OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 450 Bill Analysis
134th General Assembly
Click here for H.B. 450’s Fiscal Note
Version: As Introduced
Primary Sponsors: Reps. Baldridge and Lanese
Effective Date:
Rocky Hernandez, Attorney
SUMMARY
 Amends state energy policy to encourage the development of “community solar
projects” (CPS) which are energy generating facilities that meet certain requirements
and allow for customers to offset a portion of their electric consumption with energy
generated by the project through subscriptions.
 Allows the Public Utilities Commission (PUCO) to certify up to:
 2,000 megawatts (MWs) of CSPs, based on nameplate capacity; and
 An additional 1,000 MWs of CSPs to be constructed in distressed areas, the majority
of which must be in Ohio’s Appalachian Region counties.
 Requires subscribers to a CSP to be eligible for net metering on the same terms as a
customer-generator, which terms must also include a process to unsubscribe from a
CSP.
 Caps the amount a subscriber can subscribe from a CSP to no more than 120% of the
subscriber’s average annual electricity usage.
 Provides an owner or operator of a CSP built on certain distressed sites the following
incentives:
 A nameplate capacity of up to 45 MWs based on the CSP’s point of interconnection
(CSPs sited elsewhere are capped at 10 MWs);
 Eligible to receive a grant awarded by the Department of Development under the
Brownsfield Remediation Program under continuing law.
 Requires PUCO to conduct an annual review of the CSP Program and to submit a report
to the General Assembly with their findings.
 Directs PUCO, not later than six months after the bill’s effective date, to promulgate
rules to implement the bill’s provisions.
October 27, 2021
Office of Research and Drafting LSC Legislative Budget Office
DETAILED ANALYSIS
Community solar projects
The bill makes it state energy policy to encourage the development of “community solar
projects” (CSPs) for the benefit of Ohio customers and to facilitate customer participation in the
projects.1
Under the bill, a CSP is a facility owned and operated by a subscriber organization (a
for-profit or nonprofit entity that owns or operates one or more CSPs) that generates electricity
by means of a solar photovoltaic device and the facility meets the following requirements:
 It is located in Ohio and is connected to the electric transmission grid, or an electric
distribution system, serving Ohio;
 It has at least three subscribers (customers of an electric distribution utility (EDU) that
purchase shares of a CSP’s output and are not “self-assessing purchasers”) 2;
 It is located on one or more adjacent and contiguous parcels of land, and is not located
within one mile of solar facilities under the control of the same entity, based on the
project’s point of interconnection (control means possession of the power to direct the
management and policies of an entity);
 No subscriber holds more than a 40% proportional interest in the output of the system,
and not less than 60% of the facility capacity subscribed by subscriptions of 40 kilowatts
or less;
 Its nameplate capacity is 10 or less megawatts (MW);
 It is not under the control of an EDU, except that an EDU’s affiliate may control it.3
Certification of CSPs
The bill allows the Public Utilities Commission (PUCO) to certify up to 2,000 MWs of
CSPs, based on nameplate capacity.4
The bill also allows PUCO to certify an additional 1,000 MWs, which must be reserved
for CSPs constructed exclusively on distressed sites. PUCO must ensure that a majority of the
1,000 MWs for distressed sites be distributed to projects that are be to constructed in the
1 R.C. 4928.02.
2 R.C. 5727.81, not in the bill.
3 R.C. 4928.85(A), (C), (D), and (E).
4 R.C. 4928.851(A).
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As Introduced
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Appalachian Region (certain Ohio counties located in Southern and Easter parts of the state and
designated as part of Appalachia by the federal government).5
Under the bill, a distressed site is made up of contiguous parcels within an EDU’s
certified territory, or located within a county in which an EDU operates, where a majority of the
acreage is at least one of the following:
 A “brownfield” (an abandoned, idled, or under-used industrial, commercial, or
institutional property where expansion and redevelopment is complicated by the
possibility or presence of hazardous substances or petroleum);
 A parcel that is within an area where an investor may receive a New Markets Tax Credit
under federal law;
 A closed solid waste facility licensed by the Environmental Protection Agency.6
The bill further specifies that certification of CSPs is separate from any certification
process related to renewable energy benchmarks and renewable energy credits under
continuing law.7
CSP subscription and net metering
The bill requires CSP subscribers to be eligible for net metering under continuing law, on
the same terms as a typical customer-generator, offsetting the subscriber’s usage based on the
amount of electricity represented by the subscription. These terms must also include a process
for customers to unsubscribe from the CSP. The bill prohibits a subscriber from subscribing to a
share of a CSP representing more than 120% of their average annual electricity usage.8
Distressed sites incentives
The bill gives incentives for a CSP to be constructed on a distressed site. The bill allows
such a CSP to have a nameplate capacity of up to 45 MW based on the project’s point of
interconnection, rather than up to 10 MW for a CSP built elsewhere. A subscription
organization9 is also eligible to receive a grant awarded by the Department of Development
from the Brownfield Remediation Program under continuing law for costs associated with
construction and remediation related to the CSP construction. The Department must
promulgate rules for awarding the grants.10
5 R.C. 4928.851(B).
6 R.C. 4928.85(B); R.C. 122.65 and 3734.02, not in the bill; 26 United States Ccode 45D.
7 R.C. 4928.851(C); R.C. 4928.64 to 4928.645, not in the bill.
8 R.C. 4928.852.
9 A technical amendment is needed to correct the reference to “subscription organization.” It should be
“subscriber organization.” See R.C. 4928.85.
10 R.C. 4928.856 and 4928.857; R.C. 122.6511, not in the bill.
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As Introduced
Office of Research and Drafting LSC Legislative Budget Office
Reporting requirement
The bill directs PUCO to conduct an annual review of the CSP Program and submit a
report to the General Assembly, which must contain at least:
 The number and location of the CSPs;
 The amount of nameplate capacity available;
 The number of subscribers, how much energy they consumed, the type of customer
classes that subscribed, and whether they achieved any bill savings;
 Any other information PUCO determines is necessary.
The bill requires PUCO to promulgate rules requiring subscriber organizations to provide
PUCO with a report containing the information described above, and any other info PUCO
requests.11
Rulemaking
The bill requires PUCO, not later than six months after the bill’s effective date and
notwithstanding continuing law governing the review and reduction of administrative rules with
regulatory restrictions to the contrary,12 to promulgate rules to implement the bill’s provisions,
including rules for the creation and establishment of CSPs and the following:
 Subscriber enrollment to purchase share of the output of CSPs, which must ensure
customer protection and participation opportunities for all subscribers;
 CSP certification, including rules requiring a decision by PUCO to approve or deny a
project within 90 days, unless PUCO determines there is good cause for not meeting the
deadline;
 Prohibit removing a customer from the customer’s applicable customer class due to the
customer’s subscription;
 Reasonably allow for the transfer and portability of subscriptions, including allowing a
subscriber to retain a subscription if the subscriber moves within the same EDU’s service
territory;
 Modify existing interconnection standards, fees, and processes, as needed, to facilitate
the efficient and cost-effective interconnection of CSPs to allow an EDU to recover
reasonable interconnection costs for each project. Any increase in such fees occurring
due to the modification must be paid by the EDU;
 Provide for consumer protection in accordance with all applicable laws and regulation,
including those protecting against disconnection of service;
11 R.C. 4928.858.
12 R.C. 121.95, not in the bill.
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As Introduced
Office of Research and Drafting LSC Legislative Budget Office
 Allows an EDU to recover reasonable costs for administering the CSP program;
 Require EDUs to efficiently connect a CSP to the electrical grid and to not discriminate
against CSPs or subscribers;
 Ensure that CSPs have reached a milestone (determined by PUCO) in the
interconnection process, can demonstrate site control, and have received all applicable
nonministerial permits (necessary governmental permits and approvals to construct a
project notwithstanding any pending legal challenge to one or more permits or
approvals13);
 Require subscriber organizations to send a notice in a standardized format containing
information related to customer enrollment to the EDU that services the area where the
project is sited.14
HISTORY
Action Date
Introduced 10-12-21
H0450-I-134/ts
13 R.C. 4928.85(F).
14 R.C. 4928.859.
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As Introduced


Statutes affected:
As Introduced: 4928.02