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Todd Nein Interim Executive Director Ohio Air Quality Development Authority

Todd Nein Interim Executive Director Ohio Air Quality Development Authority. Ohio Air Quality Development Authority (OAQDA).

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Todd Nein Interim Executive Director Ohio Air Quality Development Authority

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  1. Todd Nein Interim Executive Director Ohio Air Quality Development Authority

  2. Ohio Air Quality Development Authority (OAQDA) • Since 1970, OAQDA helps large and small Ohio businesses and government agencies invest in cleaner energy and environmental regulatory compliance through loans, grants and tax exempt financing for equipment and construction.

  3. Project Development and Finance • OAQDA provides financing via conduit bonds for a broad range of projects. All OAQDA financing instruments are conduit bonds that: • May be exempt or non-exempt from federal income tax • Enjoy 100 percent exemption for the term of the financing from state income tax, real property, sales and use taxes • Are based on a credit analysis of the benefiting party • Must identify the revenue sources that cover principal and interest payments • OAQDA bonds do not represent the faith and credit of the State of Ohio; all repayment responsibility rests the financed project.

  4. Project Development and Finance • Qualifying projects include those that address: • Air contaminants; • Solid waste; • Ethanol or other bio-fuel facilities; • Energy efficiency or conservation measures; • Power purchase agreements (PPAs); and • Various advanced energy technologies, including but not limited to wind, solar, geothermal, biomass and certain natural gas projects.

  5. Project Development and Finance OAQDA financing support has assisted projects ranging from $14,000 to $350 million. Some recent examples include: • $5 million in OAQDA financing of a broad range of energy system retrofits, to be installed at the Ohio Reformatory for Women at Marysville in Union County ; • $29 million for Ohio University to install a comprehensive energy efficiency and conservation overhaul of 72 buildings at its main campus in Athens ; • $55 million to help Andersons Marathon Ethanol in Darke County acquire, build, install and equip air quality facilities; and • $241.2 million for FirstEnergy Generation Corporation to refinance bonds previously authorized by OAQDA for air quality facilities at plants in eight Ohio counties.

  6. Mid-Biennial Budget Review Opportunity • This recent legislation further clarified our statute in order to enable the Authority to finance these Co-Generation Systems • Waste Energy Recovery (WER) • Combined Heat and Power (CHP) • The legislation also expanded our capability of financing projects that would repower or up-rating generating facilities utilizing Natural Gas

  7. Power Purchase Agreements • OAQDA can issue revenue bonds for the purpose of prepaying Power Purchase Agreements, which are tailor-made for each project. • Generally, OAQDA has the ability to finance the prepayment of PPAS with proceeds from OAQDA bonds issued as either (i) federally tax-exempt bonds for the prepayment of electricity to be delivered to municipally owned electric utilities or (ii) federally taxable bonds for the prepayment of electricity to be delivered to investor owned utilities.  Bond proceeds are delivered at closing.  Chapter 3706 requires that a portion of the bond proceeds be used in connection with the acquisition or construction of air quality facilities located within Ohio. • The principal amount of bonds issued to prepay a PPA not subject to Ohio statutory limitations.

  8. Power Purchase Agreements Several factors are taken into consideration when financing PPAs. • What is the heat source process? • What is the availability? • Where and in what grid is the heat source located? • What are the company’s needs regarding the heat source?  I.e., do you need to make steam or electricity for your own use and how much? • What are the estimated pounds of steam or kilowatts to be produced? • Is this an existing heat source or is it to be constructed? If constructed, what is the completion date? • Is the power island already constructed? If not, when will the power island be completed?  If construction has not begun, what is the estimated completion time? • Contact information regarding the engineers who will be able to provide additional information, if needed.

  9. Questions and Contact www.ohioairquality.org Todd Nein Interim Executive Director Ohio Air Quality Development Authority 50 West Broad Street, Suite 1718Columbus, Ohio 43215 Office: 614.466.6825 Fax: 614.752.9188

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