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HB303 • 2026

Establish community energy program and pilot program

Establish community energy program and pilot program

Energy
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Sharon A. Ray
Last action
Official status
As Passed by the House
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Establish community energy program and pilot program

To amend section 4928.02 and to enact sections 1.66, 4934.01, 4934.011, 4934.04, 4934.05, 4934.06, 4934.07, 4934.071, 4934.072, 4934.08, 4934.10, 4934.11, 4934.12, 4934.13, 4934.14, 4934.17, 4934.19, 4934.20, 4934.21, 4934.22, 4934.25, 4934.26, 4934.27, 4934.28, 4934.35, 4934.36, 4934.37, and 4934.38 of the Revised Code to establish the community energy program and pilot program and to define electricity measurement in alternating current.

What This Bill Does

  • To amend section 4928.02 and to enact sections 1.66, 4934.01, 4934.011, 4934.04, 4934.05, 4934.06, 4934.07, 4934.071, 4934.072, 4934.08, 4934.10, 4934.11, 4934.12, 4934.13, 4934.14, 4934.17, 4934.19, 4934.20, 4934.21, 4934.22, 4934.25, 4934.26, 4934.27, 4934.28, 4934.35, 4934.36, 4934.37, and 4934.38 of the Revised Code to establish the community energy program and pilot program and to define electricity measurement in alternating current.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. Ohio Legislature

    As Introduced

  2. Ohio Legislature

    As Reported by the House Energy Committee

  3. Ohio Legislature

    As Passed by the House

Official Summary Text

To amend section 4928.02 and to enact sections 1.66, 4934.01, 4934.011, 4934.04, 4934.05, 4934.06, 4934.07, 4934.071, 4934.072, 4934.08, 4934.10, 4934.11, 4934.12, 4934.13, 4934.14, 4934.17, 4934.19, 4934.20, 4934.21, 4934.22, 4934.25, 4934.26, 4934.27, 4934.28, 4934.35, 4934.36, 4934.37, and 4934.38 of the Revised Code to establish the community energy program and pilot program and to define electricity measurement in alternating current.

Current Bill Text

Read the full stored bill text
As Passed by the House

136th
General Assembly

Regular
Session
Sub. H. B. No. 303

2025-2026

Representatives Ray, Hoops

Cosponsors: Representatives Rader,
Brennan, Fischer, Glassburn, Hall, D., Thomas, D., Abrams, Baker,
Brent, Brownlee, Bryant Bailey, Deeter, Dovilla, King, Kishman,
Lampton, Miller, J., Newman, Odioso, Piccolantonio, Richardson,
Roemer, Russo, Salvo, Schmidt, Sigrist, Sweeney, Troy, White, A.,
Williams, Young

To
amend section 4928.02 and to enact sections 1.66, 4934.01, 4934.011,
4934.04, 4934.05, 4934.06, 4934.07, 4934.071, 4934.072, 4934.08,
4934.10, 4934.11, 4934.12, 4934.13, 4934.14, 4934.17, 4934.19,
4934.20, 4934.21, 4934.22, 4934.25, 4934.26, 4934.27, 4934.28,
4934.35, 4934.36, 4934.37, and 4934.38 of the Revised Code
to
establish the community energy program and pilot program and to
define electricity measurement in alternating current.

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

Section
1.
That
section 4928.02 be amended and sections 1.66, 4934.01, 4934.011,
4934.04, 4934.05, 4934.06, 4934.07, 4934.071, 4934.072, 4934.08,
4934.10, 4934.11, 4934.12, 4934.13, 4934.14, 4934.17, 4934.19,
4934.20, 4934.21, 4934.22, 4934.25, 4934.26, 4934.27, 4934.28,
4934.35, 4934.36, 4934.37, and 4934.38 of the Revised Code be enacted
to read as follows:

Sec.
1.66.

As used in the Revised Code, unless the context requires otherwise,
all measures of electricity described in watts, kilowatts, megawatts,
or any derivative thereof means such electricity expressed in
alternating current.

Sec.
4928.02.
It
is the policy of this state to do the following throughout this
state:

(A)
Ensure the availability to consumers of adequate, reliable, safe,
efficient, nondiscriminatory, and reasonably priced retail electric
service;

(B)
Ensure the availability of unbundled and comparable retail electric
service that provides consumers with the supplier, price, terms,
conditions, and quality options they elect to meet their respective
needs;

(C)
Ensure diversity of electricity supplies and suppliers, by giving
consumers effective choices over the selection of those supplies and
suppliers and by encouraging the development of distributed and small
generation facilities;

(D)
Encourage innovation and market access for cost-effective supply- and
demand-side retail electric service including, but not limited to,
demand-side management, time-differentiated pricing, waste energy
recovery systems, smart grid programs, and implementation of advanced
metering infrastructure;

(E)
Encourage cost-effective and efficient access to information
regarding the operation of the transmission and distribution systems
of electric utilities in order to promote both effective customer
choice of retail electric service and the development of performance
standards and targets for service quality for all consumers,
including annual achievement reports written in plain language;

(F)
Ensure that an electric utility's transmission and distribution
systems are available to a customer-generator or owner of distributed
generation, so that the customer-generator or owner can market and
deliver the electricity it produces;

(G)
Recognize the continuing emergence of competitive electricity markets
through the development and implementation of flexible regulatory
treatment;

(H)
Ensure effective competition in the provision of retail electric
service by avoiding anticompetitive subsidies flowing from a
noncompetitive retail electric service to a competitive retail
electric service or to a product or service other than retail
electric service, and vice versa, including by prohibiting the
recovery of any generation-related costs through distribution or
transmission rates;

(I)
Ensure retail electric service consumers protection against
unreasonable sales practices, market deficiencies, and market power;

(J)
Provide coherent, transparent means of giving appropriate incentives
to technologies that can adapt successfully to potential
environmental mandates;

(K)
Encourage implementation of distributed generation across customer
classes through regular review and updating of administrative rules
governing critical issues such as, but not limited to,
interconnection standards, standby charges, and net metering;

(L)
Protect at-risk populations, including, but not limited to, when
considering the implementation of any new advanced energy or
renewable energy resource;

(M)
Encourage the education of small business owners in this state
regarding the use of, and encourage the use of, energy efficiency
programs and alternative energy resources in their businesses;

(N)
Facilitate the state's effectiveness in the global economy.

(O)
Encourage cost-effective, timely, and efficient access to and sharing
of customer usage data with customers and competitive suppliers to
promote customer choice and grid modernization.

(P)
Ensure that a customer's data is provided in a standard format and
provided to third parties in as close to real time as is economically
justifiable in order to spur economic investment and improve the
energy options of individual customers.

(Q)
Encourage the development of community energy facilities, as defined
in section 4934.01 of the Revised Code, for the benefit of customers
in this state and to facilitate participation by customers with the
facilities.

(R)
Establish a community energy pilot program, pursuant to sections
4934.04 to 4934.19 and 4934.25 to 4934.27 of the Revised Code.

In
carrying out this policy, the commission shall consider rules as they
apply to the costs of electric distribution infrastructure,
including, but not limited to, line extensions, for the purpose of
development in this state.

Sec.
4934.01.
As
used in this chapter:

(A)
"Bill credit" means the monetary value approved under
section 4934.08 of the Revised Code by the public utilities
commission for each kilowatt hour of electricity generated by a
community energy facility.

(B)
"Certified territory," "electric distribution
utility," and "energy storage" have the same meanings
as in section 4928.01 of the Revised Code.

(C)
"Commercial or public sector rooftop" means either of the
following that is located within an electric distribution utility's
certified territory:

(1)
The roof of a building located on commercial real estate as defined
in section 1311.85 of the Revised Code;

(2)
Any property owned by a public authority as defined in section
1311.25 of the Revised Code.

(D)
"Community energy facility" means a single facility that
does the following:

(1)
Generates electricity by means of a solar photovoltaic device or uses
as its fuel either solar, wind, biomass, landfill gas, or
hydroelectric power, or uses a microturbine, natural gas-fired
generator, energy storage system, or a fuel cell;

(2)
Meets all of the following requirements:

(a)
The facility is located in this state and is directly connected to an
electric distribution utility's distribution system.

(b)
The facility has at least three subscribers.

(c)
The facility is located on one parcel of land and, except as provided
in section 4934.011 of the Revised Code, there is no community energy
facility on the same or a contiguous parcel that is developed, owned,
or operated by the same entity, affiliated entity, or entity under
common control.

(d)
No subscriber holds more than a sixty per cent proportional interest
in the output of the system, which shall be measured as the sum total
of all meters on the subscriber's property.

(e)
Not less than forty per cent of the facility capacity shall be
subscribed by subscriptions of forty kilowatts or less. For purposes
of this division, a multi-unit building served by a single meter
shall be considered a single customer provided the average usage,
based on the number of units, is forty kilowatts or less.

(f)
The facility has a nameplate capacity of ten or less megawatts, or
twenty or less megawatts if the facility is on a distressed site or
one or more commercial or public sector rooftops, as measured at the
point of interconnection.

(g)
The facility is not under the control of an electric distribution
utility, but may be under the control of an affiliate of the utility.

(3)(a)
If the facility uses either an energy storage system or natural
gas-fired generator, then the energy storage system or generator is
not sized so as to exceed the size of any co-located facility using
solar, wind, biomass, landfill gas, or hydroelectric power as its
fuel.

(b)
If the system uses both an energy storage system and natural
gas-fired generator, then the combined nameplate capacity of the
storage system and generator is not sized so as to exceed the size of
any co-located facility using solar, wind, biomass, landfill gas, or
hydroelectric power as its fuel.

(E)
"Community energy organization" means a for-profit or
nonprofit entity that operates one or more community energy
facilities.

(F)
"Contiguous county" means a county that directly shares a
border with another county, including, counties who only share a
border with another county's endpoints, and counties that are
adjacent geographically, with no intervening counties between them.

(G)
"Distressed site" means a site made up of one or more
parcels of land, located within an electric distribution utility's
certified territory where the majority of the acreage is at least one
or more of the following:

(1)
A brownfield as defined in section 122.6511 of the Revised Code;

(2)
A parcel that is within an area where an investor may receive a new
markets tax credit under section 45D of the Internal Revenue Code;

(3)
A solid waste facility licensed by the environmental protection
agency under section 3734.02 of the Revised Code;

(4)
A parcel of land that is described by division (b)(11)(B)(iii) of
section 45 of the Internal Revenue Code;

(5)
Land or structure owned by a metropolitan housing authority, as
described in section 3735.27 of the Revised Code;

(6)
Land owned by a county land reutilization corporation as defined in
section 1724.01 of the Revised Code.

(H)
"Large industrial customer" means any manufacturer that
uses electricity primarily in a process involving a change of raw or
unfinished materials into another form or product, and that takes
service from an electric distribution utility at primary voltage,
subtransmission voltage, or transmission voltage.

(I)
"Mercantile customer" has the same meaning as in section
4928.01 of the Revised Code.

(J)
"Net crediting" means a program offered by an electric
distribution utility under which the electric utility does the
following:

(1)
Issues a customer, who is a subscriber, a consolidated electric bill
that includes on the customer's monthly bill the electric utility
charges for electric service, the community energy subscription
charge, and any bill credit;

(2)
Remits the customer's subscription fee to the owner or operator of
the community energy organization to which the customer subscribes.

(K)
"Non-ministerial permit" means all necessary and
discretionary governmental permits and approvals to construct a
community energy facility notwithstanding any pending legal challenge
to one or more permits or approvals.

(L)
"Political subdivision" means a county, township, or
municipal corporation, or any other body corporate and politic
responsible for governmental activities in a geographic area smaller
than that of the state.

(M)
"Subscriber" means any retail electric customer who meets
all of the following:

(1)
The customer has an electric meter on the customer's property;

(2)
The customer is located within the certified territory of an electric
distribution utility;

(3)
The customer contracts for a subscription from a community energy
facility located in the same certified territory as the customer;

(4)
For customers with subscriptions of forty kilowatts or less to a
community energy facility not located on a distressed site, the
community energy facility must be located in either the same county
as the customer or in a contiguous county to the customer's electric
meter;

(5)
The customer is not a large industrial customer or mercantile
customer.

(N)
"Subscription" means the right to obtain from a community
energy organization an allocation of bill credits for electricity
generated by a community energy facility.

(O)
"Unsubscribed electricity" means any electricity generated
by a community energy facility that is not attributable to a
subscription.

Sec.
4934.011.
A
community energy facility may be placed on the same parcel or a
contiguous parcel of land as a community energy facility that is
developed, owned, or operated by the same entity, affiliated entity,
or entity under common control if at least one of the following is
met:

(A)
The parcel or parcels of land are a distressed site or the facility
is on one or more commercial or public sector rooftops, and the total
capacity of all community energy facilities on the parcel or parcels
does not exceed twenty megawatts.

(B)
All of the following are satisfied:

(1)
The community energy facility is to be located on a parcel of land,
or multiple parcels of land, that were created prior to the effective
date of this section.

(2)
The total capacity of all community energy facilities on the parcel
or parcels of land does not exceed ten megawatts.

(3)
Each community energy facility has its own distinct point of
interconnection with the serving electric distribution utility,
including separate and distinct metering and the ability to be
directly connected to or disconnected from the utility.

(4)
The generation components of each community energy facility are
separate, including separate fencing, and not connected with
neighboring facilities other than by the utility's distribution
system.

(5)
Each community energy facility shares only non-operational
infrastructure, including access roads, utility poles, and other
features necessary to provide utility and physical access to each
facility.

Sec.
4934.04.
The
public utilities commission shall establish a community energy pilot
program, as described in sections 4934.05 to 4934.17 and 4934.25 to
4934.27 of the Revised Code, consisting of one thousand five hundred
megawatts to be implemented throughout this state. The amount of
megawatts in the program may only be expanded by the general
assembly.

Sec.
4934.05.
(A)
The public utilities commission shall annually certify two hundred
fifty megawatts of community energy facilities, based on nameplate
capacity, until one thousand megawatts from such facilities are
certified.

(B)
All megawatts certified pursuant to this section shall be allocated
proportionally based on the size of each utility's retail electric
sales published by the energy information administration.

(C)
Any uncertified megawatts for a year carry over to the subsequent
year until all available megawatts are certified.

(D)
All megawatts certified pursuant to this section shall be certified
in the order that the certification applications were received.

(E)
If applications for certification exceed the total capacity available
for the year, then the applications shall be placed on a wait list as
determined by the commission. Once certification of one thousand
megawatts for community energy facilities has occurred, the wait list
shall be eliminated.

(F)
The commission shall ensure that certification under this section is
separate from a certification process required under sections 4928.64
to 4928.645 of the Revised Code, or any related rules in the Ohio
Administrative Code.

Sec.
4934.06.
(A)
The public utilities commission shall certify five hundred megawatts
of community energy facilities, in addition to the megawatts
certified under section 4934.05 of the Revised Code, which shall be
reserved for community energy facilities constructed exclusively on
distressed sites or one or more commercial or public sector rooftops.

(B)
The commission shall ensure that certification under this section is
separate from a certification process required under sections 4928.64
to 4928.645 of the Revised Code, or any related rules in the
Administrative Code.

(C)
After all megawatts are certified pursuant to this section, a
community energy facility on a distressed site or a commercial or
public sector rooftop may be certified from the megawatts allocated
under section 4934.05 of the Revised Code.

Sec.
4934.07.
(A)
An electric distribution utility with a community energy facility in
its certified territory shall allocate bill credits for all
electricity generated by the facility that is attributable to a
subscription.

(B)(1)
A community energy organization may account for unsubscribed
electricity on a monthly basis and accumulate bill credits for the
unsubscribed electricity for a period of up to twelve months after it
was generated.

(2)
Bill credits for unsubscribed electricity accumulated under division
(B)(1) of this section shall be allocated to future subscribers at
the direction of the community energy organization.

(C)
At least once annually, a community energy organization shall furnish
to the electric distribution utility in whose certified territory the
community energy facility is located an allocation for distribution
of bill credits to subscribers for unsubscribed electricity.

(D)
A community energy organization shall forfeit, to the electric
distribution utility in whose certified territory the community
energy facility is located, any bill credits for unsubscribed
electricity that are not allocated pursuant to division (B) of this
section.

Sec.
4934.071.
(A)
As used in this section:

(1)
"Regional governmental aggregator" means a regional council
of governments established under Chapter 167. of the Revised Code
with members in at least seventeen counties that is also a
governmental aggregator under section 4928.20 of the Revised Code.

(2)
"Renewable attributes" means any of the following that are
attributable to a community energy facility or the electricity
generated by a facility provided by the federal or state government
or any other legislative authority of a political subdivision in the
state:

(a)
Any credits, certificates, benefits, or offsets and allowances
computed on the basis of a community energy facility's displacement
of fossil fuel-derived, or other conventional, electric generation;

(b)
Any renewable energy credits or any other environmental certificates
issued or administered in connection with electricity generated from
a community energy facility;

(c)
Any voluntary emission reduction credits obtained, or obtainable, in
connection with the electric generation from a community energy
facility.

(B)
A regional governmental aggregator may purchase any amount of
renewable attributes from a community energy facility.

Sec.
4934.072.
(A)
A large industrial customer or mercantile customer shall not
participate in the community energy pilot program or be charged,
directly or indirectly, for any costs related to the community energy
pilot program, including any bill credits approved under section
4934.08 of the Revised Code.

(B)
Residential and commercial customers who do not participate in the
community energy pilot program shall not be charged, directly or
indirectly, for any costs related to the community energy pilot
program.

Sec.
4934.08.
(A)
As used in this section, "retail rate" means all costs of
providing generation service, transmission service, and distribution
service that may be charged by an electric distribution utility.

(B)
A subscriber to a community energy facility shall be eligible for a
bill credit from the subscriber's electric distribution utility for
the proportional output of a community energy facility attributable
to the subscriber.

(C)
The public utilities commission shall establish the bill credit for
each subscriber that is equal to the utility's retail rate on a
per-customer class basis, minus only the utility's base charge for
distribution service approved under Chapter 4909. of the Revised Code
and the utility's distribution riders or other distribution charges
approved under Chapter 4928. of the Revised Code.

(D)
The utility shall publish new tariffs or update existing tariffs
based on the bill credit set under this section not later than nine
months after the effective date of this section.

Sec.
4934.10.
Any
bill credit exceeding a subscriber's monthly bill amount shall carry
forward until fully allocated to the subscriber's bill or until the
termination of the subscriber's community energy organization
subscription.

Sec.
4934.11.
No
subscriber may obtain a subscription for electricity generated by a
community energy facility representing more than one hundred per cent
of the subscriber's average annual electricity usage.

Sec.
4934.12.
A
subscription shall be considered one of the following:

(A)
A consumer transaction subject to Chapter 1345. of the Revised Code
regarding the enrollment of residential subscribers to obtain an
allocation of bill credits;

(B)
Goods subject to Chapter 1302. of the Revised Code regarding the
enrollment of nonresidential subscribers to obtain an allocation of
bill credits.

Sec.
4934.13.
An
electric distribution utility shall interconnect a community energy
facility that is in that utility's certified territory to its
distribution system within a reasonable time after the facility is
constructed and shall ensure such interconnections are made
efficiently, safely, and in compliance with any applicable federal
and state regulations and standards.

Sec.
4934.14.
An
electric distribution utility shall not discriminate against
community energy facilities or their subscribers, which includes
adding extraordinary fees and charges not applied to similar
facilities.

Sec.
4934.17.
(A)
Notwithstanding division (B) of this section, the public utilities
commission has exclusive jurisdiction over the regulation of the
interconnection of community energy facilities to the distribution
systems of electric utilities. A board of county commissioners, a
board of township trustees, or the legislative authority of a
municipal corporation shall not adopt or enforce regulations
governing the technical requirements, processes, or costs of
interconnection for a community energy facility.

(B)
Nothing in this chapter shall be construed to limit the authority of
the following regarding the zoning of a small wind farm or small
solar facility:

(1)
A board of county commissioners or a board of zoning appeals under
section 303.213 of the Revised Code;

(2)
A board of township trustees or a board of zoning appeals under
section 519.213 of the Revised Code;

(3)
The legislative authority of a municipal corporation under section
713.081 of the Revised Code.

As
used in this division, "small wind farm" and "small
solar facility" have the same meanings as in sections 303.213,
519.213, and 713.081 of the Revised Code.

Sec.
4934.19.
(A)
An electric distribution utility shall establish a net crediting
program under which the electric distribution utility shall enter
into a net crediting agreement with a community energy organization.
The terms of an agreement shall specify that authorization by or on
behalf of a subscriber is required before a subscriber may be billed
by the electric distribution utility under the program. An agreement
also shall specify the terms for payments made by the electric
distribution utility to the community energy organization, which
terms may include a net crediting fee of not more than one per cent
of the subscription fee to be deducted from the electric distribution
utility's payment to the community energy organization.

(B)
Under a net crediting agreement, an electric distribution utility
shall do the following:

(1)
Remit, through an electronic funds transfer, the cash value of the
subscriber's subscription fee, less any net crediting fee, to the
community energy organization not later than thirty days after the
billing period;

(2)
Issue electric distribution utility customers who are subscribers an
itemized monthly bill that includes, in addition to charges described
in division (B)(4) of this section, the subscriber's bill credit for
the billing period and the subscriber's subscription fee;

(3)
Process monthly bills for subscribers who participate in low-income
customer assistance programs or budget billing programs in the same
manner as bills for customers who are not participating in such
programs;

(4)
Bill for all basic electric services, including transmission,
distribution, and generation charges, consistent with this section
and commission regulations.

Sec.
4934.20.
A
nonresidential customer that subscribes to multiple community energy
facilities may participate in the net crediting program only if each
facility is included in a net crediting agreement under sections
4934.19 to 4934.22 of the Revised Code.

Sec.
4934.21.
The
minimum service requirements established under section 4928.10 of the
Revised Code apply to sections 4934.19 to 4934.22 of the Revised
Code.

Sec.
4934.22.
The
public utilities commission shall adopt rules to implement net
crediting programs authorized under sections 4934.19 to 4934.22 of
the Revised Code.

Sec.
4934.25.
(A)
A community energy organization that constructs a community energy
facility on a distressed site that is a brownfield, as defined in
section 122.6511 of the Revised Code, shall be eligible to receive a
grant awarded by the department of development from the brownfield
remediation program under section 122.6511 of the Revised Code for
costs associated with remediation.

(B)
The department of development shall promulgate rules for awarding
grants described in this section.

Sec.
4934.26.
(A)
The public utilities commission shall convene and facilitate an
ongoing stakeholder working group, or designate an existing group to
function as the working group, to assist commission staff with
effectively and efficiently promulgating rules for the community
energy pilot program.

(B)
The working group shall consist of the following:

(1)
Electric distribution utilities;

(2)
Consumer advocates;

(3)
Community energy industry representatives;

(4)
Other interested parties.

Sec.
4934.27.
Not
later than twelve months after the effective date of this section,
the public utilities commission, with assistance from the working
group under section 4934.26 of the Revised Code shall promulgate
rules to implement the community energy pilot program, which shall
include rules for the creation and establishment of community energy
facilities, the collection of a reasonable application fee from each
community energy organization participating in the program, and the
following:

(A)
The certification of community energy facilities, which shall include
rules for the commission to approve or deny each facility application
within ninety days, unless good cause is shown for not meeting the
deadline, as determined by the commission;

(B)
Prohibit removing a subscriber from the subscriber's applicable
customer class because of the subscriber's subscription to a
community energy facility;

(C)
Reasonably allow for the transfer and portability of subscriptions,
including allowing a subscriber to retain a subscription to a
facility if the subscriber moves within the same electric
distribution utility's service territory;

(D)
Modify existing interconnection standards, fees, and processes as
needed to facilitate the efficient and cost-effective interconnection
of community energy facilities that allow an electric distribution
utility to recover reasonable interconnection costs for each
facility;

(E)
Require each electric distribution utility to efficiently connect a
community energy facility to its electrical distribution grid and not
to discriminate against facilities or subscribers;

(F)
Provide for consumer protection in accordance with existing laws and
regulations, including any protections against disconnection of
service;

(G)
Establish robust consumer protections for subscribers, including at
least the following:

(1)
A standardized customer disclosure form for residential subscribers;

(2)
Prohibiting upfront sign-on fees or credit checks;

(3)
Preventing early termination charges to any subscriber who
unsubscribes.

(H)
Allow an electric distribution utility to recover reasonable costs
associated with administering the community energy pilot program from
community energy subscribers or community energy organizations;

(I)
Ensure that the provisions of H.B. 303 of the 136th general assembly
shall be construed to minimize direct or indirect costs related to
community energy facilities to an electric distribution utility's
nonsubscriber ratepayers and shall maximize benefits to all rate
classes, regardless of participation in a community energy program;

(J)
Ensure facilities qualifying for the community energy pilot program
have a signed interconnection agreement or a system impact study, as
determined by the commission, can demonstrate site control, and have
received all applicable non-ministerial permits;

(K)
Require each community energy organization to send a notice in a
standardized format containing information related to subscriber
enrollment to the electric distribution utility that services the
area where the organization's community energy facility is sited;

(L)
Not later than nine months after the effective date of this section,
require each electric distribution utility to publish new tariffs or
update existing tariffs to implement the community energy pilot
program;

(M)
Require a community energy organization to be responsible for the
decommissioning of a community energy facility pursuant to sections
4934.35 and 4934.36 of the Revised Code.

Sec.
4934.28.
(A)
As used in this section, "distributed energy resource"
means a small-scale electricity-generating or storage system
connected to the distribution grid, including technologies such as
rooftop solar, batteries, and generators, that enhance grid
resilience, provide energy security, and offer potential cost
savings.

(B)
A distributed energy resource that also meets the criteria to be a
community energy facility that has submitted a completed
interconnection application to an electric distribution utility and
has site control before the effective date of this section shall
retain its original position in the interconnection queue and remain
eligible to participate in the community energy pilot program if that
facility meets the program eligibility requirements and any rules
adopted by the public utilities commission.

(C)
The commission shall ensure the following:

(1)
That the projects described in division (B) of this section are not
made to restart the interconnection process or forfeit any previously
completed engineering reviews or fees.

(2)
Projects commence any applicable study process within thirty days of
receiving the study agreement or pursuant to timelines established by
the commission.

(D)
An owner or operator of a distributed energy resource that fails to
engage in good faith progression of the interconnection process,
including willful delay or obstruction, may result in loss of queue
position or eligibility in the community energy pilot program.

Sec.
4934.35.
(A)
Not later than eighteen months after a community energy facility has
ceased generating electricity, a community energy organization shall
commence decommissioning of the facility.

(B)
The decommissioning described in division (A) of this section shall
include the following, to be mutually agreed to in writing by the
property owner or owners and the organization:

(1)
The removal, and potential reuse and recycling, of solar panels and
other community energy equipment, and the remediation of the site;

(2)
The removal of all non-utility-owned equipment, graveled areas, and
access roads;

(3)
The replacement of any topsoil that was removed for the construction
of the facility and reseeding of the cleared area.

(C)
Not more than twenty per cent of the total combined mass of the
community energy facility may enter a landfill.

Sec.
4934.36.
(A)
A community energy organization shall maintain sufficient financial
assurances, in the form of a bond, through the life of a community
energy facility's operation to provide for decommissioning as
described in section 4934.35 of the Revised Code.

(B)
The amount of the bond shall be calculated by a third-party
professional engineer obtained by the organization. Every five years
from the date of the initial assessment, the bond amount shall be
recalculated in the same manner.

(C)
The board of county commissioners where the project is located shall
be the obligee of the bond.

Sec.
4934.37.

The public utilities commission shall conduct reviews of the
community energy pilot program forty-eight months after the rules for
the program have been promulgated and present a report at a hearing
before the appropriate committee in each chamber of the general
assembly with the following information:

(A)
The number and location of operating community energy facilities;

(B)
The amount of nameplate capacity certified;

(C)
The number of subscribers, how much energy was subscribed to by those
subscribers, and the types of customer classes that subscribed;

(D)
Avoided costs for generation, capacity, and transmission;

(E)
Deferred transmission distribution investments;

(F)
Avoided line loss;

(G)
Increases in electric grid resiliency;

(H)
Other benefits associated with locally produced electricity;

(I)
An evaluation of the overall costs and benefits of the community
energy pilot program, including an assessment of whether the program
has successfully minimized direct or indirect costs related to
community energy facilities to an electric distribution utility's
nonsubscriber ratepayers and whether program costs and benefits have
been allocated in proportion to customer participation within each
rate class.

Sec.
4934.38.
Notwithstanding
any provision of section 121.95 of the Revised Code to the contrary,
a regulatory restriction contained in a rule adopted under sections
4934.22, 4934.25, 4934.27, and 4934.37 of the Revised Code is not
subject to sections 121.95 to 121.953 of the Revised Code.

Section
2.
That
existing section 4928.02 of the Revised Code is hereby repealed.