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hb862_00_IN
As Introduced
136th
General Assembly
Regular
Session
H. B. No. 862
2025-2026
Representatives Mathews, A., Peterson
To
amend sections 4164.11, 4906.01, 4906.03, 4928.01, and 4928.041 and
to enact sections 4164.20, 4928.76, 4928.761, 4928.762, 4928.763,
4928.764, 4928.765, 4928.766, 4928.767, 4928.768, and 4928.769 of the
Revised Code
to
authorize electric distribution utilities to construct, own, and
operate nuclear generating facilities in limited circumstances and to
require the Ohio Nuclear Development Authority to appoint a State
Nuclear Coordinator.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 4164.11, 4906.01, 4906.03, 4928.01, and 4928.041 be amended
and sections 4164.20, 4928.76, 4928.761, 4928.762, 4928.763,
4928.764, 4928.765, 4928.766, 4928.767, 4928.768, and 4928.769 of the
Revised Code be enacted to read as follows:
Sec.
4164.11.
The
Ohio
nuclear development
authority
shall have all powers necessary and convenient for carrying out its
statutory purposes, including the following powers:
(A)
To adopt bylaws for the management and regulation of its affairs;
(B)
To develop and adopt a strategic plan for carrying out the purposes
set forth in this chapter;
(C)
To foster innovative partnerships and relationships in the state and
among the state's public institutions of higher education, private
companies, federal laboratories, and nonprofit organizations, to
accomplish the purposes set forth in this chapter;
(D)
To identify and support, in cooperation with the public and private
sectors, the development of education programs related to Ohio's
isotope industry
;
(E)
To appoint the state nuclear coordinator under section 4164.20 of the
Revised Code
.
Sec.
4164.20.
(A)
The Ohio nuclear development authority shall appoint a state nuclear
coordinator. The coordinator may be a member of the authority.
(B)
The state nuclear coordinator shall be appointed by a majority vote
of the authority for a five-year term, except that the coordinator
may be removed by a majority vote of the authority.
(C)
The state nuclear coordinator shall receive no compensation for the
coordinator's services.
(D)
The coordinator shall do all of the following:
(1)
Act as the internal advocate and ombudsperson for nuclear energy
facilities within state government;
(2)
Facilitate permitting and siting by coordinating agency timelines,
identifying critical path items, and providing a single point of
contact for project sponsors and communities;
(3)
Coordinating with federal entities, including the United States
nuclear regulatory commission and the United States department of
energy, on matters within state purview;
(4)
Engage communities and local governments on nuclear education and
infrastructure needs;
(5)
File an annual report with the governor and the general assembly that
details nuclear deployment progress, interagency performances against
timelines, workforce needs, infrastructure needs, and recommended
statutory or regulatory improvements to existing state law and
practice.
Sec.
4906.01.
As
used in Chapter 4906. of the Revised Code:
(A)
"Person" means an individual, corporation, business trust,
association, estate, trust, or partnership or any officer, board,
commission, department, division, or bureau of the state or a
political subdivision of the state, or any other entity.
(B)(1)
"Major utility facility" means:
(a)
Electric generating plant and associated facilities designed for, or
capable of, operation at a capacity of fifty megawatts or more;
(b)
An electric transmission line and associated facilities of a design
capacity of one hundred kilovolts or more;
(c)
A gas pipeline that is greater than five hundred feet in length, and
its associated facilities, is more than nine inches in outside
diameter and is designed for transporting gas at a maximum allowable
operating pressure in excess of one hundred twenty-five pounds per
square inch.
(2)
"Major utility facility" does not include any of the
following:
(a)
Gas transmission lines over which an agency of the United States has
exclusive jurisdiction;
(b)
Any solid waste facilities as defined in section 6123.01 of the
Revised Code;
(c)
Electric distributing lines and associated facilities as defined by
the power siting board;
(d)
Any manufacturing facility that creates byproducts that may be used
in the generation of electricity as defined by the power siting
board;
(e)
Gathering lines, gas gathering pipelines, and processing plant gas
stub pipelines as those terms are defined in section 4905.90 of the
Revised Code and associated facilities;
(f)
Any gas processing plant as defined in section 4905.90 of the Revised
Code;
(g)
Natural gas liquids finished product pipelines;
(h)
Pipelines from a gas processing plant as defined in section 4905.90
of the Revised Code to a natural gas liquids fractionation plant,
including a raw natural gas liquids pipeline, or to an interstate or
intrastate gas pipeline;
(i)
Any natural gas liquids fractionation plant;
(j)
A production operation as defined in section 1509.01 of the Revised
Code, including all pipelines upstream of any gathering lines;
(k)
Any compressor stations used by the following:
(i)
A gathering line, a gas gathering pipeline, a processing plant gas
stub pipeline, or a gas processing plant as those terms are defined
in section 4905.90 of the Revised Code;
(ii)
A natural gas liquids finished product pipeline, a natural gas
liquids fractionation plant, or any pipeline upstream of a natural
gas liquids fractionation plant; or
(iii)
A production operation as defined in section 1509.01 of the Revised
Code.
(C)
"Commence to construct" means any clearing of land,
excavation, or other action that would adversely affect the natural
environment of the site or route of a major utility facility, but
does not include surveying changes needed for temporary use of sites
or routes for nonutility purposes, or uses in securing geological
data, including necessary borings to ascertain foundation conditions.
(D)
"Certificate" means a certificate of environmental
compatibility and public need issued by the power siting board under
section 4906.10 of the Revised Code or a construction certificate
issued by the board under rules adopted under divisions (E) to
(H)
(I)
of section 4906.03 of the Revised Code.
(E)
"Gas" means natural gas, flammable gas, or gas that is
toxic or corrosive.
(F)
"Natural gas liquids finished product pipeline" means a
pipeline that carries finished product natural gas liquids to the
inlet of an interstate or intrastate finished product natural gas
liquid transmission pipeline, rail loading facility, or other
petrochemical or refinery facility.
(G)
"Large solar facility" means an electric generating plant
that consists of solar panels and associated facilities with a single
interconnection to the electrical grid that is a major utility
facility.
(H)
"Large wind farm" means an electric generating plant that
consists of wind turbines and associated facilities with a single
interconnection to the electrical grid that is a major utility
facility.
(I)
"Natural gas liquids fractionation plant" means a facility
that takes a feed of raw natural gas liquids and produces finished
product natural gas liquids.
(J)
"Raw natural gas" means hydrocarbons that are produced in a
gaseous state from gas wells and that generally include methane,
ethane, propane, butanes, pentanes, hexanes, heptanes, octanes,
nonanes, and decanes, plus other naturally occurring impurities like
water, carbon dioxide, hydrogen sulfide, nitrogen, oxygen, and
helium.
(K)
"Raw natural gas liquids" means naturally occurring
hydrocarbons contained in raw natural gas that are extracted in a gas
processing plant and liquefied and generally include mixtures of
ethane, propane, butanes, and natural gasoline.
(L)
"Finished product natural gas liquids" means an individual
finished product produced by a natural gas liquids fractionation
plant as a liquid that meets the specifications for commercial
products as defined by the gas processors association. Those products
include ethane, propane, iso-butane, normal butane, and natural
gasoline.
(M)
"Advanced transmission technologies" means software or
hardware technologies that increase the capacity, efficiency,
reliability, or safety of an existing or new electric transmission
system, including grid-enhancing technologies such as dynamic line
rating, advanced power flow controllers, and topology optimization;
advanced conductors; and other technologies designed to reduce
transmission congestion, or increase the capacity, efficiency,
reliability, or safety of an existing or new electric transmission
system.
(N)
"Advanced conductor" means a conductor with a direct
current electrical resistance that is at least ten per cent lower
than existing conductors of a similar diameter on the electric
transmission system while simultaneously increasing the energy
carrying capacity by at least seventy-five per cent.
Sec.
4906.03.
The
power siting board shall:
(A)
Require such information from persons subject to its jurisdiction as
it considers necessary to assist in the conduct of hearings and any
investigations or studies it may undertake;
(B)
Conduct any studies or investigations that it considers necessary or
appropriate to carry out its responsibilities under this chapter;
(C)
Adopt rules establishing criteria for evaluating the effects on
environmental values of proposed and alternative sites, and projected
needs for electric power, and such other rules as are necessary and
convenient to implement this chapter, including rules governing
application fees, supplemental application fees, and other reasonable
fees to be paid by persons subject to the board's jurisdiction. The
board shall make an annual accounting of its collection and use of
these fees and shall issue an annual report of its accounting, in the
form and manner prescribed by its rules, not later than the last day
of June of the year following the calendar year to which the report
applies.
(D)
Approve, disapprove, or modify and approve applications for
certificates;
(E)
Notwithstanding sections 4906.06 to 4906.14 of the Revised Code, the
board may adopt rules to provide for an accelerated review of an
application for a construction certificate for construction of a
major utility facility related to a coal research and development
project as defined in section 1555.01 of the Revised Code, or to a
coal development project as defined in section 1551.30 of the Revised
Code, submitted to the Ohio coal development office for review under
division (B)(7) of section 1551.33 of the Revised Code. Applications
for construction certificates for construction of major utility
facilities for Ohio coal research and development shall be filed with
the board on the same day as the proposed facility or project is
submitted to the Ohio coal development office for review.
The
board shall render a decision on an application for a construction
certificate within ninety days after receipt of the application and
all of the data and information it may require from the applicant. In
rendering a decision on an application for a construction
certificate, the board shall only consider the criteria and make the
findings and determinations set forth in divisions (A)(2), (3), (5),
and (7) and division (B) of section 4906.10 of the Revised Code.
(F)
Notwithstanding sections 4906.06 to 4906.14 of the Revised Code, the
board shall adopt rules to provide for an accelerated review of an
application for a construction certificate for any of the following:
(1)
An electric transmission line that is:
(a)
Not more than two miles in length;
(b)
Primarily needed to attract or meet the requirements of a specific
customer or specific customers;
(c)
Necessary to maintain reliable electric service as a result of the
retirement or shutdown of an electric generating facility located
within the state; or
(d)
A rebuilding of an existing transmission line.
(2)
An electric generating facility that uses waste heat or natural gas
and is primarily within the current boundary of an existing
industrial or electric generating facility;
(3)
A gas pipeline that is not more than five miles in length or is
primarily needed to meet the requirements of a specific customer or
specific customers.
The
board shall adopt rules that provide for the automatic certification
to any entity described in this division when an application by any
such entity is not suspended by the board, an administrative law
judge, or the chairperson or executive director of the board for good
cause shown, within ninety days of submission of the application. If
an application is suspended, the board shall approve, disapprove, or
modify and approve the application not later than ninety days after
the date of the suspension.
(G)
Notwithstanding sections 4906.06 to 4906.14 of the Revised Code, the
board shall adopt rules to provide for the accelerated review of an
application for a construction certificate for any of the following
that are located in a priority investment area designated and
approved under section 122.161 of the Revised Code:
(1)
An electric generating plant and associated facilities;
(2)
An electric transmission line and associated facilities;
(3)
Gas pipeline infrastructure.
The
chairperson of the board, not later than forty-five days after
receipt of an application submitted under division (G) of this
section, shall determine if it complies with all application
requirements set by the public utilities commission by rule. If the
chairperson does not issue a determination within the time period
required by this division, the application shall be deemed in
compliance by operation of law.
The
board shall render a decision on an application submitted under this
division not later than forty-five days after the application is
determined in compliance with all requirements set by the commission.
If the board does not render a decision within forty-five days, the
application shall be considered approved by operation of law, and the
board shall issue a certificate to the applicant.
The
board shall adopt rules to implement this division, including rules
that prioritize applications for construction on areas negatively
impacted by the decline of the coal industry.
(H)
Notwithstanding sections 4906.06 to 4906.14 of the Revised Code, the
board shall adopt rules to provide for the accelerated review of an
application for a construction certificate for a major utility
facility if at the time the application is filed the construction
will be located on the following:
(1)
In whole, on property owned by, or under a lease with a term of
twenty-five years or more with, the applicant;
(2)
In whole or in part, on an easement or right-of-way;
(3)
On any combination of such property, easement, or right-of-way
described in divisions (H)(1) and (2) of this section.
No
accelerated application shall be granted under the rules adopted
under division (H) of this section for construction of a major
utility facility, in whole or in part, on property under a lease or
an easement or right-of-way, if additional consent for construction
on the property, easement, or right-of-way is required by any person
or entity other than the power siting board.
The
board shall render a decision on an application submitted under this
division not later than sixty days after receipt of the application.
If the board does not render a decision within sixty days, the
application shall be considered approved by operation of law, and the
board shall issue a certificate to the applicant.
(I)(1)
Notwithstanding sections 4906.06 to 4906.14 of the Revised Code, the
board shall adopt rules to provide for the efficient review of an
application for a construction certificate for a nuclear generating
facility to which both of the following apply:
(a)
The facility is to be constructed pursuant to a nuclear project
financing order issued by the public utilities commission under
section 4928.764 of the Revised Code.
(b)
The federal government, government of this state, or both, provide
financial support for the facility on a brownfield or former coal
mine.
(2)(a)
The chairperson of the board, not later than forty-five days after
the application submitted under division (I)(1) of this section is
deemed complete, shall determine if it complies with both of the
following:
(i)
All application requirements set by the power siting board by rule;
(ii)
All federal statutes, as well as regulations promulgated by the
United States nuclear regulatory commission with respect to
permitting, licensing, operation, and decommissioning.
(b)
If the chairperson does not issue a determination within the time
period required by division (I)(2)(a) of this section, the
application shall be deemed in compliance by operation of law.
(c)
An application being deemed in compliance under division (I)(2) of
this section does not waive or abrogate any other requirements
imposed by law for constructing, owning, or operating a nuclear
generating facility, including any requirements to obtain a
certificate under this chapter or any environmental requirements.
(3)(a)
Subject to division (I)(3)(b) of this section, the board shall render
a decision on an application submitted under division (I)(1) of this
section not later than one hundred fifty days after the application
is determined in compliance with all requirements set by the
commission.
(b)
The board may in its discretion extend the period to render a
decision described in division (I)(3)(a) of this section by not more
than one hundred fifty additional days if the applicant consents to
such extension.
(c)
If the board does not render a decision within the time required by
divisions (I)(3)(a) and (b) of this section, the application shall be
considered approved by operation of law, and the board shall issue a
certificate to the applicant.
As
used in division (I) of this section, "brownfield" has the
same meaning as in section 122.6511 of the Revised Code, "former
coal mine" has the same meaning as in section 122.161 of the
Revised Code, and "nuclear project financing order" has the
same meaning as in section 4928.76 of the Revised Code.
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.
(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 and
,
except as provided in sections 4928.76 to 4928.769 of the Revised
Code,
does not own or operate an electric generating facility.
(7)
"Electric light company" has the same meaning as in section
4905.03 of the Revised Code and includes an electric services
company.
(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 has
a certified territory and is engaged on a for-profit basis in the
business of supplying at least a noncompetitive 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 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 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, the home energy assistance
program, the home weatherization assistance program, and the targeted
energy efficiency and weatherization program.
(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 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)
"Advanced energy project" means any technologies, products,
activities, or management practices or strategies that facilitate the
generation or use of electricity or energy and that reduce or support
the reduction of energy consumption or support the production of
clean, renewable energy for industrial, distribution, commercial,
institutional, governmental, research, not-for-profit, or residential
energy users, including, but not limited to, advanced energy
resources and renewable energy resources. "Advanced energy
project" also includes any project described in division (A),
(B), or (C) of section 4928.621 of the Revised Code.
(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 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)
"Starting date of competitive retail electric service"
means January 1, 2001.
(29)
"Customer-generator" means a user of a net metering system.
(30)
"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 that is fed back to the electric service provider.
(31)
"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. For an industrial
customer-generator with a net metering system that has a capacity of
less than twenty megawatts and uses wind as energy, this means the
net metering system was sized so as to not exceed one hundred per
cent of the customer-generator's annual requirements for electric
energy at the time of interconnection.
(32)
"Self-generator" means an entity in this state that owns or
hosts on property the entity controls an electric generation facility
that produces electricity primarily for the owner's consumption and
that may provide any such excess electricity to another entity, and
that meets all of the following:
(a)
The facility is installed or operated by the owner or by a third
party under a contract, including a lease, purchase power agreement,
or other service contract.
(b)
The facility connects directly to the owner's side of the electric
meter.
(c)
The facility delivers electricity to the owner's side of the electric
meter without the use of an electric distribution utility's or
electric cooperative's distribution system or transmission system.
(33)
"Rate plan" means the standard service offer in effect on
the effective date of the amendment of this section by S.B. 221 of
the 127th general assembly, July 31, 2008.
(34)
"Advanced energy resource" means any of the following:
(a)
Any method or any modification or replacement of any property,
process, device, structure, or equipment that increases the
generation output of an electric generating facility to the extent
such efficiency is achieved without additional carbon dioxide
emissions by that facility;
(b)
Any distributed generation system consisting of customer cogeneration
technology;
(c)
Clean coal technology that includes a carbon-based product that is
chemically altered before combustion to demonstrate a reduction, as
expressed as ash, in emissions of nitrous oxide, mercury, arsenic,
chlorine, sulfur dioxide, or sulfur trioxide in accordance with the
American society of testing and materials standard D1757A or a
reduction of metal oxide emissions in accordance with standard D5142
of that society, or clean coal technology that includes the design
capability to control or prevent the emission of carbon dioxide,
which design capability the commission shall adopt by rule and shall
be based on economically feasible best available technology or, in
the absence of a determined best available technology, shall be of
the highest level of economically feasible design capability for
which there exists generally accepted scientific opinion;
(d)
Advanced nuclear energy technology consisting of generation III
technology as defined by the nuclear regulatory commission; other,
later technology; or significant improvements to existing facilities;
(e)
Any fuel cell used in the generation of electricity, including, but
not limited to, a proton exchange membrane fuel cell, phosphoric acid
fuel cell, molten carbonate fuel cell, or solid oxide fuel cell;
(f)
Advanced solid waste or construction and demolition debris conversion
technology, including, but not limited to, advanced stoker
technology, and advanced fluidized bed gasification technology, that
results in measurable greenhouse gas emissions reductions as
calculated pursuant to the United States environmental protection
agency's waste reduction model (WARM);
(g)
Demand-side management and any energy efficiency improvement;
(h)
Any new, retrofitted, refueled, or repowered generating facility
located in Ohio, including a simple or combined-cycle natural gas
generating facility or a generating facility that uses biomass, coal,
modular nuclear, or any other fuel as its input;
(i)
Any uprated capacity of an existing electric generating facility if
the uprated capacity results from the deployment of advanced
technology.
"Advanced
energy resource" does not include a waste energy recovery system
that is, or has been, included in an energy efficiency program of an
electric distribution utility pursuant to requirements under section
4928.66 of the Revised Code.
(35)
"Air contaminant source" has the same meaning as in section
3704.01 of the Revised Code.
(36)
"Cogeneration technology" means technology that produces
electricity and useful thermal output simultaneously.
(37)(a)
"Renewable energy resource" means any of the following:
(i)
Solar photovoltaic or solar thermal energy;
(ii)
Wind energy;
(iii)
Power produced by a hydroelectric facility;
(iv)
Power produced by a small hydroelectric facility, which is a facility
that operates, or is rated to operate, at an aggregate capacity of
less than six megawatts;
(v)
Power produced by a run-of-the-river hydroelectric facility placed in
service on or after January 1, 1980, that is located within this
state, relies upon the Ohio river, and operates, or is rated to
operate, at an aggregate capacity of forty or more megawatts;
(vi)
Geothermal energy;
(vii)
Fuel derived from solid wastes, as defined in section 3734.01 of the
Revised Code, through fractionation, biological decomposition, or
other process that does not principally involve combustion;
(viii)
Biomass energy;
(ix)
Energy produced by cogeneration technology that is placed into
service on or before December 31, 2015, and for which more than
ninety per cent of the total annual energy input is from combustion
of a waste or byproduct gas from an air contaminant source in this
state, which source has been in operation since on or before January
1, 1985, provided that the cogeneration technology is a part of a
facility located in a county having a population of more than three
hundred sixty-five thousand but less than three hundred seventy
thousand according to the most recent federal decennial census;
(x)
Biologically derived methane gas;
(xi)
Heat captured from a generator of electricity, boiler, or heat
exchanger fueled by biologically derived methane gas;
(xii)
Energy derived from nontreated by-products of the pulping process or
wood manufacturing process, including bark, wood chips, sawdust, and
lignin in spent pulping liquors.
"Renewable
energy resource" includes, but is not limited to, any fuel cell
used in the generation of electricity, including, but not limited to,
a proton exchange membrane fuel cell, phosphoric acid fuel cell,
molten carbonate fuel cell, or solid oxide fuel cell; a linear
generator; wind turbine located in the state's territorial waters of
Lake Erie; methane gas emitted from an abandoned or active coal mine;
waste energy recovery system placed into service or retrofitted on or
after the effective date of the amendment of this section by S.B. 315
of the 129th general assembly, September 10, 2012, except that a
waste energy recovery system described in division (A)(38)(b) of this
section may be included only if it was placed into service between
January 1, 2002, and December 31, 2004; storage facility that will
promote the better utilization of a renewable energy resource; or
distributed generation system used by a customer to generate
electricity from any such energy.
"Renewable
energy resource" does not include a waste energy recovery system
that is, or was, on or after January 1, 2012, included in an energy
efficiency program of an electric distribution utility pursuant to
requirements under section 4928.66 of the Revised Code.
(b)
As used in division (A)(37) of this section, "hydroelectric
facility" means a hydroelectric generating facility that is
located at a dam on a river, or on any water discharged to a river,
that is within or bordering this state or within or bordering an
adjoining state and meets all of the following standards:
(i)
The facility provides for river flows that are not detrimental for
fish, wildlife, and water quality, including seasonal flow
fluctuations as defined by the applicable licensing agency for the
facility.
(ii)
The facility demonstrates that it complies with the water quality
standards of this state, which compliance may consist of
certification under Section 401 of the "Clean Water Act of
1977," 91 Stat. 1598, 1599, 33 U.S.C. 1341, and demonstrates
that it has not contributed to a finding by this state that the river
has impaired water quality under Section 303(d) of the "Clean
Water Act of 1977," 114 Stat. 870, 33 U.S.C. 1313.
(iii)
The facility complies with mandatory prescriptions regarding fish
passage as required by the federal energy regulatory commission
license issued for the project, regarding fish protection for
riverine, anadromous, and catadromous fish.
(iv)
The facility complies with the recommendations of the Ohio
environmental protection agency and with the terms of its federal
energy regulatory commission license regarding watershed protection,
mitigation, or enhancement, to the extent of each agency's respective
jurisdiction over the facility.
(v)
The facility complies with provisions of the "Endangered Species
Act of 1973," 87 Stat. 884, 16 U.S.C. 1531 to 1544, as amended.
(vi)
The facility does not harm cultural resources of the area. This can
be shown through compliance with the terms of its federal energy
regulatory commission license or, if the facility is not regulated by
that commission, through development of a plan approved by the Ohio
historic preservation office, to the extent it has jurisdiction over
the facility.
(vii)
The facility complies with the terms of its federal energy regulatory
commission license or exemption that are related to recreational
access, accommodation, and facilities or, if the facility is not
regulated by that commission, the facility complies with similar
requirements as are recommended by resource agencies, to the extent
they have jurisdiction over the facility; and the facility provides
access to water to the public without fee or charge.
(viii)
The facility is not recommended for removal by any federal agency or
agency of any state, to the extent the particular agency has
jurisdiction over the facility.
(c)
The standards in divisions (A)(37)(b)(i) to (viii) of this section do
not apply to a small hydroelectric facility under division
(A)(37)(a)(iv) of this section.
(38)
"Waste energy recovery system" means any of the following:
(a)
A facility that generates electricity through the conversion of
energy from either of the following:
(i)
Exhaust heat from engines or manufacturing, industrial, commercial,
or institutional sites, except for exhaust heat from a facility whose
primary purpose is the generation of electricity;
(ii)
Reduction of pressure in gas pipelines before gas is distributed
through the pipeline, provided that the conversion of energy to
electricity is achieved without using additional fossil fuels.
(b)
A facility at a state institution of higher education as defined in
section 3345.011 of the Revised Code that recovers waste heat from
electricity-producing engines or combustion turbines and that
simultaneously uses the recovered heat to produce steam, provided
that the facility was placed into service between January 1, 2002,
and December 31, 2004;
(c)
A facility that produces steam from recovered waste heat from a
manufacturing process and uses that steam, or transfers that steam to
another facility, to provide heat to another manufacturing process or
to generate electricity.
(39)
"Smart grid" means capital improvements to an electric
distribution utility's distribution infrastructure that improve
reliability, efficiency, resiliency, or reduce energy demand or use,
including, but not limited to, advanced metering and automation of
system functions.
(40)
"Combined heat and power system" means the coproduction of
electricity and useful thermal energy from the same fuel source
designed to achieve thermal-efficiency levels of at least sixty per
cent, with at least twenty per cent of the system's total useful
energy in the form of thermal energy.
(41)(a)
"Green energy" means any energy generated by using an
energy resource that does one or more of the following:
(i)
Releases reduced air pollutants, thereby reducing cumulative air
emissions;
(ii)
Is more sustainable and reliable relative to some fossil fuels.
(b)
"Green energy" includes energy generated using the
following:
(i)
Natural gas as a resource;
(ii)
Nuclear reaction.
(42)
"Energy storage" means electrical generation and storage
performed by a distributed energy system connected battery.
(43)
"Linear generator" means an integrated system that may
consist of oscillators, cylinders, electricity conversion equipment,
and associated balance of plant components that meet the following
criteria:
(a)
Converts linear motion directly into electricity;
(b)
Is dispatchable with the ability to vary power output across all
loads.
(44)
"Brownfield" has the same meaning as in section 122.6511 of
the Revised Code.
(45)
"Former coal mine" has the same meaning as in section
122.161 of the Revised Code.
(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.
Sec.
4928.041.
(A)
Except as provided in sections 4928.141
and
,
4928.142
,
and 4928.76 to
4928.769
of
the Revised Code, no electric utility shall provide a competitive
retail electric service in this state if that service was deemed
competitive or otherwise legally classified as competitive prior to
the
effective date of this section
August
14, 2025
.
(B)
The standard service offer under section 4928.141 of the Revised Code
shall continue to be provided to consumers in this state by electric
utilities.
Sec.
4928.76.
As
used in sections 4928.76 to 4928.769 of the Revised Code:
(A)
"Net prudently incurred costs" means the monthly allocation
of prudently incurred costs related to a nuclear generating facility,
less a monthly allocation of any revenues realized by the electric
distribution utility from offering the output of the nuclear
generating facility into the wholesale markets.
(B)
"Nuclear generating facility" means a nuclear generating
plant, including a group of individual generating units located on a
single real estate parcel or group of adjacent parcels.
(C)
"Nuclear project financing order" means a nuclear project
financing order issued by the public utilities commission under
section 4928.764 of the Revised Code.
(D)
"Retail participation agreement" means one or more
reasonable arrangements described in section 4928.767 of the Revised
Code.
Sec.
4928.761.
(A)
Notwithstanding any provision of the Revised Code to the contrary, an
electric distribution utility that obtains a nuclear project
financing order may, subject to division (D) of this section,
construct, own, and operate a nuclear generating facility in this
state for each nuclear project financing order obtained.
(B)
No utility shall construct, own, or operate a nuclear generating
facility except pursuant to a nuclear project financing order issued
for the facility.
(C)
The utility shall obtain a separate nuclear project financing order
for each nuclear generating facility it seeks to construct, own, or
operate.
(D)
This section does not waive or abrogate any other requirements
imposed by law for constructing, owning, or operating a nuclear
generating facility, including any requirements to obtain a
certificate under Chapter 4906. of the Revised Code or any
environmental requirements.
Sec.
4928.762.
An
electric distribution utility may file an application with the public
utilities commission for a nuclear project financing order in such
form as the commission prescribes in a manner consistent with
sections 4928.76 to 4928.769 of the Revised Code. The application
shall contain all of the following:
(A)
Proof supporting a finding of need pursuant to section 4928.764 of
the Revised Code;
(B)
Proof that one or more retail participation agreements are signed
between the utility and a customer or group of customers, with a
minimum term of twenty years and a renewal option, subject to
commission approval pursuant to section 4928.767 of the Revised Code;
(C)
An application for a proposed ratemaking order consistent with
section 4928.765 of the Revised Code;
(D)
Proof that the utility will own the nuclear generating facility based
on a price structure approved by the commission;
(E)
Proof of any financial guarantees required by federal law.
Sec.
4928.763.
(A)
Except as provided in division (B) of this section, the public
utilities commission shall do all of the following regarding a
nuclear project financing order application:
(1)
Determine whether the application is in compliance with section
4928.672 not more than forty-five days after the application is
deemed complete;
(2)
Upon determination that an application complies with section 4928.672
of the Revised Code, promptly fix a date for a public hearing
thereon, not less than forty-five nor more than sixty days after the
determination, and conclude the proceeding as expeditiously as
practicable;
(3)
Render a decision to approve or deny the application not later than
three hundred sixty days after the date the application is determined
in compliance with all requirements. If the nuclear project financing
order is granted, the order shall also make a finding of need under
section 4928.764 of the Revised Code and issue a ratemaking order
consistent with section 4928.765 of the Revised Code.
(B)
The commission shall do both of the following regarding a nuclear
project financing order application if the federal government,
government of this state, or both, provide financial support for
constructing the nuclear generating facility in the application on a
brownfield or former coal mine:
(1)
Determine whether the application is in compliance with section
4928.672 not more than forty-five days after the application is
deemed complete;
(2)
Render a decision to approve or deny the application not later than
three hundred sixty days after the application is determined in
compliance with all requirements. If the nuclear project financing
order is granted, the order shall also make a finding of need under
section 4928.764 of the Revised Code and issue a ratemaking order
consistent with section 4928.765 of the Revised Code.
(C)(1)
If the commission does not issue a determination within the time
periods required by divisions (A)(1) and (B)(1) of this section, the
application shall be deemed in compliance by operation of law.
(2)
If the commission does not issue a determination within the time
periods required by divisions (A)(3) and (B)(2) of this section, the
application shall be approved as a matter of law, and the commission
shall do all of the following:
(a)
Issue a nuclear project financing order to the applicant;
(b)
Make a finding of need under section 4928.764 of the Revised Code;
(c)
Issue a ratemaking order consistent with section 4928.765 of the
Revised Code.
Sec.
4928.764.
The public utilities commission shall issue a nuclear project
financing order if both of the following are satisfied:
(A)
All application requirements are met under section 4928.762 of the
Revised Code.
(B)
The commission makes a finding that this state has a need for new
electric distribution utility generation in order to help this state
become more energy independent and ensure adequate supply to fulfill
the electric distribution utility's long-term projections of load.
Sec.
4928.765.
At
the same time that the public utilities commission issues a nuclear
project financing order, the commission shall issue a final
ratemaking order that ensures all of the following:
(A)
The electric distribution utility establishes a separate accounting
ledger to record all costs and revenues associated with owning and
operating the nuclear generating facility, including the accrual for
construction work in progress during the period following technical
completion and continuing until the facility commences commercial
operation.
(B)
For purposes of establishing the utility's base rates under Chapter
4909. of the Revised Code, the nuclear generating facility shall be
reflected in the utility's rate base for the life of the nuclear
generating facility and this ratemaking treatment shall be afforded
during the retail participation agreement term. Subject to divisions
(C) and (D) of this section, all prudently incurred costs related to
the nuclear generating facility shall be reflected in the utility's
distribution rates established under Chapter 4909. of the Revised
Code for the life of the facility and including during the retail
participation agreement term.
(C)
During the entire period of time that one or more retail
participation agreements established and approved by the commission
remain in effect, all of the following apply:
(1)
The net prudently incurred costs for the nuclear generating facility
shall be recovered from the customer or group of customers that
entered into the retail participation agreement.
(2)
No costs for a nuclear generating facility authorized by a nuclear
project financing order shall be recovered from any electric
distribution utility customer except for the customer or group of
customers that entered into the retail participation agreement
regarding the facility.
(3)
All of the revenue collected under such retail participation
agreement shall be credited against the utility's cost of service in
setting rates for the utility under Chapter 4909. of the Revised
Code.
(4)
The commission shall defer or, to the extent costs incurred are
determined to be imprudent, disallow any costs not offset by such
revenues during the entire period of time that one or more retail
participation agreements remain in effect.
(D)
After the expiration or termination of any retail participation
agreement, the commission shall conduct an audit of the nuclear
generating facility to determine if the cost of electricity generated
by the facility to customers of the utility is less than, equal to,
or greater than the market price of electricity based on the most
current utility base rate. Each audit proceeding shall commence not
more than sixty days after the expiration or termination of the
retail participation agreement and shall be fully resolved through an
order of the commission not more than one hundred eighty days after
the audit is commenced. Either of the following apply depending on
the results of the audit under this division:
(1)
If the cost of electricity generated by the facility to customers of
the utility is less than or equal to the market price of electricity
based on the most current utility base rate, then the nuclear
generating facility shall remain in the utility's rate base and any
remaining costs associated with the facility, including development
costs, shall be collected from all customers of the utility for the
remaining life of the facility, including recovery of the remaining
decommissioning and retirements costs, if any, not already funded
through any retail participation agreement.
(2)
If the cost of electricity generated by the facility to customers of
the utility is greater than the market price of electricity based on
the most current utility base rate, then the nuclear generating
facility shall remain in the utility's rate base but only the market
price of electricity shall be collected from all customers of the
utility for the remaining life of the facility.
(E)
Any sale, disposition, or transfer of the nuclear generating facility
must be approved by the commission, and the net proceeds from the
sale, disposition, or transfer shall be credited to customers through
the adjustment to the utility's revenue requirement or rates, as
determined by the commission.
Sec.
4928.766.
In
the event of a reversal or vacatur of the public utilities
commission's ratemaking order under section 4928.765 of the Revised
Code, the electric distribution utility's recovery of costs incurred
prior to such reversal or vacatur shall be collected consistent with
the ratemaking order issued in conjunction with the granting of the
nuclear project financing order.
Sec.
4928.767.
(A)
At the same time an electric distribution utility files its nuclear
project financing order application, the utility shall file an
application for approval of one or more reasonable arrangements under
section 4905.31 of the Revised Code pursuant to this section.
(B)
Each reasonable arrangement described by this section shall have a
term of not less than twenty years that must pay monthly retail
electric charges to the utility equal to the net prudently incurred
costs for the nuclear generating facility.
(C)
Each reasonable arrangement described by this section shall have a
renewal option that is presumed to be elected unless notice that the
renewal option is declined is received not later than three hundred
sixty-five days prior to the expiration of the reasonable
arrangement.
(D)
The utility shall arrange for the output of the facility, including
capacity and energy, be liquidated into the wholesale markets, but
the reasonable arrangement shall provide that the customer or group
of customers shall retain environmental attributes of the output of
the facility.
(E)
The reasonable arrangement shall include reasonable collateral and
security provisions to ensure performance and also require the
customer or group of customers to pay all distribution and
transmission rates and charges in accordance with the utility's
tariffs.
(F)
The reasonable arrangement shall permit the customer or group of
customers to shop for generation supply and, to the extent that
utility issues a consolidated bill, the utility shall pass through
the applicable charges that each participating customer incurs for
generation supply either from a competitive retail electric service
provider, to the extent that the participating customer is shopping
and the utility issues a consolidated bill, or under the otherwise
applicable standard service offer tariff rate of the utility for
participating customers who are not shopping.
(G)
If the proposed reasonable arrangement meets all requirements of this
section, it shall be approved by the public utilities commission.
Sec.
4928.768.
(A)
A prudence and financial audit shall be conducted at the direction of
the public utilities commission not more than three years from the
date that a nuclear project financing order is approved, subject to
division (B) of this section, and not less than every three years
thereafter, by the staff of the public utilities commission or an
independent auditor approved by the commission to review the electric
distribution utility's accounting ledgers for a nuclear generating
facility built pursuant to a nuclear project financing order and
confirm that the total revenue from each approved retail
participation agreement equals or exceeds the net prudently incurred
costs during each audit period.
(B)
Each audit proceeding shall commence not more than sixty days after
the end of each three-year period and shall be fully decided through
an order of the commission not more than one hundred eighty days
after the audit is commenced.
(C)
Notwithstanding any provision of sections 4928.76 to 4928.767 of the
Revised Code to the contrary, no costs that are deemed imprudent by
the audit conducted pursuant to this section shall be recovered from
any customer of the utility.
Sec.
4928.769.
The
public utilities commission shall adopt rules to implement sections
4928.76 to 4928.768 of the Revised Code.
Section
2.
That
existing sections 4164.11, 4906.01, 4906.03, 4928.01, and 4928.041 of
the Revised Code are hereby repealed.