SB 231: Establish community energy program and pilot program
The state of Ohio aims to ensure the availability of reliable, safe, efficient, and reasonably priced retail electric service to consumers. The state policy includes ensuring diversity of electricity supplies and suppliers, encouraging innovation and market access for cost-effective supply- and demand-side retail electric service, and protecting at-risk populations. A community energy program is established to facilitate participation by customers with the facilities. The program includes community energy facilities, which generate electricity from various sources such as solar, wind, biomass, landfill gas, or hydroelectric power. These facilities must be located within the state, have at least three subscribers, and meet specific requirements. The community energy pilot program aims to provide guaranteed savings to subscribers. Program evaluations and consumer protections are establish…
| Oct. 01, 2025 | Referred to committee: Energy |
| Jul. 07, 2025 | Introduced |
Senate Bill No. 231
136th General Assembly
Regular Session
Senators Romanchuk, Smith
(B) Not later than ninety days after the public meeting regarding the construction and operation of a community energy facility is held pursuant to section 4934.16 of the Revised Code, or rules adopted under division (B) (1) (b) of section 4934.15 of the Revised Code regarding a modified facility proposal, the board of township trustees may adopt a resolution that does either of the following:
(1) Prohibits the construction of the facility;
(2) Limits the boundaries of the proposed facility to a smaller geographic area of the township, completely within what was proposed by the person proposing to construct and operate the facility.
(C) If no resolution is adopted within the time required under this section, or rules adopted under division (B) (1) (b) of section 4934.15 of the Revised Code regarding a modified facility proposal, construction of the facility may commence.
(D) No resolution adopted under this section prevents a person from filing another proposal for consideration by the board of township trustees at a later date.
(A) Ensure the availability to consumers of adequate, reliable, safe, efficient, nondiscriminatory, and reasonably priced retail electric service;
(B) Ensure the availability of unbundled and comparable retail electric service that provides consumers with the supplier, price, terms, conditions, and quality options they elect to meet their respective needs;
(C) Ensure diversity of electricity supplies and suppliers, by giving consumers effective choices over the selection of those supplies and suppliers and by encouraging the development of distributed and small generation facilities;
(D) Encourage innovation and market access for cost-effective supply- and demand-side retail electric service including, but not limited to, demand-side management, time-differentiated pricing, waste energy recovery systems, smart grid programs, and implementation of advanced metering infrastructure;
(E) Encourage cost-effective and efficient access to information regarding the operation of the transmission and distribution systems of electric utilities in order to promote both effective customer choice of retail electric service and the development of performance standards and targets for service quality for all consumers, including annual achievement reports written in plain language;
(F) Ensure that an electric utility's transmission and distribution systems are available to a customer-generator or owner of distributed generation, so that the customer-generator or owner can market and deliver the electricity it produces;
(G) Recognize the continuing emergence of competitive electricity markets through the development and implementation of flexible regulatory treatment;
(H) Ensure effective competition in the provision of retail electric service by avoiding anticompetitive subsidies flowing from a noncompetitive retail electric service to a competitive retail electric service or to a product or service other than retail electric service, and vice versa, including by prohibiting the recovery of any generation-related costs through distribution or transmission rates;
(I) Ensure retail electric service consumers protection against unreasonable sales practices, market deficiencies, and market power;
(J) Provide coherent, transparent means of giving appropriate incentives to technologies that can adapt successfully to potential environmental mandates;
(K) Encourage implementation of distributed generation across customer classes through regular review and updating of administrative rules governing critical issues such as, but not limited to, interconnection standards, standby charges, and net metering;
(L) Protect at-risk populations, including, but not limited to, when considering the implementation of any new advanced energy or renewable energy resource;
(M) Encourage the education of small business owners in this state regarding the use of, and encourage the use of, energy efficiency programs and alternative energy resources in their businesses;
(N) Facilitate the state's effectiveness in the global economy.
(O) Encourage cost-effective, timely, and efficient access to and sharing of customer usage data with customers and competitive suppliers to promote customer choice and grid modernization.
(P) Ensure that a customer's data is provided in a standard format and provided to third parties in as close to real time as is economically justifiable in order to spur economic investment and improve the energy options of individual customers.
(Q) Encourage the development of community energy facilities, as defined in section 4934.01 of the Revised Code, for the benefit of customers in this state and to facilitate participation by customers with the facilities.
(R) Establish a community energy pilot program, pursuant to sections 4934.04 to 4934.17 and 4934.25 to 4934.27 of the Revised Code.
(S) Establish program evaluations and consumer protections ensuring community energy subscribers are effectively and equitably receiving guaranteed savings, as defined in section 4934.01 of the Revised Code, from participating in the community energy pilot program.
In carrying out this policy, the commission shall consider rules as they apply to the costs of electric distribution infrastructure, including, but not limited to, line extensions, for the purpose of development in this state.
(A) "Bill credit" means the monetary value approved or revised under section 4934.08 or 4934.09 of the Revised Code by the public utilities commission for each kilowatt hour of electricity generated by a community energy facility.
(B) "Certified territory," "electric distribution utility," and "energy storage" have the same meanings as in section 4928.01 of the Revised Code.
(C) "Commercial or public sector rooftop" means either of the following that is located within an electric distribution utility's certified territory:
(1) The roof of a building located on commercial real estate as defined in section 1311.85 of the Revised Code;
(2) Any property owned by a public authority as defined in section 1311.25 of the Revised Code.
(D) "Community energy facility" means a single facility that does the following:
(1) Generates electricity by means of a solar photovoltaic device or uses as its fuel either solar, wind, biomass, landfill gas, or hydroelectric power, or uses a microturbine, natural gas-fired generator, energy storage system, or a fuel cell;
(2) Meets all of the following requirements:
(a) The facility is located in this state and is directly connected to an electric distribution utility's distribution system.
(b) The facility has at least three subscribers.
(c) The facility is located on one parcel of land and, except as provided in section 4934.011 of the Revised Code, there is no community energy facility on the same or a contiguous parcel that is developed, owned, or operated by the same entity, affiliated entity, or entity under common control.
(d) No subscriber holds more than a forty per cent proportional interest in the output of the system, which shall be measured as the sum total of all meters on the subscriber's property.
(e) Not less than sixty per cent of the facility capacity shall be subscribed by subscriptions of forty kilowatts or less based on the average annual demand for the prior twelve-month period. For purposes of this division, a multi-unit building served by a single meter shall be considered a single customer provided the average usage, based on the number of units, is forty kilowatts or less.
(f) The facility has a nameplate capacity of ten or less megawatts, or twenty or less megawatts if the facility is on a distressed site or one or more commercial or public sector rooftops, as measured at the point of interconnection.
(g) The facility is not under the control of an electric distribution utility, but may be under the control of an affiliate of the utility.
(3) (a) If the facility uses either an energy storage system or natural gas-fired generator, then the energy storage system or generator is not sized so as to exceed the size of any co-located facility using solar, wind, biomass, landfill gas, or hydroelectric power as its fuel.
(b) If the system uses both an energy storage system and natural gas-fired generator, then the combined nameplate capacity of the storage system and generator is not sized so as to exceed the size of any co-located facility using solar, wind, biomass, landfill gas, or hydroelectric power as its fuel.
(E) "Community energy organization" means a for-profit or nonprofit entity that operates one or more community energy facilities.
(F) "Distressed site" means a site made up of one or more parcels of land, located within an electric distribution utility's certified territory where the majority of the acreage is at least one or more of the following:
(1) A brownfield as defined in section 122.6511 of the Revised Code;
(2) A parcel that is within an area where an investor may receive a new markets tax credit under section 45D of the Internal Revenue Code;
(3) A solid waste facility licensed by the environmental protection agency under section 3734.02 of the Revised Code;
(4) A parcel of land that is described by division (b) (11) (B) (iii) of section 45 of the Internal Revenue Code;
(5) Land or structure owned by a metropolitan housing authority, as described in section 3735.27 of the Revised Code;
(6) Land owned by a county land reutilization corporation as defined in section 1724.01 of the Revised Code.
(G) "Guaranteed savings" means the realized savings by the subscriber as the difference between the cost of a subscription to a community energy facility and the bill credit received for the generation attributed to the subscription.
(H) "Large industrial customer" means any manufacturer that uses electricity primarily in a process involving a change of raw or unfinished materials into another form or product, and that takes service from an electric distribution utility at primary voltage, subtransmission voltage, or transmission voltage.
(I) "Net crediting" means a program offered by an electric distribution utility under which the electric utility does the following:
(1) Issues a customer, who is a subscriber, a consolidated electric bill that includes on the customer's monthly bill the electric utility charges for electric service, the community energy subscription charge, and any bill credit;
(2) Remits the customer's subscription fee to the owner or operator of the community energy organization to which the customer subscribes.
(J) "Non-ministerial permit" means all necessary and discretionary governmental permits and approvals to construct a community energy facility notwithstanding any pending legal challenge to one or more permits or approvals.
(K) "Subscriber" means any retail electric customer who meets all of the following:
(1) The customer has a single unique tax identification number;
(2) The customer has an electric meter on the customer's property;
(3) The customer resides within the certified territory of an electric distribution utility;
(4) The customer contracts for a subscription from a community energy facility located in the same certified territory as the customer;
(5) The customer resides in the same, or a contiguous, county where the facility is located;
(6) The customer is not a large industrial customer.
(L) "Subscription" means the right to obtain from a community energy organization an allocation of bill credits for electricity generated by a community energy facility.
(M) "Unsubscribed electricity" means any electricity generated by a community energy facility that is not attributable to a subscription.
(N) "Value stack" means distributed generation compensation calculated under section 4934.09 of the Revised Code that recognizes the benefits that community energy facilities bring to the electrical grid, including all of the following:
(1) Avoided costs for generation, capacity, and transmission;
(2) Deferred transmission distribution investments;
(3) Avoided line loss;
(4) Increased resiliency;
(5) Other benefits associated with locally produced electricity.
(A) The parcel or parcels of land are a distressed site or the facility is on one or more commercial or public sector rooftops, and the total capacity of all community energy facilities on the parcel or parcels does not exceed twenty megawatts.
(B) All of the following are satisfied:
(1) The community energy facility is to be located on a parcel of land, or multiple parcels of land, that were created prior to the effective date of this section.
(2) The total capacity of all community energy facilities on the parcel or parcels of land does not exceed ten megawatts.
(3) Each community energy facility has its own distinct point of interconnection with the serving electric distribution utility, including separate and distinct metering and the ability to be directly connected to or disconnected from the utility.
(4) The generation components of each community energy facility are separate, including separate fencing, and not connected with neighboring facilities other than by the utility's distribution system.
(5) Each community energy facility shares only non-operational infrastructure, including access roads, utility poles, and other features necessary to provide utility and physical access to each facility.
(B) All megawatts certified pursuant to this section shall be allocated proportionally based on the size of each utility's retail electric sales published by the energy information administration.
(C) Any uncertified megawatts for a year carry over to the subsequent year until all available megawatts are certified.
(D) All megawatts certified pursuant to this section shall be certified in the order that the certification applications were received.
(E) If applications for certification exceed the total capacity available for the year, then the applications shall be placed on a wait list as determined by the commission. Once certification of one thousand megawatts for community energy facilities has occurred, the wait list shall be eliminated.
(F) The commission shall ensure that certification under this section is separate from a certification process required under sections 4928.64 to 4928.645 of the Revised Code, or any related rules in the Ohio Administrative Code.
(B) The commission shall ensure that certification under this section is separate from a certification process required under sections 4928.64 to 4928.645 of the Revised Code, or any related rules in the Administrative Code.
(C) After all megawatts are certified pursuant to this section, a community energy facility on a distressed site or a commercial or public sector rooftop may be certified from the megawatts allocated under section 4934.05 of the Revised Code.
(B) (1) A community energy organization may account for unsubscribed electricity on a monthly basis and accumulate bill credits for the unsubscribed electricity for a period of up to twelve months after it was generated.
(2) Bill credits for unsubscribed electricity accumulated under division (B) (1) of this section shall be allocated to future subscribers at the direction of the community energy organization.
(C) At least once annually, a community energy organization shall furnish to the electric distribution utility in whose certified territory the community energy facility is located an allocation for distribution of bill credits to subscribers for unsubscribed electricity.
(D) A community energy organization shall forfeit, to the electric distribution utility in whose certified territory the community energy facility is located, any bill credits for unsubscribed electricity that are not allocated pursuant to division (B) of this section.
(1) "Regional governmental aggregator" means a regional council of governments established under Chapter 167. of the Revised Code with members in at least seventeen counties that is also a governmental aggregator under section 4928.20 of the Revised Code.
(2) "Renewable attributes" means any of the following that are attributable to a community energy facility or the electricity generated by a facility provided by the federal or state government or any other legislative authority of a political subdivision in the state:
(a) Any credits, certificates, benefits, or offsets and allowances computed on the basis of a community energy facility's displacement of fossil fuel-derived, or other conventional, electric generation;
(b) Any renewable energy credits or any other environmental certificates issued or administered in connection with electricity generated from a community energy facility;
(c) Any voluntary emission reduction credits obtained, or obtainable, in connection with the electric generation from a community energy facility.
(B) A regional governmental aggregator may purchase any amount of renewable attributes from a community energy facility.
(B) A subscriber to a community energy facility shall be eligible for a bill credit from the subscriber's electric distribution utility for the proportional output of a community energy facility attributable to the subscriber.
(C) The public utilities commission shall establish the bill credit for each subscriber, subject to divisions (D) and (E) of this section, that is equal to the utility's retail rate on a per-customer class basis, minus only the utility's base charge for distribution service approved under Chapter 4909. of the Revised Code and the utility's distribution riders or other distribution charges approved under Chapter 4928. of the Revised Code.
(D) When determining the bill credit for each utility, the commission shall ensure that the bill credit is set at a reasonably compensatory level to create a financeable community energy market.
(E) When determining the bill credit for each utility, the commission shall consider all of the following:
(1) The costs and benefits provided by community energy facilities participating in the community energy pilot program;
(2) All proposed rules, fees, and charges;
(3) Any other item that the commission determines is necessary.
(F) The bill credit initially established under this section shall not be modified unless the commission determines, after the community energy pilot program review under section 4934.37 of the Revised Code is completed, that such changes are necessary to adjust for unallocated community energy capacity. Upon making such determination, the bill credit shall be modified pursuant to section 4934.09 of the Revised Code.
(G) The utility shall publish new tariffs or update existing tariffs based on the bill credit set under this section not later than nine months after the effective date of this section.
(B) The commission shall approve a tariff based on the revised bill credit rate not later than twelve months after the report under section 4934.37 of the Revised Code is submitted.
(A) A consumer transaction subject to Chapter 1345. of the Revised Code regarding the enrollment of residential subscribers to obtain an allocation of bill credits;
(B) Goods subject to Chapter 1302. of the Revised Code regarding the enrollment of nonresidential subscribers to obtain an allocation of bill credits.
(1) The person holds a public meeting as described in section 4934.16 of the Revised Code.
(2) The board of township trustees where the facility is proposed to be located fails to adopt a resolution under section 519.216 of the Revised Code.
(B) The public utilities commission shall adopt rules to implement this section and section 4934.16 of the Revised Code, including rules that provide for the decertification of the megawatts for a community energy facility if the board of township trustees in the township in which the facility is to be located adopts a resolution under section 519.216 of the Revised Code. The rules shall also provide for the following regarding those decertified megawatts:
(1) (a) In the case of a resolution adopted under division (B) (1) of section 519.216 of the Revised Code, certification of those megawatts for the next community energy facility on the wait list, if any, pursuant to division (E) of section 4934.05 of the Revised Code:
(b) In the case of a resolution adopted under division (B) (2) of section 519.216 of the Revised Code, requirements and procedures for recertification of some or all of the decertified megawatts for the community energy facility subject to the resolution if the facility proposal is modified to meet the limitations of the resolution. The requirements and procedures shall be consistent with the requirements of division (A) of this section and sections 519.216 and 4934.16 of the Revised Code. Decertified megawatts not included in the modified proposal shall be certified for the next community energy facility on the wait list, if any, pursuant to division (E) of section 4934.05 of the Revised Code.
(2) If a recertified community energy facility under a proposal modified under rules adopted under division (B) (1) (b) of this section is subsequently subjected to a resolution adopted under section 519.216 of the Revised Code, certification of those megawatts for the next community energy facility on the wait list, if any, pursuant to division (E) of section 4934.05 of the Revised Code.
(B) The applicant shall provide written notice of the public meeting to the boards of trustees of every township in which the facility will be located. Notice shall be provided at least fourteen days prior to the meeting.
(C) At the public meeting, the person intending to construct and operate a community energy facility shall provide the following information to the board of township trustees:
(1) The type of fuel source the facility will utilize;
(2) The maximum nameplate capacity of the facility;
(3) A map of the proposed geographic boundaries of the project within that township.
(D) All of the information described in division (C) of this section shall be submitted to the board of township trustees in written form at the public meeting.
(B) Under a net crediting agreement, an electric distribution utility shall do the following:
(1) Remit, through an electronic funds transfer, the cash value of the subscriber's subscription fee, less any net crediting fee, to the community energy organization not later than thirty days after the billing period;
(2) Issue electric distribution utility customers who are subscribers an itemized monthly bill that includes, in addition to charges described in division (B) (4) of this section, the subscriber's bill credit for the billing period and the subscriber's subscription fee;
(3) Process monthly bills for subscribers who participate in low-income customer assistance programs or budget billing programs in the same manner as bills for customers who are not participating in such programs;
(4) Bill for all basic electric services, including transmission, distribution, and generation charges, consistent with this section and commission regulations.
(B) The department of development shall promulgate rules for awarding grants described in this section.
(B) The working group shall consist of the following:
(1) Electric distribution utilities;
(2) Consumer advocates;
(3) Community energy industry representatives;
(4) Other interested parties.
(A) The certification of community energy facilities, which shall include rules for the commission to approve or deny each facility application within ninety days, unless good cause is shown for not meeting the deadline, as determined by the commission:
(B) Prohibit removing a subscriber from the subscriber's applicable customer class because of the subscriber's subscription to a community energy facility:
(C) Reasonably allow for the transfer and portability of subscriptions, including allowing a subscriber to retain a subscription to a facility if the subscriber moves within the same electric distribution utility's service territory:
(D) Modify existing interconnection standards, fees, and processes as needed to facilitate the efficient and costeffective interconnection of community energy facilities that allow an electric distribution utility to recover reasonable interconnection costs for each facility:
(E) Require each electric distribution utility to efficiently connect a community energy facility to its electrical distribution grid and not to discriminate against facilities or subscribers:
(F) Provide for consumer protection in accordance with existing laws and regulations, including any protections against disconnection of service:
(G) Establish robust consumer protections for subscribers, including at least the following:
(1) A standardized customer disclosure form for residential subscribers;
(2) Prohibiting upfront sign-on fees or credit checks;
(3) Preventing early termination charges to any subscriber who unsubscribes.
(H) Allow an electric distribution utility to recover reasonable costs associated with administering the community energy pilot program:
(I) Ensure that costs associated with the community energy pilot program only be recovered from customer classes participating in the program and that no cross-subsidization of costs between customer classes occurs:
(J) Ensure facilities qualifying for the community energy pilot program have a signed interconnection agreement or a system impact study, as determined by the commission, can demonstrate site control, and have received all applicable non-ministerial permits:
(K) Require each community energy organization to send a notice in a standardized format containing information related to subscriber enrollment to the electric distribution utility that services the area where the organization's community energy facility is sited:
(L) Not later than nine months after the effective date of this section, require each electric distribution utility to publish new tariffs or update existing tariffs to implement the community energy pilot program:
(M) Establish community energy pilot program evaluations and consumer protections to ensure that subscribers are effectively and equitably receiving guaranteed savings from participating in the community energy pilot program;
(N) Require a community energy organization to be responsible for the decommissioning of a community energy facility pursuant to sections 4934.35 and 4934.36 of the Revised Code.
(B) The decommissioning described in division (A) of this section shall include the following, to be mutually agreed to in writing by the property owner or owners and the organization:
(1) The removal, and potential reuse and recycling, of solar panels and other community energy equipment, and the remediation of the site;
(2) The removal of all non-utility-owned equipment, graveled areas, and access roads;
(3) The replacement of any topsoil that was removed for the construction of the facility and reseeding of the cleared area.
(C) Not more than twenty per cent of the total combined mass of the community energy facility may enter a landfill.
(B) The amount of the bond shall be calculated by a third-party professional engineer obtained by the organization. Every five years from the date of the initial assessment, the bond amount shall be recalculated in the same manner.
(C) The board of county commissioners where the project is located shall be the obligee of the bond.
(1) The number and location of operating community energy facilities;
(2) The amount of nameplate capacity certified;
(3) The number of subscribers, how much energy was subscribed to by those subscribers, and the types of customer classes that subscribed;
(4) Whether guaranteed savings were achieved by the subscribers.
(B) The commission shall promulgate rules to require community energy organizations and electric distribution utilities to provide the commission with a report containing the relevant information described in division (A) of this section.