As Introduced

127th General Assembly Regular Session 2007-2008

H. B. No. 487

Representative McGregor, J. 

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A BILL

To amend section 1571.01 and to enact sections

1

1572.01, 1572.02, 1572.03, 1572.04, 1572.05,

2

1572.06, 1572.07, 3706.31, 3706.32, 3706.33,

3

3706.34, 3706.35, 3706.36, 4928.64, 4928.65,

4

4928.66, 4928.68, and 5501.452 of the Revised

5

Code to establish alternative energy benchmarks

6

for electric distribution utilities and electric

7

services companies, provide for the use of

8

renewable energy credits, establish energy

9

efficiency standards for electric distribution

10

utilities and require the Department of

11

Development to establish energy efficiency

12

programs, create the Ohio Renewable Energy

13

Authority to provide loans and grants to

14

renewable energy businesses, establish policies

15

regarding the geologic storage of carbon dioxide,

16

and require greenhouse gas emission reporting and

17

carbon control planning for generating facilities.

18

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 1571.01 be amended and sections	19
1572.01, 1572.02, 1572.03, 1572.04, 1572.05, 1572.06, 1572.07,	20
3706.31, 3706.32, 3706.33, 3706.34, 3706.35, 3706.36, 4928.64,	21
4928.65, 4928.66, 4928.68, and 5501.452 of the Revised Code be	22
enacted to read as follows:	23

Sec. 1571.01.  As used in this chapter, unless other meaning	24
is clearly indicated in the context:	25

(A) "Gas storage reservoir" or "storage reservoir" or	26
"reservoir" means a continuous area of a subterranean porous sand	27
or rock stratum or strata, any part of which or of the protective	28
area of which, is within a coal bearing township, into which gas	29
is or may be injected for the purpose of storing it therein and	30
removing it therefrom, or for the purpose of testing whether such	31
stratum is suitable for such storage purposes.	32

(B) "Gas" means any natural, manufactured, or by-product gas	33
or any mixture thereof, but does not include carbon dioxide	34
regulated under Chapter 1572. of the Revised Code.	35

(C) "Reservoir operator" or "operator," when used in	36
referring to the operator of a gas storage reservoir, means a	37
person who is engaged in the work of preparing to inject, or who	38
injects gas into, or who stores gas in, or who removes gas from, a	39
gas storage reservoir, and who owns the right to do so.	40

(D)(1) "Boundary," when used in referring to the boundary of	41
a gas storage reservoir, means the boundary of such reservoir as	42
shown on the map or maps thereof on file in the division of	43
mineral resources management as required by this chapter.	44

(2) "Boundary," when used in referring to the boundary of a	45
reservoir protective area, means the boundary of such reservoir	46
protective area as shown on the map or maps thereof on file in the	47
division as required by this chapter.	48

(E) "Reservoir protective area" or "reservoir's protective	49
area" means the area of land outside the boundary of a gas storage	50
reservoir shown as such on the map or maps thereof on file in the	51
division as required by this chapter. The area of land shown on	52
such map or maps as such reservoir protective area shall be	53
outside the boundary of such reservoir, and shall encircle such	54
reservoir and touch all parts of the boundary of such reservoir,	55
and no part of the outside boundary of such protective area shall	56
be less than two thousand nor more than five thousand linear feet	57
distant from the boundary of such reservoir.	58

(F) "Coal bearing township" means a township designated as a	59
coal bearing township by the chief of the division of mineral	60
resources management as required by section 1561.06 of the Revised	61
Code.	62

(G) "Coal mine" means the underground excavations of a mine	63
that are being used or are usable or are being developed for use	64
in connection with the extraction of coal from its natural deposit	65
in the earth. "Underground excavations," when used in referring to	66
the underground excavations of a coal mine, includes the abandoned	67
underground excavations of such mine. It also includes the	68
underground excavations of an abandoned coal mine if such	69
abandoned mine is connected with underground excavations of a coal	70
mine. "Coal mine" does not mean or include:	71

(1) A mine in which coal is extracted from its natural	72
deposit in the earth by strip or open pit mining methods or by	73
other methods by which individuals are not required to go	74
underground in connection with the extraction of coal from its	75
natural deposit in the earth;	76

(2) A mine in which not more than fourteen individuals are	77
regularly employed underground.	78

(H) "Operator," when used in referring to the operator of a	79
coal mine, means a person who engages in the work of developing	80
such mine for use in extracting coal from its natural deposit in	81
the earth, or who so uses such mine, and who owns the right to do	82
so.	83

(I) "Boundary," when used in referring to the boundary of a	84
coal mine, means the boundary of the underground excavations of	85
such mine as shown on the maps of such mine on file in the	86
division as required by sections 1563.03 to 1563.05 and 1571.03 of	87
the Revised Code.	88

(J) "Mine protective area" or "mine's protective area" means	89
the area of land that the operator of a coal mine designates and	90
shows as such on the map or maps of such coal mine filed with the	91
division as required by sections 1563.03 to 1563.05 and 1571.03 of	92
the Revised Code. Such area of land shall be outside of the	93
boundary of such coal mine, but some part of the boundary of such	94
area of land shall abut upon a part of the boundary of such coal	95
mine. Such area of land shall be comprised of such tracts of land	96
in which such coal mine operator owns the right to extract coal	97
therefrom by underground mining methods and in which underground	98
excavations of such coal mine are likely to be made within the	99
ensuing year for use in connection with the extraction of coal	100
therefrom.	101

(K) "Pillar" means a solid block of coal or other material	102
left unmined to support the overlying strata in a coal mine, or to	103
protect a well.	104

(L) "Retreat mining" means the removal of pillars and ribs	105
and stumps and other coal remaining in a section of a coal mine	106
after the development mining has been completed in such section.	107

(M) "Linear feet," when used to indicate distance between two	108
points that are not in the same plane, means the length in feet of	109
the shortest horizontal line that connects two lines projected	110
vertically upward or downward from the two points.	111

(N) "Map" means a graphic representation of the location and	112
size of the existing or proposed items it is made to represent,	113
accurately drawn according to a given scale.	114

(O) "Well" means any hole, drilled or bored, or being drilled	115
or bored, into the earth, whether for the purpose of, or whether	116
used for:	117

(1) Producing or extracting any gas or liquid mineral, or	118
natural or artificial brines, or oil field waters;	119

(2) Injecting gas into or removing gas from an underground	120
gas storage reservoir;	121

(3) Introducing water or other liquid pressure into an oil	122
bearing sand to recover oil contained in such sand, provided that	123
"well" does not mean a hole drilled or bored, or being drilled or	124
bored, into the earth, whether for the purpose of, or whether used	125
for, producing or extracting potable water to be used as such.	126

(P) "Testing" means injecting gas into, or storing gas in or	127
removing gas from, a gas storage reservoir for the sole purpose of	128
determining whether such reservoir is suitable for use as a gas	129
storage reservoir.	130

(Q) "Casing" means a string or strings of pipe commonly	131
placed in a well.	132

(R) "Inactivate" means to shut off temporarily all flow of	133
gas from a well at a point below the horizon of the coal mine that	134
might be affected by such flow of gas, by means of a plug or other	135
suitable device or by injecting water, bentonite, or some other	136
equally nonporous material into the well, or any other method	137
approved by the mineral resources inspector.	138

(S) "Gas storage well inspector" means the gas storage well	139
inspector in the division.	140

(T) The verb "open" or the noun "opening," when used in	141
clauses relating to the time when a coal mine operator intends to	142
open a new coal mine, or the time when a new coal mine is opened,	143
or the time of the opening of a new coal mine, or when used in	144
other similar clauses to convey like meanings, means that time and	145
condition in the initial development of a new coal mine when the	146
second opening required by section 1563.14 of the Revised Code is	147
completed in such mine.	148

Sec. 1572.01. As used in sections 1572.01 to 1572.07 of the	149
Revised Code:	150

(A) "Carbon dioxide" means anthropogenically sourced carbon	151
dioxide of sufficient purity and quality as not to compromise the	152
safety and efficiency of an underground reservoir to contain the	153
carbon dioxide effectively.	154

(B) "Geologic storage" means the permanent or short-term	155
underground storage of carbon dioxide in an underground reservoir.	156

(C) "Storage facility" means the underground reservoir,	157
underground equipment, and surface buildings and equipment	158
utilized in the subsurface storage of carbon dioxide, excluding	159
any pipelines used to transport the carbon dioxide from one or	160
more capture facilities to the storage facility. "Storage	161
facility" may include an enhanced oil recovery or natural gas	162
operation.	163

(D) "Storage operator" means an individual, corporation,	164
partnership, limited liability company, or other entity authorized	165
by the division of mineral resources management to operate a	166
storage facility in this state.	167

(E) "Underground reservoir" means a subsurface sedimentary	168
stratum, formation, aquifer, cavity, or void, naturally or	169
artificially created, including, but not limited to, an oil or	170
natural gas reservoir, saline formation, or coal seam suitable or	171
capable of being made suitable for the injection and storage of	172
carbon dioxide. "Underground reservoir" includes any necessary and	173
reasonable areal buffer and subsurface monitoring zone designated	174
by the division of mineral resources management for the purposes	175
of ensuring the safe and efficient operation of a storage facility	176
and protecting against pollution and the invasion, escape, or	177
migration of carbon dioxide.	178

Sec. 1572.02. (A) The division of mineral resources	179
management has exclusive authority to regulate the geologic	180
storage of carbon dioxide in this state and shall administer the	181
geologic carbon dioxide storage program established in sections	182
1572.01 to 1572.07 of the Revised Code.	183

(B) A person seeking to operate a storage facility in this	184
state shall apply for a permit to do so from the chief of the	185
division of mineral resources management in accordance with rules	186
adopted under section 1572.03 of the Revised Code. The chief shall	187
issue such a permit only if all of the following apply:	188

(1) The storage facility is suitable and feasible for the	189
injection and storage of carbon dioxide.	190

(2) A good faith effort has been made by the applicant to	191
obtain the consent of a majority of the owners of property	192
interests that will be affected by the storage facility, and the	193
applicant has obtained remaining property interests in accordance	194
with section 1572.04 of the Revised Code.	195

(3) The use of the storage facility for the geologic storage	196
of carbon dioxide will not contaminate resources containing fresh	197
water, oil, natural gas, coal, or other commercial mineral	198
deposits.	199

(4) The storage will not unduly endanger human health and the	200
environment.	201

In issuing a permit under this section, the chief may include	202
terms and conditions in the permit that the chief determines to be	203
necessary.	204

(C) With respect to each parcel of property that is affected	205
by the issuance of a permit under division (B) of this section,	206
the chief shall cause a copy of the permit to be filed and	207
recorded in the office of the county recorder of the county in	208
which the parcel is located.	209

(D) Prior to injecting any carbon dioxide into a storage	210
facility pursuant to a permit issued under this section, the	211
storage operator shall cause to be filed and recorded in the	212
office of the applicable county recorder and with the division of	213
mineral resources management a statement that the storage operator	214
has acquired by purchase, lease, eminent domain, or otherwise all	215
of the necessary property rights with respect to the storage	216
facility that is the subject of the permit. The filing shall	217
include the date on which carbon dioxide will commence being	218
injected into the storage facility.	219

Sec. 1572.03. The chief of the division of mineral resources	220
management shall adopt rules in accordance with Chapter 119. of	221
the Revised Code that do all of the following:	222

(A) Establish application procedures for permits issued under	223
section 1572.02 of the Revised Code and procedures for the	224
issuance or denial of an application for a permit. The rules shall	225
establish the amount of the application fee that shall be	226
submitted with the application. All money collected from the	227
application fees shall be deposited to the credit of the carbon	228
dioxide storage facility trust fund created in section 1572.06 of	229
the Revised Code.	230

(B) Establish requirements applicable to storage operators	231
for obtaining the approval of the chief prior to appropriating	232
property interests under section 1572.04 of the Revised Code;	233

(C) Establish financial assurance requirements for the proper	234
maintenance, well plugging, and abandonment of a storage facility	235
by a storage operator and to protect the storage facility against	236
pollution and the invasion, escape, or migration of carbon	237
dioxide. The financial assurance requirements may include a	238
requirement that a storage operator purchase a surety bond or	239
other financial surety.	240

(D) Establish penalties and procedures for the enforcement of	241
sections 1572.01 to 1572.07 of the Revised Code and rules adopted	242
under those sections, including civil penalties that may be	243
imposed on any person violating any provision of sections 1572.01	244
to 1572.07 of the Revised Code or of rules adopted or terms and	245
conditions of a permit issued under those sections. All civil	246
penalties collected under this section shall be deposited in the	247
state treasury to the credit of the carbon dioxide storage	248
facility trust fund.	249

(E) Establish the amount of a fee to be charged by the	250
division of mineral resources management and paid by a storage	251
operator for each ton of carbon dioxide that is injected into a	252
storage facility by the storage operator. The rules shall require	253
that the proceeds from the fee be deposited to the credit of the	254
carbon dioxide storage facility trust fund created in section	255
1572.06 of the Revised Code.	256

(F) Establish closure requirements applicable to storage	257
facilities upon the completion of carbon dioxide injection	258
operations at a storage facility. The rules shall require the	259
division to issue a certificate of completion of injection	260
operations upon the termination of carbon dioxide injection at a	261
storage facility and the successful closure of the storage	262
facility. Additionally, the rules shall require that not later	263
than ten years, or another time frame specified by rule, after the	264
issuance of a certificate, upon a showing by the storage operator	265
that the storage facility is reasonably expected to retain its	266
mechanical integrity and remain emplaced, the ownership of the	267
storage facility shall transfer to this state. The rules also	268
shall provide that, upon transfer of ownership, the storage	269
operator, and any generator of carbon dioxide that was injected	270
into the storage facility by the storage operator, shall be	271
released from liability with respect to the storage facility and	272
that any long-term monitoring or remediation of any leakage at the	273
storage facility shall become the responsibility of this state.	274

(G) Establish a long-term monitoring program for the purposes	275
of the monitoring of storage facilities, remediation of mechanical	276
problems associated with storage facilities and surface	277
infrastructure, repair of mechanical leaks at storage facilities,	278
and plugging and abandonment of wells that are associated with	279
storage facilities;	280

(H) Establish procedures for allowing the conversion of	281
enhanced recovery of oil or natural gas operations into a storage	282
facility;	283

(I) Establish any other requirements or procedures that are	284
determined necessary by the chief in order to implement sections	285
1572.01 to 1572.07 of the Revised Code.	286

Sec. 1572.04. (A) Subject to rules adopted under section	287
1572.03 of the Revised Code, a storage operator may appropriate,	288
in the manner provided in sections 163.01 to 163.22 of the Revised	289
Code, surface and subsurface rights and interests in land,	290
including easements and rights-of-way, that are necessary for both	291
of the following:	292

(1) The operation of a storage facility;

293

(2) The transporting of carbon dioxide among facilities	294
constituting a storage facility.	295

(B) Notwithstanding division (A) of this section, no property	296
rights in a storage facility shall be acquired pursuant to that	297
division.	298

Sec. 1572.05. The director of natural resources may enter	299
into cooperative agreements with the federal government and other	300
states that the division of mineral resources management	301
determines to be necessary for the purpose of regulating carbon	302
dioxide storage projects.	303

Sec. 1572.06. There is hereby created in the state treasury	304
the carbon dioxide storage facility trust fund to be administered	305
by the division of mineral resources management. The fund shall	306
consist of the proceeds of the fees established in rules adopted	307
under section 1572.03 of the Revised Code. Money in the fund shall	308
be used by the division for both of the following purposes:	309

(A) The administration of sections 1572.01 to 1572.07 of the	310
Revised Code;	311

(B) Funding for the long-term monitoring of storage	312
facilities as provided in rules adopted under section 1572.03 of	313
the Revised Code.	314

Sec. 1572.07. Nothing in sections 1572.01 to 1572.07 of the	315
Revised Code or rules adopted under those sections applies to the	316
use of carbon dioxide as part of or in conjunction with any	317
enhanced recovery of oil or natural gas where the sole purpose of	318
the project is the recovery of oil or natural gas.	319

Sec. 3706.31. (A) As used in sections 3706.31 to 3706.36 of	320
the Revised Code:	321

(1) "Renewable energy business" means a person that engages	322
in the business of generating electricity using renewable energy	323
facilities, in the business of manufacturing equipment for	324
renewable energy facilities, or in the business of researching	325
and developing such equipment or facilities.	326

(2) "Renewable energy facility" means any technology or	327
structure that generates electricity using solely or primarily	328
renewable energy resources.	329

(3) "Renewable energy resource" means solar photovoltaic	330
energy, solar thermal energy, wind energy, hydropower, geothermal	331
energy, municipal solid waste, biomass energy, biologically	332
derived methane gas, and energy derived from byproducts of the	333
pulping process or wood manufacturing process including bark,	334
wood chips, sawdust, and lignin in spent pulping liquors.	335

(B) Sections 3706.01 to 3706.21 and 3706.99 of the Revised	336
Code do not apply to sections 3706.31 to 3706.36 of the Revised	337
Code.	338

Sec. 3706.32. (A) There is hereby created the Ohio renewable	339
energy authority, a body corporate and politic, performing	340
essential governmental functions of this state.	341

(B) The authority shall consist of eleven members as follows:	342
three members appointed by the governor, not more than two of whom	343
shall be members of the same political party, three members	344
appointed by the speaker of the house of representatives, not more	345
than two of whom shall be members of the same political party,	346
three members appointed by the president of the senate, not more	347
than two of whom shall be members of the same political party, and	348
two nonvoting members appointed by the Ohio board of regents to	349
represent Ohio colleges and universities.	350

Initial members of the authority shall be appointed by August	351
1, 2008. The terms of the members first appointed by the board of	352
regents shall expire on June 30, 2010. The term of one of the	353
members first appointed by the governor shall expire on that date,	354
with the terms of the other two members appointed by the governor	355
expiring on June 30, 2012. The terms of one of the members first	356
appointed each by the speaker of the house of representatives and	357
the president of the senate shall expire on June 30, 2010, with	358
the terms of the other four members appointed by the speaker and	359
the president expiring on June 30, 2011. Otherwise, members'	360
terms of office shall be for two years, commencing on the first	361
day of July and ending on the thirtieth day of June. Each member	362
shall hold office from the date of appointment until the end of	363
the term for which the member was appointed. A member appointed	364
to fill a vacancy occurring prior to the expiration of the term	365
for which the member's predecessor was appointed shall hold	366
office for the remainder of such term. A member shall continue in	367
office subsequent to the expiration date of the member's term	368
until the member's successor takes office, or until a period of	369
sixty days has elapsed, whichever occurs first. A member is	370
eligible for reappointment.	371

(C) The appointing authority may remove a member at any time	372
for misfeasance, nonfeasance, or malfeasance in office. In	373
addition, by affirmative vote of six voting members, a member may	374
be removed for malfeasance or misfeasance in office, for failing	375
to attend authority meetings regularly, or for any cause that	376
renders the member incapable or unfit to discharge the duties of	377
the member or the authority.	378

(D) The members shall elect a chairperson, vice-chairperson,	379
and secretary from among its voting members. A majority of the	380
voting members shall constitute a quorum, except that the	381
authority may require a vote of six voting members for an action	382
the authority shall specify in its bylaws or otherwise in writing.	383
No vacancy in the membership shall impair the right of a quorum	384
by such vote to exercise all the rights and perform all the duties	385
of the authority. The authority may establish subcommittees from	386
among its members, which subcommittees shall exercise any power or	387
duty of the authority that the authority shall delegate in	388
writing. The authority shall meet at least six times per year, and	389
shall meet at such other times as it considers appropriate or upon	390
the call of the chairperson or the written request of a majority	391
of its voting members. The authority shall determine the location	392
of its offices.	393

(E) Members of the authority and authority employees shall	394
file financial disclosure statements under section 102.02 of the	395
Revised Code.	396

Sec. 3706.33. (A) The Ohio renewable energy authority may:

397

(1) Adopt bylaws for the regulation of its affairs and the	398
conduct of its business;	399

(2) Adopt an official seal;

400

(3) Maintain a principal office and suboffices at such places	401
within this state as it designates;	402

(4) Sue and plead in its own name and be sued and impleaded	403
in its own name with respect to its contracts or the torts of its	404
members, employees, or agents acting within the scope of their	405
employment. Any such actions against the authority shall be	406
brought in the court of common pleas of the county in which the	407
principal office of the authority is located, or in the court of	408
common pleas of the county in which the cause of action arose,	409
provided that county is located within this state. All summonses,	410
exceptions, and notices of every kind shall be served on the	411
authority by leaving a copy at the authority's principal office	412
with the person in charge or with the secretary of the authority.	413

(5) Acquire by gift or purchase, hold, and dispose of real	414
and personal property in the exercise of the powers of the	415
authority and the performance of its duties under sections 3706.31	416
to 3706.35 of the Revised Code;	417

(6) Make and enter into all contracts and agreements and	418
execute all instruments necessary or incidental to the performance	419
of its duties and the execution of its powers under sections	420
3706.31 to 3706.35 of the Revised Code;	421

(7) Receive and accept from any federal agency, subject to	422
the approval of the governor, grants for or in aid of renewable	423
energy development and investment, and receive and accept aid or	424
contributions from any source of money, property, labor, or other	425
things of value, to be held, used, and applied only for the	426
purposes for which those grants and contributions are made;	427

(8) Provide coverage for its employees under Chapters 4123.	428
and 4141. of the Revised Code;	429

(9) Do all acts necessary or proper to carry out the powers	430
expressly granted in sections 3706.31 to 3706.35 of the Revised	431
Code.	432

(B)(1) All minutes, resolutions, and official decisions of	433
the authority shall be recorded, and a book of minutes,	434
resolutions, and official decisions shall be authenticated by the	435
signature of the authority secretary. The book of minutes,	436
resolutions, and official decisions, as well as any report or	437
financial statement of the authority, shall be public records	438
under section 149.43 of the Revised Code. One copy of the book	439
shall be sent annually to the governor.	440

(2) Annually, the authority shall submit a report to the	441
general assembly pursuant to section 101.68 of the Revised Code,	442
to the director of development, and to the governor regarding the	443
authority's financial assistance program under section 3706.35 of	444
the Revised Code, job development prospects in this state, and	445
other information.	446

(C)(1) The authority shall be exempt from the levy of any	447
real and personal property taxes upon any property of the	448
authority acquired and used for its offices.	449

(2) The exemptions specified in division (C)(1) of this	450
section shall not extend to persons or entities conducting	451
business on the authority's property, for which payment of state	452
and local taxes would otherwise be required.	453

(D) Nothing in sections 3706.31 to 3706.36 of the Revised	454
Code authorizes the authority to sell the authority or any of its	455
property or other assets or to merge the authority with another	456
entity, without the prior approval of the general assembly.	457

Sec. 3706.34. (A) There is hereby created the renewable	458
energy development and investment fund, which shall be in the	459
custody of the treasurer of state but shall not be part of the	460
state treasury. The fund shall consist of money transferred to it	461
pursuant to divisions (C) and (D) of this section and revenue from	462
alternative energy compliance payments under division (C) of	463
section 4928.64 and forfeitures under section 4928.66 of the	464
Revised Code. Interest on the fund shall be derived by the	465
investment of the fund balance only in money market accounts and	466
shall be deposited to the credit of the fund.	467

(B) The fund shall be used by the Ohio renewable energy	468
authority to provide financial assistance as authorized under	469
division (A) of section 3706.35 of the Revised Code. In addition,	470
not more than six per cent of the annual transfer to the fund	471
shall be used for administrative purposes, including for office	472
space, office equipment and furnishings, service contracts,	473
member and employee compensation, and member or employee expenses	474
as shall be specified in the authority bylaws, including but not	475
limited to, mileage and any other reasonable expenses of members	476
in attending authority or authority subcommittee meetings, and	477
any filing fee for the financial disclosure statements required	478
by section 3706.32 of the Revised Code. The authority shall set	479
the compensation of its members and employees, but the combined	480
compensation and expenses paid to a member shall not exceed	481
twenty thousand dollars per year.	482

(C) Immediately after the initial member appointments are	483
made pursuant to section 3706.32 of the Revised Code, the	484
treasurer of state shall transfer two and one-half million dollars	485
from the state general revenue fund to the renewable energy	486
development and investment fund. The treasurer shall so transfer	487
ten million dollars in calendar year 2009.	488

(D) Each year beginning in 2010, the tax commissioner shall	489
consult with the director of development and the authority to	490
estimate the number of state income tax taxpayers that are	491
employed by renewable energy businesses in that year. From that	492
information, the tax commissioner shall estimate the amount of	493
state income tax revenue that is generated during that year from	494
those taxpayers, using any method the commissioner determines	495
appropriate, such as the North American industry classification	496
system codes, estimated state income tax withholdings, or any	497
other reasonable process or method. The method shall be consistent	498
from year to year. The tax commissioner may contract with any	499
person to assist in deriving the taxpayer and tax revenue	500
estimates required by this division. Subsequently, the tax	501
commissioner shall certify the difference in such estimated tax	502
revenue generated during the year compared to baseline year 2009.	503
If the certified amount in any year is ten million dollars or	504
more, the treasurer of state in that year shall transfer an	505
amount equal to the certified amount from the state general	506
revenue fund to the renewable energy development and investment	507
fund. If the amount is less than ten million dollars, the	508
treasurer shall so transfer ten million dollars.	509

Sec. 3706.35. (A) The Ohio renewable energy authority shall	510
adopt a mission statement that shall govern its award of financial	511
assistance provided pursuant to this division. That assistance	512
shall be entirely directed at identifying, promoting, nurturing,	513
and expanding job opportunities in renewable energy businesses	514
located in this state and shall consist of grants, loans, loan	515
guarantees, awards, or other forms of assistance provided to	516
those businesses. The authority shall specify the terms and	517
conditions, if any, for the repayment of the assistance it	518
provides under this section and shall incorporate those terms and	519
conditions into a repayment agreement that a recipient of the	520
assistance shall sign.	521

(B) The authority shall maintain accounting records in	522
accordance with generally accepted accounting principles and other	523
required accounting standards and shall prepare a financial	524
statement not later than ninety days after the close of the fiscal	525
period. The financial statement shall be subject to audit by the	526
auditor of state.	527

(C) The authority shall develop policies and guidelines for	528
the administration of its financial assistance program under	529
division (A) of this section and annually shall conduct at least	530
one public hearing to obtain input from any interested party	531
regarding the administration of the program. The hearing shall	532
be held at such time and place as the authority determines and	533
only when a quorum of the authority is present.	534

Sec. 3706.36. The Ohio renewable energy authority shall	535
terminate on June 30, 2018, at which time the terms of office of	536
the authority's members, as well as the employment of the	537
authority's employees except as necessary to close the affairs and	538
offices of the authority, shall terminate, and the authority shall	539
cease to exist, unless the authority and those terms and	540
employment are extended by an act of the general assembly. Upon	541
that expiration, all property, money, and other assets of the	542
authority hereby belong to this state, the obligations of the	543
authority become obligations of this state, and the treasurer of	544
state shall transfer to the general revenue fund the unused	545
balances of the renewable energy development and investment fund	546
created under section 3706.34 of the Revised Code. Nothing in	547
sections 3706.31 to 3706.36 of the Revised Code abrogates or	548
shall authorize the abrogation of any financial assistance	549
provided by the authority prior to its expiration under this	550
section or any related agreement entered into by the authority	551
prior to that date.	552

Sec. 4928.64. (A) As used in sections 4928.64 to 4928.66 of	553
the Revised Code:	554

(1) "Advanced energy resource" means a distributed	555
generation system consisting of customer cogeneration of	556
electricity and thermal output primarily to meet the energy needs	557
of the customer's facilities, clean coal technology, nuclear	558
technology, or energy efficiency, including demand-side	559
management.	560

(2) "Alternative energy" means energy from advanced energy	561
resources or from renewable energy resources or both.	562

(3) "Hydropower" means energy produced by a hydroelectric	563
generating facility that is located at a dam within or on the	564
border of this state and meets all of the following standards:	565

(a) The facility provides for river flows that are not	566
detrimental for fish, wildlife, and water quality, including	567
seasonal flow fluctuations as defined by the applicable licensing	568
agency for the facility.	569

(b) The facility demonstrates that it complies with the water	570
quality standards of this state, which compliance may consist of	571
certification under Section 401 of the "Clean Water Act of 1977,"	572
91 Stat. 1598, 1599, 33 U.S.C. 1341, and demonstrates that it has	573
not contributed to a finding by this state that the river has	574
impaired water quality under Section 303(d) of the "Clean Water	575
Act of 1977," 114 Stat. 870, 33 U.S.C. 1313.	576

(c) The facility complies with mandatory prescriptions	577
regarding fish passage as required by the federal energy	578
regulatory commission license issued for the project, regarding	579
fish protection for riverine, anadromous, and catadromus fish.	580

(d) The facility complies with the recommendations of the	581
Ohio environmental protection agency and with the terms of its	582
federal energy regulatory commission license regarding watershed	583
protection, mitigation, or enhancement.	584

(e) The facility complies with provisions of the "Endangered	585
Species Act of 1973," 87 Stat. 884, 16 U.S.C. 1531 to 1544, as	586
amended.	587

(f) The facility does not harm cultural resources of the	588
area. This can be shown through compliance with the terms of its	589
federal energy regulatory commission license or, if the facility	590
is not regulated by that commission, through development of a plan	591
approved by the Ohio historic preservation office.	592

(g) The facility complies with the terms of its federal	593
energy regulatory commission license or exemption that are related	594
to recreational access, accommodation, and facilities or, if the	595
facility is not regulated by that commission, the facility	596
complies with similar requirements as are recommended by resource	597
agencies; and the facility provides access to water to the public	598
without fee or charge.	599

(h) The facility is not recommended for removal by any	600
federal agency or agency of any state.	601

(4) "Renewable energy resource" means solar photovoltaic or	602
solar thermal energy, wind energy, hydropower, geothermal energy,	603
fuel derived from municipal solid waste through a process other	604
than combustion, biomass energy, biologically derived methane	605
gas, or energy derived from non-treated byproducts of the pulping	606
process or wood manufacturing process, including bark, wood	607
chips, sawdust, and lignin in spent pulping liquors. "Renewable	608
energy resource" includes, but is not limited to, a fuel cell	609
powered by any such energy, any storage facility that will promote	610
the better utilization of renewable energy resources and primarily	611
operates off peak, or a distributed generation system used by a	612
customer to generate electricity from any such energy.	613

(B) Subject to division (C) of this section and by the end of	614
2025, an electric distribution utility shall provide from	615
alternative energy a portion of the electricity supply required	616
for its standard service offer under section 4928.14 of the	617
Revised Code, and an electric services company shall provide a	618
portion of its electricity supply from alternative energy. That	619
portion shall equal twenty-five per cent of the total number of	620
kilowatt hours of electricity supplied by the utility or company	621
to any and all electric consumers whose electric load centers	622
are served by the utility and are located within the utility's	623
certified territory or, in the case of an electric services	624
company, are served by the company and are located within this	625
state. However, nothing in this section precludes a utility or	626
company from providing a greater percentage.	627

Of the alternative energy implemented by the utility or	628
company by the end of 2025:	629

(1) At least half shall be generated from advanced energy	630
resources;	631

(2) Half shall be generated from renewable energy	632
resources, including one per cent from solar energy resources, in	633
accordance with the following benchmarks:	634

By end of year	Renewable energy resources	Solar energy resources		635
2009	0.25%	.005%		636
2010	0.50%	.05%		637
2011	1%	.1%		638
2012	1.5%	.15%		639
2013	2%	.2%		640
2014	2.5%	.25%		641
2015	3.5%	.3%		642
2016	4.5%	.35%		643
2017	5.5%	.4%		644
2018	6.5%	.45%		645
2019	7.5%	.5%		646
2020	8.5%	.6%		647
2021	9.5%	.7%		648
2022	10.5%	.8%		649
2023	11.5%	.9%		650
2024	12.5%	1%		651

(3) At least one-half of the renewable energy resources	652
implemented by the utility or company by the end of 2025 shall	653
be met through facilities located in this state.	654

(C)(1) The public utilities commission annually shall review	655
a utility's or company's compliance with the most recent	656
applicable benchmark under division (B)(2) of this section. If	657
the commission determines, after notice and hearing, that the	658
utility or company has failed to comply with any such benchmark,	659
the commission shall impose a renewable energy compliance	660
payment on the utility or company.	661

(a) The compliance payment pertaining to the solar energy	662
resource benchmarks under division (B)(2) of this section shall be	663
an amount per megawatt hour of undercompliance or noncompliance in	664
the period under review, starting at four hundred fifty dollars	665
for 2009, four hundred dollars for 2010 and 2011, and similarly	666
reduced every two years thereafter through 2024 by fifty dollars.	667

(b) The compliance payment pertaining to the renewable	668
energy resource benchmarks under division (B)(2) of this section	669
shall equal forty-five dollars times the number of additional	670
renewable energy credits that the utility or company would have	671
needed to comply with the applicable benchmark in the period	672
under review.	673

(c) The compliance payment shall not be passed through by the	674
utility or company to consumers. The compliance payment shall be	675
remitted to the commission, for deposit to the credit of the	676
renewable energy development and investment fund created under	677
section 3706.34 of the Revised Code. Payment of the compliance	678
payment shall be subject to such collection and enforcement	679
procedures as apply to the collection of a forfeiture under	680
sections 4905.55 to 4905.60 and 4905.64 of the Revised Code.	681

(2) The commission shall establish a process to provide for	682
at least an annual review of the alternative energy market in this	683
state and in the service territories of the regional transmission	684
organizations that manage transmission systems located in this	685
state. The commission shall use the results of this study to	686
identify any needed changes to the amount of the renewable energy	687
compliance payment specified under divisions (C)(1)(a) and (b) of	688
this section. Specifically, the commission may increase the	689
amount to ensure that payment of compliance payments is not used	690
to achieve compliance with this section in lieu of actually	691
acquiring or realizing energy derived from renewable energy	692
resources. However, if the commission finds that the amount of	693
the compliance payment should be otherwise changed, the	694
commission shall present this finding to the general assembly	695
for legislative enactment.	696

(D)(1) The commission annually shall submit to the general	697
assembly in accordance with section 101.68 of the Revised Code a	698
report describing the compliance of electric distribution	699
utilities and electric services companies with division (B) of	700
this section and any strategy for utility and company compliance	701
or for encouraging the use of alternative energy in supplying	702
this state's electricity needs in a manner that considers	703
available technology, costs, job creation, and economic	704
impacts. The commission shall allow and consider public comments	705
on the report prior to its submission to the general assembly.	706
Nothing in the report shall be binding on any person, including	707
any utility or company for the purpose of its compliance with any	708
benchmark under division (B) of this section, or the enforcement	709
of that provision under division (C) of this section.	710

(2) The governor, in consultation with the commission	711
chairperson, shall appoint an alternative energy advisory	712
committee. The committee shall examine available technology for	713
and related timetables, goals, and costs of the alternative	714
energy requirement under division (B) of this section and shall	715
submit to the commission a semiannual report of its	716
recommendations.	717

(E) All costs incurred by a utility in complying with the	718
requirements of this section shall be bypassable by any consumer	719
that has exercised choice of supplier under section 4928.03 of the	720
Revised Code.	721

Sec. 4928.65. An electric distribution utility or electric	722
services company may use renewable energy credits for the	723
purpose of complying with the renewable energy and solar energy	724
resource requirements of division (B)(2) of section 4928.64 of	725
the Revised Code. The public utilities commission shall adopt	726
rules specifying that one unit of credit shall equal one	727
megawatt hour of electricity derived from renewable energy	728
resources. The rules also shall provide for this state a system	729
of registering renewable energy credits by specifying which of	730
any generally available registries shall be used for that	731
purpose and not by creating a registry.	732

Sec. 4928.66. (A)(1) Beginning in 2009, an electric	733
distribution utility, as well as the director of development,	734
shall implement energy efficiency programs designed to achieve	735
reductions in energy usage by three-tenths of one per cent in	736
that year, increasing by an additional five-tenths of one per	737
cent in 2010, seven-tenths of one per cent in 2011, eight-tenths	738
of one per cent in 2012, nine-tenths of one per cent in 2013, one	739
per cent from 2014 to 2018, and two per cent each year	740
thereafter, achieving a cumulative energy reduction in excess of	741
twenty-two per cent by 2025.	742

(2) Beginning in 2009, an electric distribution utility shall	743
implement peak demand reduction programs designed to achieve a one	744
per cent reduction in peak demand in 2009 and an additional	745
seventy-five hundredths of one per cent reduction each year	746
through 2018. In 2018, the standing committees in the house of	747
representatives and the senate primarily dealing with energy	748
issues shall make recommendations to the general assembly	749
regarding future peak demand reduction targets.	750

For the purposes of divisions (A)(1) and (2) of this section,	751
programs implemented by a utility may include demand-response	752
programs and transmission and distribution infrastructure	753
improvements that reduce line losses.	754

(B) In accordance with rules it shall adopt, the public	755
utilities commission shall produce and docket at the commission an	756
annual report containing the results of its verification of the	757
annual levels of energy usage and peak demand reductions achieved	758
by each electric distribution utility pursuant to division (A) of	759
this section. A copy of the report shall be provided to the	760
consumers' counsel.	761

(C) If the commission determines, after notice and hearing	762
and based upon its report under division (B) of this section, that	763
an electric distribution utility has failed to comply with an	764
energy usage or peak demand reduction required by division (A) of	765
this section, the commission shall assess a forfeiture on the	766
utility as provided under sections 4905.55 to 4905.60 and 4905.64	767
of the Revised Code, either in the amount, per day per	768
undercompliance or noncompliance, relative to the period of the	769
report, equal to that prescribed for noncompliances under section	770
4905.54 of the Revised Code, or in an amount equal to the then	771
existing market value of one renewable energy credit per	772
megawatt hour of undercompliance or noncompliance. Revenue from	773
any forfeiture assessed under this division shall be deposited to	774
the credit of the renewable energy development and investment	775
fund created under section 3706.34 of the Revised Code.	776

(D) The commission additionally shall adopt rules that	777
require an electric distribution utility to provide a customer	778
upon request with two years' consumption data in an accessible	779
form. The rules also may provide for a decoupling mechanism that	780
shall provide a utility reasonable recovery of lost revenue	781
resulting from its promotion of energy efficiency to consumers. In	782
approving such mechanism for a utility, the commission shall	783
consider whether the utility should maintain its weather risk and	784
shall consider appropriate consumer protections that ensure that	785
the utility's rates or prices are just and reasonable, including,	786
but not limited to, such protections as a cap on any percentage	787
rate or price increase under the mechanism or on any increase in	788
overall rates or prices resulting from the mechanism.	789
Additionally, the rules may provide, subject to notice and	790
hearing, for a utility for which a decoupling mechanism has not	791
been authorized to receive just and reasonable recovery of costs	792
the utility incurs in meeting the reductions established under	793
division (A) of this section.	794

Sec. 4928.68.  The public utilities commission shall adopt	795
rules establishing greenhouse gas emission reporting requirements,	796
including participation in the climate registry, and carbon	797
control planning requirements for each electric generating	798
facility located in this state that emits greenhouse gases,	799
including facilities in operation on the effective date of this	800
section.	801

Sec. 5501.452. In accordance with section 5501.45 of the	802
Revised Code, the director of transportation shall implement a	803
program allowing, by lease or permit, the use of lands owned by	804
this state and acquired or used for the state highway system, for	805
highways, in connection with highways, or as incidental to the	806
acquisition of land for highways by any person operating a	807
pipeline that is necessary for the operation of a storage facility	808
regulated under sections 1572.01 to 1572.07 of the Revised Code.	809
The program shall be operated in accordance with guidelines in	810
effect on January 1, 1996. "Operation of a storage facility" under	811
this section includes operation for the purpose of transporting	812
carbon dioxide by pipeline from its source for injection into the	813
storage facility.	814

Nothing in this section shall require the director to	815
maintain a lease or permit at a specific location or prohibit the	816
director from modifying the terms of a specific lease or permit.	817

Section 2. That existing section 1571.01 of the Revised Code	818
is hereby repealed.	819