OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 264 Bill Analysis
135th General Assembly
Click here for H.B. 264’s Fiscal Note
Version: As Passed by the House
Primary Sponsors: Reps. Pizzulli and Johnson
Effective date:
Rocky Hernandez, Attorney
SUMMARY
 Includes a facility that produces and uses steam, or transfers it, from recovered waste
heat from a manufacturing process to another manufacturing process or to generate
electricity as a “waste energy recovery system” for purposes of the renewable energy
resource portfolio standards, renewable energy credits, advanced energy program, and
energy efficiency program under the Competitive Retail Electric Service Law.
DETAILED ANALYSIS
Waste energy recovery systems
The bill includes “[a] facility that produces steam from recovered waste heat from a
manufacturing process and uses that steam, or transfers that steam to another facility, to
provide heat to another manufacturing process or to generate electricity” under the current
law definition of a “waste energy recovery system (WERS).”1
Renewable energy
The bill’s inclusion of that type of facility as a WERS makes it a “renewable energy
resource” if the facility was placed into service or retrofitted on or after September 10, 2012,
and was not included in an electric distribution utility’s (EDU’s) energy efficiency (EE) program
on or after January 1, 2012. This change lets the facility qualify, if certain other conditions are
met, as a “qualifying renewable energy resource” for purposes of complying with the
renewable energy portfolio standards and earning renewable energy credits under the
Competitive Retail Electric Service Law.
1 R.C. 4928.01(A)(38)(c).
May 9, 2024
Office of Research and Drafting LSC Legislative Budget Office
It would also allow the facility to be the subject of an agreement by an EDU and a
mercantile customer, or group of mercantile customers, for the construction of a customer-
sited renewable energy resource that would provide power to the mercantile customer(s)
facilities.2
Advanced energy
The facility added as a WERS also becomes an “advanced energy resource” under the
condition that it has not been included in an EE program by an EDU. The resource, therefore,
may be an “advanced energy project” that qualifies for financial, technical, and other types of
assistance under the advanced energy program and from an advanced energy manufacturing
center.3
Energy efficiency
The facility also can be included in an EDU’s EE program under the EE portfolio
provisions in the Competitive Retail Electric Service Law if, as a WERS, it was placed into service
or retrofitted on or after September 10, 2012. However, it is not clear what effect this will have
as the EE portfolio requirements have since terminated.4
HISTORY
Action Date
Introduced 09-12-23
Reported, H. Energy & Natural Resources 12-13-23
Passed House (86-4) 05-08-24
ANHB0264PH-135/ar
2 R.C. 4928.01(A)(37)(a); R.C. 4928.47, and 4928.64 to 4928.65, not in the bill.
3 R.C. 4928.01(A)(25) and (34); R.C. 4928.62 and 4928.621, not in the bill.
4R.C. 4928.66(A), (F), and (G), not in the bill. In the Matter of the Application of Ohio Power Company for
approval of its EE/PDR Program Portfolio Plan for 2017 through 2020, Case No. 16-0574-EL-POR,
February 24, 2021.
P a g e |2 H.B. 264
As Passed by the House


Statutes affected:
As Introduced: 4928.01
As Reported By House Committee: 4928.01
As Passed By House: 4928.01