Ohio/EZ Policies

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EZ Policies for Ohio

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Policy Place Policy Type Active Implementing Sector Summary
AEP Ohio - Renewable Energy Credit (REC) Purchase Program (Ohio) Ohio Performance-Based Incentive No Utility Note: This program is currently closed. All RECs were required to be transfered into AEP Ohio's GATS account by July 15, 2013 in order to be eligible for the program. No information is available regarding future solicitations. Check the program web site for more information.


As part of AEP Ohio's Renewable Energy Credit (REC) Purchase Program, customers can sell their RECs produced from solar photovoltaic or wind energy systems. One REC is the environmental attributes of one megawatt hour (MWH) of electricity produced from a renewable source. Systems must be located within AEP's service territory and must have been placed in service on or after January 1, 1998. Only RECs created after July 31, 2008 and before June 30, 2013 qualify for the program. The customer must have an interconnection agreement with AEP Ohio, and the customer must have a utility grade meter installed with their system in order to record energy production. For systems less than 6 kW, customers can use the data tracking system that is built into their inverter if it is approved by the Public Utility Commission of Ohio. All systems must be registered with the State of Ohio, and the RECs must be registered in PJM-GATS.


For wind facilities, customers will receive $34 per REC. For solar facilities, customers will receive $300 per REC for RECs purchased in 2011, and $262.50 per REC purchased in 2012 or 2013. RECs must be transferred to AEP Ohio's GATS account by January 15, 2012 in order to receive 2011 prices, by January 15, 2013 to receive 2012 prices, and by July 15, 2013 in order to receive 2013 prices. Payments are issued to the customer a month after the transfer deadlines.


In order to enter the program, customers must contact the Distributed Generation Coordinator below. Detailed requirements and a sample agreement are available on the program website.


Customers that install solar or wind may alternatively choose to participate in the Renewable Energy Technology (RET) Incentive Program. Customers who participate in the RET program receive a financial incentive based on the size or estimated output of their system, but must commit their RECs to AEP Ohio.
AEP Ohio - Renewable Energy Technology Program (Ohio) Ohio Utility Rebate Program No Utility As part of the Renewable Energy Technology (RET) Program, AEP Ohio offers incentives to customers that commit their Renewable Energy Credits (RECs) to AEP Ohio for 15 years. Incentives are available for wind and solar photovoltaic systems that are installed after July 1, 2011 and before June 30, 2013. Systems must be located in the AEP service area, and must have their RECs registered in the PJM Generation Attribute Tracking System (GATS). Solar photovoltaic systems are eligible for a $1.50/watt incentive. Residential systems must be at least 2 kW DC, and incentives are capped at $12,000 per customer or 50% of the system cost. Non-residential systems must be at least 10 kW DC, and incentives are capped at $75,000 or 50% of the system cost. Wind incentives are based on expected annual output, receiving $0.275/kWh. Residential incentives are capped at $7,500 or 50% of the system cost, and non-residential systems are capped at $12,000 or 40% of the system cost. Both residential and non-residential wind systems must have an annual output of at least 3,000 kWh/year AC.


Project equipment cannot be ordered, purchased, or installed prior to the execution of an agreement with AEP Ohio. All systems must be tied to AEP's electrical grid, comply with AEP's Interconnection Requirements, and must take service under AEP's Schedule Net Energy Metering Service. All applicable permits and inspections must be obtained. Additional requirements and application materials are available on the program website.


Customers who install renewable energy systems may choose to maintain ownership over their RECs and sell the RECs to AEP through the REC Purchase Program instead of participating in the RET program.
Advanced Energy Fund (Ohio) Ohio Public Benefits Fund Yes State/Territory Ohio's Advanced Energy Fund was originally authorized by the state's 1999 electric restructuring legislation. The Fund supports the Advanced Energy Program, which at different times has provided grants for renewable energy and energy efficiency projects to different economic sectors. Grant and loan funds are awarded through periodic Notices of Funding Availability (NOFAs) which may each focus on specific technologies or economic sectors.

The Fund is administered by the Ohio Development Services Agency (ODSA) and was originally replenished through a uniform fee on the electric bills of customers of the state's four investor-owned utilities (American Electric Power, Dayton Power and Light, Duke Energy, and FirstEnergy). The fee amount was determined by dividing an aggregate revenue target for a given year -- as determined by the ODSA -- by the number of customers of electric distribution utilities in Ohio during the previous year. The maximum aggregate revenue target for each year through 2005 was $15 million; the maximum target for each year after 2005 was $5 million. Fee collections began January 1, 2006, and ended January 1, 2011.

Additional income may accrue to the Advanced Energy Fund from alternative compliance payments (ACPs) associated with Ohio's Alternative Energy Portfolio Standard or Energy Efficiency Portfolio Standard, enacted in July 2008.

In 2012, S.B. 315 transferred funds from the Advanced Energy Research and Development Taxable Fund and the Advanced Energy Research and Development Fund to the Advanced Energy Fund. In addition, it allowed the Advanced Energy Fund to award loans in addition to grants.

Ohio's 1999 restructuring legislation also created the Public Benefits Advisory Board, a multi-stakeholder panel that assists the ODSA in administering the Fund, and the Universal Service Board. The ODSA collaborates with the Public Utilities Commission of Ohio to design and develop energy programs. Incentives are available to residents, low-income housing developers, businesses, industry, local governments, schools, nonprofits and farms. Participation in the Fund by electric cooperatives and municipal utilities is voluntary. Because no electric cooperatives or municipal utilities are participating, customers of these utilities are not eligible for Fund incentives. For information on current opportunities please consult the program web site.
Advanced Energy Job Stimulus Program (Ohio) Ohio Industry Recruitment/Support No State/Territory This bond-funded program creates an Advanced Energy Job Stimulus Fund that is administered through a public process previously managed by the Ohio Air Quality Development Authority (OAQDA). Beginning in 2012, the program is managed by the Ohio Development Services Agency. The Program will award funds to a portfolio of advanced energy projects. These projects will serve to attract new investment to Ohio, build upon Ohio's manufacturing strength, advance energy technology development toward commercialization and prepare Ohio's workforce for the future. Detailed definitions of eligible advanced energy projects and renewable energy resources may be found in ORC 3706.25.

Funding Categories

The $150 million advanced energy money (over three years) seeks to increase the development, production and use of advanced energy technologies in the state, and is divided in the following manner:
• $66 million for clean coal technology projects administered through OAQDA’s Ohio Coal Development Office (OCDO) (reviewed by the Technical Advisory Committee and approved by OAQDA); and
• $84 million for non-coal-related projects in three $28 million annual appropriations administered by OAQDA (reviewed by the Development Finance Advisory Council, approved by the OAQDA and brought before Controlling Board for final approval).



Project Financing
OAQDA provides financing via conduit bonds for a broad range of projects involving the purchase, construction and/or installation of air quality facilities by businesses and other entities. It is important to note that this program provides forgivable and non-forgivable loans ONLY. The Ohio Constitution does not allow grant awards for this program. All OAQDA financing instruments are conduit bonds that:
• May be exempt or non-exempt from federal income tax.
• Enjoy 100 percent lifetime exemption from state income tax, real property, sales and use taxes.
• Are based on a credit analysis of the benefiting party and must identify the revenue sources that cover principal and interest payment.

As a general guideline, awards will range from approximately $50,000 to $2 million, based on size and scope and on jobs, investments and other impacts and may be considered for higher awards if outstanding potential value is demonstrated. Additionally, five percent of the fund may be set aside for small awards (generally in the range of $50,000) to support disruptive technologies with significant potential for success, even if they are in earlier stages of development. For more information about OAQDA project financing, please visit the OAQDA web site.

For highly qualified applicants, loans could be structured a number of ways including below market rates, subordinate collateralized positions with participating financial institutions and/or varying principal payments for a specified period of time. It should be noted that projects receiving assistance through this program may be subject to Ohio prevailing wage requirements. Applicants should review these guidelines carefully.
Air Pollution Control Fees (Ohio) Ohio Environmental Regulations
Fees
Yes State/Province Facilities with a potential to emit any one regulated air pollutant of a quantity greater than or equal to 100 tons per year, or any one hazardous air pollutant (HAP) greater than or equal to 10 tons per year, or any combination of hazardous air pollutants greater than 25 tons per year, must submit, in a form and manner prescribed by the director, a fee emission report that quantifies the actual emission data for particulate matter, sulfur dioxide, organic compounds, nitrogen oxides, and lead. The owner or operator of a facility shall pay fees on the facility's actual emissions. The fee for reporting year 2011 is $45.55/ton.
Air-Quality Improvement Tax Incentives (Ohio) Ohio Other Incentive Yes State/Territory The Ohio Air Quality Development Authority (OAQDA) provides assistance for new air quality projects in Ohio, for both small and large businesses. For qualifying projects, the OAQDA also projects tax benefits.

For qualifying projects, the Ohio Air Quality Development Authority (OAQDA) can provide a 100 percent exemption from the tangible personal property tax (on property purchased as part of an air quality project), real property tax (on real property comprising an air quality project), a portion of the corporate franchise tax (under the net worth base calculation), sales and use tax (on the personal property purchased specifically for the air quality project only) as long as the bond or note issued by OAQDA is outstanding. Furthermore, interest income on bonds and notes issued by OAQDA is exempt from state income tax (and may be exempt in certain cases from the federal income tax).

Qualifying air quality facilities, which can be financed through the OAQDA, include:

1. Projects that modify or replace property, processes, devices, equipment, or structures that removes (or otherwise reduces, stores) air pollution and air contaminants.

2. Any property used for the collection, storage, treatment, processing, or final disposal of solid waste resulting from an air pollution control process.

3. Any energy efficiency or conservation project

4. Any project that uses renewable or biomass resources, including ethanol and other biofuel.
Alternative Energy Portfolio Standard Ohio Renewables Portfolio Standard Yes State/Territory Note: Legislation passed in 2012 (S.B. 289 and S.B. 315) added certain new technologies to the list of eligible Renewable Energy Resources and Advanced Energy Resources. In July 2012, The PUCO opened Docket 12-2156-EL-ORD in order to implement the changes. PUCO is accepting comments on the proposed rules, and comments reviewing OAC 4901:1-10, until January 7, 2013.

In May 2008, Ohio enacted broad electric industry restructuring legislation (S.B. 221) containing advanced energy and renewable energy generation and procurement requirements for the state's electric distribution utilities and electric service companies (hereafter referred to as utilities). This definition encompasses all retail electricity providers except municipal utilities and electric cooperatives. Under the standard, utilities must provide 25% of their retail electricity supply from alternative energy resources by 2025, with specific annual benchmarks for renewable and solar energy resources (see details below). Half of the standard can be met with “any new, retrofitted, refueled, or repowered generating facility located in Ohio,” including fossil fuels, making the renewables portion of the standard 12.5% renewables by 2025.

Eligible Alternative Energy Technologies
In order to qualify under the standard, all advanced energy and renewable energy facilities must have a placed-in-service date of January 1, 1998, or later. The Public Utilities Commission of Ohio (PUCO) is authorized to classify any new technology as an advanced energy or renewable energy resource.

Renewable Energy Resources
Eligible renewable resources are defined to include the following technologies: solar photovoltaics (PV), solar thermal technologies used to produce electricity, wind, geothermal, biomass, biologically derived methane gas, landfill gas, certain non-treated waste biomass products, solid waste (as long as the process to convert it to electricity does not include combustion), fuel cells that generate electricity, certain storage facilities, and qualified hydroelectric facilities.* In 2012, S.B. 315 and S.B. 289 added certain cogeneration and waste heat recovery system technologies that meet specific requirements. A waste heat recovery or cogeneration system may qualify for either the Renewable Energy Resource Standard or the Energy Efficiency Portfolio Standard. Distributed generation systems used by customers to generate electricity using the aforementioned eligible renewable resources are also included.

Advanced Energy Resources
Generally, advanced energy resources are defined as any process or technology that increases the generation output of an electric generating facility without additional carbon dioxide emissions. The definition of advanced energy resources explicitly includes clean coal; generation III advanced nuclear power; distributed combined heat and power (CHP); fuel cells that generate electricity; certain solid waste conversion technologies; and demand side management or energy efficiency improvements. Additionally, new or existing mercantile customer-sited advanced energy resources and renewable energy resources that the customer commits into a utility's demand-response, energy efficiency or peak demand programs are also eligible “advanced energy” resources. This designation generally includes any advanced or renewable technology that would be eligible if it were owned by a utility, but is also specifically includes waste heat resources, energy storage technologies, and resources that improve the relationship between real and reactive power. In 2012, S.B. 315 added a provision that allows any new, retrofitted, refueled, or repowered generating facility in Ohio to qualify as an advanced energy resource.

AEPS Compliance
Annual Obligation
A utility's obligation under the Alternative Energy Portfolio Standard (AEPS) is calculated using the average of a utility's total retail sales (sold under standard service offer) during the preceding three calendar years as a baseline. At least 50% of the renewable energy requirement must be met by in-state facilities, and the remaining 50% with resources that can be shown to be deliverable into the state. The renewable benchmarks begin in 2009 and increase annually towards an eventual target of 12.5% of retail electricity sales (kWh) by 2024 and thereafter. Utilities are required to file a compliance report by April 15 of each year. These reports must allow and consider public comments. PUCO in turn must review reports and report back to the General Assembly on a yearly basis. The 2012 PUCO report is available here and covers compliance years 2009 and 2010.

Solar Carve Out
The requirement also contains a carve-out for solar-energy resources with an ultimate solar target of 0.5% of the total electricity supply in 2024 and thereafter. The total renewable percentage requirement includes the solar specific portion (i.e., the solar requirement is not added on top of the specified renewables requirement). The detailed schedule of annual compliance benchmarks appears below. The law does not identify annual benchmarks for the overall alternative energy standard.


Year Renewable (%) Benchmark Solar (%) Benchmark
2009 0.25 0.004
2010 0.5 0.010
2011 1.0 0.030
2012 1.5 0.060
2013 2.0 0.090
2014 2.5 0.12
2015 3.5 0.15
2016 4.5 0.18
2017 5.5 0.22
2018 6.5 0.26
2019 7.5 0.30
2020 8.5 0.34
2021 9.5 0.38
2022 10.5 0.42
2023 11.5 0.46
2024+ 12.5 0.50
Renewable Energy Credits (RECs)

The annual benchmark obligations may be met through the purchase of qualified renewable energy credits (RECs), which are defined as the environmental attributes associated with one megawatt hour of electricity generated by a renewable energy resource. Under the standard, RECs have a lifetime of five years following their acquisition. The utility utilizing RECs for compliance must be a registered member with PJM’s generation attribute tracking system (GATS) and/or Midwest Independent Transmission System Operator (MISO) generation attribute tracking system, and/or other credible tracking system PUCO subsequently approves. Only RECs generated after the effective date of S.B. 221 (July 31, 2008) may be used for compliance.

Annual Review and Alternative Compliance Payments (ACP)
PUCO is also tasked with annually reviewing compliance with the renewable and solar energy benchmarks and imposing penalties if the benchmarks are not met. The alternative compliance payment (ACP) for the renewable portion is initially set at $45/megawatt-hour (MWh) but will be adjusted annually by PUCO according to the federal Consumer Price Index, although it will never be less than $45/MWh. The Solar Alternative Compliance Payment (SACP) is set at $450/MWh in 2009, reduced to $400/MWh in 2010 and 2011, and will be reduced by $50 every two years thereafter to a minimum of $50/MWh in 2024. Compliance payments will be deposited into the Ohio Advanced Energy Fund, which provides financial support to renewable energy and energy efficiency projects within the state. Utilities may not pass along the cost of compliance payments to their customers.

The law contains clauses for cost limitations and allowances for non-compliance for reasons beyond a utility's control (i.e., force majeure). Utilities are not required to comply with the annual benchmarks if it is "reasonably expected" to raise their costs by 3% or more above what they would have otherwise been.** The PUCO may require the utility to make solicitations for renewable energy resource credits before the utility may request a force majeure determination. PUCO is authorized to reduce a utility's obligation under the standard if it receives a petition for such treatment from the utility and determines that resources sufficient to meet the obligation are not reasonably available. Under these circumstances a utility may be required to make up the shortfall with additional purchases in subsequent years.

Energy Efficiency Portfolio Standard
S.B. 221 also requires utilities to implement energy efficiency and peak demand reduction programs that achieve a cumulative energy savings of 22% by the end of 2025, and reduce peak demand by 1.0% in 2009 and 0.75% annually thereafter through 2018. These requirements are separate and distinct from the Alternative Energy Resource Standard.


*In order to be considered a renewable resource for the purposes of the renewable resource standard, a hydroelectric facility must meet a series of requirements regarding its environmental impact. However, these requirements do not include a size limitation (e.g., 30 MW) of the type frequently found in state RPS laws.

**S.B. 232 made a slight amendment to this cost limitation provision.
Alternative Energy Zone (Ohio) Ohio Green Power Purchasing
Siting and Permitting
Yes State/Province Ohio's Alternative Energy Zones are made possible through Ohio's Senate Bill 232, which reduced taxes on alternative energy projects. The Alternative Energy Zones are designated on a county-by-county basis, and provide developers with incentive for projects located in these counties. Incentives include a quicker approval process and set rates for revenue.
Application Filing Requirements for Wind-Powered Electric Generation Facilities (Ohio) Ohio Siting and Permitting Yes Utility Chapter 4906-17 of the Ohio Administrative Code states the Application Filing Requirements for wind-powered electric generating facilities in Ohio. The information requested in this rule shall be used to assess the environmental effects of the proposed facility.

An applicant for a certificate to site a wind-powered electric generation facility shall provide a project summary and overview of the proposed project. In general, the summary should be suitable as a reference for state and local governments and for the public.

The applicant shall conduct a project area site selection study prior to submitting an application for a wind-powered electric generation facility. The study shall be designed to evaluate all practicable project area sites for the proposed facility. Information on the location, major features, and the topographic, geologic, and hydrologic suitability of the proposed project area site and any proposed alternative project area site(s) shall be submitted by the applicant.

For detailed requirements for the project summary and siting study, please see: http://www.puc.state.oh.us/emplibrary/files/legal/rules/chapters/4906-17.doc
Applications for Certificates for Electric, Gas, or Natural Gas Transmission Facilities (Ohio) Ohio Siting and Permitting Yes Utility An applicant for a certificate to site a major electric power, gas, or natural gas transmission facility shall provide a project summary and overview of the proposed project. In general, the summary should be suitable as a reference for state and local governments and for the public. The applicant shall provide a statement explaining the need for the proposed facility, including a listing of the factors upon which it relied to reach that conclusion and references to the most recent long-term forecast report (if applicable).
Applications for Certificates for Electric Generation Facilities (Ohio) Ohio Siting and Permitting Yes Utility An applicant for a certificate to site an electric power generating facility shall provide a project summary and overview of the proposed project. In general, the summary should be suitable as a reference for state and local governments and for the public.

The applicant shall state the current and proposed ownership status of the proposed facility, including site(s), rights-of-way, structures, and equipment. Such information shall include type of ownership.

The information requested in this rule shall be used to assess the environmental effects of the proposed facility. Where appropriate, the applicant may substitute all or portions of documents filed to meet federal, state, or local regulations. Existing data may be substituted for physical measurements.
Carbon Monoxide, Ozone, Hydrocarbon Air Quality Standards, and Related Emission Requirements (Ohio) Ohio Environmental Regulations Yes State/Province This chapter defining the roles of the Ohio Environmental Protection Agency gives specific detail on the regulation point-source air pollution for a variety of industries and pollutants.

Included in the chapter are rules governing emissions from biomass treatment facilities, natural gas, and any facility that emits steam or particulates into the air.

The Ohio Environmental Protection Agency's Division of Air Pollution Control has more information on regulatory programs, air monitoring, and permitting.
Climate Action Plan (Ohio) Ohio Climate Policies No State/Province The State of Ohio does not currently have a climate action plan in place or in progress.
Community Development Block Grant/Economic Development Infrastructure Financing (United States) United States Grant Program
Loan Program
Yes Federal Community Development Block Grant/Economic Development Infrastructure Financing (CDBG/EDIF) provides public infrastructure financing to help communities grow jobs, enable new business startups and expansions for existing businesses. State programs help achieve the national objective of CDBG by funding projects in which at least 51 percent of the new jobs created are made available to low and moderate income individuals. The maximum amounts awarded under the program are $1 million for new businesses locating to the state and $500,000 for existing businesses expanding in the state.
Duke Energy - Solar Renewable Energy Credits Program (Ohio) Ohio Performance-Based Incentive No Utility Note: In order to participate in this program, customers must have signed an agreement by December 31, 2012. Check the program web site above for information regarding future solicitations.


Duke Energy Ohio offers the Solar Renewable Energy Credits program to residential customers in Ohio that install solar photovoltaic (PV) systems on their homes. One solar renewable energy credit (SREC) is created when a PV system generates one megawatt (MW) of electricity. The prices are set by market conditions for the year in which the REC was created. The price for RECs in 2010 was $300.


In order to qualify for the program, a customer must register the facility with the Public Utilities Commission of Ohio and establish an account with either the Generating Attributes Tracking System (GATS) or the Midwest Renewable Energy Tracking System (M-RETS). Eligible customers must sign a 15-year purchase agreement with Duke Energy by December 31, 2012 and sign an interconnection agreement with the company. PV systems comply with the standard net-metering requirements of Duke Energy's net metering program, and systems 6 kilowatts (kW) or larger require an additional meter.


Once a customer signs a purchase contract with Duke Energy, RECs will be certified by the tracking company after December 31 of each year. The customer must then transfer the RECs and forward an invoice directly to Duke Energy on or before February 15 in order to receive payment.
Emergency Episode Standards (Ohio) Ohio Environmental Regulations Yes State/Province This chapter of the law authorizing the Ohio Environmental Protection Agency gives a detailed description of the excessive buildup of air contaminants during air pollution episodes that leads to an emergency.

The law sets the standards for limits on different types of air pollution, the criteria for an emergency situation, and the foundation for emergency action programs.

For more information, visit the Ohio Environmental Protection Agency's Division of Air Pollution Control.
Energy Conversion and Thermal Efficiency Sales Tax Exemption (Ohio) Ohio Sales Tax Incentive Yes State/Territory Ohio may provide a sales and use tax exemption for certain tangible personal property used in energy conversion, solid waste energy conversion, or thermal efficiency improvement facilities designed, constructed, or installed after December 31, 1974.


Qualifying energy conversion facilities are those that are used for the primary purpose of converting natural gas or fuel oil to an alternate fuel or power source excluding propane, butane, naphtha, fuel oil, or natural gas. Solid waste conversion facilities include those that convert solid or semi-solid waste from industrial operations including public utilities, commercial distribution, research, agricultural, and community operations, and including garbage, street dirt, and debris. Thermal efficiency improvement is defined as "the recovery and use of waste heat or waste steam produced incidental to electric power generation, industrial process heat generation, lighting refrigeration, or space heating."


Facilities must apply for an Exempt Facilities Certificate from the Department of Taxation, which must also be approved by the Development Services Agency. Upon receipt of certification from the tax commissioner, such property is exempt from Ohio's sales and use tax. The application for Energy and Solid Waste Energy Conversion and Thermal Efficiency Improvement Facility is found at on the Ohio Department of Taxation web site (form number ECF).


Contact the Department of Taxation for more information.
Energy Loan Fund (Ohio) Ohio State Loan Program Yes State/Territory Note: The application period for the Energy Loan Fund will begin again on March 1, 2015. Interested applicants should email energy@development.ohio.gov to be notified when the application is available.


The Energy Loan Fund provides low-cost financing for energy efficiency and renewable energy improvements to Ohio-based businesses with less than 500 employees, manufacturers enrolled in the Energy Efficiency Program for Manufacturers, nonprofits, and public entities. For further information regarding eligibility, please view the Program Guidelines and Application Process.


The typical loan limit is $1 million, but the Ohio Development Services Agency reserves the right to increase these limits on a case-by-case basis.


The applications must demonstrate a minimum 15 percent reduction in energy use 15as a result of the project. Other evaluation criteria include the application’s completeness, whether application meets the requirements of applicable state and/or federal funding sources, type of eligible technologies utilized and the extent of energy savings achieved as a result of the project, extent of job creation and improvement in environmental quality as a result of the project, extent of match investment in the project, the project readiness and timeline to complete project by deadline of certain funding sources, applicant’s need for financial assistance to complete project, and the advancement of the mission of the Office of Energy.


The pre-application review process takes from 7 to 10 days and a final resopnse should occur within 45 days.


The Energy Loan Fund is managed by the Ohio Development Services Agency. Funding is provided through the Ohio Advanced Energy Fund and the Federal State Energy Program.


For more information visit the program website or read the frequently asked questions.
Energy Loan Fund Ohio State Loan Program Yes State/Territory The Ohio Development Services Agency (ODSA) is administering the Energy Loan Fund with funds collected through the Advanced Energy Fund and the U.S. Department of Energy State Energy Program. Public entities, manufacturers, small businesses are eligible for funding, though other applicants will be considered. Funds will be awarded to qualifying projects on a first-come, first-served basis until the funds have been depleted. Priority will be given to projects with an energy savings payback of 1 to 4 years. Projects must result in energy savings of at least 15% and must be installed in Ohio. Interested applicants should submit a pre-application through the ODSA web site.
First Energy Ohio - Renewable Energy Credit Procurements (Ohio) Ohio Performance-Based Incentive Yes Utility Note: FirstEnergy will periodically solicit proposals for long term contracts. Check the program web site for the most recent Requests for Proposals.


As part of its Electric Security Plan, FirstEnergy will periodically solicit proposals for Renewable Energy Credits (RECs) and Solar Renewable Energy Credits (SRECs). Proposals are accepted for both short-term and long-term contracts. Requests for proposals will not be available at regular intervals; check the program web site for current information regarding application due dates. FirstEnergy will not be purchasing energy or energy capacity under this proposal. All application materials are available on the program web site, and all applicants must be certified by the Public Utilities Commission of Ohio.


Long-Term Contracts


FirstEnergy will purchase 5,000 SRECs and 20,000 RECs in equal quantities each calendar year, from 2011 to 2020. Applications for the first round of long-term contracts were due in October 2011. Check the FirstEnergy Long-Term SREC web site for details on open or upcoming Requests for Proposals.


Short-Term Contracts


In the most recent short-term contract procurement, FirstEnergy is seeking to purchase 7,500 SRECs from Ohio or states contiguous to Ohio. All SRECs must be created between January 1, 2010 and December 31, 2012.
Forestry Policies (Ohio) Ohio Environmental Regulations Yes State/Province Ohio's Forests are managed by the Department of Natural Resource, Division of Forestry. In 2010 Ohio issued its Statewide Forest Resource Assessment, including discussion of forest resources with respect to bioenergy in the state:

http://forestry.ohiodnr.gov/portals/forestry/pdfs/FAP/Assessment.pdf

In 2004 Ohio State University issued an inventory of biomass resources, "Assessing Ohio's Biomass Resources for Energy Potential Using GIS" including estimation of available forest residues: http://www.puc.state.oh.us/emplibrary/files/media/biomass/bioenergyresourceassessment.pdf

The Ohio Biomass Energy Program has issued the report "Utilization of Biomass Energy Resources in Ohio: A Linear Programming Model", which identifies potential sites for biomass power plants based on availability of forest and industrial wood residues:

http://www.puco.ohio.gov/puco/index.cfm/industry-information/industry-topics/ohio-biomass-summary-of-utilization-a-linear-programming-model/
Fuel Mix and Emissions Disclosure (Ohio) Ohio Generation Disclosure Yes State/Territory Ohio's 1999 electric industry restructuring law requires the state's electricity suppliers to disclose details regarding their fuel mix and emissions to customers. Electric utilities and competitive retail electric service providers of retail electric generation service must provide this information to their customers in a standard format several times per year. The Ohio Public Utilities Commission (PUCO) adopted rules in 2000 to implement this policy; the rules have been amended subsequently. There are separate rules for electric utilities providing a standard offer for retail electric generation service and for competitive retail electric service providers of retail electric generation service.
General Provisions on Air Pollution Control (Ohio) Ohio Environmental Regulations Yes State/Province This chapter of the law that establishes the Ohio Environmental Protection Agency outlines the air pollution rules to secure and maintain levels of air quality that are consistent with the protection of health and the prevention of injury to plant, animal life, and property in the state of Ohio, and to provide for the comfortable enjoyment of the natural attractions of the state to the greatest extent practical. For more information, see the Ohio Environmental Protection Agency's Division of Air Pollution Control.
Great Lakes-St. Lawrence River Basin Water Resources Compact (multi-state) Illinois
Indiana
Minnesota
New York
Ohio
Pennsylvania
Wisconsin
Ontario
Quebec
Environmental Regulations Yes State/Province This Act describes the management of the Great Lakes - St. Lawrence River basin, and regulates water withdrawals, diversions, and consumptive uses from the basin. The Act establishes a Council, which is responsible for water conservation and efficiency programs and reviewing proposed projects. Projects which may lead to new or increased water diversions are limited; exceptions are described in this statute. More information can be found on the website of the Council: http://www.glslcompactcouncil.org/
Hazardous Waste Management System-General (Ohio) Ohio Environmental Regulations Yes State/Province This chapter of the law establishes that the Ohio Environmental Protection Agency provides general regulations regarding hazardous waste, including landfills. Specific passages refer to the treatment of hazardous waste from landfills for the recovery of energy, including exempting such facilities from treatment fees. For more information, see the Ohio Environmental Protection Agency's Division of Materials and Waste Management.
Industrial Solid Waste Landfill Facilities (Ohio) Ohio Environmental Regulations Yes State/Province This chapter of the law establishes that the Ohio Environmental Protection Agency provides rules and guidelines for landfills, including those that treat waste to generate electricity. The law provides information for permitting, installing, maintaining, monitoring, and closing landfills. There are no special provisions or exemptions for landfills used to generate electricity. However, the law does apply to landfills that do generate electricity or biogas.
Industry Supply Chain Development (Ohio) Ohio Industry Recruitment/Support
Grant Program
Loan Program
No State/Province Supply Chain Development programs are focused on targeted industries that have significant growth opportunities for Ohio's existing manufacturing sector from emerging energy resources and technologies. The Office of Energy is currently working on developing the supply chains for the wind, solar, nuclear and natural gas industries. Strategic support has been provided to GLWN and Energy Industries of Ohio and has resulted in hundreds of Ohio businesses receiving assistance to strengthen their core competencies to be matched with global OEMs.
Innovation Ohio Loan Program (Ohio) Ohio Loan Program Yes State/Province Innovation Ohio Loan Program provides loans for acquisition, construction, and related costs of technology, facilities, and equipment purchase. The Ohio Department of Development’s (Development) IOF Loan is targeted at companies having difficulty securing funds from conventional sources due to technical and commercial risk factors associated with the development of a new product or service. The IOF Loan may finance up to 75% of allowable project costs with loans ranging in size from $500,000 to $1,500,000 and a term period of 4 to 7 years.

The Innovation Ohio Loan Fund targets industry sectors involving the production or use of: • Advanced Materials; • Instruments, Controls and Electronics; • Power and Propulsion; • Biosciences; and

• Information Technology.
Interconnection Standards (Ohio) Ohio Interconnection Yes State/Territory Note: In July 2012, the Public Utilities Commission of Ohio (PUCO) opened a docket (Case 12-0251-EL-ORD) to review the net metering and interconnection rules for investor-owned utilities. Details will be posted as more information is available.

Prompted by the federal Energy Policy Act of 2005 (EPAct 2005), the Public Utilities Commission of Ohio (PUCO) adopted new interconnection standards for distributed generation in March 2007. These standards, which apply to customers of Ohio's investor-owned utilities, replaced the state's original interconnection standards, adopted in April 2000.

Ohio's interconnection standards provide for three levels of review for the interconnection of DG systems up to 20 megawatts (MW) in capacity:

Level 1 interconnection is divided into three subsections:

  • Level 1 is a simplified review process for inverter-based systems of up to 10 kilowatts (kW) that use renewable energy as the fuel. The point of common coupling cannot be the transmission line. Systems must meet IEEE 1547 and UL 1741 standards.
  • Level 1.1 is a simplified review process for inverter-based systems of up to 10 kW. The point of common coupling cannot be the transmission line, and the interconnection must be located on the load side of an area network. Systems must meet IEEE 1547 standards.
  • Level 1.2 is for systems of up to 50 kW that are interconnected to an area network. Systems must meet IEEE 1547 standards.

Level 2 interconnection, the expedited review procedure,applies to certified, inverter-based or synchronous systems up to 2 MW in capacity. These systems must meet IEEE 1547 and UL 1741 standards and may not be interconnected at the transmission level. Technical screens, fees and timelines are detailed in the rules.

Level 3 interconnection, the standard procedure, applies to inverter-based or synchronous systems up to 20 MW in capacity that do not qualify for Level 1 or Level 2 certification. Technical screens, fees and timelines are detailed in the rules.
PUCO has developed two application forms for interconnection: a "short form" application for systems up to 50 kW in capacity, and a standard application for systems that do not qualify for the "short form" application. PUCO also provides a checklist for applicants to determine whether to complete the "short form" or the standard form. (On the PUCO interconnection web site, scroll down to "definitions" and then to "application" to access both types of applications as well as the check list.)

Each utility must provide applicants with a standard agreement, and must designate an employee or office to handle interconnection application requests. Utilities may not require additional liability insurance beyond proof of insurance. The rules include a provision for alternative dispute resolution, and for formal complaints brought by applicants and interconnected customers. Interconnection to area networks is generally permitted.
Interstate Mining Compact Commission (multi-state) Alabama
Arkansas
Illinois
Indiana
Kentucky
Louisiana
Maryland
Missouri
New York
North Carolina
North Dakota
Ohio
Oklahoma
Pennsylvania
South Carolina
Tennessee
Texas
Virginia
West Virginia
Safety and Operational Guidelines
Siting and Permitting
Yes State/Province The Interstate Mining Compact is a multi-state governmental agency / organization that represents the natural resource and related environmental protection interests of its member states. Currently, 23 states are members to the compact, and 6 additional states are associate members. The compact is administered by the Interstate Mining Compact Commission, which does not possess regulatory powers but “provides a forum for interstate action and communication on issues of concern to the member states” and thus aids the development of effective regulatory programs and environmental protection initiatives. The Commission exercises several powers on behalf of the states, all of which are of a study, recommendatory or consultative nature. The Commission does not possess regulatory powers, as some Compacts do. The Commission provides a forum for interstate action and communication on issues of concern to the member states. It is the potential to stimulate the development and production of each state's mineral wealth through effective regulatory programs that draws many of the states together in the prosecution of the Commission's work. Given the environmental sensitivities associated with this objective, a significant portion of the Commission's work is dedicated to the environmental protection issues naturally associated with this mineral development. It is the significant value and clout that comes from "compacting" together and speaking with a strong, united voice that can make a difference in each state's efforts to implement effective regulatory programs that will conserve natural resources and secure a vibrant state (and thus national) mineral economy.
Interstate Oil and Gas Conservation Compact (Multiple States) Alabama
Alaska
Arizona
Arkansas
California
Colorado
Florida
Georgia
Idaho
Illinois
Indiana
Kansas
Kentucky
Louisiana
Maryland
Michigan
Mississippi
Montana
Nebraska
Nevada
New Mexico
New York
North Dakota
Ohio
Oklahoma
Pennsylvania
South Dakota
Texas
Utah
Virginia
West Virginia
Wyoming
Environmental Regulations Yes State/Province The Interstate Oil and Gas Compact Commission assists member states efficiently maximize oil and natural gas resources through sound regulatory practices while protecting the nation's health, safety and the environment.

The Commission serves as the collective voice of member governors on oil and gas issues and advocates states' rights to govern petroleum resources within their borders.

The Commission formed the Geological CO2 Sequestration Task Force, which examines the technical, policy and regulatory issues related to safe and effective storage of CO2 in the subsurface (depleted oil and natural gas fields, saline formations and coal beds).

The Commission also funds research on hydraulic fracking, reusing water used in extracting oil and gas, and makes recommendations on national energy policies and statutes for individual states.

The Commission also has several associate states: North Carolina, South Carolina, Georgia, Tennessee, Missouri, Idaho, Oregon and Washington. In addition, it has international affiliations with the Canadian provinces of Alberta, British Columbia, New Brunswick, Newfoundland and Labrador, Nova Scotia, Saskatchewan, and the Yukon.
Local Option - Special Energy Improvement Districts (Ohio) Ohio PACE Financing Yes State/Territory Note: '''''In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, '''''directed''''' these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENow for more information about PACE financing, and for a comprehensive list of all PACE programs across the country.

Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. Ohio has authorized certain local governments to establish such programs, as described below. (Not all local governments in Ohio offer PACE financing; contact your local government to find out if it has established a PACE financing program.


Ohio PACE Programs


To be eligible for PACE financing, a local program at the city or county level must be available in your area. Jurisdictional eligibility rules vary by county and municipality; municipalities in an eligible county are not automatically eligible for PACE financing.


Examples of active local PACE programs in Ohio include:


  • BetterBuildings Northwest Ohio – Administered by Toledo-Lucas County Port Authority
  • Cincinnati PACE – Administered by the Greater Cincinnati Energy Alliance
  • Lake County PACE – Administered by the Lake County Port & Economic Development Authority
  • Northeast Ohio Advanced Energy District - The City of Cleveland in partnership with the First Suburbs Development Council has announced the creation of the Advanced Energy Special Improvement District and commercial loans for energy improvements
  • The City of Toledo has created a SID in collaboration with the Northwest Ohio Bond Fund in order to finance energy efficiency improvements.

Program Provisions


Legislation enacted in Ohio in July 2009 (HB 1) expanded the state's existing special improvement district law by authorizing local municipalities and townships to create special energy improvement districts that offer property owners financing to install photovoltaic (PV) or solar-thermal systems on real property. In June 2010, legislation (S.B. 232*) provided additional authorization to municipalities to allow for financing of geothermal, customer-generated systems (including wind, biomass, and gasification systems 250 kW and below; or 250 kW and above as long as they serve all or part of the owner's on-site load) and energy efficiency improvements that are permanently fixed to the property within a special energy improvement district.


Any municipality choosing to establish a Special Energy Improvement District (SID) is authorized by law to issue bonds (either special or general obligation funds) and/or apply for state or federal money in order to fund such programs. Any property owner who opts in to such a program and installs solar, geothermal, wind, biomass, gasification, or energy efficiency improvements permanently affixed to his/her real property using municipal financing must agree to a special assessment on the property tax bill for up to 30 years in order to pay for the financing secured through this mechanism.


Many other provisions are determined locally.


Program Creation


Municipalities and townships interested in creating such districts and providing financing for property owners must circulate a petition for eligible property owners to opt in to the program and the municipality must approve a special energy improvement district via ordinance or resolution. A special improvement district board of directors must be created (if one did not already exist) to implement the program. Each local municipality must determine specific eligibility criteria, the maximum financing amount and interest rates, and other terms. Unlike regular special improvement districts in Ohio, a special energy improvement district does not have to be comprised of contiguous properties.

*In addition, S.B. 232 includes a provision for aggregating renewable energy certificates created by projects within a district. The bill also allows any electricity savings and/or demand reduction resulting from projects within a district to count towards the electric distribution utility's compliance under the Energy Efficiency Resource Standard (22% reduction in electricity use by 2026 and peak demand reduction requirements under Ohio's Revised Code (ORC 4928.66). This would not include any industrial customers who choose to commit its savings to the utility in exchange for an exemption from the utility's energy efficiency cost recovery mechanism, as provided by law. The district would have to report to the utility regarding energy projects implemented in the special energy improvement district on a quarterly basis.
Midwest Interstate Compact on Low-Level Radioactive Waste (Multiple States) Indiana
Iowa
Minnesota
Missouri
Ohio
Wisconsin
Environmental Regulations Yes State/Province The Midwest Interstate Low-Level Radioactive Waste Compact is an agreement between the states of Indiana, Iowa, Minnesota, Missouri, Ohio, and Wisconsin that provides for the cooperative and safe disposal of commercial low-level radioactive waste. The Compact was enacted into law by each member state legislature during the period from 1982 through 1984, and received Congressional consent in 1985. The Midwest Interstate Low-Level Radioactive Waste Compact Commission is the administrative body of the Compact. It consists of one voting Commissioner from each of the six member states. Each state determines how it will appoint its Commissioner, and the state’s Governor must provide written notification to the Commission of the appointment of a Commissioner and any Alternate Commissioners.
Midwest Renewable Energy Tracking System (Multiple States) Illinois
Iowa
Minnesota
Montana
North Dakota
Ohio
South Dakota
Wisconsin
Manitoba
Green Power Purchasing Yes Non-Profit The Midwest Renewable Energy Tracking System (M-RETS®) tracks renewable energy generation in participating States and Provinces and assists in verifying compliance with individual state/provincial or voluntary Renewable Portfolio Standards (RPS) and objectives. M-RETS® is a tool to keep track of all relevant information about renewable energy produced and delivered in the region. Currently, several States and Provinces participate in M-RETS®: Illinois, Iowa, Manitoba, Minnesota, Montana, North Dakota, Ohio, South Dakota, and Wisconsin have policies in place requiring or strongly encouraging utility development of renewable resources. M-RETS® uses verifiable production data for all participating generators and creates a Renewable Energy Credit (REC) in the form of a tradable digital certificate for each MWh.
Minimum Gas Service Standards (Ohio) Ohio Environmental Regulations
Safety and Operational Guidelines
Yes State/Province Natural gas companies in Ohio are required to follow the Minimum Gas Service Standards, which are set and enforced by the Public Utilities Commission of Ohio. These rules are found in chapter 4901:1-13 of the Ohio Administrative Code. The standards set connection requirements, safety standards, billing standards, service requirements, and other general standards.
Net Metering (Ohio) Ohio Net Metering Yes State/Territory Note: In July 2012, the Public Utilities Commission of Ohio (PUCO) opened a docket (Case 12-0250-EL-RDR) to review the net metering rules for investor-owned utilities. Details will be posted as more information is available.

Ohio's net-metering law requires electric distribution utilities to offer net metering to customers who generate electricity using wind energy, solar energy, biomass, landfill gas, hydropower, fuel cells or microturbines. Although there is no stated capacity limit on an individual net-metered energy system in Ohio, the Public Utilities Commission of Ohio (PUCO) has ruled that "an implied limitation" is in effect because, by statute, a net-metered system must be "intended to offset part or all of the customer-generator's electricity requirements." Net-metered customers are required to use a single meter capable of recording flow of electricity in each direction. Net-metered customers may request refunds of net excess generation (NEG) credits accumulated over a 12-month period.

The electric distribution utilities and competitive retail electric service providers are required to develop a separate net metering tariff for hospital facilities. Qualifying hospital customer generators are not limited to the same energy generation technologies or system size restrictions described above for non-hospital net-metered customers. Two meters or a single meter with two registers capable of separately measuring flow of electricity in both directions are required for hospital net metering. All electricity generated by the hospital (including that generation used directly by the hospital and that which is sent back to the utility) will be credited at the market value at the time of generation. Electricity flowing from the utility and used by the hospital will be charged at the same rates as normal, as if the hospital were not net metering. The monthly bill will calculate the net of this total hospital customer generation vs. utility provided electricity to determine the bill. Any net credit dollar amount will be used against the hospital’s bill until the hospital requests a refund for any accumulated credits over a 12-month period.

Net-metered systems must meet safety standards specified by the National Electrical Code (NEC), the Institute of Electrical and Electronics Engineers (IEEE), and Underwriters Laboratories (UL). Utilities may not require customer-generators to comply with additional safety and performance standards.

History:

Ohio’s original net-metering law was enacted in 1999 as part of the state’s electric-industry restructuring legislation. The Public Utilities Commission of Ohio (PUCO) later revised its net metering rules in March 2007, prompted by the federal Energy Policy Act of 2005 (EPAct 2005). Initially, the Public Utilities Commission of Ohio (PUCO) required utilities to credit customer net excess generation (NEG) at the utility's full retail rate. However, in June 2002, the Ohio Supreme Court decided that this exchange was illegal (Case No. 01-0573) and ruled that each utility must credit NEG to the customer at the utility's unbundled generation rate. Legislation enacted in May 2008 (S.B. 221) further amended Ohio's net metering law by: (1) removing the 1% aggregate capacity limit for all customer-generators; and (2) removing all limitations related to energy generation technology and system size on systems sited at hospitals.
Nitrogen Oxide Emission Statements (Ohio) Ohio Environmental Regulations Yes State/Province This chapter of the law establishes that the Ohio Environmental Protection Agency requires any facility that emits 25 tons or more of NOx and/or 25 tons or more of VOC during the calendar year and is located in a county designated as nonattainment for the National Ambient Air Quality Standards for ozone submit emission statements. Any facility that is located in a county described above is exempt from these requirements. If NOx or VOC is emitted from a facility at or above the reporting threshold, both pollutants must be included in the emissions statement even if one of the pollutants is emitted at a level below the reporting threshold.

The emission statements must include at a minimum the following information: (1) The certifying individual shall certify that the information contained in the statement is accurate to the best of their knowledge and that all estimates and judgments relating to such information have been made in good faith. (2) Estimated actual emissions of NOx and VOC, in tons per year. (3) Any other supporting information.

Exemptions: R&D sources at a facility where the combined potential to emit for all of the R&D sources is less than five tons per year for NOx and less than five tons per year for VOC or where the owner or operator maintains records which demonstrate that the combined actual emissions for all of the R&D sources does not exceed five tons per year for NOx and five tons per year for VOC, are not required to complete the emission statement.
Ohio Air Quality Development Authority Tax Incentives (Ohio) Ohio Corporate Tax Incentive Yes State/Province The Ohio Air Quality Development Authority provides financing for new air quality facilities for all types of Ohio businesses, ranging from small, family-owned shops to multi-million-dollar manufacturing plants. Many large Ohio companies, in fact, are required to purchase new equipment or make operational changes to comply with EPA air quality regulations. Smaller companies of 100 or fewer employees may also need to make similar changes. The Clean Air Resource Center is the small-business program of OAQDA, providing free, confidential consultation and financing. Qualifying projects include any project involving the use of renewable or biomass resources, including ethanol and other biofuel production plants.
Ohio Biomass Energy Program (Ohio) Ohio Industry Recruitment/Support
Workforce development
Grant Program
Training/Technical Assistance
Yes State/Province Ohio is one of seven states participating in the Great Lakes Regional Biomass Energy Program which was established in 1983. The Regional Program is administered by the Council of Great Lakes Governors and receives funding from the U.S. Department of Energy. The other six states under the Great Lakes Biomass Energy Program are: Illinois, Indiana, Iowa, Michigan, Minnesota, and Wisconsin.

The Regional Program's State Grant Program provides annual funding to seven states to support state biomass energy programs. The Public Utilities Commission of Ohio (PUCO) matches the Regional Program funds to operate the Ohio Biomass Energy Program and provides staffing to administer the program.

The mission of the Ohio Biomass Energy Program (OBEP) is to increase the development and utilization of biomass energy resources in Ohio in order to promote energy sustainability and a cleaner environment. The environmental benefits of renewable biomass resources include reductions in greenhouse gas emissions, air pollutants, and landfill wastes, as well as efficient use of municipal, industrial, and farm wastes. Development of biomass energy resources may stimulate the economic growth in rural areas and provide "green power" options in the competitive electric industry.

The Great Lakes Regional Biomass Energy Program ended in 2009. However, the state program is still in service. The program monitors PUCO regulations for biomass and provides assistance and funding to biomass projects.
Ohio Coal Research and Development Program (Ohio) Ohio Grant Program Yes State/Province The Ohio Coal Development Office invests in the development and implementation of technologies that can use Ohio's vast reserves of coal in an economical, environmentally sound manner. Projects are identified through public solicitations and may include technologies that improve combustion efficiencies, remove various pollutants from emissions, develop productive uses for the by-products of combustion, and investigate new uses for coal as a feedstock. The aggregate principal amount of money borrowed, bonds and other obligations issued by the state for this program is not to exceed $100 million. Eligible applicants include: municipal, rural, investor-owned utilities, nonprofit, and for-profit entities doing business in Ohio or an education or scientific institution located in Ohio.

Ohio Coal Research Consortium – Provides grants to research institutions studying mechanisms critical to emissions formation and methods of control, or for uses of coal as a feedstock for other processes. This includes fundamental research, development and inquiry that enable the conversion or use of Ohio coal as a fuel or chemical feedstock in an environmentally acceptable manner.

Ohio Coal Demonstration and Pilot – Issues grants involving utility power producers, clean coal technology developers, research and development firms and universities directed toward the discovery of new technologies or the demonstration or application of existing technologies that enables the conversion or use of Ohio coal as a fuel or chemical feedstock in an environmentally acceptable manner. Up to three demonstration installations utilizing a specific technology are allowable.
Ohio River Valley Water Sanitation Commission (Multiple States) Illinois
Indiana
Kentucky
New York
Ohio
Pennsylvania
Virginia
West Virginia
Environmental Regulations Yes State/Province The Ohio River Valley Water Sanitation Commission (ORSANCO), was established on June 30, 1948 to control and abate pollution in the Ohio River Basin. ORSANCO is an interstate commission representing eight states and the federal government. ORSANCO operates programs to improve water quality in the Ohio River and its tributaries, including: setting waste water discharge standards; performing biological assessments; monitoring for the chemical and physical properties of the waterways; and conducting special surveys and studies. ORSANCO also coordinates emergency response activities for spills or accidental discharges to the river, and promotes public participation in programs, such as the Ohio River Sweep and the RiverWatchers Volunteer Monitoring Program. ORSANCO sets Pollution Control Standards for industrial and municipal waste water discharges to the Ohio River, and tracks certain dischargers whose effluent can seriously impact water quality. The standards designate specific uses for the Ohio, and establish guidelines to ensure that the river is capable of supporting these uses. To keep pace with current issues, ORSANCO reviews the standards every three years. As part of the review process, workshops and public hearings are held for public input.
PJM Interconnection (Multiple States) Delaware
Illinois
Indiana
Kentucky
Maryland
Michigan
New Jersey
North Carolina
Ohio
Pennsylvania
Tennessee
Virginia
West Virginia
District of Columbia
Interconnection Yes Non-Profit PJM (originally Pennsylvania, Jersey, Maryland) Interconnection is a Regional Transmission Organization (RTO) that coordinates the movement of wholesale electricity in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia. The PJM region has an area of 214,000 square miles, a population of about 60 million and a peak demand of 163,848 megawatts.
Particulate Matter Standards (Ohio) Ohio Environmental Regulations Yes State/Province This chapter of the law establishes that the Ohio Environmental Protection Agency sets the standards for particulate emissions from a variety of sources, including facilities that generate power. Specific passages refer to existing and potential future electricity generating facilities and utilities.
Permit Program Regulating Discharge of Nondomestic Wastewater into a POTW (Ohio) Ohio Siting and Permitting Yes State/Province Any significant industrial user is required to apply for and obtain an individual indirect discharge permit if they discharge water or waste into a publicly owned treatment works.
Pretreatment Rules (Ohio) Ohio Environmental Regulations Yes State/Province This law lists state requirements and standards regulating the introduction of pollutants into Publicly Owned Treatment Works (POTWs) by industrial users. The following substances shall not be introduced into a POTW:

(1) Pollutants that create a fire or explosion hazard in the POTW including, but not limited to, wastestreams with a closed cup flashpoint of less than 140 degrees Fahrenheit or 60 degrees;

(2) Pollutants that will cause corrosive structural damage to the POTW, but in no case discharges with pH lower than 5.0, unless the POTW is specifically designed to accommodate such discharges;

(3) Solid or viscous pollutants in amounts that will cause obstruction to the flow in sewers, or other interference with the operation of the POTW;

(4) Any pollutant, including oxygen demanding pollutants, released in a discharge at a flow rate or pollutant concentration as to cause interference with the POTW;

(5) Heat in amounts that will inhibit biological activity in the POTW treatment plant resulting in interference or causing damage, but in no case heat in such quantities that the temperature exceeds 104 degrees Fahrenheit at the POTW treatment plant;

(6) Petroleum oil, nonbiodegradable cutting oil, or products of mineral oil origin in amounts that will cause interference or pass through;

(7) Pollutants that result in the presence of toxic gases, vapors, or fumes within the POTW in a quantity that may cause acute worker health and safety problems; or

(8) Any trucked or hauled pollutants, except at discharge points designated by the POTW.

All industrial users shall notify the POTW immediately of all discharges that could cause problems to the POTW, including any slug loading.
Qualified Energy Conservation Bonds (Ohio) Ohio Bond Program Yes State/Province The Ohio Air Quality Development Authority (OAQDA) administers the Qualified Energy Conservation Bonds (QECB) program in Ohio. QECBs have been used by local governments and public universities to finance the installation of energy conserving equipment in publicly owned buildings. Under a QECB financing package, OAQDA authorizes Air Quality Development Bonds for issuance as a Series A federally tax-exempt bond and a Series B Qualified Energy Conservation Bond (QECB) federal tax-credit bond. Combining funding from the two separate sources results in a lower, "blended" interest rate for the participating entity.

Qualified conservation purposes include:

Capital expenditures that will reduce energy consumption in publicly owned buildings by at least 20%, fund green community programs, or support rural development involving the production of electricity from renewable sources;

Research expenditures that support the development of cellulosic ethanol or other non-fossil fuels, technologies for the capture and sequestration of carbon dioxide, increasing the efficiency of existing technologies for producing non-fossil fuels, automobile battery technologies to reduce fossil fuel consumption in transportation or technologies to reduce energy use in buildings;

Mass commuting facilities;

Demonstration projects that promote commercialization of green building technology, conversion of agricultural waste, advanced battery manufacturing technologies, technologies to reduce peak electricity consumption or technologies for the capture and sequestration of carbon dioxide emitted from fossil fuels that produce electricity; and

Public education campaigns to promote energy efficiency.
Qualified Energy Property Tax Exemption for Projects over 250 kW (Payment in Lieu) (Ohio) Ohio Property Tax Incentive Yes State/Territory Ohio's Renewable and Advanced Energy Project Property Tax Exemption, enacted with the passage of Ohio S.B. 232 in the summer of 2010, exempts qualified energy projects in Ohio from public utility tangible personal property taxes and real property taxes*. Before that time, a renewable energy facility in Ohio that sold electricity to a third-party was considered a "public utility" for tax purposes. These utility-based property taxes were replaced by designated payments in lieu based on the size of the facility, type of facility, and other factors, such as each project's energy production level.

Ohio Governor Ted Strickland suspended the normal rule-making procedures on September 28, 2010, in order to immediately implement rules governing the application process for obtaining qualified energy project certification. The emergency rules were adapted and made effective as of January 1, 2011 (OAC 122:23-1 et seq.).

In order to qualify for the property tax exemption, a renewable energy facility must apply to the Ohio Development Services Agency (ODSA) for certification as a "qualified energy project." The facility must be new, have nameplate capacity of more than 250 kilowatts (kW),* begin construction between January 1, 2009 and January 1, 2016, and submit reports to the ODSA regarding construction progress. Applications are due to ODSA by December 31, 2015 and facilities must be placed in service by January 1, 2017. Renewable energy facilities certified are granted the property tax exemption for the life of the facility as long as they comply with the following provisions of the property tax exemption.

In lieu of taxes, the following payments must be made to the county where the renewable energy facility is located:


  • Solar energy facilities: $7,000 per megawatt (MW)
  • All other qualified facilities employing at least 75% Ohio-based employees during construction: $6,000/MW
  • All other qualified facilities employing at least 60% Ohio-based employees during construction: $7,000/MW
  • All other qualified facilities employing at least 50% Ohio-based employees during construction: $8,000/MW

The property tax exemption must be approved by local county commissioners if the project is 5 MW or larger. Local county commissioners are allowed to require an additional payment as long as the overall payment does not exceed $9,000 per MW. In addition, the law requires that the renewable energy facility 1) meets certain jobs-creation criteria, 2) provides for road repairs (for projects 5 MW or more), 3) provides training and equipment to local first responders (for projects 5 MW or more), 4) establishes partnerships with universities (for projects 2 MW or more), and 5) makes offers to sell the renewable energy credits to Ohio utilities seeking to buy them.


Cogeneration facilities must be placed into service by January 1, 2019, and have until December 31, 2015 to apply for certification as a qualifying energy project.

Visit the ODSA web site for additional information, implementation documents, program documents and the QEP online application.



*S.B. 232 permanently exempted renewable energy facilities up to and including 250 kW from the public utility tangible personal property tax. See DSIRE entry Qualified Energy Property Tax Exemption for Projects 250 kW or Less for additional details.
Qualified Energy Property Tax Exemption for Projects 250 kW or Less (Ohio) Ohio Property Tax Incentive Yes State/Territory Ohio's Renewable and Advanced Energy Project Property Tax Exemption, enacted with the passage of Ohio S.B. 232 in the summer of 2010, exempts qualified energy projects in Ohio from public utility tangible personal property taxes and real property taxes. Before passage of S.B. 232, a renewable energy facility in Ohio that sold electricity to a third-party was considered a "public utility" for tax purposes.

Per Ohio Revision Code 5709.53, qualified energy systems of 250 kilowatts (kW) or less will not be subject to the payment in lieu of property tax. For qualified energy projects larger than 250 kW, see the DSIRE entry Qualified Energy Property Tax Exemption for Projects over 250 kW (Payment in Lieu) for additional details.

Energy facilities with nameplate capacity of 250 kilowatts (kW) or less (AC) are permanently exempt from public utility tangible personal property tax and real property taxes. Energy facilities are defined as interconnected solar, wind, or other tangible property used to generate electricity. Under this law, the interconnection equipment, cables, devices, and the land (limited to up to 1/2 acre per wind turbine) are also exempt. Energy facilities built after January 1, 2010 are eligible for this treatment.

Visit the Ohio Development Services Agency's web site for additional information, implementation documents and program documents.
Qualifying RPS State Export Markets (Ohio) Ohio Renewables Portfolio Standards and Goals Yes State/Province This entry lists the states with Renewable Portfolio Standard (RPS) policies that accept generation located in Ohio as eligible sources towards their RPS targets or goals. For specific information with regard to eligible technologies or other restrictions which may vary by state, see the RPS policy entries for the individual states, shown below in the Authority listings. Typically energy must be delivered to an in-state utility or Load Serving Entity, and often only a portion of compliance targets may be met by out-of-state generation. In addition to geographic and energy delivery requirements, ownership, registry, and other requirements may apply, such as resource eligibility, generator vintage and capacity limitations, as well as limits on Renewable Energy Certificate (REC) vintage. The listing applies to RPS Main Tiers only, and excludes solar or distributed generation that may require interconnection only within the RPS state. This assessment is based on energy delivery requirements and reasonable transmission availability. Acceptance of unbundled RECs varies. There may be additional sales opportunities in RPS states outside the Eastern Interconnection. REC prices in markets with voluntary goals (Indiana, North Dakota, South Dakota, Virginia) may be lower.
Regional 166 Direct Loan (Ohio) Ohio Loan Program Yes State/Province The Ohio Development Services Agency's (ODSA) Regional 166 Direct Loan provides low-interest loans to businesses creating new jobs or preserving existing employment opportunities in the State of Ohio.

Eligible projects include those related to industry, commerce, distribution or research activities. Retail projects are ineligible for the Regional 166 Direct Loan.

Allowable Project Costs/Uses: -Land and/or building purchase; if the project involves the purchase of an existing building, the business must occupy at least 51% of the premises Machinery and equipment purchase -Building construction and/or renovation costs; if the project involves new construction the business must occupy at least 60% of the premises -Long-term leasehold improvements -Ongoing businesses fixed asset purchase -Capitalizable costs directly related to a fixed-asset purchase -Refinancing is ineligible

Available Funding: The Regional 166 Direct Loan may finance up to 40% of allowable project costs with loans up to $350,000. The Regional 166 Direct Loans are "take-out" financing (allowable project costs/uses must be purchased with interim financing with the Regional 166 Direct Loan disbursing upon project completion). Businesses requesting more than $500,000 may participate in the 166 Direct Loan Program.
Solar Renewable Energy Credits (SRECs) (Ohio) Ohio Performance-Based Incentive Yes State/Territory Solar Renewable Energy Certificates (SRECs) represent the renewable attributes of solar generation, bundled in minimum denominations of one megawatt-hour (MWh) of production. The legislation creating Ohio's AEPS program, (S.B. 221), mandates the creation of SRECs and Solar Alternative Compliance Payments (SACPs) to meet the solar energy generation goal of .5% by 2026. To be in complaince with AEPS, Ohio retail electricity suppliers must either purchase or generate SRECs OR pay a Solar Alternative Compliance Payment (SACP) for any shortfalls in SREC purchases.


SRECs have a lifetime of five years following their initial acquisition. Generators must register with the Public Utilities Commission of Ohio (PUCO) to become a certified facility, eligible to generate SRECs for compliance under Ohio's Alternative Energy Resource Standard (AERS). Once PUCO certification is received, the generator must also register with an attribute tracking system (such as PJM-GATS or M-RETS).


SACP prices were set at $450/MWh by SB 221 in 2009 and were on schedule to drop by $50 every two years until a $50/MWh minimum was met in 2024. In 2014, SB 310 froze the SACP at $300/MWh for 2014, 2015, and 2016, and stipulated that after 2016, SACPs fall by $50 every two years to a minimum of $50/MWh by 2025. Compliance payments will be deposited into the Ohio Advanced Energy Fund, which provides financial support to renewable energy and energy efficiency projects within the state. Utilities may not pass along the cost of compliance payments to their customers. PUCO may grant a force majeure determination, thereby relieving the utilities of their obligation to pay SACP, if utilities are able to prove they were unable to procure enough SRECs to satisfy the requirements due to conditions beyond their control. Historically, utilities have generally been able into compliance without paying the ACP.


Interested system owners must reserve a case number on the web site above. For applications received after December 31, 2012, credit will only be given for generation that occurrred after the facility's application date.
Solid Waste and Infectious Waste Regulations (Ohio) Ohio Environmental Regulations Yes State/Province This chapter of the law that establishes the Ohio Environmental Protection Agency establishes the rules and regulations regarding solid waste.

The chapter establishes specific regulations for biomass facilities, which includes permitting, siting, operation, safety guidelines, and closing requirements.

Siting regulations include setbacks from waste handling areas for state facilities (1000 feet from jails, schools), requirements for not siting such facilities in floodways, and is not located in a national or state park, or recreation area. Other specific setbacks are as follows:

250 feet from surface water

250 feet from areas designated by the Department of Natural Resources as either a national wildlife refuge or a national scenic river

250 feet from a domicile

250 feet from areas designated by the United States Forest Service as either a special interest area or a research natural area in the Wayne national forest

250 feet from surface waters of the state designated by Ohio EPA as either a state resource water, a coldwater habitat, or an exceptional warmwater habitat.

The Ohio EPA's Division of Materials and Waste Management runs a Hazardous Waste Treatment, Storage and Disposal Facilities program to administer the law.
Stack Height Requirements (Ohio) Ohio Environmental Regulations Yes State/Province This chapter of the law establishes that the Ohio Environmental Protection Agency provides regulations for stacks for industrial facilities. “Stack” means any chimney, flue, conduit or duct arranged to conduct any emissions to the ambient air, excluding flares. “Stack height” means the distance from the ground-level elevation at the base of the stack to the crown of the stack. If a stack arises from a building or other structure, the ground-level elevation of that building or structure will be used as the base elevation of the stack. For stacks in existence on January 12, 1979, the stack height calculated by the following formula: Hg= 2.5 H, where Hg = good engineering practice stack height, measured from the ground-level elevation at the base of the stack; and H = height of nearby structure(s) measured from the ground-level elevation at the base of the stack. For all other stacks, the stack height calculated by the following formula: Hg= H + 1.5 L, where L = height or projected width, whichever is less, of nearby structure(s).
Sulphur Dioxide Regulations (Ohio) Ohio Environmental Regulations Yes State/Province This chapter of the law establishes that the Ohio Environmental Protection Agency provides sulfur dioxide emission limits for every county, as well as regulations for the emission, monitoring and equipment for industries that have sulfur dioxide emissions. The Ohio EPA's Division of Air Pollution Control has monitoring and compliance programs authorized under this law.
Surface Water Monitoring and Assessment (Ohio) Ohio Environmental Regulations Yes State/Province This law establishes criteria for three levels of credible data for a surface water quality monitoring and assessment program and establishes the necessary training and experience for persons to submit credible data, thereby increasing the information base upon which to enhance, improve and maintain water resource quality in Ohio.  Details about each level can be found on the Ohio EPA's website for the Division of Surface Water.
The 166 Direct Loan (Ohio) Ohio Loan Program Yes State/Province The 166 Direct Loan provides loans for land and building acquisition, expansion or renovation, and equipment purchase. This program may finance up to 50% of allowable project costs with loans ranging in size from $500,000 to $1,500,000. Development requires the creation or retention, within a three-year period, of one job for each $35,000 of 166 Direct Loan proceeds.
The Job Creation Tax Credit Program (Ohio) Ohio Corporate Tax Incentive Yes State/Province The Ohio Job Creation Tax Credit Servicing site provides assistance to businesses that have previously been approved for a tax credit by the Ohio Tax Credit Authority (Authority).

Projects approved by the Authority are then required to enter into a tax credit agreement, summarizing the commitments and compliance requirements pursuant to the Ohio Revised Code.

The tax credit is based on the state income tax withheld by the taxpayer for new jobs created as a result of new business investment in Ohio. The Authority is charged with reviewing and approving applications and setting the tax credit rate and term. The Authority may grant tax credits under the program allowing companies to receive refundable credits generally up to 75 percent of withheld state income taxes, for a period of up to 15 years.

The tax credit rate and term are determined by the Authority based on the number of jobs to be created, the new payroll to be generated by the project, the fixed asset investment in the project, and the extent of interstate competition for the project.
The Ohio Capital Access Program (OCAP) (Ohio) Ohio Loan Program Yes State/Province The Ohio Capital Access Program (OCAP) encourages state depository financial institutions to make loans to for-profit or nonprofit small businesses that are having difficulty obtaining business loans through conventional underwriting standards. The business’ principal place of business must be in Ohio with revenues less than $10 million and with fewer than 250 employees. The OCAP encourages lending by establishing a unique loan "guarantee" reserve pool at an OCAP participating lending institution. The state, the lender, and the borrower each pay a small fee contribution into the pool. With every loan each participating lending institution enrolls in the OCAP, the reserve pool at that institution grows. The reserve pool is available to the participating Lender for recovery of any losses on any loan they have enrolled in the OCAP. The maximum loan amount for working capital is $250,000, and $350,000 for fixed assets.
The Ohio Community Reinvestment Area (Ohio) Ohio Property Tax Incentive Yes State/Province The Ohio Community Reinvestment Area program is an economic development tool administered by municipal and county government that provides real property tax exemptions for property owners who renovate existing or construct new buildings. The program is delineated into two distinct categories, those created prior to July 1994 ("pre-1994") and those created after.
The Ohio Enterprise Bond Fund (Ohio) Ohio Bond Program Yes State/Province The Ohio Enterprise Bond Fund (OEBF) was created in 1988 to promote economic development, create and retain quality jobs and assist governmental operations. The program enables non-profit and for-profit borrowers to access the national capital markets through bonds issued through OEBF. The program is administered by the Ohio Department of Development and financing is provided by the Ohio Treasurer of State. The Ohio Enterprise Bond Fund may provide financing up to 90 percent of the total eligible project costs that are directly related to the fixed-asset purchase. The minimum borrowing amount is $1.5 million and the maximum amount is $10 million.
The Ohio Enterprise Zone program (Ohio) Ohio Property Tax Incentive
Enterprise Zone
Yes State/Province The Ohio Enterprise Zone program is an economic development tool administered by municipal and county governments that provides real and personal property tax exemptions to businesses making investments in Ohio. In order to use the Enterprise Zone program, communities petition to the Ohio Department of Development for certification of a geographical zone with a contiguous boundary. Once a zone is certified, communities may enter into negotiated agreements with businesses that invest in the zone.

Enterprise zones are designated areas of land in which businesses can receive tax incentives in the form of tax exemptions on eligible new investment. The zone's geographic area is identified by the local communities involved in the creation of the zone. The boundary should (1) include areas appropriate for business development, (2) have a single continuous boundary, (3) meet minimum population requirements, and (4) evidence the distress characteristics, when applicable. Once a zone is defined, the local legislative authority participating in the creation must petition the director of the Development Services Agency. The director must then certify the area for it to become an active Enterprise Zone.

Local communities may offer tax incentives for non-retail projects that are establishing or expanding operations in the State of Ohio. Real property investments are eligible for tax incentives, as well as personal property investments for those entities that continue to pay personal property tax. Tax incentives are negotiated at the local level, and an enterprise zone agreement must be in place before the project begins. Businesses interested in pursuing these incentives should contact the local Enterprise Zone Manager.
The Ohio Workforce Guarantee (Ohio) Ohio Training/Technical Assistance
Workforce development
No State/Province The Ohio Workforce Guarantee Grant servicing function of the Ohio Development Services Agency provides assistance to businesses that have been previously awarded a grant by the State of Ohio. These services include: drafting grant agreements and any subsequent amendments, processing grant payment requests, reviewing annual reports, and providing technical support to existing grantees.
Water Quality Standards (Ohio) Ohio Environmental Regulations Yes State/Province This chapter of the law that establishes the Ohio Environmental Protection Agency outlines the minimum water quality requirements for all surface waters of the state.

Water quality standards contain two distinct elements: designated uses; and numerical or narrative criteria designed to protect and measure attainment of the uses.

Each water body in the state is assigned one or more aquatic life habitat use designations. Each water body may be assigned one or more water supply use designations and/or one recreational use designation.

Statewide chemical-specific criteria for the support of use designations are presented in this rule.

Each water resource area has its own specific section, detailing minimum standards and requirements for those areas. Wetlands are also covered under this rule.
Water Quality Trading Program (Ohio) Ohio Corporate Tax Incentive
Environmental Regulations
Yes State/Province Water quality trading is a tool for achieving water quality improvements. Under the right circumstances, trading has the potential to yield both environmental and economic benefits, while promoting increased interaction among watershed stakeholders.

The water quality trading program is a voluntary program that allows a National Pollutant Discharge Elimination System (NPDES) permit holder (point source) to meet its regulatory obligations by using pollutant reductions generated by another wastewater point source or non-point source.

The program provides economic incentives for voluntary pollutant reductions from point sources and nonpoint sources.
Water Use Permitting (Wisconsin) Wisconsin Siting and Permitting Yes Local Withdrawers in the Great Lakes Basin who withdraw water in quantities that average 100,000 gallons per day or more in any 30-day period are required to get a water use permit. Two types of water use permits exist: a general permit is required for withdrawals that average 100,000 gallons per day or more in any 30-day period but do not equal at least 1,000,000 gallons per day for 30 consecutive days. An individual permit is required for withdrawals that equal at least 1,000,000 gallons per day for 30 consecutive days. There are no permit application fees.