OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 201 Final Analysis
134th General Assembly
Click here for H.B. 201’s Fiscal Note
Version: As Passed by the General Assembly
Primary Sponsor: Rep. Stephens
Effective date: September 30, 2021
Effective Date:
J.R. Lallo, Research Analyst
SUMMARY
 Guarantees that every person has the right to obtain:
 Distribution service or retail natural gas service from a natural gas company capable
of providing service to the person;
 Competitive retail natural gas service from any competitive retail natural gas service
supplier certified to provide that service to the person in that location; or
 Propane from any energy dealer willing to provide propane to that customer in that
location.
 Provides that the natural gas guarantees described above are:
 Limited by public utilities law governing natural gas utilities and any regulations
adopted under that law by the Public Utilities Commission (PUCO) and tariffs
approved by PUCO; and
 Subject to municipal corporation utility home rule authority granted under the Ohio
Constitution.
 Provides that the propane guarantee described above is:
 Limited by Ohio law governing propane, the Propane Council, and propane
marketing, and any regulations adopted under that law by the Department of
Agriculture; and
 Subject to municipal corporation utility home rule authority granted under the Ohio
Constitution.
 Bars any political subdivision, by ordinance, resolution, building code, contractual
provision, or other requirement, from limiting, preventing, or prohibiting any consumer
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within its boundaries from using distribution services, retail natural gas service, or
propane.
 Provides that, other than the limitations described above, a municipality’s right to enter
into and administer franchise agreements are not inhibited or restricted.
 States that the provisions establishing the guarantees and delineating political
subdivision authority cannot prevent or limit a municipal corporation from exercising its
authority regarding electric aggregation, securitization of electric distribution utility
costs, and the PUCO’s Federal Energy Advocate and the Advocate’s duties.
 States that the provisions establishing the guarantees and delineating political
subdivision authority cannot limit a natural gas company’s ability to provide service to
new customers or to require free extensions of service.
 Provides that the act promotes state policy to increase utilization of Ohio’s indigenous
energy resources, promote the availability of natural gas goods and services, and
encourage the utilization of propane.
DETAILED ANALYSIS
Guarantee of access to natural gas service
The act guarantees that every person has the right to obtain any available
(1) distribution service or retail natural gas service from a natural gas company capable of
providing service to the person in that location or (2) competitive retail natural gas services
from any competitive retail natural gas service supplier certified to provide that service to the
person in that location.1 A “natural gas company” is a public utility that is engaged in the
business of supplying natural gas for lighting, power, or heating purposes to consumers in Ohio.
This term excludes retail natural gas suppliers.2
The services guaranteed under the act are defined as follows:
 “Distribution service,” meaning the delivery of natural gas to a consumer at the
consumer’s facilities, by and through the instrumentalities and facilities of a natural gas
company, regardless of the party having title to the natural gas.
 “Retail natural gas service,” meaning commodity sales service, ancillary service, natural
gas aggregation service, natural gas marketing service, or natural gas brokerage service.
1 R.C. 4933.41(A).
2 R.C. 4933.40(B); R.C. 4929.01(G) and 4905.03(E), not in the act.
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 “Competitive retail natural gas service,” meaning any retail natural gas service that may
be competitively offered to consumers in Ohio as a result of approved schedules, or a
rule, order, or exemption issued by the Public Utilities Commission (PUCO). 3
This guarantee is subject to Ohio utility law governing natural gas service and utility
companies, any regulations adopted under that law by PUCO, and tariffs approved by PUCO, as
well as the municipal corporation utility home rule authority granted under the Ohio
Constitution.4
Under home rule, municipal corporations have the power to acquire, construct, own,
lease, and operate a public utility to serve the municipal corporation or its inhabitants and
others. This means that municipal corporations can own and control utilities and direct how
they operate.5 Please see the Ohio Legislative Service Commission’s Members Brief “Municipal
Home Rule“ for a more detailed discussion of these constitutional provisions.
Guarantee of access to propane
The act guarantees that every person seeking to obtain propane has the right to obtain
it from any energy dealer willing to provide it to the customer in that location. An “energy
dealer” means every retail dealer of fuel oil, propane, coal, wood, and kerosene.6
The propane guarantee is subject to Ohio law governing propane, the Propane Council,
and propane marketing, and any regulations adopted under that law by the Department of
Agriculture, as well as the municipal corporation utility home rule authority granted under the
Ohio Constitution (see discussion above regarding the applicable home rule provision). 7
Prohibitions against political subdivisions
The act prohibits a legislative or executive authority of a township, county, or municipal
corporation from enacting any ordinance or resolution, or promulgating or imposing any
building code, contractual provision, or other requirement, that limits, prohibits, or prevents
residential, commercial, or industrial consumers within their boundaries from using
(1) distribution service or retail natural gas service that would otherwise be available to a
person under Ohio’s public utility law and regulations promulgated under those laws, or
(2) propane.8
3 R.C. 4933.40(B); R.C. 4929.01(F), (J), and (M), not in the act.
4 R.C. 4933.41(B).
5 Ohio Constitution, Article XVIII, Sections 4 and 6.
6 R.C. 4933.40(C) and 4933.41(A)(2); R.C. 5117.01(E), not in the act.
7 R.C. 4933.41(B)(2).
8 R.C. 4933.41(C).
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Franchise authority not limited
Except for the above limits imposed on counties, townships, and municipal
corporations, nothing in the guarantees established by the act is intended to inhibit or restrict a
municipality’s right and ability to enter into and administer franchise agreements under
municipal public utility home rule authority and the law governing the use of the municipal
public way.9
Municipal corporation aggregation, securitization, and advocacy
The act provides that nothing in its provisions establishing the guarantees and
delineating political subdivision authority can be construed to limit a municipal corporation
from exercising its authority under Ohio law governing the following:
 Aggregation of municipal corporation retail electric loads (R.C. 4928.20 and 4928.21);
 Securitization of costs for electric distribution utilities (EDUs) (R.C. 4928.23 to
4928.2318);
 The PUCO’s Federal Energy Advocate and the Advocate’s duties (R.C. 4928.24).10
Natural gas company service
The act provides that nothing in its provision establishing the guarantees and
delineating political subdivision authority can be construed to limit a natural gas company’s
ability to provide service to new customers or to require free extensions of service.11
Promotion of state policy
Lastly, the act provides that the provisions establishing the guarantees and delineating
political subdivision authority promotes state policy to increase utilization of Ohio’s indigenous
energy resources, promote the availability of natural gas goods and services, and encourage the
utilization of propane.12
9 R.C. 4933.41(D); R.C. 4939.01 to 4939.09, not in the act.
10 R.C. 4933.41(F); R.C. 4928.20 to 4928.28, not in the act. The act appears to preserve municipal
corporation authority in many areas of Ohio law in which a municipal corporation has no authority or
the authority it has is irrelevant in relation to the act. See R.C. 4928.20 to 4929.29.
11 R.C. 4933.41(E).
12 R.C. 4933.42; R.C. 1551.18 and 4929.02, not in the act.
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HISTORY
Action Date
Introduced 03-10-21
Reported, H. Energy & Natural Resources 05-03-21
Passed House (65-32) 05-06-21
Reported, S. Energy & Public Utilities 06-16-21
Passed Senate (25-7) 06-24-21
21-HB201-134/ks
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As Passed by the General Assembly