130th Ohio General Assembly
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(126th General Assembly)
(Substitute House Bill Number 251)



AN ACT
To amend sections 122.075, 123.011, 125.15, 125.834, 1510.04, 4905.90, 4928.01, 4928.57, 4928.58, 4928.61, 4928.62, and 4928.63 and to enact section 3345.69 of the Revised Code; to amend Section 203.99 of Am. Sub. H.B. 66 of the 126th General Assembly, as subsequently amended; to amend Section 203.99.45 of Am. Sub. H.B. 66 of the 126th General Assembly, as subsequently amended; and to amend Section 235.30 of Am. Sub. H.B. 530 of the 126th General Assembly to specify certain energy efficiency and conservation standards relating to facility construction and leasing that the Office of Energy Services in the Department of Administrative Services must promulgate and with which state agencies must comply; to require certain additional duties, and additional cooperation between the Office and the Office of Energy Efficiency of the Department of Development, relating to state purchasing; to require boards of trustees of state institutions of higher education to adopt rules to carry out on- and off-campus building, energy efficiency and conservation guidelines developed by a committee of those institutions in consultation with the Office of Energy Services; to make other changes relative to energy programs; to increase the maximum amount that can be assessed to fund the Oil and Natural Gas Marketing Program; to change the Energy Efficiency Revolving Loan Program into an Advanced Energy Program; and to make an appropriation.

Be it enacted by the General Assembly of the State of Ohio:

SECTION 1.  That sections 122.075, 123.011, 125.15, 125.834, 1510.04, 4905.90, 4928.01, 4928.57, 4928.58, 4928.61, 4928.62, and 4928.63 be amended and section 3345.69 of the Revised Code be enacted to read as follows:

Sec. 122.075. (A) As used in this section:

(1) "Alternative fuel" means blended biodiesel or blended gasoline.

(2) "Biodiesel" means a mono-alkyl ester combustible liquid fuel that is derived from vegetable oils or animal fats, or any combination of those reagents, and that meets American society for testing and materials specification D6751-03a for biodiesel fuel (B100) blend stock distillate fuels.

(3) "Diesel fuel" and "gasoline" have the same meanings as in section 5735.01 of the Revised Code.

(4) "Ethanol" has the same meaning as in section 5733.46 of the Revised Code.

(5) "Blended biodiesel" means diesel fuel containing at least twenty per cent biodiesel by volume.

(6) "Blended gasoline" means gasoline containing at least eighty-five per cent ethanol by volume.

(7) "Incremental cost" means either of the following:

(a) The difference in cost between blended gasoline and gasoline containing ten per cent or less ethanol at the time that the blended gasoline is purchased;

(b) The difference in cost between blended biodiesel and diesel fuel containing two per cent or less biodiesel at the time that the blended biodiesel is purchased.

(B) For the purpose of improving the air quality in this state, the director of development shall establish an alternative fuel transportation grant program under which the director may make grants to businesses, nonprofit organizations, public school systems, or local governments for the purchase and installation of alternative fuel refueling facilities and for the purchase and use of alternative fuel.

(C) The director shall adopt rules in accordance with Chapter 119. of the Revised Code that are necessary for the administration of the alternative fuel transportation grant program. The rules shall establish at least all of the following:

(1) An application form and procedures governing the application process for a grant under the program;

(2) A procedure for prioritizing the award of grants under the program;

(3) A requirement that the maximum grant for the purchase and installation of an alternative fuel refueling facility be no more than fifty per cent of the cost of the facility;

(4) A requirement that the maximum grant for the purchase of alternative fuel be no more than fifty per cent of the incremental cost of the fuel;

(5) Any other criteria, procedures, or guidelines that the director determines are necessary to administer the program.

(D) There is hereby created in the state treasury the alternative fuel transportation grant fund. The fund shall consist of money as may be specified by the general assembly from the advanced energy efficiency revolving loan fund created by section 4928.61 of the Revised Code. Money in the fund shall be used to make grants under the alternative fuel transportation grant program and by the director in the administration of that program.

Sec. 123.011.  (A) There As used in this section:

(1) "Construct" includes reconstruct, improve, renovate, enlarge, or otherwise alter.

(2) "Energy consumption analysis" means the evaluation of all energy consuming systems, components, and equipment by demand and type of energy, including the internal energy load imposed on a facility by its occupants and the external energy load imposed by climatic conditions.

(3) "Energy performance index" means a number describing the energy requirements of a facility per square foot of floor space or per cubic foot of occupied volume as appropriate under defined internal and external ambient conditions over an entire seasonal cycle.

(4) "Facility" means a building or other structure, or part of a building or other structure, that includes provision for a heating, refrigeration, ventilation, cooling, lighting, hot water, or other major energy consuming system, component, or equipment.

(5) "State funded" means funded in whole or in part through appropriation by the general assembly or through the use of any guarantee provided by this state.

(6) "State institution of higher education" has the same meaning as in section 3345.011 of the Revised Code.

(B) There is hereby created within the department of administrative services an office to be known as the office of energy services. The office shall be under the supervision of a manager, who shall be appointed by the director of administrative services. The director shall assign to the office a such number of employees and furnish such equipment and supplies that the director considers as are necessary for the proper performance of the office's duties assigned to the office.

The office shall develop energy efficiency and conservation programs in each of the following areas:

(1) New construction design and review;

(2) Existing building audit and retrofit;

(3) Energy efficient procurement;

(4) Alternate Alternative fuel vehicles.

The office may accept and administer grants from public and private sources for carrying out any of its duties under this section.

(B) In addition to its duties under division (A) of this section, the office shall assist the department in its responsibility for state-owned, assisted, and leased facilities by ensuring that energy conservation goals are observed in the design, construction, renovation, and utilization of these facilities in a manner that will minimize the consumption of energy used in the operation and maintenance of such facilities. This process shall include the use of life-cycle costs, including construction, the costs of operation and maintenance of the facility as it affects energy consumption over the economic life of the facility, and energy consumption analyses of existing facilities in order to determine and require necessary changes in the operation and maintenance of such facilities.

As used in this section:

(1) "Facility" means a building or other structure that includes provision for a heating or cooling system, or both, or for a hot water system.

(2) "State-assisted facility" means a facility constructed or renovated in whole or in part with state or federal funds or with funds guaranteed or provided by or through a state agency.

(3) "Energy consumption analysis" means the evaluation of all energy consuming systems and components by demand and type of energy, including the internal energy load imposed on a facility by its occupants, equipment, and components and the external energy load imposed on a facility by climatic conditions.

(4) "Energy performance index" means a number describing the energy requirements of a facility per square foot of floor space or per cubic foot of occupied volume as appropriate under defined internal and external ambient conditions over an entire seasonal cycle.

(5) "Life-cycle costs" means the cost of owning, operating, and maintaining a facility over the life of the structure. This may be expressed as an annual cost for each year of the facility's use.

(C) No state agency, department, division, bureau, office, unit, board, commission, authority, quasi-governmental entity, or institution, including those agencies otherwise excluded from the jurisdiction of the department under division (A)(3) of section 123.01 of the Revised Code, shall lease, construct, or have cause to be leased or constructed, within the limits prescribed in this section, a state-funded facility, without having secured from the office a proper evaluation of life-cycle costs cost analysis or, in the case of a lease, an energy consumption analysis, as computed or prepared by a qualified architect or engineer in accordance with the rules required by division (D) of this section. Construction

Construction shall proceed only upon the disclosure to the office, for the facility chosen, of the life-cycle costs as determined in this section and the capitalization of the initial construction costs of the building. The results of life-cycle costs cost analysis shall be a primary consideration in the selection of a building design. Such That analysis shall be required only for construction of buildings with an area of five thousand square feet or greater. No such agency shall An energy consumption analysis for the term of a proposed lease shall be required only for the leasing of an area of twenty thousand square feet or greater within a given building boundary, without having secured from the office a proper evaluation of an energy consumption analysis for the term of the proposed lease. Such energy consumption. That analysis shall be a primary consideration in the selection of a facility to be leased. Nothing

Nothing in this section shall deprive or limit any state agency that has review authority over design or, construction, or leasing plans from requiring a life-cycle cost analysis or energy consumption analysis.

Whenever any state department, agency, department, division, bureau, office, unit, board, commission, authority, quasi-governmental entity, or institution requests release of capital improvement funds for any state-funded facility, it shall submit copies of all pertinent life-cycle cost analyses prepared pursuant to this section and in accordance with rules adopted under Chapters 3781. and 4101. of the Revised Code.

(D) The For the purposes of assisting the department in its responsibility for state-funded facilities pursuant to section 123.01 of the Revised Code and of cost-effectively reducing the energy consumption of those and any other state-funded facilities, thereby promoting fiscal, economic, and environmental benefits to this state, the office shall promulgate rules and procedures, including energy conservation performance guidelines, for conducting a life-cycle cost analysis of alternative architectural and engineering designs and for developing energy performance indices to evaluate the efficiency of energy utilization of competing designs in the construction of state-financed and leased facilities. The rules and procedures shall take effect February 3, 1979.

The specifying cost-effective, energy efficiency and conservation standards that may govern the lease, design, construction, operation, and maintenance of all state-funded facilities except facilities of state institutions of higher education. The office of energy efficiency in the department of development shall cooperate in providing information and technical expertise to the office of energy services to ensure promulgation of rules of maximum effectiveness. The standards prescribed by rules promulgated under this division may draw from or incorporate, by reference or otherwise and in whole or in part, standards already developed or implemented by any competent, public or private standards organization or program. The rules also may include any of the following:

(1) Specifications for a life-cycle cost analysis that shall determine the reasonably expected fuel costs over, for the economic life of the building that are required to maintain illumination, power, temperature, humidity, ventilation such state-funded facility, and all other energy consuming equipment in a facility and the reasonable reasonably expected costs of probable facility ownership, operation, and maintenance including labor, and materials, and building operation. The life-cycle cost analysis shall include, but not be limited. Life-cycle cost may be expressed as an annual cost for each year of the facility's use. Further, the life-cycle cost analysis may demonstrate for each design how the design contributes to energy efficiency and conservation with respect to, any of the following:

(1)(a) The coordination, orientation, and positioning of the facility on its physical site;

(2)(b) The amount and type of glass employed in the facility and the directions of exposure;

(3)(c) Thermal characteristics of materials, including the effect of insulation incorporated into facility design, including insulation;

(4)(d) Architectural features which that affect energy consumption, including the effect of solar utilization of the absorption and reflection properties of external surfaces;

(5)(e) The variable occupancy and operating conditions of the facility and subportions portions of the facility, including illumination levels;

(6) An (f) Any other pertinent, physical characteristics of the design.

A life-cycle cost analysis additionally may include an energy consumption analysis that conforms to division (D)(2) of this section.

(2) Specifications for an energy consumption analysis of the facility's heating, refrigeration, ventilation, cooling, lighting, hot water, and other major equipment of the facility's heating, ventilating, and cooling system, lighting system, hot water system, and all other energy consuming systems, components, and equipment as appropriate. This analysis shall include both of the following:

(a) The comparison of two or more system alternatives, one of which may be a system using solar energy;

(b) The projection of the annual energy consumption of those major energy consuming systems, components, and equipment and systems, for a range of operation of the facility over the economic life of the facility;

(c) An evaluation of the energy consumption of component equipment in each system, and considering the their operation of such components at other than full or rated outputs.

The rules A life-cycle cost analysis and energy consumption analysis shall be based on the best currently available methods of analyses analysis, including such as those of the national bureau of standards, the department of housing and urban development, or other federal agencies and, professional societies, and materials directions developed by the department.

The office shall promulgate rules (3) Specifications for energy performance indices, as defined in division (B)(4) of this section, to be used to audit and evaluate competing design proposals submitted to the state.

(4) A requirement that, not later than two years after the effective date of this amendment, each state-funded facility except a facility of a state institution of higher education is managed by at least one building operator certified under the building operator certification program or any equivalent program or standards as shall be prescribed in the rules and considered reasonably equivalent.

(5) An application process by which a project manager, as to a specified state-funded facility except a facility of a state institution of higher education, may apply for a waiver of compliance with any provision of the rules required by divisions (D)(1) to (4) of this section.

(E) The office shall conduct studies of the state's purchase and use of supplies, automobiles, and equipment having a significant impact on energy use by government, in order to determine the potential for energy conservation. The department of development shall advise the office on the state of the art of energy efficiency, both generally and with reference to the cost of various levels of energy efficiency. The office of energy services shall promulgate rules to ensure that energy efficiency and conservation will be considered in state purchasing the purchase of products and equipment, except motor vehicles, by any state agency, department, division, bureau, office, unit, board, commission, authority, quasi-governmental entity, or institution. Minimum energy efficiency standards on for purchased products and equipment shall may be required, based on federal testing and labeling where available or on standards developed by the department. Life-cycle cost analysis office. The rules shall apply to the competitive selection of energy consuming systems, components, and equipment and components shall be made part of the competitive selection procedures of under Chapter 125. of the Revised Code where possible.

Not later than January 1, 1979, the The office also shall take the initiative in implementing ensure energy efficient and energy conserving purchasing measures through practices by doing all of the following means:

(1) Identifying Cooperatively with the office of energy efficiency, identifying available energy efficiency and conservation opportunities available;

(2) Providing for interchange of information among state purchasing agencies;

(3) Identifying laws, policies, rules, and procedures which that need modification;

(4) Monitoring experience with energy conservation buying practices and the cost-effectiveness of this state's purchase and use of motor vehicles and of major energy-consuming systems, components, equipment, and products having a significant impact on energy consumption by government;

(5) Providing Cooperatively with the office of energy efficiency, providing technical assistance and training programs and workshops for to state employees involved in the purchasing process.

The department of development shall make recommendations to the office regarding planning and implementation of purchasing policies and procedures supportive of energy efficiency and conservation.

(F)(1) The office of energy services shall require all departments, state agencies, state institutions, universities, colleges departments, divisions, bureaus, offices, units, commissions, boards, authorities, commissions, boards, and quasi-governmental entities, institutions, and state institutions of higher education to implement procedures ensuring that all their passenger automobiles acquired in each fiscal year, except for those passenger automobiles acquired for use in law enforcement or emergency rescue work, achieve a fleet average fuel economy of not less than twenty miles per gallon in fiscal year 1979, not less than twenty-one miles per gallon in fiscal year 1980, and, in each fiscal year thereafter, not less than the fleet average fuel economy prescribed, by rule, by the office for that fiscal year in accordance with this division.

Prior as shall be prescribed by the office by rule. The office shall promulgate the rule prior to the beginning of fiscal year 1981 and each the fiscal year thereafter, the office shall adopt rules prescribing the fleet average fuel economy all passenger automobiles acquired by all departments, agencies, state institutions, universities, colleges, authorities, commissions, boards, and quasi-governmental entities of state government during the fiscal year covered by the rules must achieve, except for those passenger automobiles acquired for use in law enforcement or emergency rescue work. These rules shall not be less stringent than in accordance with the average fuel economy standards established pursuant to federal law for passenger automobiles manufactured during the model year that begins during the fiscal year.

(1)(2) Each department, state agency, state institution, university, college department, division, bureau, office, unit, commission, board, authority, commission, board, and quasi-governmental entity of state government, institution, and state institution of higher education shall determine its fleet average fuel economy by dividing:

(a) The total number of passenger vehicles acquired during the fiscal year, except for those passenger vehicles acquired for use in law enforcement or emergency rescue work, by

(b) A sum of terms, each of which is a fraction created by dividing:

(i) The number of passenger vehicles of a given make, model, and year, except for passenger vehicles acquired for use in law enforcement or emergency rescue work, acquired during the fiscal year, by

(ii) The fuel economy measured by the administrator of the United States environmental protection agency, for the given make, model, and year of vehicle, that constitutes an average fuel economy for combined city and highway driving.

(2) As used in division (F)(1)(2) of this section, "acquired" means leased for a period of sixty continuous days or more, or purchased.

(G) Each state agency, department, division, bureau, office, unit, board, commission, authority, quasi-governmental entity, institution, and state institution of higher education shall comply with any applicable provision of this section or of a rule promulgated pursuant to division (D) or (F) of this section.

Sec. 125.15.  All state agencies required to secure any equipment, materials, supplies, or services from the department of administrative services shall make acquisition in the manner and upon forms prescribed by the director of administrative services and shall reimburse the department for the equipment, materials, supplies, or services, including a reasonable sum to cover the department's administrative costs and costs relating to energy efficiency and conservation programs, whenever reimbursement is required by the department. The money so paid shall be deposited in the state treasury to the credit of the general services fund or the information technology fund, as appropriate. Those funds are hereby created.

Sec. 125.834.  (A) The department of administrative services shall ensure that all new motor vehicles acquired on and after July 1, 2006, by the state for use by state agencies under section 125.832 of the Revised Code are capable of using alternative fuels. A state agency that is acquiring new motor vehicles under division (G)(1) of section 125.832 of the Revised Code shall report annually, in a manner prescribed by the director of administrative services, the number of new motor vehicles acquired by the state agency and the number of those motor vehicles that are capable of using alternative fuel.

(B) The department shall not purchase or lease, or authorize the purchase or lease by a state agency of, any motor vehicles that are incapable of using alternative fuels, unless one or more of the following apply:

(a)(1) The department or state agency is unable to acquire or operate motor vehicles within the cost limitations described in rules adopted under division (D) of this section.

(b)(2) The use of alternative fuels would not meet the energy conservation and exhaust emissions criteria described in rules adopted under division (D) of this section.

(c)(3) An emergency exists or exigent circumstances exist, as determined by the department of administrative services.

(C) Not later than ninety days after the effective date of this section October 12, 2006, all motor vehicles owned or leased by the state that are capable of using an alternative fuel shall use an alternative fuel if the fuel is reasonably available at a reasonable price. Subject to division (D) of this section, motor vehicles owned or leased by the state shall use at least sixty thousand gallons of E85 blend fuel per calendar year by January 1, 2007, with an increase of five thousand gallons per calendar year each calendar year thereafter, and at least one million gallons of blended biodiesel per calendar year by January 1, 2007, with an increase of one hundred thousand gallons per calendar year each calendar year thereafter. The director of administrative services, under Chapter 119. of the Revised Code, shall adopt rules to implement the fuel use requirement of this division, and the directors and heads of all state departments and agencies shall issue a directive to all state employees who use state motor vehicles informing them of the fuel use requirement. The directive shall instruct state employees to purchase alternative fuels at retail fuel facilities whenever possible.

As used in this division, "motor vehicle" has the same meaning as in section 125.831 of the Revised Code and also includes all on-road and off-road vehicles powered by diesel fuel, regardless of gross vehicle weight.

(D) The director of administrative services shall adopt and may amend, under Chapter 119. of the Revised Code, rules that include both of the following:

(1) Requirements for state agencies in the procurement of alternative fuels and motor vehicles capable of using alternative fuels, and cost limitations for the acquisition and operation of such vehicles;

(2) Energy conservation and exhaust emissions criteria for motor vehicles capable of using alternative fuels.

Sec. 1510.04.  (A) Independent producers in this state may present the technical advisory council with a petition signed by the lesser of one hundred or ten per cent of all such producers requesting that the council hold a referendum in accordance with section 1510.05 of the Revised Code to establish a marketing program for oil and natural gas or to amend an existing program.

(B) At the time of presentation of the petition to the council under division (A) of this section, the petitioners also shall present the proposed program or amendment, which shall include all of the following:

(1) The rate of assessment to be made on the production of oil and natural gas in this state, which shall not exceed one cent five cents per each gross barrel of oil and one-tenth of one cent per thousand cubic feet of natural gas;

(2) Terms, conditions, limitations, and other qualifications for assessment;

(3) Procedures to refund the assessment.

(C) Before making a decision under this division to approve or disapprove a proposed program or amendment, the council shall publish in at least two appropriate periodicals designated by the council a notice that the program or amendment has been proposed and informing interested persons of the procedures for submitting comments regarding the proposal. After publishing the notice, the council shall provide interested persons with a copy of the proposed program or amendment and an opportunity to comment on the proposed program or amendment for thirty days after the publication of the notice. The petitioners may make changes to the proposed program or amendment based upon the comments received. The council may make technical changes to the proposal to ensure compliance with this chapter. Subsequent to any changes made by the petitioners or any technical changes made by the council to a proposed program or amendment, the council may approve or disapprove the proposed program or amendment.

(D) If the council approves the proposed program or amendment, with any changes made under division (C) of this section, the council shall hold a referendum in accordance with section 1510.05 of the Revised Code to establish a marketing program for oil and natural gas or to amend an existing program.

Sec. 3345.69.  (A) As used in this section:

(1) "State institution of higher education" has the same meaning as in section 3345.011 of the Revised Code.

(2) "Board of trustees of a state institution of higher education" has the same meaning as in section 3345.61 of the Revised Code.

(B) The chairperson of the interuniversity council of Ohio and the secretary of the Ohio association of community colleges shall assist in coordinating the organization and operation of a committee to carry out this section. The committee shall be comprised of the presidents of the state institutions of higher education or their designees. The committee, in consultation with the office of energy services of the department of administrative services, shall develop guidelines for the board of trustees of each state institution of higher education to use in ensuring energy efficiency and conservation in on- and off-campus buildings. Initial guidelines shall be adopted not later than ninety days after the effective date of this section. At a minimum, guidelines under this section shall do all of the following:

(1) Include a goal to reduce on- and off-campus building energy consumption by at least twenty per cent by 2014, using calendar year 2004 as the benchmark year, while recognizing the diverse nature and different energy demands and uses of such buildings and measures already taken to increase building energy efficiency and conservation;

(2) Prescribe minimum energy efficiency and conservation standards for any new, on- or off-campus capital improvement project with a construction cost of one hundred thousand dollars or more, which standards shall be based on general building type and cost-effectiveness;

(3) Prescribe minimum energy efficiency and conservation standards for the leasing of an off-campus space of at least twenty-thousand square feet;

(4) Incorporate best practices into energy efficiency and conservation standards and plans;

(5) Provide that each board develop its own fifteen-year plan for phasing in energy efficiency and conservation projects;

(6) Provide that project impact assessments include the fiscal effects of energy efficiency and conservation recommendations and plans;

(7) Establish mechanisms for each board to report periodically to the committee on its progress relative to the guidelines.

(C) The board of trustees of a state institution of higher education shall adopt rules under section 111.15 of the Revised Code to carry out the guidelines established pursuant to division (B) of this section, including in the execution of the board's authority under sections 3345.62 to 3345.66 of the Revised Code.

Sec. 4905.90.  As used in sections 4905.90 to 4905.96 of the Revised Code:

(A) "Contiguous property" includes, but is not limited to, a manufactured home park as defined in section 3733.01 of the Revised Code; a public or publicly subsidized housing project; an apartment complex; a condominium complex; a college or university; an office complex; a shopping center; a hotel; an industrial park; and a race track.

(B) "Gas" means:

(1) Natural natural gas, synthetic natural flammable gas, or a mixture of those gases;

(2) Petroleum gas when used in the transmission or distribution system of a natural gas which is toxic or gas company corrosive.

(C) "Gathering lines" and the "gathering of gas" have the same meaning as in the Natural Gas Pipeline Safety Act and the rules adopted by the United States department of transportation pursuant to the Natural Gas Pipeline Safety Act, including 49 C.F.R. part 192, as amended.

(D) "Intrastate pipe-line transportation" has the same meaning as in 82 Stat. 720 (1968), 49 U.S.C.A. App. 1671, as amended, but excludes the gathering of gas exempted by the Natural Gas Pipeline Safety Act.

(E) "Master-meter system" means a pipe-line system that distributes gas within a contiguous property for which the system operator purchases gas for resale to consumers, including tenants. Such pipe-line system supplies consumers who purchase the gas directly through a meter, or by paying rent, or by other means. The term includes a master-meter system as defined in 49 C.F.R. 191.3, as amended. The term excludes a pipeline within a manufactured home, mobile home, or a building.

(F) "Natural Gas Pipeline Safety Act" means the "Natural Gas Pipeline Safety Act of 1968," 82 Stat. 720, 49 U.S.C.A. App. 1671 et seq., as amended.

(G) "Operator" means any of the following:

(1) A gas company or natural gas company as defined in section 4905.03 of the Revised Code, except that division (A)(6) of that section does not authorize the public utilities commission to relieve any producer of gas, as a gas company or natural gas company, of compliance with sections 4905.90 to 4905.96 of the Revised Code or the pipe-line safety code created under section 4905.91 of the Revised Code;

(2) A pipe-line company, as defined in section 4905.03 of the Revised Code, when engaged in the business of transporting gas by pipeline;

(3) A public utility that is excepted from the definition of "public utility" under division (B) or (C) of section 4905.02 of the Revised Code, when engaged in supplying or transporting gas by pipeline within this state;

(4) Any person that owns, operates, manages, controls, or leases any of the following:

(a) Intrastate pipe-line transportation facilities within this state;

(b) Gas gathering lines within this state which are not exempted by the Natural Gas Pipeline Safety Act;

(c) A master-meter system within this state.

"Operator" does not include an ultimate consumer who owns a service line, as defined in 49 C.F.R. 192.3, as amended, on the real property of that ultimate consumer.

(H) "Operator of a master-meter system" means a person described under division (F)(4)(c) of this section. An operator of a master-meter system is not a public utility under section 4905.02 or a gas or natural gas company under section 4905.03 of the Revised Code.

(I) "Person" means:

(1) In addition to those defined in division (C) of section 1.59 of the Revised Code, a joint venture or a municipal corporation;

(2) Any trustee, receiver, assignee, or personal representative of persons defined in division (H)(1) of this section.

(J) "Safety audit" means the public utilities commission's audit of the premises, pipe-line facilities, and the records, maps, and other relevant documents of a master-meter system to determine the operator's compliance with sections 4905.90 to 4905.96 of the Revised Code and the pipe-line safety code.

(K) "Safety inspection" means any inspection, survey, or testing of a master-meter system which is authorized or required by sections 4905.90 to 4905.96 of the Revised Code and the pipe-line safety code. The term includes, but is not limited to, leak surveys, inspection of regulators and critical valves, and monitoring of cathodic protection systems, where applicable.

(L) "Safety-related condition" means any safety-related condition defined in 49 C.F.R. 191.23, as amended.

(M) "Synthetic natural gas" means gas formed from feedstocks other than natural gas, including coal, oil, or naphtha.

(N) "Total Mcfs of gas it supplied or delivered" means the sum of the following volumes of gas that an operator supplied or delivered, measured in units per one thousand cubic feet:

(1) Residential sales;

(2) Commercial and industrial sales;

(3) Other sales to public authorities;

(4) Interdepartmental sales;

(5) Sales for resale;

(6) Transportation of gas.

Sec. 4928.01.  (A) As used in this chapter:

(1) "Ancillary service" means any function necessary to the provision of electric transmission or distribution service to a retail customer and includes, but is not limited to, scheduling, system control, and dispatch services; reactive supply from generation resources and voltage control service; reactive supply from transmission resources service; regulation service; frequency response service; energy imbalance service; operating reserve-spinning reserve service; operating reserve-supplemental reserve service; load following; back-up supply service; real-power loss replacement service; dynamic scheduling; system black start capability; and network stability service.

(2) "Billing and collection agent" means a fully independent agent, not affiliated with or otherwise controlled by an electric utility, electric services company, electric cooperative, or governmental aggregator subject to certification under section 4928.08 of the Revised Code, to the extent that the agent is under contract with such utility, company, cooperative, or aggregator solely to provide billing and collection for retail electric service on behalf of the utility company, cooperative, or aggregator.

(3) "Certified territory" means the certified territory established for an electric supplier under sections 4933.81 to 4933.90 of the Revised Code as amended by Sub. S.B. No. 3 of the 123rd general assembly.

(4) "Competitive retail electric service" means a component of retail electric service that is competitive as provided under division (B) of this section.

(5) "Electric cooperative" means a not-for-profit electric light company that both is or has been financed in whole or in part under the "Rural Electrification Act of 1936," 49 Stat. 1363, 7 U.S.C. 901, and owns or operates facilities in this state to generate, transmit, or distribute electricity, or a not-for-profit successor of such company.

(6) "Electric distribution utility" means an electric utility that supplies at least retail electric distribution service.

(7) "Electric light company" has the same meaning as in section 4905.03 of the Revised Code and includes an electric services company, but excludes any self-generator to the extent it consumes electricity it so produces or to the extent it sells for resale electricity it so produces.

(8) "Electric load center" has the same meaning as in section 4933.81 of the Revised Code.

(9) "Electric services company" means an electric light company that is engaged on a for-profit or not-for-profit basis in the business of supplying or arranging for the supply of only a competitive retail electric service in this state. "Electric services company" includes a power marketer, power broker, aggregator, or independent power producer but excludes an electric cooperative, municipal electric utility, governmental aggregator, or billing and collection agent.

(10) "Electric supplier" has the same meaning as in section 4933.81 of the Revised Code.

(11) "Electric utility" means an electric light company that is engaged on a for-profit basis in the business of supplying a noncompetitive retail electric service in this state or in the businesses of supplying both a noncompetitive and a competitive retail electric service in this state. "Electric utility" excludes a municipal electric utility or a billing and collection agent.

(12) "Firm electric service" means electric service other than nonfirm electric service.

(13) "Governmental aggregator" means a legislative authority of a municipal corporation, a board of township trustees, or a board of county commissioners acting as an aggregator for the provision of a competitive retail electric service under authority conferred under section 4928.20 of the Revised Code.

(14) A person acts "knowingly," regardless of the person's purpose, when the person is aware that the person's conduct will probably cause a certain result or will probably be of a certain nature. A person has knowledge of circumstances when the person is aware that such circumstances probably exist.

(15) "Level of funding for low-income customer energy efficiency programs provided through electric utility rates" means the level of funds specifically included in an electric utility's rates on the effective date of this section October 5, 1999, pursuant to an order of the public utilities commission issued under Chapter 4905. or 4909. of the Revised Code and in effect on the day before the effective date of this section October 4, 1999, for the purpose of improving the energy efficiency of housing for the utility's low-income customers. The term excludes the level of any such funds committed to a specific nonprofit organization or organizations pursuant to a stipulation or contract.

(16) "Low-income customer assistance programs" means the percentage of income payment plan program as prescribed in rules 4901:1-18-02(B) to (G) and 4901:1-18-04(B) of the Ohio Administrative Code in effect on the effective date of this section or, if modified pursuant to authority under section 4928.53 of the Revised Code, the program as modified;, the home energy assistance program as prescribed in section 5117.21 of the Revised Code and in executive order 97-1023-V or, if modified pursuant to authority under section 4928.53 of the Revised Code, the program as modified;, the home weatherization assistance program as prescribed in division (A)(6) of section 122.011 and in section 122.02 of the Revised Code or, if modified pursuant to authority under section 4928.53 of the Revised Code, the program as modified; the Ohio energy credit program as prescribed in sections 5117.01 to 5117.05, 5117.07 to 5117.12, and 5117.99 of the Revised Code or, if modified pursuant to authority under section 4928.53 of the Revised Code, the program as modified;, and the targeted energy efficiency and weatherization program established under section 4928.55 of the Revised Code.

(17) "Market development period" for an electric utility means the period of time beginning on the starting date of competitive retail electric service and ending on the applicable date for that utility as specified in section 4928.40 of the Revised Code, irrespective of whether the utility applies to receive transition revenues under this chapter.

(18) "Market power" means the ability to impose on customers a sustained price for a product or service above the price that would prevail in a competitive market.

(19) "Mercantile commercial customer" means a commercial or industrial customer if the electricity consumed is for nonresidential use and the customer consumes more than seven hundred thousand kilowatt hours per year or is part of a national account involving multiple facilities in one or more states.

(20) "Municipal electric utility" means a municipal corporation that owns or operates facilities to generate, transmit, or distribute electricity.

(21) "Noncompetitive retail electric service" means a component of retail electric service that is noncompetitive as provided under division (B) of this section.

(22) "Nonfirm electric service" means electric service provided pursuant to a schedule filed under section 4905.30 of the Revised Code or pursuant to an arrangement under section 4905.31 of the Revised Code, which schedule or arrangement includes conditions that may require the customer to curtail or interrupt electric usage during nonemergency circumstances upon notification by an electric utility.

(23) "Percentage of income payment plan arrears" means funds eligible for collection through the percentage of income payment plan rider, but uncollected as of July 1, 2000.

(24) "Person" has the same meaning as in section 1.59 of the Revised Code.

(25) "Project Advanced energy project" means any real or personal property connected with all or part of an technologies, products, activities, or management practices or strategies that facilitate the generation or use of electricity and that reduce or support the reduction of energy consumption or support the production of clean, renewable energy for industrial, distribution, commercial, or institutional, governmental, research facility, not-for-profit facility, or residence that is to be acquired, constructed, reconstructed, enlarged, improved, furnished, or equipped, or any combination of those activities, with aid furnished pursuant to sections 4928.61 to 4928.63 of the Revised Code for the purposes of not-for-profit, industrial, commercial, distribution, residential, and research development in this state. "Project" includes, but is not limited to, any small-scale renewables project residential energy users. Such energy includes, but is not limited to, wind power; geothermal energy; solar thermal energy; and energy produced by micro turbines in distributed generation applications with high electric efficiencies, by combined heat and power applications, by fuel cells powered by hydrogen derived from wind, solar, biomass, hydroelectric, landfill gas, or geothermal sources, or by solar electric generation, landfill gas, or hydroelectric generation.

(26) "Regulatory assets" means the unamortized net regulatory assets that are capitalized or deferred on the regulatory books of the electric utility, pursuant to an order or practice of the public utilities commission or pursuant to generally accepted accounting principles as a result of a prior commission rate-making decision, and that would otherwise have been charged to expense as incurred or would not have been capitalized or otherwise deferred for future regulatory consideration absent commission action. "Regulatory assets" includes, but is not limited to, all deferred demand-side management costs; all deferred percentage of income payment plan arrears; post-in-service capitalized charges and assets recognized in connection with statement of financial accounting standards no. 109 (receivables from customers for income taxes); future nuclear decommissioning costs and fuel disposal costs as those costs have been determined by the commission in the electric utility's most recent rate or accounting application proceeding addressing such costs; the underpreciated undepreciated costs of safety and radiation control equipment on nuclear generating plants owned or leased by an electric utility; and fuel costs currently deferred pursuant to the terms of one or more settlement agreements approved by the commission.

(27) "Retail electric service" means any service involved in supplying or arranging for the supply of electricity to ultimate consumers in this state, from the point of generation to the point of consumption. For the purposes of this chapter, retail electric service includes one or more of the following "service components": generation service, aggregation service, power marketing service, power brokerage service, transmission service, distribution service, ancillary service, metering service, and billing and collection service.

(28) "Small electric generation facility" means an electric generation plant and associated facilities designed for, or capable of, operation at a capacity of less than two megawatts.

(29) "Starting date of competitive retail electric service" means January 1, 2001, except as provided in division (C) of this section.

(30) "Customer-generator" means a user of a net metering system.

(31) "Net metering" means measuring the difference in an applicable billing period between the electricity supplied by an electric service provider and the electricity generated by a customer-generator which that is fed back to the electric service provider.

(32) "Net metering system" means a facility for the production of electrical energy that does all of the following:

(a) Uses as its fuel either solar, wind, biomass, landfill gas, or hydropower, or uses a microturbine or a fuel cell;

(b) Is located on a customer-generator's premises;

(c) Operates in parallel with the electric utility's transmission and distribution facilities;

(d) Is intended primarily to offset part or all of the customer-generator's requirements for electricity.

(33) "Self-generator" means an entity in this state that owns an electric generation facility that produces electricity primarily for the owner's consumption and that may provide any such excess electricity to retail electric service providers, whether the facility is installed or operated by the owner or by an agent under a contract.

(B) For the purposes of this chapter, a retail electric service component shall be deemed a competitive retail electric service if the service component is competitive pursuant to a declaration by a provision of the Revised Code or pursuant to an order of the public utilities commission authorized under division (A) of section 4928.04 of the Revised Code. Otherwise, the service component shall be deemed a noncompetitive retail electric service.

(C) Prior to January 1, 2001, and after application by an electric utility, notice, and an opportunity to be heard, the public utilities commission may issue an order delaying the January 1, 2001, starting date of competitive retail electric service for the electric utility for a specified number of days not to exceed six months, but only for extreme technical conditions precluding the start of competitive retail electric service on January 1, 2001.

Sec. 4928.57.  On and after the starting date of competitive retail electric service, the director of development shall provide a report every two years until 2008 to the standing committees of the general assembly that deal with public utility matters, regarding the effectiveness of the low-income customer assistance programs and the consumer education program, and the effectiveness of the advanced energy efficiency revolving loan program created under sections 4928.61 to 4928.63 of the Revised Code.

Sec. 4928.58.  (A) There is hereby created the public benefits advisory board, which has the purpose of ensuring that energy services be provided to low-income consumers in this state in an affordable manner consistent with the policy specified in section 4928.02 of the Revised Code. The advisory board shall consist of twenty-one members as follows: the director of development, the chairperson of the public utilities commission, the consumers' counsel, and the director of the air quality development authority, each serving ex officio and represented by a designee at the official's discretion; two members of the house of representatives appointed by the speaker of the house of representatives, neither of the same political party, and two members of the senate appointed by the president of the senate, neither of the same political party; and thirteen members appointed by the governor with the advice and consent of the senate, consisting of one representative of suppliers of competitive retail electric service; one representative of the residential class of electric utility customers; one representative of the industrial class of electric utility customers; one representative of the commercial class of electric utility customers; one representative of agricultural or rural customers of an electric utility; two customers receiving assistance under one or more of the low-income customer assistance programs, to represent customers eligible for any such assistance, including senior citizens; one representative of the general public; one representative of local intake agencies; one representative of a community-based organization serving low-income customers; one representative of environmental protection interests; one representative of lending institutions; and one person considered an expert in energy efficiency or renewables technology. Initial appointments shall be made not later than November 1, 1999.

(B) Initial terms of six of the appointed members shall end on June 30, 2003, and initial terms of the remaining seven appointed members shall end on June 30, 2004. Thereafter, terms of appointed members shall be for three years, with each term ending on the same day of the same month as the term it succeeds. Each member shall hold office from the date of the member's appointment until the end of the term for which the member was appointed. Members may be reappointed.

Vacancies shall be filled in the manner provided for original appointments. Any member appointed to fill a vacancy occurring prior to the expiration date of the term for which the member's predecessor was appointed shall hold office as a member for the remainder of that term. A member shall continue in office after the expiration date of the member's term until the member's successor takes office or until a period of sixty days has elapsed, whichever occurs first.

(C) Board members shall be reimbursed for their actual and necessary expenses incurred in the performance of board duties. The reimbursements constitute, as applicable, administrative costs of the low-income customer assistance programs for the purpose of division (A) of section 4928.51 of the Revised Code or administrative costs of the advanced energy efficiency revolving loan program for the purpose of division (A) of section 4528.61 of the Revised Code.

(D) The advisory board shall select a chairperson from among its members. Only board members appointed by the governor with the advice and consent of the senate shall be voting members of the board; each shall have one vote in all deliberations of the board. A majority of the voting members constitute a quorum.

(E) The duties of the advisory board shall be as follows:

(1) Advise the director in the administration of the universal service fund and the low-income customer assistance programs and advise the director on the director's recommendation to the commission regarding the appropriate level of the universal service rider;

(2) Advise the director on the administration of the advanced energy efficiency revolving loan program and the advanced energy efficiency revolving loan program fund under sections 4928.61 to 4928.63 of the Revised Code.

(F) The advisory board is not an agency for purposes of sections 101.82 to 101.87 of the Revised Code.

Sec. 4928.61.  (A) There is hereby established in the state treasury an the advanced energy efficiency revolving loan fund, into which shall be deposited all advanced energy efficiency revenues remitted to the director of development under division (B) of this section, for the exclusive purposes of funding the advanced energy efficiency revolving loan program created under section 4928.62 of the Revised Code and paying the program's administrative costs. Interest on the fund shall be credited to the fund.

(B) Energy efficiency Advanced energy revenues shall include all of the following:

(1) Revenues remitted to the director after collection by each electric distribution utility in this state of a temporary rider on retail electric distribution service rates as such rates are determined by the public utilities commission pursuant to this chapter. The rider shall be a uniform amount statewide, determined by the director of development, after consultation with the public benefits advisory board created by section 4928.58 of the Revised Code. The amount shall be determined by dividing an aggregate revenue target for a given year as determined by the director, after consultation with the advisory board, by the number of customers of electric distribution utilities in this state in the prior year. Such aggregate revenue target shall not exceed more than fifteen million dollars in any year through 2005 and shall not exceed more than five million dollars in any year after 2005. The rider shall be imposed beginning on the starting date of competitive retail electric service effective date of the amendment of this section by Sub. H.B. 251 of the 126th general assembly and shall terminate at the end of ten years following that the starting date of competitive retail electric service or until the advanced energy efficiency revolving loan fund, including interest, reaches one hundred million dollars, whichever is first.

(2) Revenues from energy efficiency revolving loan program loan payments, repayments, and payments collections under the advanced energy program and from energy efficiency revolving loan program loan collections pursuant to section 4928.62 of the Revised Code income;

(3) Adequate revenues Revenues remitted to the director after collection by a municipal electric utility or electric cooperative in this state not earlier than the starting date of competitive retail electric service upon the utility's or cooperative's decision to participate in the energy efficiency revolving loan program advanced energy fund;

(4) Interest earnings on the advanced energy fund.

(C)(1) Each electric distribution utility in this state shall remit to the director on a quarterly basis the revenues described in divisions (B)(1) and (2) of this section. Such remittances shall begin with occur within thirty days after the first end of each calendar quarter following the starting date of competitive retail electric service.

(2) Each participating electric cooperative and participating municipal electric utility shall remit to the director on a quarterly basis the revenues described in division (B)(3) of this section. Such remittances shall begin with occur within thirty days after the first end of each calendar quarter following the participating cooperative's or utility's decision to participate. For the purpose of division (B)(3) of this section, the participation of an electric cooperative or municipal electric utility in the energy efficiency revolving loan program as it existed immediately prior to the effective date of the amendment of this section by Sub. H.B. 251 of the 126th general assembly does not constitute a decision to participate in the advanced energy fund under this section as so amended.

(3) All remittances under divisions (C)(1) and (2) of this section shall continue only until the end of ten years following that the starting date of competitive retail electric service or until the advanced energy efficiency revolving loan fund, including interest, reaches one hundred million dollars, whichever is first.

(D) Any moneys collected in rates for non-low-income customer energy efficiency programs, as of the effective date of this section October 5, 1999, and not contributed to the energy efficiency revolving loan fund authorized under division (B)(1) of this section prior to the effective date of its amendment by Sub. H.B. 251 of the 126th general assembly, shall be used to continue to fund cost-effective, residential energy efficiency programs, be contributed into the universal service fund as a supplement to that required under section 4928.53 of the Revised Code, or be returned to ratepayers in the form of a rate reduction at the option of the affected electric distribution utility.

Sec. 4928.62.  (A) Beginning on the starting date of competitive retail electric service, there There is hereby created the advanced energy efficiency revolving loan program, which shall be administered by the director of development. Under the program, the director may authorize the use of moneys in the advanced energy efficiency revolving loan fund for financial, technical, and related assistance for advanced energy projects in this state or for economic development assistance, in furtherance of the purposes set forth in section 4928.63 of the Revised Code. To the extent feasible given approved applications for assistance, the assistance shall be distributed among the certified territories of electric distribution utilities and participating electric cooperatives, and among the service areas of participating municipal electric utilities, in amounts proportionate to the remittances of each utility and cooperative under divisions (B)(1) and (3) of section 4928.61 of the Revised Code. The assistance may be provided by the director of development in the form of direct loans or grants, or through lending institutions in the form of loan participation agreements at below market rates or linked deposits. The total of all grants provided in any one fiscal year shall not exceed ten per cent of the revenues paid into the energy efficiency revolving loan fund during the previous fiscal year.

The director shall not authorize financial assistance for an advanced energy project under the program unless the director first determines all of the following:

(1) The project will include an investment in products, technologies, or services, including energy efficiency for low-income housing, for residential, commercial and industrial business, local government, educational institution, nonprofit entity, or agricultural customers of an electric distribution utility in this state or a participating municipal electric utility or electric cooperative in this state.

(2) The project will improve energy efficiency in a cost-efficient manner by using both the most appropriate national, federal, or other standards for products as determined by the director, and the best practices for use of technology, products, or services in the context of the total facility or building.

(3) The project will benefit the economic and environmental welfare of the citizens of this state.

(4) The receipt of financial assistance is a major factor in the applicant's decision to proceed with or invest in that the project will create new jobs or preserve existing jobs in this state or use innovative technologies or materials.

(B) In carrying out sections 4928.61 to 4928.63 of the Revised Code, the director may do all of the following for the purpose of to further the public interest in advanced energy efficiency revolving loan program projects and economic development:

(1) Award grants, contracts, loans, loan participation agreements, linked deposits, and energy production incentives;

(2) Acquire in the name of the director any property of any kind or character in accordance with this section, by purchase, purchase at foreclosure, or exchange, on such terms and in such manner as the director considers proper;

(2)(3) Make and enter into all contracts and agreements necessary or incidental to the performance of the director's duties and the exercise of the director's powers under those sections 4928.61 to 4928.63 of the Revised Code;

(3)(4) Employ or enter into contracts with financial consultants, marketing consultants, consulting engineers, architects, managers, construction experts, attorneys, technical monitors, energy evaluators, or other employees or agents as the director considers necessary, and fix their compensation;

(4)(5) Adopt rules prescribing the application procedures for financial assistance under the advanced energy program; the terms and conditions of any loans, grants, contracts, loans, loan participation agreements, linked deposits, and contracts energy production incentives; criteria pertaining to the eligibility of participating lending institutions; and any other matters necessary for the implementation of the program;

(5)(6) Do all things necessary and appropriate for the operation of the program.

(C) The department of development may hold ownership to any unclaimed energy efficiency and renewable energy emission allowances provided for in Chapter 3745-14 of the Administrative Code or otherwise, that result from advanced energy projects that receive funding from the advanced energy fund, and it may use the allowances to further the public interest in advanced energy projects or for economic development.

(D) Financial statements, financial data, and trade secrets submitted to or received by the director from an applicant or recipient of financial assistance under sections 4928.61 to 4928.63 of the Revised Code, or any information taken from those statements, data, or trade secrets for any purpose, are not public records for the purpose of section 149.43 of the Revised Code.

(E) Nothing in the amendments of sections 4928.61, 4928.62, and 4928.63 of the Revised Code by Sub. H.B. 251 of the 126th general assembly shall affect any pending or effected assistance, pending or effected purchases or exchanges of property made, or pending or effected contracts or agreements entered into pursuant to division (A) or (B) of this section as the section existed prior to the effective date of those amendments or shall affect the exemption provided under division (C) of this section as the section existed prior to that effective date.

(F) Any assistance a school district receives for an advanced energy project, including a geothermal heating, ventilating, and air conditioning system, shall be in addition to any assistance provided under Chapter 3318. of the Revised Code and shall not be included as part of the district or state portion of the basic project cost under that chapter.

Sec. 4928.63.  The director of development and the public benefits advisory board have the powers and duties provided in sections 4928.61 and 4928.62 of the Revised Code, in order to promote the welfare of the people of this state, to; stabilize the economy, to; assist in the improvement and development within this state of not-for-profit entity, industrial, commercial, distribution, residential, and research buildings and activities required for the people of this state, to; improve the economic welfare of the people of this state, by reducing energy costs and by reducing energy usage in a cost-efficient manner using, as determined by the director, both the most appropriate national, federal, or other standards for products and the best practices for the use of technology, products, or services in the context of a total facility or building; and also to assist in the improvement of lowering of energy demand to reduce air, water, or thermal pollution control facilities and solid waste disposal facilities. It is hereby determined that the accomplishment of those purposes is essential so that the people of this state may maintain their present high standards in comparison with the people of other states and so that opportunities for improving the economic welfare of the people of this state, for improving the housing of residents of this state, and for favorable markets for the products of this state's natural resources, agriculture, and manufacturing shall be improved; and that it is necessary for this state to establish the program authorized pursuant to sections 4928.61 and 4928.62 of the Revised Code.

SECTION 2.  That existing sections 122.075, 123.011, 125.15, 125.834, 1510.04, 4905.90, 4928.01, 4928.57, 4928.58, 4928.61, 4928.62, and 4928.63 of the Revised Code are hereby repealed.

SECTION 3. That Section 203.99 of Am. Sub. H.B. 66 of the 126th General Assembly, as most recently amended by Sub. H.B. 245 of the 126th General Assembly, be amended to read as follows:

Sec. 203.99. DEV DEPARTMENT OF DEVELOPMENT

General Revenue Fund


GRF195-321Operating Expenses$2,738,908$2,723,908
GRF195-401Thomas Edison Program$17,554,838$17,454,838
GRF195-404Small Business Development$1,740,722$1,740,722
GRF195-405Minority Business Development Division$1,580,291$1,580,291
GRF195-407Travel and Tourism$6,812,845$6,712,845
GRF195-410Defense Conversion Assistance$300,000$200,000
GRF195-412Business Development Grants$11,750,000$11,750,000
GRF195-415Economic Development Division and Regional Offices$5,794,975$5,894,975
GRF195-416Governor's Office of Appalachia$4,122,372$4,122,372
GRF195-422Third Frontier Action Fund$16,790,000$16,790,000
GRF195-426Clean Ohio Implementation$300,000$300,000
GRF195-432International Trade$4,223,787$4,223,787
GRF195-434Investment in Training Grants$12,227,500$12,227,500
GRF195-436Labor/Management Cooperation$811,869$811,869
GRF195-497CDBG Operating Match$1,040,956$1,040,956
GRF195-498State Match Energy$94,000$94,000
GRF195-501Appalachian Local Development Districts$380,080$380,080
GRF195-502Appalachian Regional Commission Dues$246,803$246,803
GRF195-507Travel and Tourism Grants$1,287,500$1,162,500
GRF195-515Economic Development Contingency$10,000,000$0
GRF195-905Third Frontier Research & Development General Obligation Debt Service$0$13,910,000
GRF195-912Job Ready Site Development General Obligation Debt Service$0$4,124,400
TOTAL GRF General Revenue Fund$99,797,446$ 107,491,846

General Services Fund Group


135195-605Supportive Services$7,450,000$7,539,686
5AD195-667Investment in Training Expansion$5,000,000$5,000,000
5AD195-668Worker Guarantee Program$3,000,000$3,000,000
5AD195-677Economic Development Contingency$0$10,000,000
685195-636General Reimbursements$1,000,000$1,000,000
TOTAL GSF General Services Fund
Group$16,450,000$26,539,686

Federal Special Revenue Fund Group


3AE195-643Workforce Development Initiatives$5,800,000$5,800,000
3K8195-613Community Development Block Grant$65,000,000$65,000,000
3K9195-611Home Energy Assistance Block Grant$90,500,000$90,500,000
3K9195-614HEAP Weatherization$16,219,478$16,219,478
3L0195-612Community Services Block Grant$25,235,000$25,235,000
3V1195-601HOME Program$40,000,000$40,000,000
308195-602Appalachian Regional Commission$600,660$600,660
308195-603Housing and Urban Development$5,000,000$5,000,000
308195-605Federal Projects$15,300,249$15,300,249
308195-609Small Business Administration$4,296,381$4,296,381
308195-618Energy Federal Grants$3,397,659$3,397,659
335195-610Oil Overcharge$3,000,000$3,000,000
TOTAL FED Federal Special Revenue
Fund Group$274,349,427$274,349,427

State Special Revenue Fund Group


4F2195-639State Special Projects$290,183$290,183
4F2195-676Promote Ohio$5,228,210$5,228,210
4S0195-630Enterprise Zone Operating$275,000$275,000
4S1195-634Job Creation Tax Credit Operating$375,800$375,800
4W1195-646Minority Business Enterprise Loan$2,580,597$2,580,597
444195-607Water and Sewer Commission Loans$523,775$523,775
450195-624Minority Business Bonding Program Administration$53,967$53,967
451195-625Economic Development Financing Operating$2,358,311$2,358,311
5CA195-678Shovel Ready Sites$5,000,000$5,000,000
5CG195-679Alternative Fuel Transportation$150,000$1,150,000
5CV195-680Defense Conversion Assistance$1,000,000$0
5CY195-682Lung Cancer and Lung Disease Research$10,000,000$0
5M4195-659Universal Service$210,000,000$210,000,000
5M5195-660Advanced Energy Efficiency Loan and Grant Programs$12,000,000$12,000,000
5X1195-651Exempt Facility Inspection$25,000$25,000
611195-631Water and Sewer Administration$15,713$15,713
617195-654Volume Cap Administration$200,000$200,000
646195-638Low- and Moderate- Income Housing Trust Fund$53,000,000$53,000,000
TOTAL SSR State Special Revenue
Fund Group$303,076,556$293,076,556

Facilities Establishment Fund Group


009195-664Innovation Ohio$50,000,000$50,000,000
010195-665Research and Development$50,000,000$50,000,000
037195-615Facilities Establishment$63,931,149$63,931,149
4Z6195-647Rural Industrial Park Loan$3,000,000$3,000,000
5D2195-650Urban Redevelopment Loans$5,475,000$5,475,000
5H1195-652Family Farm Loan Guarantee$1,000,000$1,000,000
5S8195-627Rural Development Initiative$3,000,000$3,000,000
5S9195-628Capital Access Loan Program$3,000,000$3,000,000
TOTAL 037 Facilities
Establishment Fund Group$179,406,149$179,406,149

Clean Ohio Revitalization Fund


003195-663Clean Ohio Operating$350,000$350,000
TOTAL 003 Clean Ohio Revitalization Fund$350,000$350,000

Third Frontier Research & Development Fund Group


011 195-686 Third Frontier Operating $ 713,028 $ 1,932,056
011195-687Third Frontier Research & Development Projects$100,000,000$100,000,000
TOTAL 011 Third Frontier Research & Development Fund Group $ 100,713,028 $ 101,932,056

Job Ready Site Development Fund Group


012 195-688 Job Ready Site Operating $ 622,200 $ 746,155
TOTAL 012 Job Ready Site Development Fund Group $ 622,200 $ 746,155


TOTAL ALL BUDGET FUND GROUPS$ 974,764,806$ 983,891,875

SECTION 4. That existing Section 203.99 of Am. Sub. H.B. 66 of the 126th General Assembly, as most recently amended by Sub. H.B. 245 of the 126th General Assembly, is hereby repealed.

SECTION 5. That Section 203.99.45 of Am. Sub. H.B. 66 of the 126th General Assembly, as amended by Sub. H.B. 245 of the 126th General Assembly, be amended to read as follows:

Sec. 203.99.45. ECONOMIC DEVELOPMENT FINANCING OPERATING

The foregoing appropriation item 195-625, Economic Development Financing Operating, shall be used for the operating expenses of financial assistance programs authorized under Chapter 166. of the Revised Code and under sections 122.43 and 122.45 of the Revised Code.

VOLUME CAP ADMINISTRATION

The foregoing appropriation item 195-654, Volume Cap Administration, shall be used for expenses related to the administration of the Volume Cap Program. Revenues received by the Volume Cap Administration Fund (Fund 617) shall consist of application fees, forfeited deposits, and interest earned from the custodial account held by the Treasurer of State.

UNIVERSAL SERVICE FUND

The foregoing appropriation item 195-659, Universal Service, shall be used to provide payments to regulated electric utility companies for low-income customers enrolled in Percentage of Income Payment Plan (PIPP) electric accounts, to fund targeted energy efficiency and customer education services to PIPP customers, and to cover the department's administrative costs related to Universal Service Fund Programs.

SHOVEL READY SITES

The foregoing appropriation item 195-678, Shovel Ready Sites, shall be used to administer the Shovel Ready Sites Program under section 122.083 of the Revised Code.

ALTERNATIVE FUEL TRANSPORTATION

The foregoing appropriation item 195-679, Alternative Fuel Transportation, shall be used by the Director of Development to make grants under the Alternative Fuel Transportation Grant Fund Program in accordance with section 122.075 of the Revised Code, and for administrative costs associated with the program.

TRANSFER OF UNCLAIMED FUNDS TO THE DEFENSE CONVERSION ASSISTANCE FUND FOR BASE REALIGNMENT AND CLOSURE GRANTS

(A) There is hereby created in the State Treasury the Defense Conversion Assistance Fund (Fund 5CV). The fund shall consist of all cash deposited to it pursuant to division (C) of this section.

(B) The foregoing appropriation item 195-680, Defense Conversion Assistance, shall be used by the Director of Development to provide grants to local communities for costs associated with the preparation and redevelopment of military installations in Ohio that are slated for realignment or closure under the United States Department of Defense Base Realignment and Closure Program.

(C) Notwithstanding division (A) of section 169.05 of the Revised Code, upon the request of the Director of Budget and Management, the Director of Commerce, prior to June 30, 2006, shall transfer to the Defense Conversion Assistance Fund (Fund 5CV) $1,000,000 of the unclaimed funds that have been reported by the holders of unclaimed funds under section 169.05 of the Revised Code regardless of the allocation of the unclaimed funds described in that section.

(D) On or before June 30, 2006, the unencumbered balance of the foregoing appropriation item 195-680, Defense Conversion Assistance, for fiscal year 2006 is hereby appropriated for the same purpose for fiscal year 2007.

LUNG CANCER AND LUNG DISEASE RESEARCH

The foregoing appropriation item 195-682, Lung Cancer and Lung Disease Research, shall be used by the Director of Development to promote lung cancer and lung disease research.

ADVANCED ENERGY EFFICIENCY REVOLVING LOAN FUND

The foregoing appropriation item 195-660, Advanced Energy Efficiency Loan and Grant Programs, shall be used to provide financial assistance to customers for eligible energy efficiency advanced energy projects for residential, commercial and industrial business, local government, educational institution, nonprofit, and agriculture customers, and to pay for the program's administrative costs as provided in the Revised Code and rules adopted by the Director of Development.

TRANSFER FROM THE ADVANCED ENERGY EFFICIENCY REVOLVING LOAN FUND TO THE INDUSTRIAL SITE IMPROVEMENTS FUND

Notwithstanding Chapters 122. and 4928. of the Revised Code and any other law to the contrary, the Director of Budget and Management shall transfer $2,500,000 in cash in fiscal year 2006 and $2,500,000 in cash in fiscal year 2007 from the Advanced Energy Efficiency Revolving Loan Fund (Fund 5M5) to the Industrial Site Improvements Fund (Fund 5AR).

Moneys in Fund 5AR, Industrial Site Improvements, shall be used by the Director of Development to make grants to eligible counties for the improvement of commercial or industrial areas within those counties under section 122.951 of the Revised Code.

TRANSFER FROM THE ADVANCED ENERGY EFFICIENCY REVOLVING LOAN FUND TO THE RAIL TRANSLOAD FACILITIES FUND

Notwithstanding Chapters 122. and 4928. of the Revised Code and any other law to the contrary, the Director of Budget and Management shall transfer $500,000 in cash in fiscal year 2006 from the Advanced Energy Efficiency Revolving Loan Fund (Fund 5M5) in the Department of Development to the Rail Transload Facilities Fund (Fund 5CF) in the Department of Transportation.

TRANSFER FROM THE ADVANCED ENERGY EFFICIENCY REVOLVING LOAN FUND TO THE ALTERNATIVE FUEL TRANSPORTATION GRANT FUND

Notwithstanding Chapter 4928. of the Revised Code and any other law to the contrary, the Director of Budget and Management shall transfer $150,000 in cash in fiscal year 2006 and $1,150,000 in cash in fiscal year 2007 from the Advanced Energy Efficiency Revolving Loan Fund (Fund 5M5) to the Alternative Fuel Transportation Grant Fund (Fund 5CG).

TRANSFER FROM THE ADVANCED ENERGY FUND TO THE ADMINISTRATIVE BUILDING FUND

Notwithstanding Chapter 4928. of the Revised Code and any other law to the contrary, the Director of Budget and Management shall transfer $3,600,000 in cash in fiscal year 2007 from the Advanced Energy Fund (Fund 5M5) in the Department of Development to the Administrative Building Fund (Fund 026). The cash shall thereafter be credited to appropriation item CAP-835, Energy Conservation Projects, under the budget of the Department of Administrative Services.

GLOBAL ANALYST SETTLEMENT AGREEMENTS PAYMENTS

All payments received by the state pursuant to a series of settlements with ten brokerage firms reached with the United States Securities and Exchange Commission, the National Association of Securities Dealers, the New York Stock Exchange, the New York Attorney General, and other state regulators (henceforth referred to as the "Global Analysts Settlement Agreements"), shall be deposited into the state treasury to the credit of the Economic Development Contingency Fund (Fund 5Y6), which is hereby created in the state treasury. The fund shall be used by the Director of Development to support economic development projects for which appropriations would not otherwise be available, and shall be subject to the submission of a request to the Controlling Board by the Director outlining the planned use of the funds, and the subsequent approval of the request by the Controlling Board.

SECTION 6. That existing Section 203.99.45 of Am. Sub. H.B. 66 of the 126th General Assembly, as amended by Sub. H.B. 245 of the 126th General Assembly, is hereby repealed.

SECTION 7. That Section 235.30 of Am. Sub. H.B. 530 of the 126th General Assembly, be amended to read as follows:

Sec. 235.30.  DAS DEPARTMENT OF ADMINISTRATIVE SERVICES


CAP-809Hazardous Substance Abatement$1,609,476
CAP-811Health/EPA Laboratory Facilities$1,116,354
CAP-822Americans with Disabilities Act$1,598,416
CAP-826Office Services Building Renovation$86,483
CAP-827Statewide Communications System$16,943,803
CAP-834Capital Project Management System$1,157,600
CAP-835Energy Conservation Projects$890,085 4,490,085
CAP-837Major Computer Purchases$1,476,068
CAP-838SOCC Renovations$1,399,122
CAP-844Hamilton State/Local Government Center - Planning$57,500
CAP-849Facility Planning and Development$3,492,200
CAP-850Education Building Renovations$14,649
CAP-852North High Building Complex Renovations$11,534,496
CAP-855Office Space Planning$5,274,502
CAP-856Governor's Residence Security Update$6,433
CAP-859eSecure Ohio$2,626,921
CAP-860Structured Cabling$403,518
CAP-864eGovernment Infrastructure$1,297,400
CAP-865DAS Building Security$140,852
CAP-866OH*1 Network$4,000,000
CAP-867Lausche Building Connector$1,307,200
CAP-868Riversouth Development$18,500,000
Total Department of Administrative Services$ 74,933,078 78,533,078

HAZARDOUS SUBSTANCE ABATEMENT IN STATE FACILITIES

The foregoing appropriation item CAP-809, Hazardous Substance Abatement, shall be used to fund the removal of asbestos, PCB, radon gas, and other contamination hazards from state facilities.

Prior to the release of funds for asbestos abatement, the Department of Administrative Services shall review proposals from state agencies to use these funds for asbestos abatement projects based on criteria developed by the Department of Administrative Services. Upon a determination by the Department of Administrative Services that the requesting agency cannot fund the asbestos abatement project or other toxic materials removal through existing capital and operating appropriations, the Department may request the release of funds for such projects by the Controlling Board. State agencies intending to fund asbestos abatement or other toxic materials removal through existing capital and operating appropriations shall notify the Director of Administrative Services of the nature and scope prior to commencing the project.

Only agencies that have received appropriations for capital projects from the Administrative Building Fund (Fund 026) are eligible to receive funding from this item. Public school districts are not eligible.

IMPLEMENTATION OF AMERICANS WITH DISABILITIES ACT

The foregoing appropriation item CAP-822, Americans with Disabilities Act, shall be used to renovate state-owned facilities to provide access for physically disabled persons in accordance with Title II of the Americans with Disabilities Act.

Prior to the release of funds for renovation, state agencies shall perform self-evaluations of state-owned facilities identifying barriers to access to service. State agencies shall prioritize access barriers and develop a transition plan for the removal of these barriers. The Department of Administrative Services shall review proposals from state agencies to use these funds for Americans with Disabilities Act renovations.

Only agencies that have received appropriations for capital projects from the Administrative Building Fund (Fund 026) are eligible to receive funding from this item. Public school districts are not eligible.

MARCS STEERING COMMITTEE AND STATEWIDE COMMUNICATIONS SYSTEM

There is hereby continued a Multi-Agency Radio Communications System (MARCS) Steering Committee consisting of the designees of the Directors of the Office of Information Technology, Public Safety, Natural Resources, Transportation, Rehabilitation and Correction, and Budget and Management. The Director of the Office of Information Technology or the Director's designee shall chair the Committee. The Committee shall provide assistance to the Director of the Office of Information Technology for effective and efficient implementation of the MARCS system as well as develop policies for the ongoing management of the system. Upon dates prescribed by the Directors of the Office of Information Technology and Budget and Management, the MARCS Steering Committee shall report to the Directors on the progress of MARCS implementation and the development of policies related to the system.

The foregoing appropriation item CAP-827, Statewide Communications System, shall be used to purchase or construct the components of MARCS that are not specific to any one agency. The equipment may include, but is not limited to, multi-agency equipment at the Emergency Operations Center/Joint Dispatch Facility, computer and telecommunication equipment used for the functioning and integration of the system, communications towers, tower sites, tower equipment, and linkages among towers and between towers and the State of Ohio Network for Integrated Communication (SONIC) system. The Director of the Office of Information Technology shall, with the concurrence of the MARCS Steering Committee, determine the specific use of funds.

The amount reappropriated for the foregoing appropriation item CAP-827, Statewide Communications System, is the unencumbered and unallotted balance as of June 30, 2006, in appropriation item CAP-827, Statewide Communications System, plus $623,665.11.

Spending from this appropriation item shall not be subject to Chapters 123. and 153. of the Revised Code.

ENERGY CONSERVATION PROJECTS

The foregoing appropriation item CAP-835, Energy Conservation Projects, shall be used to perform energy conservation renovations, including the United States Environmental Protection Agency's Energy Star Program, in state-owned facilities. Prior to the release of funds for renovation, state agencies shall have performed a comprehensive energy audit for each project. The Department of Administrative Services shall review and approve proposals from state agencies to use these funds for energy conservation. Public school districts and state-supported and state-assisted institutions of higher education are not eligible for funding from this item.

The amount reappropriated for the foregoing appropriation item CAP-835, Energy Conservation Projects, is the unencumbered and unallotted balance as of June 30, 2006, in appropriation item CAP-835, Energy Conservation Projects, plus $3,600,000.

NORTH HIGH BUILDING COMPLEX RENOVATIONS

The amount reappropriated for the foregoing appropriation item CAP-852, North High Building Complex Renovations, is the unencumbered and unallotted balance as of June 30, 2006, in appropriation item CAP-852, North High Building Complex Renovations, plus the sum of the unencumbered and unallotted balance for appropriation item CAP-813, Heer Building Renovation as of June 30, 2006.

SECTION 8. That existing Section 235.30 of Am. Sub. H.B. 530 of the 126th General Assembly is hereby repealed.

SECTION 9. The Ohio School Facilities Commission shall study the U.S. Green Building Council's "LEED for Schools" Rating System and shall issue a written report to the General Assembly not later than October 1, 2007, comparing that system to applicable standards set forth in the Commission's most current Ohio School Design Manual.

SECTION 10. (A) Except as otherwise specifically provided in division (B) of this section, the amendment or enactment of the sections of law contained in this act, and the items of law of which the amendments or enactments are composed, are subject to the referendum. Therefore, under Ohio Constitution, Article II, Section 1c and section 1.471 of the Revised Code, the amendment or enactment of the sections of law contained in this act, and the items of law of which the amendments or enactments are composed, take effect on the ninety-first day after this act is filed with the Secretary of State. If, however, a referendum petition is filed against any such amendment or enactment, or against any item of law of which any such amendment or enactment is composed, the amendment or enactment, or item, unless rejected at the referendum, takes effect at the earliest time permitted by law.

(B) The amendment or enactment by this act of the sections of law listed in this division, and the items of law of which the amendments or enactments are composed, are not subject to the referendum. Therefore, under Ohio Constitution, Article II, Section 1d and section 1.471 of the Revised Code, the amendments or enactments, and the items of law of which the amendments or enactments are composed, go into immediate effect when this act becomes law.

Sections 122.075, 4928.01, 4928.57, 4928.58, 4928.61, 4928.62, and 4928.63 of the Revised Code.

Sections 3, 4, 5, 6, and 10 of this act.

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