OHIO ENERGY POLICY PROGRESS & REVIEW UCEAO 6 th Annual Conference Securing Ohio’s Energy and Economic Future THE BEST OF TIMES, THE WORST OF TIMES: ADVANCED.

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OHIO ENERGY POLICY PROGRESS & REVIEW UCEAO 6 th Annual Conference Securing Ohio’s Energy and Economic Future THE BEST OF TIMES, THE WORST OF TIMES: ADVANCED ENERGY IN THE CURRENT ECONOMY April 2012 Craig Butler, Assistant Policy Director - Environment, Energy & Agriculture

10 PILLARS OF OHIO’S ENERGY POLICY 1.Shale 2.Generation 3.Electricity Transmission and Distribution 4.Workforce Training 5.CNG/Alternative Fuels 6.Cogeneration/Waste Heat Recovery 7.Energy Efficiency 8.Coal 9.Regulatory Reform 10. Renewables

PILLAR 1: SHALE Team Effort to Analyze Risks and Balance Job Creation & Public Safety Modernizing Regulations ODNR – Well construction standards – Chemical disclosure – Underground injection program EPA – Encouraging wastewater treatment and recycling technologies – Issuance of general permits ODOT Local impacts/road use agreements Commerce – Consolidating and streamlining permitting Taxation – Local Impacts – Tax Reduction Public Utilities Commission – Pipeline Safety Public Safety

PILLAR 2: GENERATION Ensuring Ohio’s Generation Capacity & Investing in New Technologies Review and Pilot New Generation and Efficiency Technologies – Smart Grid and Smart Metering Expand Customer Choice for Renewables Assess federal EPA Impacts on Future Generation and Transmission Advocate for Reforms to Expand the Reliability Pricing Model

PILLAR 3: ELECTRICITY TRANSMISSION & DISTRIBUTION Meeting Needs of Industry and Consumers Ensure Transmission and Distribution are Adequate for Growing Shale Industry Identify and address interconnection challenges to renewable energy projects

PILLAR 4: WORKFORCE DEVELOPMENT Aligning Industry Needs with Worker Training Investing in Shale and Energy Industry Training – Zane State: $6M proposed in Capital Budget to construct new training space – Stark State: $10M proposed in Capital Budget to construct indoor drill training rig – Nabors Drilling: State assisting with site selection to build oil and gas training rig Create a Statewide Website Linking Ohio Companies with a Trained Workforce Work with Companies to Develop Training Credentials to Ensure Skills Match Demand Link Veterans and Minorities With Jobs Specific to Oil and Gas Industry

PILLAR 5: CNG/ALTERNATIVE FUELS Promoting the Use of Natural Gas Sign Agreement with Other States to: – Develop regional CNG refueling infrastructure – Promote usage of CNG vehicles in Ohio Assess Converting All or Part of State Fleet to CNG Develop Flexible Revolving Loan Fund for Alternative Fuels – CNG, Biodiesel and Ethanol

PILLAR 6: COGENERATION/WASTE HEAT Capturing Waste Heat to Make Green Energy Allow Cogen to Qualify as a Renewable Energy Source Allow Ohio Electric Utilities to Use Cogen to Meet Alternative Efficiency Standards Revamp Energy Loan Fund Require State to Review Cogen as Part of New Construction and Major Renovations

PILLAR 7: ENERGY EFFICIENCY Promoting Efficiency to Save Resources Continuing Program to Improve State Building Efficiency and Finance Through Air Quality Development Authority Identify New Efficiency Technologies and Programs Available to Ohio Determine Standards for State Fleet Vehicle Replacement to Increase Efficiency Review Utility Green Pricing Programs and Expand Customer Choice

PILLAR 8: COAL New Opportunities for a Critical Resource Coal Research – $30M for coal research projects focused on carbon capture, sequestration, enhanced oil recovery, and new technologies Permit Streamlining – Streamlining and simplifying permit process Exempt Coal Combustion Waste From Additional Fees and Encourage Solid Waste Landfill Management

PILLAR 9: REGULATORY REFORM Streamline & Expedite Environmental Permits Develop and Issue “General Permits” for Business to Minimize Lengthy Permit Review Request Federal Wetland Permitting Program Authority to Eliminate Duplication with State Program

PILLAR 10: RENEWABLES Promoting Renewables for a Balanced Portfolio Retained Renewable and Advanced Energy Technology Requirements in SB 221 Develop Flexible Revolving Loan Fund for Alternative Fuels – CNG, Biodiesel and Ethanol Revamp Energy Loan Fund to Help Finance Energy Efficiency and Renewable Energy Projects Identify and Address Interconnection Challenges to Renewable Energy Projects Review Utility Green Pricing Programs and Expand Customer Choice – Enhance current programs and provide new options to consumers for green energy