5) of this section into the appraisal under the cost, market, 13231118 and income approach;

13241119 (5) Engages one engineer who is licensed to prepare an 13251120 assessment of the tangible assets of the company to be acquired.

13261121 The original source of funding for any part of the tangible 13271122 assets shall not be relevant to the determination of the value 13281123 of those assets.

13291124 Am.Sub.

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2 Page 4740 As PassedPending byin the Senate Energy Committee (E) The lesser of the purchase price or the fair market 13301125 value, described in division (C) of this section, is reported as 13311126 the original cost under division (C)(3) (B)(3) of section 13321127 4909.05 of the Revised Code of the company to be acquired.

13331128 Sec.

The investigation and report required by 13341129 section section 4909.042 or 4909.05 of the Revised Code shall 13351130 show, when the public utilities commission deems it necessary, 13361131 the amounts, dates, and rates of interest of all bonds 13371132 outstanding against each public utility or railroad, the 13381133 property upon which such bonds are a lien, the amounts paid for 13391134 them, and, the original capital stock and the moneys received by 13401135 any such public utility or railroad by reason of any issue of 13411136 stock, bonds, or other securities.

Such report shall also show 13421137 the net and gross receipts of such public utility or railroad 13431138 and the method by which moneys were expended or paid out and the 13441139 purpose of such payments.

The commission may prescribe the 13451140 procedure to be followed in making the investigation and 13461141 valuation, the form in which the results of the ascertainment of 13471142 the value of each public utility or railroad shall be submitted, 13481143 and the classifications of the elements that constitute the 13491144 ascertained value.

Such investigation shall also show the value 13501145 of the property of every public utility or railroad as a whole, 13511146 and if such property is in more than one county, the value of 13521147 its property in each of such counties.

13531148 "Valuation" and "value," as used in this section, may 13541149 include, with :

13551150 (A) With respect to a public utility that is a natural 13561151 gas, water-works, or sewage disposal system company, projected 13571152 valuation and value as of the date certain, if applicable 13581153 because of a future date certain under section 4909.15 of the 13591154 Am.Sub.

Sub.

2 Page 4841 As PassedPending byin the Senate Energy Committee Revised Code;

13601155 (B) With respect to an electric light company that chooses 13611156 to file a forecasted test period under section 4909.18 of the 13621157 Revised Code, the valuation and value during the forecasted test 13631158 period.

13641159 Sec.

The public utilities commission, during the 13651160 making of the valuation provided for in sections 4909.04 to 13661161 4909.13 of the Revised Code, and after its completion, shall in 13671162 like manner keep itself informed through its engineers, experts, 13681163 and other assistants of all extensions, improvements, or other 13691164 changes in the condition and value of the property of all public 13701165 utilities or railroads and shall ascertain the value of such 13711166 extensions, improvements, and changes.

The commission shall, as 13721167 is required for the proper regulation of such public utilities 13731168 or railroads, revise and correct its valuations of property, 13741169 showing such revisions and corrections as a whole and as to each 13751170 county.

Such revisions and corrections shall be filed in the 13761171 same manner as original reports.

13771172 "Valuation" and "value," as used in this section, may 13781173 include, with :

13791174 (A) With respect to a public utility that is a natural 13801175 gas, water-works, or sewage disposal system company, projected 13811176 valuation and value as of the date certain, if applicable 13821177 because of a future date certain under section 4909.15 of the 13831178 Revised Code;

13841179 (B) With respect to an electric light company that chooses 13851180 to file a forecasted test period under section 4909.18 of the 13861181 Revised Code, the valuation and value during the forecasted test 13871182 period.

13881183 Am.Sub.

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2 Page 4942 As PassedPending byin the Senate Energy Committee Sec.

When the public utilities commission has 13891184 completed the valuation of the property of any public utility or 13901185 railroad and before such valuation becomes final, it shall give 13911186 notice by registered letter to such public utility or railroad, 13921187 and if a substantial portion of said public utility or railroad 13931188 is situated in a municipal corporation, then to the mayor of 13941189 such municipal corporation, stating the valuations placed upon 13951190 the several kinds and classes of property of such public utility 13961191 or railroad and upon the property as a whole and give such 13971192 further notice by publication or otherwise as it shall deem 13981193 necessary to apprise the public of such valuation.

If, within 13991194 thirty days after such notification, no protest has been filed 14001195 with the commission, such valuation becomes final.

If notice of 14011196 protest has been filed by any public utility or railroad, the 14021197 commission shall fix a time for hearing such protest and shall 14031198 consider at such hearing any matter material thereto presented 14041199 by such public utility, railroad, or municipal corporation, in 14051200 support of its protest or by any representative of the public 14061201 against such protest.

If, after the hearing of any protest of 14071202 any valuation so fixed, the commission is of the opinion that 14081203 its inventory is incomplete or inaccurate or that its valuation 14091204 is incorrect, it shall make such changes as are necessary and 14101205 shall issue an order making such corrected valuations final.

A 14111206 final valuation by the commission and all classifications made 14121207 for the ascertainment of such valuations shall be public and are 14131208 prima-facie evidence relative to the value of the property.

14141209 "Valuation" and "value," as used in this section, may 14151210 include, with :

14161211 (A) With respect to a public utility that is a natural 14171212 gas, water-works, or sewage disposal system company, projected 14181213 valuation and value as of the date certain, if applicable 14191214 Am.Sub.

Sub.