Bill Text: OH HB301 | 2009-2010 | 128th General Assembly | Engrossed

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Bill Title: To extend the imposition of the current Advanced Energy Fund revenue rider on retail electric distribution service rates by three years and to clarify how Advanced Energy Fund grant amounts are to be determined.

Spectrum: Strong Partisan Bill (Democrat 26-2)

Status: (Engrossed - Dead) 2010-12-09 - Introduced to Senate [HB301 Detail]

Download: Ohio-2009-HB301-Engrossed.html

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As Passed by the House

128th General Assembly Regular Session 2009-2010

Am. Sub. H. B. No. 301

Representative Foley 

Cosponsors: Representatives Celeste, Skindell, Hagan, Stewart, Letson, Murray, Harris, Pryor, Yuko, Domenick, Ujvagi, Yates, Harwood, Winburn, Williams, S., Evans, Pillich, Phillips, Brown, Chandler, DeBose, Garland, Luckie, Mallory, Walter, Weddington, Williams, B. 

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A BILL

To amend sections 4928.58, 4928.61, and 4928.62 of

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the Revised Code to extend the imposition of the

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current Advanced Energy Fund revenue rider on

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retail electric distribution service rates by

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three years and to clarify how Advanced Energy

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Fund grant amounts are to be determined.

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

Section 1. That sections 4928.58, 4928.61, and 4928.62 of the	7
Revised Code be amended to read as follows:	8

Sec. 4928.58.  (A) There is hereby created the public	9
benefits advisory board, which has the purpose of ensuring that	10
energy services be provided to low-income consumers in this state	11
in an affordable manner consistent with the policy specified in	12
section 4928.02 of the Revised Code. The advisory board shall	13
consist of twenty-one members as follows: the director of	14
development, the chairperson of the public utilities commission,	15
the consumers' counsel, and the director of the air quality	16
development authority, each serving ex officio and represented by	17
a designee at the official's discretion; two members of the house	18
of representatives appointed by the speaker of the house of	19
representatives, neither of the same political party, and two	20
members of the senate appointed by the president of the senate,	21
neither of the same political party; and thirteen members	22
appointed by the governor with the advice and consent of the	23
senate, consisting of one representative of suppliers of	24
competitive retail electric service; one representative of the	25
residential class of electric utility customers; one	26
representative of the industrial class of electric utility	27
customers; one representative of the commercial class of electric	28
utility customers; one representative of agricultural or rural	29
customers of an electric utility; two customers receiving	30
assistance under one or more of the low-income customer assistance	31
programs, to represent customers eligible for any such assistance,	32
including senior citizens; one representative of the general	33
public; one representative of local intake agencies; one	34
representative of a community-based organization serving	35
low-income customers; one representative of environmental	36
protection interests; one representative of lending institutions;	37
and one person considered an expert in energy efficiency or	38
renewables technology. Initial appointments shall be made not	39
later than November 1, 1999.	40

(B) Initial terms of six of the appointed members shall end	41
on June 30, 2003, and initial terms of the remaining seven	42
appointed members shall end on June 30, 2004. Thereafter, terms of	43
appointed members shall be for three years, with each term ending	44
on the same day of the same month as the term it succeeds. Each	45
member shall hold office from the date of the member's appointment	46
until the end of the term for which the member was appointed.	47
Members may be reappointed.	48

Vacancies shall be filled in the manner provided for original	49
appointments. Any member appointed to fill a vacancy occurring	50
prior to the expiration date of the term for which the member's	51
predecessor was appointed shall hold office as a member for the	52
remainder of that term. A member shall continue in office after	53
the expiration date of the member's term until the member's	54
successor takes office or until a period of sixty days has	55
elapsed, whichever occurs first.	56

(C) Board members shall be reimbursed for their actual and	57
necessary expenses incurred in the performance of board duties.	58
The reimbursements constitute, as applicable, administrative costs	59
of the low-income customer assistance programs for the purpose of	60
division (A) of section 4928.51 of the Revised Code or	61
administrative costs of the advanced energy program for the	62
purpose of division (A) of section 4528.61 of the Revised Code.	63

(D) The advisory board shall select a chairperson from among	64
its members. Only board members appointed by the governor with the	65
advice and consent of the senate shall be voting members of the	66
board; each shall have one vote in all deliberations of the board.	67
A majority of the voting members constitute a quorum.	68

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

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(1) Advise the director in the administration of the	70
universal service fund and the low-income customer assistance	71
programs and advise the director on the director's recommendation	72
to the commission regarding the appropriate level of the universal	73
service rider;	74

(2) Advise the director on the administration of the advanced	75
energy program and the advanced energy fund under sections 4928.61	76
to 4928.63 of the Revised Code, including grant award levels under	77
section 4928.62 of the Revised Code;	78

(3) Hold public hearings to carry out the requirements of	79
division (E)(2) of this section.	80

(F) The advisory board is not an agency for purposes of	81
sections 101.82 to 101.87 of the Revised Code.	82

Sec. 4928.61.  (A) There is hereby established in the state	83
treasury the advanced energy fund, into which shall be deposited	84
all advanced energy revenues remitted to the director of	85
development under division (B) of this section, for the exclusive	86
purposes of funding the advanced energy program created under	87
section 4928.62 of the Revised Code and paying the program's	88
administrative costs. Interest on the fund shall be credited to	89
the fund.	90

(B) Advanced energy revenues shall include all of the	91
following:	92

(1) Revenues remitted to the director after collection by	93
each electric distribution utility in this state of a temporary	94
rider on retail electric distribution service rates as such rates	95
are determined by the public utilities commission pursuant to this	96
chapter. The rider shall be a uniform amount statewide, determined	97
by the director of development, after consultation with the public	98
benefits advisory board created by section 4928.58 of the Revised	99
Code. The amount shall be determined by dividing an aggregate	100
revenue target for a given year as determined by the director,	101
after consultation with the advisory board, by the number of	102
customers of electric distribution utilities in this state in the	103
prior year. Such aggregate revenue target shall not exceed more	104
than fifteen million dollars in any year through 2005 and shall	105
not exceed more than five million dollars in any year after 2005.	106
The rider shall be imposed beginning on the effective date of the	107
amendment of this section by Sub. H.B. 251 of the 126th general	108
assembly, January 4, 2007, and shall terminate at the end of ten	109
years following the starting date of competitive retailelectric	110
serviceon January 1, 2014, or untilwhen the advanced energy	111
fund, including interest, reaches one hundred fifteen million	112
dollars, whichever is first.	113

(2) Revenues from payments, repayments, and collections under	114
the advanced energy program and from program income;	115

(3) Revenues remitted to the director after collection by a	116
municipal electric utility or electric cooperative in this state	117
upon the utility's or cooperative's decision to participate in the	118
advanced energy fund;	119

(4) Revenues from renewable energy compliance payments as	120
provided under division (C)(2) of section 4928.64 of the Revised	121
Code;	122

(5) Revenue from forfeitures under division (C) of section	123
4928.66 of the Revised Code;	124

(6) Interest earnings on the advanced energy fund.

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(C)(1) Each electric distribution utility in this state shall	126
remit to the director on a quarterly basis the revenues described	127
in divisions (B)(1) and (2) of this section. Such remittances	128
shall occur within thirty days after the end of each calendar	129
quarter.	130

(2) Each participating electric cooperative and participating	131
municipal electric utility shall remit to the director on a	132
quarterly basis the revenues described in division (B)(3) of this	133
section. Such remittances shall occur within thirty days after the	134
end of each calendar quarter. For the purpose of division (B)(3)	135
of this section, the participation of an electric cooperative or	136
municipal electric utility in the energy efficiency revolving loan	137
program as it existed immediately prior to the effective date of	138
the amendment of this section by Sub. H.B. 251 of the 126th	139
general assembly, January 4, 2007, does not constitute a decision	140
to participate in the advanced energy fund under this section as	141
so amended.	142

(3) AllExcept for remittances from revenues described in	143
division (B)(1) of this section, all remittances under divisions	144
(C)(1) and (2) of this section shall continue only until the end	145
of ten years following the starting date of competitive retail	146
electric serviceJanuary 1, 2011, or until the advanced energy	147
fund, including interest, reaches one hundred million dollars,	148
whichever is first. Remittances from revenues described in	149
division (B)(1) of this section shall continue only until January	150
1, 2014, or until the advanced energy fund, including interest,	151
reaches one hundred fifteen million dollars, whichever is first.	152

(D) Any moneys collected in rates for non-low-income customer	153
energy efficiency programs, as of October 5, 1999, and not	154
contributed to the energy efficiency revolving loan fund	155
authorized under this section prior to the effective date of its	156
amendment by Sub. H.B. 251 of the 126th general assembly, January	157
4, 2007, shall be used to continue to fund cost-effective,	158
residential energy efficiency programs, be contributed into the	159
universal service fund as a supplement to that required under	160
section 4928.53 of the Revised Code, or be returned to ratepayers	161
in the form of a rate reduction at the option of the affected	162
electric distribution utility.	163

Sec. 4928.62.  (A) There is hereby created the advanced	164
energy program, which shall be administered by the director of	165
development. Under the program, the director may authorize the use	166
of moneys in the advanced energy fund for financial, technical,	167
and related assistance for advanced energy projects in this state	168
or for economic development assistance, in furtherance of the	169
purposes set forth in section 4928.63 of the Revised Code. To the	170
extent feasible given approved applications for assistance, the	171
assistance shall be distributed among the certified territories of	172
electric distribution utilities and participating electric	173
cooperatives, and among the service areas of participating	174
municipal electric utilities, in amounts proportionate to the	175
remittances of each utility and cooperative under divisions (B)(1)	176
and (3) of section 4928.61 of the Revised Code.	177

The director shall determine the amount of each grant based	178
on the market price of energy and the advice of the public	179
benefits advisory board under division (E)(2) of section 4928.58	180
of the Revised Code. The amount of each grant shall decrease	181
annually in order to enable the program to fund an increasing	182
number of grants.	183

The director shall not authorize financial assistance for an	184
advanced energy project under the program unless the director	185
first determines that the project will create new jobs or preserve	186
existing jobs in this state or use innovative technologies or	187
materials.	188

(B) In carrying out sections 4928.61 to 4928.63 of the	189
Revised Code, the director may do all of the following to further	190
the public interest in advanced energy projects and economic	191
development:	192

(1) Award grants, contracts, loans, loan participation	193
agreements, linked deposits, and energy production incentives;	194

(2) Acquire in the name of the director any property of any	195
kind or character in accordance with this section, by purchase,	196
purchase at foreclosure, or exchange, on such terms and in such	197
manner as the director considers proper;	198

(3) Make and enter into all contracts and agreements	199
necessary or incidental to the performance of the director's	200
duties and the exercise of the director's powers under sections	201
4928.61 to 4928.63 of the Revised Code;	202

(4) Employ or enter into contracts with financial	203
consultants, marketing consultants, consulting engineers,	204
architects, managers, construction experts, attorneys, technical	205
monitors, energy evaluators, or other employees or agents as the	206
director considers necessary, and fix their compensation;	207

(5) Adopt rules prescribing the application procedures for	208
financial assistance under the advanced energy program; the terms	209
and conditions of any grants, contracts, loans, loan participation	210
agreements, linked deposits, and energy production incentives;	211
criteria pertaining to the eligibility of participating lending	212
institutions; and any other matters necessary for the	213
implementation of the program;	214

(6) Do all things necessary and appropriate for the operation	215
of the program.	216

(C) The department of development may hold ownership to any	217
unclaimed energy efficiency and renewable energy emission	218
allowances provided for in Chapter 3745-14 of the Administrative	219
Code or otherwise, that result from advanced energy projects that	220
receive funding from the advanced energy fund, and it may use the	221
allowances to further the public interest in advanced energy	222
projects or for economic development.	223

(D) Financial statements, financial data, and trade secrets	224
submitted to or received by the director from an applicant or	225
recipient of financial assistance under sections 4928.61 to	226
4928.63 of the Revised Code, or any information taken from those	227
statements, data, or trade secrets for any purpose, are not public	228
records for the purpose of section 149.43 of the Revised Code.	229

(E) Nothing in the amendments of sections 4928.61, 4928.62,	230
and 4928.63 of the Revised Code by Sub. H.B. 251 of the 126th	231
general assembly shall affect any pending or effected assistance,	232
pending or effected purchases or exchanges of property made, or	233
pending or effected contracts or agreements entered into pursuant	234
to division (A) or (B) of this section as the section existed	235
prior to the effective date of those amendments, January 4, 2007,	236
or shall affect the exemption provided under division (C) of this	237
section as the section existed prior to that effective date.	238

(F) Any assistance a school district receives for an advanced	239
energy project, including a geothermal heating, ventilating, and	240
air conditioning system, shall be in addition to any assistance	241
provided under Chapter 3318. of the Revised Code and shall not be	242
included as part of the district or state portion of the basic	243
project cost under that chapter.	244

Section 2. That existing sections 4928.58, 4928.61, and	245
4928.62 of the Revised Code are hereby repealed.	246