469b - oregonlegislature.gov · potential tax credits for energy conser-vation projects;...

Chapter 469B2013 EDITION

Energy Tax Credits; Grants

ALTERNATIVE ENERGY DEVICES469B.100 Definitions for ORS 469B.100 to 469B.118;

rules469B.103 Criteria; federal standards; rules469B.106 Claim for tax credits; eligibility; contents;

contractor system certification; rules469B.109 Transfer of tax credit for alternative fuel

vehicle; rules469B.112 Ineligible devices; rules469B.115 Performance assumptions and prescriptive

measures for tax credits469B.118 Forfeiture of tax credits; revocation of

contractor certificate; inspection; effectof failure to allow inspection

RENEWABLE ENERGY RESOURCES469B.130 Definitions for ORS 469B.130 to 469B.169

and 469B.171; rules469B.133 Policy469B.136 Priority given to certain projects; criteria;

rules469B.139 Criteria for high-performance homes,

renewable energy systems, combined heatand power facilities and facilities using orproducing renewable energy resources;rules

469B.142 Annual limit to cost of facility eligible fortax credits; discretion of director; rules

469B.145 Application for preliminary certification;eligibility; contents of application; fees;rules

469B.148 Transferability of facility tax credit; effecton taxes reported by public utility; rules

469B.151 Tax credit for rental housing units; eligi-bility

469B.154 Transferability of rental housing unit taxcredit; rules

469B.157 Submissions for preliminary certification;alteration, conditions, suspension or de-nial of preliminary certification

469B.161 Final certification; eligibility; contents ofapplication

469B.164 Fees for certification; rules469B.167 Certificate required for tax credits; certi-

fication not to exceed five years469B.169 Suspension or revocation of certificate;

forfeiture of tax credits; collection469B.171 Assistance with facility purchase for

investor-owned utility customers

RENEWABLE ENERGY PRODUCTIONSYSTEMS

469B.250 Definitions for ORS 469B.250 to 469B.265469B.253 Application for grant; fees469B.256 Grant award; performance agreement; de-

nial; limitations; forfeiture469B.259 Grant application fees; rules

469B.262 Limitations on amount of potential taxcredits for certified renewable energy de-velopment contributions; allocation; rules

469B.265 Policies and procedures; standards forsingle renewable energy production sys-tem; rules

ENERGY CONSERVATION PROJECTS469B.270 Definitions for ORS 315.331 and 469B.270 to

469B.306469B.273 Preference given to certain projects; cri-

teria469B.276 Transferability of project tax credit; de-

termination of prices; rules469B.279 Standards for energy conservation proj-

ects; rules469B.282 Limitation on amount receiving prelimi-

nary certification469B.285 Application for preliminary certification;

eligibility; contents; fees; certification toremain valid for three years; rules


469B.291 Final certification; eligibility; contents ofapplication; rules


fication not to exceed five years469B.300 Revocation of certificate; forfeiture of tax

credits; collection469B.303 Limitations on amount of potential tax

credits for energy conservation projects;allocation; rules

469B.306 Policies and procedures; standards forsingle energy conservation project; rules

TRANSPORTATION PROJECTS469B.320 Definitions for ORS 315.336 and 469B.320 to

469B.347469B.323 Transferability of project tax credit; de-

termination of prices; rules469B.326 Application for preliminary certification;

eligibility; contents; fees; certification toremain valid for three years; rules


469B.332 Final certification; eligibility; contents ofapplication; rules


fication not to exceed five years469B.341 Revocation of certificate; forfeiture of tax

credits; collection469B.344 Limitation on amount of potential tax

credits for transportation projects469B.347 Policies and procedures; standards for

single transportation project; rules

Title 36 (2013 Edition)

PUBLIC HEALTH AND SAFETY

BIOFUELS AND BIOMASS469B.400 Fuel blends and solid biofuels; qualifica-

tion for tax credits; rules469B.403 Biomass; eligibility for tax credits

PENALTIES

469B.991 Civil penalty when contractor certificaterevoked


ENERGY TAX CREDITS; GRANTS 469B.100

ALTERNATIVE ENERGY DEVICES469B.100 Definitions for ORS 469B.100

to 469B.118; rules. As used in ORS 316.116,317.115 and 469B.100 to 469B.118:

(1) “Alternative energy device” means acategory one alternative energy device or acategory two alternative energy device.

(2) “Alternative fuel device” includes afacility for mixing, storing, compressing ordispensing fuels for alternative fuel vehicles,and any other necessary and reasonableequipment.

(3) “Alternative fuel vehicle” means amotor vehicle as defined in ORS 801.360 thatis:

(a) Registered in this state; and(b) Manufactured or modified to use an

alternative fuel, including but not limited toelectricity, natural gas, ethanol, methanol,propane and any other fuel approved in rulesadopted by the Director of the State Depart-ment of Energy that produces less exhaustemissions than vehicles fueled by gasoline ordiesel. Determination that a vehicle is analternative fuel vehicle shall be made with-out regard to energy consumption savings.

(4) “Category one alternative energy de-vice” means:

(a) Any system, mechanism or series ofmechanisms that uses solar radiation forspace heating or cooling for one or moredwellings;

(b) Any system that uses solar radiationfor:

(A) Domestic water heating; or(B) Swimming pool, spa or hot tub heat-

ing and that meets the requirements setforth in ORS 316.116;

(c) A ground water heat pump andground loop system;

(d) Any wind powered device used to off-set or supplement the use of electricity byperforming a specific task such as pumpingwater;

(e) Equipment used in the production ofalternative fuels;

(f) A generator powered by alternativefuels and used to produce electricity;

(g) An energy efficient appliance;(h) An alternative fuel device; or(i) A premium efficiency biomass com-

bustion device that includes a dedicated out-side combustion air source and that meetsminimum performance standards that are es-tablished by the State Department of Energy.

(5) “Category two alternative energy de-vice” means a fuel cell system, solar electricsystem or wind electric system.

(6) “Coefficient of performance” meansthe ratio calculated by dividing the usableoutput energy by the electrical input energy.Both energy values must be expressed inequivalent units.

(7) “Contractor” means a person whosetrade or business consists of offering for salean alternative energy device, constructionservice, installation service or design service.

(8)(a) “Cost” means the actual cost of theacquisition, construction and installation ofthe alternative energy device.

(b) For an alternative fuel vehicle,“cost” means the difference between the costof the alternative fuel vehicle and the samevehicle or functionally similar vehicle manu-factured to use conventional gasoline or die-sel fuel or, in the case of modification of anexisting vehicle, the cost of the modification.“Cost” does not include any amounts paid forremodification of the same vehicle.

(c) For a fueling station necessary to op-erate an alternative fuel vehicle, “cost”means the cost to the contractor of con-structing or installing the fueling station ina dwelling and of making the fuel stationoperational in accordance with the specifica-tions issued under ORS 469B.100 to 469B.118and any rules adopted by the Director of theState Department of Energy.

(d) For related equipment, “cost” meansthe cost of the related equipment and anymodifications or additions to the relatedequipment necessary to prepare the relatedequipment for use in converting a vehicle toalternative fuel use.

(9) “Domestic water heating” means theheating of water used in a dwelling for bath-ing, clothes washing, dishwashing and otherrelated functions.

(10) “Dwelling” means real or personalproperty ordinarily inhabited as a principalor secondary residence and located withinthis state. “Dwelling” includes, but is notlimited to, an individual unit within multipleunit residential housing.

(11) “Energy efficient appliance” includesemerging technologies, such as high-efficiency heat-pump water heaters for do-mestic hot water that meet the NorthernTier Specification established by the North-west Energy Efficiency Alliance for electric-ity or have 0.67 or greater energy factor forgas water heaters, ductless heat pumps,high-efficiency furnaces that are at least 95percent efficient, on-demand gas water heat-ers and heat-pumps, that exceed code.

(12) “First year energy yield” of an al-ternative energy device is the usable energyproduced under average environmental con-ditions in one year.


469B.103 PUBLIC HEALTH AND SAFETY

(13) “Fuel cell system” means any sys-tem, mechanism or series of mechanisms thatuses fuel cells or fuel cell technology togenerate electrical energy for a dwelling.

(14) “Fueling station” includes but is notlimited to a compressed natural gas com-pressor fueling system or an electric charg-ing system for vehicle power batterycharging.

(15) “Placed in service” means the datean alternative energy device is ready andavailable to produce usable energy or saveenergy.

(16) “Solar electric system” means anysystem, mechanism or series of mechanisms,including photovoltaic systems, that uses so-lar radiation to generate electrical energy fora dwelling.

(17) “Third-party alternative energy de-vice installation” means an alternative en-ergy device that is installed in connectionwith residential property and owned by aperson other than the residential propertyowner in accordance with an agreement ineffect for at least 10 years between the resi-dential property owner and the alternativeenergy device owner. The agreement mustcover maintenance and either the use of orthe power generated by the alternative en-ergy device.

(18) “Wind electric system” means anysystem, mechanism or series of mechanismsthat uses wind to generate electrical energyfor a dwelling. [Formerly 469.160]

469B.103 Criteria; federal standards;rules. (1) For the purposes of carrying outORS 469B.100 to 469B.118, the State Depart-ment of Energy may adopt rules prescribingminimum performance criteria for alternativeenergy devices for dwellings. The depart-ment may, in prescribing criteria, rely onapplicable federal, state and local require-ments for energy efficiency, including thestate building code and any specialty codesand any code adopted by the Building CodesDivision of the Department of Consumer andBusiness Services.

(2) The department shall take into con-sideration evolving market conditions in pre-scribing minimum performance criteria foralternative energy devices and in determin-ing credit amounts, consistent with ORS316.116.

(3) The department, in adopting rules un-der this section for solar heating and coolingsystems, shall take into consideration appli-cable standards of federal performance crite-ria prescribed pursuant to the provisions ofthe Solar Heating and Cooling Demon-stration Act of 1974, 42 U.S.C. 5506.

(4) The Director of the State Departmentof Energy shall adopt rules governing the

determination of eligibility, verification andcertification of an alternative fuel device forpurposes of the tax credits granted underORS 316.116 and 317.115, including but notlimited to rules that further define an alter-native fuel vehicle, related equipment or fu-eling station necessary to operate analternative fuel vehicle, that govern thecomputation of costs eligible for credit andthat require equitable allocation of the taxcredit benefits between the lessor and thelessee of an alternative fuel vehicle as acondition of tax credit eligibility. [Formerly469.165]

469B.106 Claim for tax credits; eligi-bility; contents; contractor system certi-fication; rules. (1) Subject to the limitationsin section 75, chapter 730, Oregon Laws 2011,any person may claim a tax credit underORS 316.116 (or ORS 317.115, if the personis a corporation) if the person:

(a) Meets the requirements of ORS316.116 (or ORS 317.115, if applicable);

(b) Meets the requirements of ORS469B.100 to 469B.118; and

(c) Pays, subject to subsection (10) of thissection, all or a portion of the costs of analternative energy device.

(2) A credit under ORS 317.115 may beclaimed only if the alternative energy deviceis a fueling station necessary to operate analternative fuel vehicle.

(3)(a) In order to be eligible for a taxcredit under ORS 316.116 or 317.115, a personclaiming a tax credit for construction or in-stallation of an alternative energy device(including a fueling station) shall have thedevice certified by the State Department ofEnergy or constructed or installed by a con-tractor certified by the department undersubsection (5) of this section. This paragraphdoes not apply to an alternative fuel vehicleor to related equipment.

(b) Certification of an alternative fuelvehicle or related equipment shall be accom-plished under rules that shall be adopted bythe Director of the State Department of En-ergy.

(4) Verification of the purchase, con-struction or installation of an alternativeenergy device shall be made in writing on aform provided by the Department of Revenueand, if applicable, shall contain:

(a) The location of the alternative energydevice;

(b) A description of the type of device;(c) If the device was constructed or in-

stalled by a contractor, evidence that thecontractor has any license, bond, insuranceand permit required to sell and construct orinstall the alternative energy device;



(d) If the device was constructed or in-stalled by a contractor, a statement signedby the contractor that the applicant has re-ceived:

(A) A statement of the reasonably ex-pected energy savings of the device;

(B) A copy of consumer information pub-lished by the State Department of Energy;

(C) An operating manual for the alterna-tive energy device; and

(D) A copy of the contractor’s certifica-tion certificate or alternative energy devicesystem certificate for the alternative energydevice, as appropriate;

(e) If the device was not constructed orinstalled by a contractor, evidence that:

(A) The State Department of Energy hasissued an alternative energy device systemcertificate for the alternative energy device;and

(B) The taxpayer has obtained all build-ing permits required for construction or in-stallation of the device;

(f) A statement, signed by both the tax-payer claiming the credit and the contractorif the device was constructed or installed bya contractor, that the construction or instal-lation meets all the requirements of ORS469B.100 to 469B.118 or, if the device is afueling station and the taxpayer is the con-tractor, a statement signed by the contractorthat the construction or installation meetsall of the requirements of ORS 469B.100 to469B.118;

(g) The date the alternative energy de-vice was purchased by the residential prop-erty owner, or, for a third-party alternativeenergy device installation, the date that theresidential property owner and the alterna-tive energy device owner signed a contract;

(h) The date the alternative energy de-vice was placed in service; and

(i) Any other information that the Direc-tor of the State Department of Energy or theDepartment of Revenue determines is neces-sary.

(5)(a) When the State Department of En-ergy finds that an alternative energy devicecan meet the standards adopted under ORS469B.103, the Director of the State Depart-ment of Energy may issue a contractor sys-tem certification to the person selling andconstructing or installing the alternative en-ergy device.

(b) Any person who sells or installs morethan 12 alternative energy devices in oneyear shall apply for a contractor system cer-tification. An application for a contractorsystem certification shall be made in writing

on a form provided by the State Departmentof Energy and shall contain:

(A) A statement that the contractor hasany license, bonding, insurance and permitthat is required for the sale and constructionor installation of the alternative energy de-vice;

(B) A specific description of the alterna-tive energy device, including, but not limitedto, the material, equipment and mechanismused in the device, operating procedure, siz-ing and siting method and construction orinstallation procedure;

(C) The addresses of three installationsof the device that are available for inspectionby the State Department of Energy;

(D) The range of installed costs to pur-chasers of the device;

(E) Any important construction, installa-tion or operating instructions; and

(F) Any other information that the StateDepartment of Energy determines is neces-sary.

(c) A new application for contractor sys-tem approval shall be filed when there is achange in the information supplied underparagraph (b) of this subsection.

(d) The State Department of Energy mayissue contractor system certificates to eachcontractor who on October 3, 1989, has avalid dealer system certification, which shallauthorize the sale and installation of thesame domestic water heating alternative en-ergy devices authorized by the dealer certi-fication.

(e) If the State Department of Energyfinds that an alternative energy device canmeet the standards adopted under ORS469B.103, the Director of the State Depart-ment of Energy may issue an alternative en-ergy device system certificate to the taxpayerconstructing or installing or having an al-ternative energy device constructed or in-stalled.

(f) An application for an alternative en-ergy device system certificate shall be madein writing on a form provided by the StateDepartment of Energy and shall contain:

(A) A specific description of the alterna-tive energy device, including, but not limitedto, the material, equipment and mechanismused in the device, operating procedure, siz-ing, siting method and construction or in-stallation procedure;

(B) The constructed or installed cost ofthe device; and

(C) A statement that the taxpayer has allpermits required for construction or installa-tion of the device.



(6) Prior to commencing installation ofalternative energy devices, installers ofthird-party alternative energy device instal-lations must apply to the State Departmentof Energy to reserve credits on behalf ofowners of residential property. Installersmay reserve credit for no more than 25 in-stallations under this subsection in one ap-plication.

(7) To claim the tax credit, the verifica-tion form described in subsection (4) of thissection shall be submitted with thetaxpayer’s tax return for the year the alter-native energy device is placed in service orthe immediately succeeding tax year. A copyof the contractor’s certification certificate,alternative energy device system certificateor alternative fuel vehicle or related equip-ment certificate also shall be submitted.

(8) The verification form and contractor’scertificate, alternative energy device systemcertificate or alternative fuel vehicle or re-lated equipment certificate described underthis section shall be effective for purposes oftax relief allowed under ORS 316.116 or317.115.

(9) The verification form and contractor’scertificate described under this section maybe transferred to the first purchaser of adwelling or, in the case of construction orinstallation of a fueling station in an existingdwelling, the current owner, who intends touse or is using the dwelling as a principal orsecondary residence.

(10) Any person that pays the presentvalue of the tax credit for an alternative en-ergy device provided under ORS 316.116 or317.115 and 469B.100 to 469B.118 to the per-son who constructs or installs the alternativeenergy device shall be entitled to claim thecredit in the manner and subject to rulesadopted by the Department of Revenue tocarry out the purposes of this subsection.The State Department of Energy may estab-lish by rule uniform discount rates to beused in calculating the present value of a taxcredit under this subsection. [Formerly 469.170;2012 c.45 §13]

Note: Section 8a, chapter 832, Oregon Laws 2005,provides:

Sec. 8a. (1) The State Department of Energy maynot issue a contractor’s certification certificate or analternative energy device system certificate under ORS469.170 [renumbered 469B.106] after January 1, 2018.

(2) The State Department of Energy may not issuean alternative fuel vehicle or related equipment certif-icate under ORS 469.170 for a tax year beginning on orafter January 1, 2012. [2005 c.832 §8a; 2009 c.913 §13;2011 c.730 §68]

469B.109 Transfer of tax credit for al-ternative fuel vehicle; rules. (1) The ownerof an alternative fuel vehicle as defined inORS 469B.100 may transfer a tax credit oth-erwise allowed under ORS 316.116 for cost

of the vehicle in exchange for a cash pay-ment equal to the present value of the po-tential tax credit, as determined at the timeof the application for preliminary certifica-tion.

(2) The State Department of Energy mayestablish by rule uniform discount rates tobe used in the calculation required underthis section. [Formerly 469.171; 2012 c.45 §13a]

469B.112 Ineligible devices; rules. Thefollowing devices are not eligible for the taxcredit under ORS 316.116:

(1) Standard efficiency furnaces;(2) Air conditioning systems;(3) Boilers;(4) Standard back-up heating systems;(5) Woodstoves or wood furnaces, or any

part of a heating system that burns wood,unless the woodstove, furnace or systemconstitutes a premium efficiency biomasscombustion device described in ORS 469B.100(4)(i);

(6) Heat pump water heaters that arepart of a geothermal heat pump space heat-ing system;

(7) Structures that cover or enclose aswimming pool;

(8) Swimming pools, hot tubs or spas usedto store heat;

(9) Above ground, uninsulated swimmingpools, hot tubs or spas;

(10) Photovoltaic systems installed onrecreational vehicles;

(11) Conversion of an existing alternativeenergy device to another type of alternativeenergy device;

(12) Repair or replacement of an existingalternative energy device;

(13) A category two alternative energydevice, if the equipment or other propertythat comprises the category two alternativeenergy device is the basis for an allowedcredit for a category one alternative energydevice under ORS 316.116;

(14) A category one alternative energydevice, if the equipment or other propertythat comprises the category one alternativeenergy device is also the basis for an allowedcredit for a category two alternative energydevice under ORS 316.116; or

(15) Any other device identified by theState Department of Energy. The departmentmay adopt rules defining standards for eligi-ble and ineligible devices under this section.[Formerly 469.172]

469B.115 Performance assumptionsand prescriptive measures for tax credits.(1) Except for alternative fuel vehicles or re-lated equipment, in order to carry out ORS



469B.100 to 469B.118, the State Departmentof Energy shall develop performance assump-tions and prescriptive measures to determinethe eligibility and tax credit amount for al-ternative energy devices constructed or in-stalled in a dwelling.

(2) The department shall use the per-formance assumptions and prescriptive mea-sures to develop information for theDepartment of Revenue to use to allow tax-payers to determine their eligibility and taxcredit amount. The State Department of En-ergy may review this information on an an-nual basis to take into consideration newtechnology and performance assumption ac-curacy.

(3) For the purpose of determining thefirst year energy yield of an alternative en-ergy device, the department shall use thefollowing assumptions and test standards:

(a) Solar Rating and Certification Corpo-ration standard SRCC 100, 200, AmericanSociety of Heating, Refrigerating and Air-Conditioning Engineers 93-77, or the Ameri-can Refrigeration Institute standard 325-85test at 50 degrees entering water temper-ature, as appropriate. The testing require-ments under this paragraph shall not applyto an owner-built alternative energy device.

(b) For an alternative energy device usedas a source for domestic water heating en-ergy, a hot water use of 75 gallons per dayat 120 degrees Fahrenheit. The load of 75gallons per day at 120 degrees Fahrenheitshall be achieved by including conservationmeasures in the construction or installationof the alternative energy device.

(c) For an alternative energy device usedas a source for space heating or cooling, theheating or cooling energy load as determinedby a heat loss or gain calculation performedin accordance with the methods establishedby the American Society of Heating, Refrig-erating and Air-Conditioning Engineers. Ex-cept for an owner-built or site-built system,an alternative energy device used as a sourcefor domestic hot water heating must meetthe SRCC OG 300 systems test or complywith comparable requirements as determinedby the department.

(d) For an alternative energy device usedas a source for electrical energy, the firstyear energy yield shall be based upon theelectrical energy load of the dwelling as de-termined according to the procedure estab-lished by the department.

(e) For an alternative energy device usedas a source for swimming pool, spa or hottub heating, the first year energy yield shallbe based on the heating load of the swim-ming pool, spa or hot tub as determined ac-

cording to the procedure established by thedepartment. [Formerly 469.176]

469B.118 Forfeiture of tax credits; re-vocation of contractor certificate; in-spection; effect of failure to allowinspection. (1) Upon the Department ofRevenue’s own motion, or upon request ofthe State Department of Energy, the Depart-ment of Revenue may initiate proceedings forthe forfeiture of a tax credit allowed underORS 316.116 or 317.115 if:

(a) The verification was fraudulent be-cause of a misrepresentation by the taxpayeror investor owned utility;

(b) The verification was fraudulent be-cause of a misrepresentation by the contrac-tor;

(c) In the case of an alternative energydevice other than an alternative fuel vehicleor related equipment, the alternative energydevice has not been constructed, installed oroperated in substantial compliance with therequirements of ORS 469B.100 to 469B.118;or

(d) The taxpayer or investor owned util-ity failed to consent to an inspection of theconstructed or installed alternative energydevice by the State Department of Energyafter a reasonable, written request for suchan inspection by the State Department ofEnergy. This paragraph does not apply to analternative fuel vehicle or to related equip-ment.

(2) Pursuant to the procedures for a con-tested case under ORS chapter 183, the Di-rector of the State Department of Energymay order the revocation of a contractorcertificate issued under ORS 469B.106 if thedirector finds that:

(a) The contractor certificate was ob-tained by fraud or misrepresentation by thecontractor certificate holder;

(b) The contractor’s performance for thealternative energy device for which the con-tractor is issued a certificate under ORS469B.106 does not meet industry standards;or

(c) The contractor has misrepresented tothe customer either the tax credit programor the nature or quality of the alternativeenergy device.

(3) If the tax credit allowed under ORS316.116 or 317.115 for the purchase, con-struction or installation of an alternativeenergy device is ordered forfeited due to anaction of the taxpayer or investor ownedutility under subsection (1)(a), (c) or (d) ofthis section, all prior tax relief provided tothe taxpayer or investor owned utility shallbe forfeited and the Department of Revenueshall proceed to collect those taxes not paid



by the taxpayer or utility as a result of thetax credit relief under ORS 316.116 or317.115.

(4) If the tax credit for the constructionor installation of an alternative energy de-vice is ordered forfeited due to an action ofthe contractor under subsection (1)(b) of thissection, the Department of Revenue shallproceed to collect, from the contractor, anamount equivalent to those taxes not paid bythe taxpayer or investor owned utility as aresult of the tax credit relief under ORS316.116 or 317.115. As long as the forfeitureis due to an action of the contractor and notto an action of the taxpayer or utility, theassessment of such taxes shall be levied onthe contractor and not on the taxpayer orutility. Notwithstanding ORS 314.835, theDepartment of Revenue may disclose infor-mation from income tax returns or reports tothe extent such disclosure is necessary tocollect amounts from contractors under thissubsection.

(5) In order to obtain information neces-sary to verify eligibility and amount of thetax credit, the State Department of Energyor its representative may inspect an alterna-tive energy device that has been purchased,constructed or installed. The inspection shallbe made only with the consent of the ownerof the dwelling. Failure to consent to the in-spection is grounds for the forfeiture of anytax credit relief under ORS 316.116 or317.115. The Department of Revenue shallproceed to collect any taxes due according tosubsection (4) of this section. For electricalgenerating alternative energy devices, theState Department of Energy may obtain en-ergy consumption records for the dwellingthe device serves, for a 12-month period, inorder to verify eligibility and amount of thetax credit. [Formerly 469.180]

RENEWABLE ENERGY RESOURCES469B.130 Definitions for ORS 469B.130

to 469B.169 and 469B.171; rules. As used inORS 469B.130 to 469B.169 and 469B.171:

(1) “Alternative fuel vehicle” means avehicle as defined by the Director of theState Department of Energy by rule that isused primarily in connection with the con-duct of a trade or business and that is man-ufactured or modified to use an alternativefuel, including but not limited to electricity,ethanol, methanol, gasohol and propane ornatural gas, regardless of energy consump-tion savings.

(2) “Car sharing facility” means the ex-penses of operating a car sharing program,including but not limited to the fair marketvalue of parking spaces used to store thefleet of cars available for a car sharing pro-

gram, but does not include the costs of thefleet of cars.

(3) “Car sharing program” means a pro-gram in which drivers pay to become mem-bers in order to have joint access to a fleetof cars from a common parking area on anhourly basis. “Car sharing program” does notinclude operations conducted by car rentalagencies.

(4) “Cost” means the capital costs andexpenses necessarily incurred in theerection, construction, installation and ac-quisition of a facility, including site develop-ment costs and expenses for a sustainablebuilding practices facility.

(5) “Energy facility” means any capitalinvestment for which the first year energysavings yields a simple payback period ofgreater than one year. An energy facility in-cludes:

(a) Any land, structure, building, instal-lation, excavation, machinery, equipment ordevice, or any addition to, reconstruction ofor improvement of, land or an existingstructure, building, installation, excavation,machinery, equipment or device necessarilyerected, constructed, installed or acquired byany person in connection with the conductof a trade or business and actually used inthe processing or utilization of renewableenergy resources to:

(A) Replace a substantial part or all ofan existing use of electricity, petroleum ornatural gas;

(B) Provide the initial use of energywhere electricity, petroleum or natural gaswould have been used;

(C) Generate electricity to replace an ex-isting source of electricity or to provide anew source of electricity for sale by or usein the trade or business;

(D) Perform a process that obtains en-ergy resources from material that wouldotherwise be solid waste as defined in ORS459.005; or

(E) Manufacture or distribute alternativefuels, including but not limited to electricity,ethanol, methanol, gasohol or biodiesel.

(b) Any acquisition of, addition to, re-construction of or improvement of land or anexisting structure, building, installation, ex-cavation, machinery, equipment or devicenecessarily erected, constructed, installed oracquired by any person in connection withthe conduct of a trade or business in orderto substantially reduce the consumption ofpurchased energy.

(c) A necessary feature of a new com-mercial building or multiple unit dwelling,as dwelling is defined by ORS 469B.100, thatcauses that building or dwelling to exceed an



energy performance standard in the statebuilding code.

(d) The replacement of an electric motorwith another electric motor that substan-tially reduces the consumption of electricity.

(6) “Facility” means an energy facility,recycling facility, transportation facility, carsharing facility, sustainable building prac-tices facility, alternative fuel vehicle or fa-cilities necessary to operate alternative fuelvehicles, including but not limited to an al-ternative fuel vehicle refueling station, ahigh-efficiency combined heat and power fa-cility, a high-performance home or ahomebuilder-installed renewable energy sys-tem.

(7) “High-efficiency combined heat andpower facility” means a device or equipmentthat simultaneously produces heat and elec-tricity from a single source of fuel and thatmeets the criteria established for a high-efficiency combined heat and power facilityunder ORS 469B.139.

(8) “High-performance home” means anew single-family dwelling that:

(a) Is designed and constructed to reducenet purchased energy through use of bothenergy efficiency and on-site renewable en-ergy resources; and

(b) Meets the criteria established for ahigh-performance home under ORS 469B.139.

(9) “Homebuilder-installed renewable en-ergy system” means a renewable energy re-source system that:

(a) Meets the criteria established for arenewable energy resource system underORS 469B.139; and

(b) Is installed in a new single-familydwelling by, or at the direction of, thehomebuilder constructing the dwelling.

(10) “Qualified transit pass contract”means a purchase agreement entered intobetween a transportation provider and a per-son, the terms of which obligate the personto purchase transit passes on behalf or forthe benefit of employees, students, patientsor other individuals over a specified periodof time.

(11) “Recycling facility” means equip-ment used by a trade or business solely forrecycling:

(a) Including:(A) Equipment used solely for hauling

and refining used oil;(B) New vehicles or modifications to ex-

isting vehicles used solely to transport usedrecyclable materials that cannot be used fur-ther in their present form or location suchas glass, metal, paper, aluminum, rubber andplastic;

(C) Trailers, racks or bins that are usedfor hauling used recyclable materials and areadded to or attached to existing waste col-lection vehicles; and

(D) Any equipment used solely for pro-cessing recyclable materials such as balers,flatteners, crushers, separators and scales.

(b) But not including equipment used fortransporting or processing scrap materialsthat are recycled as a part of the normal op-eration of a trade or business as defined bythe director.

(12)(a) “Renewable energy resource” in-cludes, but is not limited to:

(A) Straw, forest slash, wood waste orother wastes from farm or forest land, non-petroleum plant or animal based biomass,ocean wave energy, solar energy, windpower, water power or geothermal energy;

(B) A hydroelectric generating facilitythat obtains all applicable permits and com-plies with all state and federal statutory re-quirements for the protection of fish andwildlife and that:

(i) Does not exceed 10 megawatts of in-stalled capacity; or

(ii) Qualifies as a research, developmentor demonstration facility; or

(C) A renewable energy storage device asdefined by the director by rule.

(b) “Renewable energy resource” does notinclude a hydroelectric generating facilitythat is not described in paragraph (a) of thissubsection.

(13) “Sustainable building practices facil-ity” means a commercial building in whichbuilding practices that reduce the amount ofenergy, water or other resources needed forconstruction and operation of the buildingare used. “Sustainable building practices fa-cility” may be further defined by the StateDepartment of Energy by rule, includingrules that establish traditional building prac-tice baselines in energy, water or other re-source usage for comparative purposes foruse in determining whether a facility is asustainable building practices facility.

(14) “Transportation facility” means atransportation project that reduces energyuse during commuting to and from work orschool, during work-related travel, or duringtravel to obtain medical or other services,and may be further defined by the depart-ment by rule. “Transportation facility” in-cludes, but is not limited to:

(a) A qualified transit pass contract or atransportation services contract; or

(b) The purchase of efficient truck tech-nology and related truck trailers, as definedin ORS 801.580, for commercial motor vehi-



cles, as defined in ORS 801.208, that are reg-istered under ORS 803.420, or for commercialmotor vehicles that are proportionally regis-tered under ORS 826.009 or 826.011.

(15) “Transportation provider” means apublic, private or nonprofit entity that pro-vides transportation services to members ofthe public.

(16) “Transportation services contract”means a contract that is related to a trans-portation facility, and may be further definedby the department by rule. [Formerly 469.185]

469B.133 Policy. In the interest of thepublic health, safety and welfare, it is thepolicy of the State of Oregon to encouragethe conservation of electricity, petroleumand natural gas by providing tax relief forOregon facilities that conserve energy re-sources or meet energy requirements throughthe use of renewable resources. [Formerly469.190]

469B.136 Priority given to certainprojects; criteria; rules. (1) In determiningthe eligibility of any facility for tax credits,preference shall be given to those projectsthat:

(a) Provide energy savings for real orpersonal property within the state inhabitedas the principal residence of a tenant, in-cluding:

(A) Nonowner occupied single familydwellings; and

(B) Multiple unit residential housing; or(b) Provide long-term energy savings from

the use of renewable resources or conserva-tion of energy resources.

(2) The Director of the State Departmentof Energy shall establish by rule a tieredpriority system to be used in evaluating ap-plicants for certification of facilities using orproducing renewable energy resources. Thetier system shall be based upon the projectedcosts of facilities. In determining the eligi-bility for tax credits and in allocating theavailable certified cost pursuant to section 2(1), chapter 76, Oregon Laws 2010, among fa-cilities, the director shall subject facilitieswith higher projected costs to closer scru-tiny, shall compare projects of similar costsagainst each other and may certify less thanthe total cost of any facility based on thisevaluation. The director may employ criteriaincluding the following factors as defined byrule:

(a) Technology-specific energy productionstandards;

(b) Market sector;(c) Delivery of energy into existing dis-

tribution and transmission network;(d) Investment payback period;

(e) Expected lifespan of the facility;(f) Potential for long-term viability;(g) Environmental standards established

by the director;(h) Potential to create and sustain new

jobs;(i) Projected siting in a location that is

geographically or socioeconomically advanta-geous;

(j) Demonstrated readiness to begin im-plementation;

(k) Amount and quality of energy gener-ated;

(L) Strength of business plan;(m) Provision of operations and mainte-

nance data, with appropriate protections fortrade secrets consistent with ORS chapter192;

(n) Connection to existing infrastructure;(o) Third-party review of the applicant’s

business plan; or(p) Data related to projected return on

investment. [Formerly 469.195]

469B.139 Criteria for high-performance homes, renewable energysystems, combined heat and power facili-ties and facilities using or producingrenewable energy resources; rules. TheState Department of Energy shall by rule es-tablish all of the following criteria:

(1) For a high-performance home, theminimum design and construction standardsthat must be met or exceeded for a dwellingto be considered a high-performance home,including but not limited to standards for thebuilding envelope, HVAC systems, lighting,appliances, water conservation measures, useof sustainable building materials and on-siterenewable energy systems. The criteria mustalso establish the minimum reduction in es-timated net purchased energy that a dwellingmust achieve to be considered a high-performance home.

(2) For a homebuilder-installed renewableenergy system, the minimum performanceand efficiency standards that a solar electricsystem, solar domestic water heating system,passive solar space heating system, windpower system, geothermal heating system,fuel cell system or other system utilizingrenewable resources must achieve to be con-sidered a homebuilder-installed renewableenergy system.

(3) For a high-efficiency combined heatand power facility, the minimum performanceand efficiency standards that the facilitymust achieve to be considered a high-efficiency combined heat and power facility.



(4) For a facility using or producingrenewable energy resources, standards relat-ing to criteria required under ORS 469B.136(2).

(5) Standards, consistent with the defi-nitions in ORS 469B.130, relating to whatconstitutes a single facility. [Formerly 469.197]

469B.142 Annual limit to cost of facil-ity eligible for tax credits; discretion ofdirector; rules. (1) For a facility, the totalcost that receives a preliminary certificationfrom the Director of the State Departmentof Energy for tax credits in any calendaryear may not exceed:

(a) $20 million, in the case of a facilityusing or producing renewable energy re-sources or a high-efficiency combined heatand power facility;

(b) Five percent of the total cost of thefacility but no more than $3 million, in thecase of a facility that uses or producesrenewable energy resources and is a windfacility with an installed capacity of morethan 10 megawatts; or

(c) $10 million, in the case of any otherfacility.

(2) The director shall determine the dol-lar amount certified for any facility and thepriority between applications for certificationbased upon the criteria contained in ORS469B.130 to 469B.169 and applicable rules andstandards adopted under ORS 469B.130 to469B.169. The director may consider the sta-tus of a facility as a research, developmentor demonstration facility of new renewableresource generating and conservation tech-nologies or a qualified transit pass contractin the determination. [Formerly 469.200]

469B.145 Application for preliminarycertification; eligibility; contents of ap-plication; fees; rules. (1) Prior to erection,construction, installation or acquisition of aproposed facility, any person may apply tothe State Department of Energy for prelimi-nary certification under ORS 469B.157 if:

(a) The erection, construction, installa-tion or acquisition of the facility is to becommenced on or after October 3, 1979;

(b) The facility complies with the stan-dards or rules adopted by the Director of theState Department of Energy; and

(c) The applicant meets one of the fol-lowing criteria:

(A) The applicant is a person to whom atax credit for the facility has been trans-ferred; or

(B) The applicant will be the owner, con-tract purchaser or lessee of the facility atthe time of erection, construction, installa-tion or acquisition of the proposed facility,and:

(i) The applicant is the owner, contractpurchaser or lessee of a trade or businessthat plans to utilize the facility in con-nection with Oregon property; or

(ii) The applicant is the owner, contractpurchaser or lessee of a trade or businessthat plans to lease the facility to a personthat will utilize the facility in connectionwith Oregon property.

(2) An application for preliminary certi-fication shall be made in writing on a formprepared by the department and shall con-tain:

(a) A statement that the applicant or thelessee of the applicant’s facility:

(A) Intends to convert from a purchasedenergy source to a renewable energy re-source;

(B) Plans to acquire, construct or installa facility that will use a renewable energyresource or solid waste instead of electricity,petroleum or natural gas;

(C) Plans to use a renewable energy re-source in the generation of electricity forsale or to replace an existing or proposed useof an existing source of electricity;

(D) Plans to acquire, construct or installa facility that substantially reduces the con-sumption of purchased energy;

(E) Plans to acquire, construct or installequipment for recycling as described in ORS469B.130 (11);

(F) Plans to acquire an alternative fuelvehicle or to convert an existing vehicle toan alternative fuel vehicle;

(G) Plans to acquire, construct or installa facility necessary to operate alternativefuel vehicles;

(H) Plans to acquire transit passes foruse by individuals specified by the applicant;

(I) Plans to acquire, construct or installa transportation facility;

(J) Plans to acquire a sustainable build-ing practices facility;

(K) Plans to acquire a car sharing facil-ity and operate a car sharing program;

(L) Plans to construct a high-efficiencycombined heat and power facility;

(M) Is a homebuilder and plans to con-struct a homebuilder-installed renewable en-ergy system; or

(N) Is a homebuilder and plans to con-struct a high-performance home.

(b) A detailed description of the proposedfacility and its operation and informationshowing that the facility will operate as rep-resented in the application and remain inoperation for at least five years, unless the



director by rule specifies a shorter period ofoperation.

(c) Information on the amount by whichconsumption of electricity, petroleum or na-tural gas by the applicant or the lessee of theapplicant’s facility will be reduced, and onthe amount of energy that will be producedfor sale, as the result of using the facility or,if applicable, information about the expectedlevel of sustainable building practices facilityperformance.

(d) The projected cost of the facility.(e) If applicable, a copy of the proposed

qualified transit pass contract, transportationservices contract or contract for lease ofparking spaces for a car sharing facility.

(f) Information on the number and typeof jobs that will be created, the number ofjobs sustained throughout the construction,installation and operation of the facility andthe benefits of the facility with regard tooverall economic activity in this state.

(g) Information demonstrating that theproposed facility will comply with applicablestate and local laws and regulations and ob-tain required licenses and permits.

(h) Information relating to the criteriarequired under ORS 469B.136.

(i) Any other information the directorconsiders necessary to determine whetherthe proposed facility is in accordance withthe provisions of ORS 469B.130 to 469B.169,and any applicable rules or standardsadopted by the director.

(3) An application for preliminary certi-fication shall be accompanied by a fee estab-lished under ORS 469B.164. The director mayrefund all or a portion of the fee if the ap-plication for certification is rejected.

(4) The director may allow an applicantto file the preliminary application or a reap-plication under subsection (6) of this sectionafter the start of erection, construction, in-stallation or acquisition of the facility if thedirector finds:

(a) Filing the application before the startof erection, construction, installation or ac-quisition is inappropriate because specialcircumstances render filing earlier unreason-able; and

(b) The facility would otherwise qualifyfor tax credit certification pursuant to ORS469B.130 to 469B.169.

(5) A preliminary certification of asustainable building practices facility shallbe applied for and issued as prescribed by thedepartment by rule.

(6) A preliminary certification shall re-main valid for a period of three calendaryears after the date the preliminary certi-

fication is issued by the director. The direc-tor may extend the three-year period for twoadditional calendar years upon reapplicationand submission of the fee required by thissection. [Formerly 469.205]

469B.148 Transferability of facility taxcredit; effect on taxes reported by publicutility; rules. (1) The owner of a facilitymay transfer a tax credit for the facility inexchange for a cash payment equal to thepresent value of the potential tax credit, asdetermined at the time of the application forpreliminary certification.

(2) The State Department of Energy shallestablish by rule a formula to be employed inthe determination of prices of credits trans-ferred under this section. In establishing theformula the department shall incorporate in-flation projections and market real rate ofreturn.

(3) The department shall recalculatecredit transfer prices quarterly, employingthe formula established under subsection (2)of this section.

(4) Notwithstanding any other provisionof law, a tax credit transferred pursuant tothis section does not decrease the amount oftaxes required to be reported by a publicutility. [Formerly 469.206; 2012 c.45 §23a]

469B.151 Tax credit for rental housingunits; eligibility. (1) Except as provided insubsection (3) of this section, an applicantunder ORS 469B.145 (1)(c) shall be eligiblefor a tax credit for energy conservationmeasures installed in rental housing unitspursuant to ORS 469.636. The tax credit shallapply to only the first $5,000 of actually in-stalled energy conservation measure costsper dwelling unit.

(2) An owner, contract purchaser orlessee of a rental housing unit for which en-ergy conservation measures have been fi-nanced by an applicant under subsection (1)of this section is ineligible for an energyconservation measure tax credit for suchmeasures.

(3) No applicant under ORS 469B.145(1)(c) shall be eligible for a tax credit for en-ergy conservation measures installed inrental housing units pursuant to ORS 469.636if the rental housing units are constructedon or after January 1, 1996. [Formerly 469.207]

469B.154 Transferability of rentalhousing unit tax credit; rules. (1) Theowner of a rental housing unit may transfera tax credit for energy conservation mea-sures installed in rental housing units underORS 469B.151 in exchange for a cash pay-ment equal to the present value of the taxcredit. To be eligible for a transfer, the en-ergy conservation measures must have been



recommended in an energy audit as providedin ORS 469.633, 469.651 or 469.675.

(2) The State Department of Energy mayestablish by rule uniform discount rates tobe used in calculating the present value of atax credit under this section. [Formerly 469.208]

469B.157 Submissions for preliminarycertification; alteration, conditions, sus-pension or denial of preliminary certi-fication. (1) The Director of the StateDepartment of Energy may require the sub-mission of plans, specifications and contractterms, and after examination thereof, mayrequest corrections and revisions of theplans, specifications and terms.

(2) If the director determines that theproposed acquisition, erection, constructionor installation is technically feasible andshould operate in accordance with the re-presentations made by the applicant, and isin accordance with the provisions of ORS469B.130 to 469B.169 and any applicable rulesor standards adopted by the director, the di-rector shall issue a preliminary certificateapproving the acquisition, erection, con-struction or installation of the facility. Thecertificate shall indicate the potentialamount of tax credit allowable and shall listany conditions for claiming the credit.

(3) The director may issue an order al-tering, conditioning, suspending or denyingpreliminary certification if the director de-termines that:

(a) The acquisition, erection, construc-tion or installation does not comply with theprovisions of ORS 469B.130 to 469B.169 andapplicable rules and standards;

(b) The applicant has previously receivedpreliminary or final certification for thesame costs;

(c) The applicant is unable to demon-strate that the facility would be economicallyviable without the allowance of additionalcredits under ORS 315.354;

(d) The applicant was directly involved inan act for which the director has levied civilpenalties or revoked, canceled or suspendedany certification under ORS 469B.130 to469B.169; or

(e) The applicant or the principal, direc-tor, officer, owner, majority shareholder ormember of the applicant, or the manager ofthe applicant if the applicant is a limited li-ability company, is in arrears for paymentsowed to any government agency while in anycapacity with direct or indirect control overa business. [Formerly 469.210]

469B.161 Final certification; eligibility;contents of application. (1) A final certi-fication may not be issued by the Director

of the State Department of Energy under thissection unless:

(a) The facility was acquired, erected,constructed or installed under a preliminarycertificate of approval issued under ORS469B.157;

(b) The applicant demonstrates the abilityto provide the information required by ORS469B.145 (2) and does not violate any condi-tion that may be imposed as described inORS 469B.157 (3); and

(c) The facility was acquired, erected,constructed or installed in accordance withthe applicable provisions of ORS 469B.130 to469B.169 and any applicable rules or stan-dards adopted by the director.

(2) Any person may apply to the StateDepartment of Energy for final certificationof a facility:

(a) If the department issued preliminarycertification for the facility under ORS469B.157; and

(b)(A) After completion of erection, con-struction, installation or acquisition of theproposed facility or, if the facility is a quali-fied transit pass contract, after entering intothe contract with a transportation provider;or

(B) After transfer of the facility, as pro-vided in ORS 315.354 (5).

(3) An application for final certificationshall be made in writing on a form preparedby the department and shall contain:

(a) A statement that the conditions of thepreliminary certification have been compliedwith;

(b) The actual cost of the facility certi-fied to by a certified public accountant whois not an employee of the applicant or, if theactual cost of the facility is less than $50,000,copies of receipts for purchase and installa-tion of the facility;

(c) The amount of the credit under ORS315.354 that is to be claimed;

(d) The number and type of jobs createdby the operation and maintenance of the fa-cility over the five-year period beginningwith the year of preliminary certificationunder ORS 469B.157 and information on thebenefits of the facility with regard to overalleconomic activity in this state;

(e) Information sufficient to demonstratethat the facility will remain in operation forat least five years, unless the director byrule specifies a shorter period of operation;

(f) Information sufficient to demonstrate,in the case of a research, development ordemonstration facility that is not in opera-tion, that the applicant has made reasonableefforts to make the facility operable and



meet the requirements of the preliminarycertificate;

(g) Documentation of compliance withapplicable state and local laws and regu-lations and licensing and permitting require-ments as defined by the director; and

(h) Any other information determined bythe director to be necessary prior to issuanceof a final certificate, including inspection ofthe facility by the department.

(4) The director shall act on an applica-tion for certification before the 60th day af-ter the filing of the application under thissection. The director may issue the certif-icate, or certificates for efficient truck tech-nology within a transportation facility,together with such conditions as the directordetermines are appropriate to promote thepurposes of ORS 315.354, 469B.130 to469B.169 and 469B.171. If the applicant is anentity subject to regulation by the PublicUtility Commission, the director may consultwith the commission prior to issuance of thecertificate. The action of the director shallinclude certification of the actual cost of thefacility. However, the director may not cer-tify an amount for tax credit purposes thatis more than the amount approved in thepreliminary certificate issued for the facility.

(5) If the director rejects an applicationfor final certification, or certifies a lesseractual cost of the facility than was claimedin the application, the director shall send tothe applicant written notice of the action,together with a statement of the findings andreasons therefor, by certified mail, before the60th day after the filing of the application.Failure of the director to act constitutes re-jection of the application.

(6) Upon approval of an application forfinal certification of a facility, the directorshall certify the facility. Each certificateshall bear a separate serial number for eachdevice. Where one or more devices consti-tute an operational unit, the director maycertify the operational unit under one certif-icate.

(7) The director may establish by ruletimelines and intermediate deadlines for sub-mission of application materials. [Formerly469.215]

469B.164 Fees for certification; rules.By rule and after hearing, the Director of theState Department of Energy may adopt aschedule of reasonable fees which the StateDepartment of Energy may require of appli-cants for preliminary or final certificationunder ORS 469B.130 to 469B.169. Before theadoption or revision of the fees, the depart-ment shall estimate the total cost of theprogram to the department. The fees shall beused to recover the anticipated cost of filing,

investigating, granting and rejecting applica-tions for certification and shall be designednot to exceed the total cost estimated by thedepartment. Any excess fees shall be held bythe department and shall be used by the de-partment to reduce any future fee increases.The fee may vary according to the size andcomplexity of the facility. The fee shall notbe considered as part of the cost of the fa-cility to be certified. [Formerly 469.217]

469B.167 Certificate required for taxcredits; certification not to exceed fiveyears. (1)(a) A certificate issued under ORS469B.161 is required for purposes of obtainingtax credits in accordance with ORS 315.354.Such certification shall be granted for a pe-riod not to exceed five years. The five-yearperiod shall begin with the tax year of theapplicant during which the completed appli-cation for final certification of the facilityunder ORS 469B.161 is received by the StateDepartment of Energy.

(b) For a transferee holding a credit thathas been transferred under ORS 469B.148 or469B.154, the five-year period shall beginwith the tax year in which the transfereepays for the credit.

(2) Notwithstanding subsection (1) of thissection, for a facility using or producingrenewable energy resources with a certifiedcost that exceeds $10 million and that re-ceives final certification under ORS 469B.161after January 1, 2010:

(a) The five-year period prescribed insubsection (1)(a) of this section shall beginwith the tax year immediately following thetax year during which the completed appli-cation for final certification of the facilityunder ORS 469B.161 is received by the de-partment.

(b) If claimed by a transferee, the first offive tax years in which the transferee mayclaim the credit is the tax year in which thetransferee paid for the credit or the tax yearprescribed in paragraph (a) of this subsec-tion, whichever is later.

(c) An application shall be consideredcomplete without the identification of atransferee for purposes of ORS 469B.148 or469B.154.

(3) If the original owner of the certificateuses any portion of the credit, the certificatebecomes nontransferable. [Formerly 469.220]

469B.169 Suspension or revocation ofcertificate; forfeiture of tax credits; col-lection. (1) Under the procedures for a con-tested case under ORS chapter 183, theDirector of the State Department of Energymay order the suspension or revocation ofthe certificate issued under ORS 469B.161 ifthe director finds that:



(a) The certification was obtained byfraud or misrepresentation;

(b) The holder of the certificate or theoperator of the facility has failed to con-struct or operate the facility in compliancewith the plans, specifications and proceduresin the certificate; or

(c) The facility is no longer in operation.(2) As soon as the order of revocation

under this section becomes final, the directorshall notify the Department of Revenue, thefacility owner, contract purchaser or lesseeand any transferee under ORS 469B.148 ofthe order of revocation.

(3) If the certificate is ordered revokedpursuant to subsection (1)(a) of this section,all prior tax credits provided to the holderof the certificate by virtue of the certificateshall be forfeited and upon notification undersubsection (2) of this section the Departmentof Revenue immediately shall proceed to col-lect those taxes not paid by the certificateholder as a result of the tax credits providedto the holder under ORS 315.354.

(4)(a) The Department of Revenue shallhave the benefit of all laws of this state per-taining to the collection of income and excisetaxes and may proceed to collect theamounts described in subsection (3) of thissection from the person that obtained certi-fication from the State Department of Energyor any successor in interest to the businessinterests of that person. No assessment oftax shall be necessary and no statute of lim-itation shall preclude the collection of taxesdescribed in this subsection.

(b) For purposes of this subsection, alender, bankruptcy trustee or other personthat acquires an interest through bankruptcyor through foreclosure of a security interestis not considered to be a successor in inter-est to the business interests of the personthat obtained certification from the StateDepartment of Energy.

(5) If the certificate is ordered revokedpursuant to subsection (1)(b) of this section,the certificate holder shall be denied anyfurther relief under ORS 315.354 in con-nection with the facility from and after thedate that the order of revocation becomesfinal.

(6) Notwithstanding subsections (1) to (5)of this section, a certificate or portion of acertificate held by a transferee under ORS469B.148 may not be considered revoked forpurposes of the transferee, the tax credit al-lowable to the transferee under ORS 315.354may not be reduced and a transferee is notliable under subsections (3) and (4) of thissection. [Formerly 469.225]

469B.171 Assistance with facility pur-chase for investor-owned utility custom-ers. (1) An investor-owned utility may offercash payments to assist the utility’s com-mercial and industrial customers in purchas-ing a facility as defined in ORS 469B.130,including but not limited to an alternativefuel vehicle refueling station. The utility maypay the customer the present value to theutility of the tax credit to which the cus-tomer would be entitled under ORS 469B.130to 469B.169.

(2) As used in this section, “cash pay-ment” and “investor-owned utility” have themeanings given those terms in ORS 469.631.[Formerly 469.878]

RENEWABLE ENERGY PRODUCTIONSYSTEMS

469B.250 Definitions for ORS 469B.250to 469B.265. As used in ORS 469B.250 to469B.265:

(1) “Biomass” has the meaning given thatterm in ORS 315.141.

(2) “Cost” means the actual cost of theacquisition, construction and installation ofthe renewable energy production system paidby the applicant for the system, before con-sidering utility incentives.

(3) “Renewable energy productionsystem” means a system that uses biomass,solar, geothermal, hydroelectric, wind, land-fill gas, biogas or wave, tidal or ocean ther-mal energy technology to produce energy.

(4) “Solar technology” means any system,mechanism or series of mechanisms, includ-ing photovoltaic systems, that uses solar ra-diation to generate electrical energy. [2011c.730 §27]

469B.253 Application for grant; fees.(1) Prior to the installation or constructionof a renewable energy production system,any person may apply to the State Depart-ment of Energy for a grant under ORS469B.256 if:

(a) The applicant will be the owner, con-tract purchaser or lessee of the system at thetime of installation or construction of theproposed system;

(b) The system does not exceed 35 mega-watts of nameplate capacity;

(c) The system is located in Oregon; and(d) The system complies with the stan-

dards or rules adopted by the Director of theState Department of Energy.

(2) An application for a grant under ORS469B.256 shall be made in writing on a formprepared by the department and shall con-tain:



(a) A detailed description of the systemand its operation and information showingthat the system will operate as representedin the application and remain in operationfor at least five years, unless the director byrule specifies another period of operation.

(b) The anticipated total system cost.(c) Information on the number and type

of jobs, directly connected to the awardingof the grant, that will be:

(A) Created by the system; and(B) Sustained throughout the construc-

tion, installation and operation of the system.(d) Information demonstrating that the

system will comply with applicable state andlocal laws and regulations and obtain re-quired licenses and permits.

(e) Any other information the directorconsiders necessary to determine whetherthe system is in accordance with the pro-visions of ORS 469B.250 to 469B.265, and anyapplicable rules or standards adopted by thedirector.

(3) An application for a grant shall beaccompanied by a fee established under ORS469B.259. The director may refund all or aportion of the fee if the application for agrant is rejected.

(4) The director may allow an applicantto file the application for a grant after thestart of installation or construction of thesystem if the director finds that:

(a) Filing the application before the startof installation or construction is inappropri-ate because special circumstances render fil-ing earlier unreasonable; and

(b) The system would otherwise qualifyfor a grant under ORS 469B.250 to 469B.265.[2011 c.730 §29; 2012 c.45 §4]

469B.256 Grant award; performanceagreement; denial; limitations; forfeiture.(1) The Director of the State Department ofEnergy may require an applicant for a grantunder this section for a renewable energyproduction system to submit plans, specifica-tions and contract terms, and after examina-tion of the plans, specifications and termsmay request corrections and revisions.

(2) If the director determines that thesystem is technically feasible and should op-erate in accordance with the representationsmade by the applicant, and is in accordancewith the provisions of ORS 469B.250 to469B.265 and any applicable rules or stan-dards adopted by the director, the directormay enter into a performance agreementwith the applicant and award a grant underthis section to the applicant. The grant pro-vided for in the performance agreement maynot exceed 35 percent of the cost of theproject and may not exceed $250,000 per sys-

tem. If construction does not begin within 12months of an award under this section, theperformance agreement shall be void and theState Department of Energy shall revoke thegrant.

(3) The director may, in accordance withORS chapter 183, deny a grant under thissection if the director determines that:

(a) The system does not comply with theprovisions of ORS 469B.250 to 469B.265 andapplicable rules and standards;

(b) The applicant was directly involved inan act for which the director has levied civilpenalties or revoked, canceled or suspendedany certification under ORS 315.326 or469B.130 to 469B.169, or any grant underORS 469B.250 to 469B.265; or

(c) The applicant or the principal, direc-tor, officer, owner, majority shareholder ormember of the applicant, or the manager ofthe applicant if the applicant is a limited li-ability company, is in arrears for paymentsowed to any government agency while in anycapacity with direct or indirect control overa business.

(4) The department shall reduce theamount of grant allowable to an applicant if,when combined with other government in-centives or grants available to the applicant,the amount calculated under subsection (2)of this section exceeds 75 percent of the totalsystem cost calculated under this section.

(5) Upon determination by the directorthat the applicant has violated the provisionsof the performance agreement or ORS469B.250 to 469B.265, the applicant will beliable to the department for all grant moneysdisbursed to the applicant. [2011 c.730 §30; 2012c.45 §1]

469B.259 Grant application fees; rules.By rule and after hearing, the Director of theState Department of Energy may adopt aschedule of reasonable fees that the StateDepartment of Energy may require of appli-cants for a grant for a renewable energyproduction system under ORS 469B.250 to469B.265 or for tax credit certification underORS 315.326. Before the adoption or revisionof the fees, the department shall estimate thetotal cost of the program to the department.The fees shall be used to recover the antic-ipated cost of administering and enforcingthe provisions of ORS 469B.250 to 469B.265,including filing, investigating, granting andrejecting applications for grant or tax creditcertification and ensuring compliance withORS 315.326, 315.329 and 469B.250 to469B.265 and shall be designed not to exceedthe total cost estimated by the department.Any excess fees shall be held by the depart-ment and shall be used by the department toreduce any future fee increases. The fee may



vary according to the size and complexity ofthe system. The fee is not considered part ofthe cost of the system for which a grant isbeing sought. [2011 c.730 §31]

469B.262 Limitations on amount ofpotential tax credits for certifiedrenewable energy development contrib-utions; allocation; rules. (1) The totalamount of potential tax credits for certifiedrenewable energy development contributionsin this state may not, at the time of certi-fication under ORS 315.326, exceed:

(a) $3 million for any biennium; or(b) $750,000 for the six months beginning

July 1, 2017, and ending December 31, 2017.(2) In the event that the Director of the

State Department of Energy receives appli-cations for grants under ORS 469B.256 inexcess of the contributions received pursuantto ORS 315.326, the director shall allocatethe issuance of grants according to standardsand criteria established by rule by the direc-tor. [2011 c.730 §32]

469B.265 Policies and procedures;standards for single renewable energyproduction system; rules. The State De-partment of Energy shall by rule establishpolicies and procedures for the administra-tion and enforcement of the provisions ofORS 315.326, 315.329 and 469B.250 to469B.265, including standards for what con-stitutes a single renewable energy productionsystem. [2011 c.730 §33]

ENERGY CONSERVATION PROJECTS469B.270 Definitions for ORS 315.331

and 469B.270 to 469B.306. As used in ORS315.331 and 469B.270 to 469B.306:

(1) “Cost” means the capital costs andexpenses necessarily incurred in the acquisi-tion, erection, construction and installationof an energy conservation project.

(2) “Energy conservation project” meansany capital investment for which the firstyear energy savings yields a simple paybackperiod of greater than three years. “Energyconservation project” does not include:

(a) Recycling equipment, products andprojects;

(b) Transportation projects;(c) Energy recovery as that term is de-

fined in ORS 459.005; or(d) Alternative fuel vehicles.(3) “Four globes” means the highest of

four tiers of ratings for certification in theGreen Globes program rating system.

(4) “Green Globes program” means abuilding guidance and assessment program toadvance overall environmental performance

and sustainability of commercial buildingsestablished by the Green Building Initiative.

(5)(a) “LEED” means the Leadership inEnergy and Environmental Design ratingsystem for certification of energy-efficientand environmentally sustainable buildingsestablished by the U.S. Green BuildingCouncil.

(b) “LEED Platinum” means the highestof four tiers of standards for certification inthe LEED rating system. [2011 c.730 §38]

469B.273 Preference given to certainprojects; criteria. (1) In determining thepriority of any energy conservation projectfor tax credits, preference shall be given tothose projects that have the highest energysavings over the five-year credit allowanceperiod per tax credit dollar.

(2) In administering this section, the Di-rector of the State Department of Energyshall compare projects of similar technologytypes against each other, take into accountthe amount of energy saved over the life ofthe equipment, market or industry sector,expected lifespan of the project compared tothe simple payback period, whether the en-ergy savings of the project benefit a partyother than the owner and any other factorsdefined in State Department of Energy rule.The department may certify less than thetotal cost of any project based on this evalu-ation. [2011 c.730 §39]

469B.276 Transferability of project taxcredit; determination of prices; rules. (1)The owner of a project may transfer a taxcredit for the project in exchange for a cashpayment equal to the present value of thepotential tax credit, as determined at thetime of the application for preliminary certi-fication.


(3) The department shall recalculatecredit transfer prices quarterly, employingthe formula established under subsection (2)of this section. [2011 c.730 §40; 2012 c.45 §20]

469B.279 Standards for energy conser-vation projects; rules. The State Depart-ment of Energy shall by rule establish thefollowing standards relating to energy con-servation projects:

(1) In consultation with the Departmentof Consumer and Business Services BuildingCodes Division, standards relating to energysavings in new construction.



(2) Standards relating to what constitutesa replacement of inefficient equipment.

(3) Standards for the determination oftotal project cost.

(4) Standards for the application of thirdparty review of research and developmentprojects by a qualified third party selectedby the Director of the State Department ofEnergy, as required in ORS 469B.285. [2011c.730 §41]

469B.282 Limitation on amount re-ceiving preliminary certification. For anenergy conservation project, the totalamount that receives a preliminary certifica-tion from the Director of the State Depart-ment of Energy may not exceed $10 millionin certified cost. [2011 c.730 §42]

469B.285 Application for preliminarycertification; eligibility; contents; fees;certification to remain valid for threeyears; rules. (1) Prior to the installation orconstruction of an energy conservation proj-ect, any person may apply to the State De-partment of Energy for preliminarycertification under ORS 469B.288 if:

(a) The project complies with the stan-dards adopted by the Director of the StateDepartment of Energy; and

(b) The applicant will be the owner, con-tract purchaser or lessee of the project atthe time of installation or construction of theproject.


(a) A statement that the applicant plansto acquire, construct or install a project thatsubstantially reduces the consumption ofpurchased energy or uses energy more effi-ciently.

(b) A detailed description of the projectand its operation and information showingthat the project will operate as representedin the application and remain in operationfor at least five years, unless the director byrule specifies another period of operation.

(c) Information on the amount by whichconsumption of purchased energy by the ap-plicant will be reduced, and, if applicable,information about the expected level ofsustainable building practices project per-formance.

(d) The anticipated total project cost.(e) Information on the number and type

of jobs, directly connected to the allowanceof the credit, that will be:

(A) Created by the project; and

(B) Sustained throughout the construc-tion, installation and operation of the proj-ect.

(f) Information demonstrating that theproject will comply with applicable state andlocal laws and regulations and obtain re-quired licenses and permits.

(g) Information relating to the standardsdescribed in ORS 469B.279.

(h) A recommendation for a research anddevelopment project as demonstrative of in-novation that has been made by a qualifiedthird party selected by the director.

(i) Any other information the directorconsiders necessary to determine whetherthe project is in accordance with the pro-visions of ORS 469B.270 to 469B.306, and anyapplicable rules or standards adopted by thedirector.


(4) The director may allow an applicantto file the application for preliminary certi-fication after the start of installation or con-struction of the project if the director findsthat:

(a) Filing the application before the startof installation or construction is inappropri-ate because special circumstances render fil-ing earlier unreasonable; and

(b) The project would otherwise qualifyfor certification under ORS 469B.270 to469B.306.

(5) The director may, by rule, waive pre-liminary certification under ORS 469B.288,or may establish an informational filing sys-tem in place of preliminary certification, forprojects that:

(a) Have eligible costs of less than$20,000;

(b) Consist of measures that the directordetermines to be eligible for waiver of pre-liminary certification; and

(c) Comply with any other requirementsestablished by the director.

(6) A preliminary certification shall re-main valid for a period of three calendaryears after the date on which the prelimi-nary certification is issued by the director,after which the certification becomes invalideven if:

(a) The applicant is awaiting identifica-tion of a pass-through partner; or

(b) The preliminary certification has beenamended. [2011 c.730 §43; 2012 c.45 §21]



469B.288 Submissions for preliminarycertification; alteration, conditions, sus-pension or denial of preliminary certi-fication. (1) The Director of the StateDepartment of Energy may require an appli-cant for certification of an energy conserva-tion project to submit plans, specificationsand contract terms, and after examination ofthe plans, specifications and terms may re-quest corrections and revisions.

(2) If the director determines that theproject is technically feasible and should op-erate in accordance with the representationsmade by the applicant, and is in accordancewith the provisions of ORS 469B.270 to469B.306 and any applicable rules or stan-dards adopted by the director, the directormay issue a preliminary certificate approvingthe installation or construction of the proj-ect. The certificate shall indicate the poten-tial amount of tax credit allowable and shalllist any conditions for claiming the credit.

(3) In accordance with ORS chapter 183,the director may issue an order altering,conditioning, suspending or denying prelimi-nary certification if the director determinesthat:

(a) The project does not comply with theprovisions of ORS 469B.270 to 469B.306 andapplicable rules and standards;

(b) The applicant has previously receivedpreliminary or final certification for theproject;

(c) The applicant was directly involved inan act for which the director has levied civilpenalties or revoked, canceled or suspendedany certification under ORS 469B.130 to469B.169 or 469B.270 to 469B.306; or

(d) The applicant or the principal, direc-tor, officer, owner, majority shareholder ormember of the applicant, or the manager ofthe applicant if the applicant is a limited li-ability company, is in arrears for paymentsowed to any government agency while in anycapacity with direct or indirect control overa business. [2011 c.730 §44]

469B.291 Final certification; eligibility;contents of application; rules. (1) The Di-rector of the State Department of Energymay issue a final certification for an energyconservation project under this section onlyif:

(a) The project was installed or con-structed under a preliminary certificate ofapproval issued under ORS 469B.288, unlesspreliminary certification is waived underORS 469B.285 (5);

(b) The applicant demonstrates the abilityto provide the information required by ORS469B.285 (2) and does not violate any condi-tion that may be imposed as described insubsection (4) of this section; and

(c) The project was installed or con-structed in accordance with the applicableprovisions of ORS 469B.270 to 469B.306 andany applicable rules or standards adopted bythe director.

(2) Any person may apply to the StateDepartment of Energy for final certificationof a project:

(a) If the person received preliminarycertification for the project under ORS469B.288; and

(b) After completion of the installationor construction of the project.



(b) The actual cost of the project attestedto by a certified public accountant who isnot an employee of the applicant or, if theactual cost of the project is less than $50,000,copies of receipts for purchase and installa-tion of the project;


(d) The number and type of jobs, directlyconnected to the allowance of the credit,that will be created by the operation andmaintenance of the project over the five-yearperiod beginning with the year of prelimi-nary certification under ORS 469B.288;

(e) Information sufficient to demonstratethat the project will remain in operation forat least five years, unless the director byrule specifies another period of operation;

(f) Documentation of compliance withapplicable state and local laws and regu-lations and licensing and permitting require-ments as defined by the director;

(g) Information, if applicable, pertainingto prior recommendation of the project by aqualified third party selected by the director;and

(h) Any other information determined bythe director to be necessary prior to issuanceof a final certificate, including inspection ofthe project by the department.

(4) After the filing of the application un-der this section, the director may issue thecertificate together with any conditions thatthe director determines are appropriate topromote the purposes of ORS 315.331 and469B.270 to 469B.306. If the applicant is anentity subject to regulation by the PublicUtility Commission, the director may consultwith the commission prior to issuance of thecertificate. The action of the director shallinclude certification of the actual cost of the



project. However, the director may not cer-tify an amount for tax credit purposes thatis more than the amount approved in thepreliminary certificate issued for the project.

(5) If the director rejects an applicationfor final certification, or certifies a lesseramount of credit than was claimed in theapplication, the director shall send to theapplicant written notice of the action, to-gether with a statement of the findings andreasons for the action, by certified mail, be-fore the 60th day after the filing of the ap-plication. Failure of the director to actconstitutes rejection of the application.

(6) Upon approval of an application forfinal certification of a project, the directorshall certify the project. The final certifica-tion shall indicate the amount of projectedenergy savings attributable to the projectand the total project cost.

(7) The director may establish by ruletimelines and intermediate deadlines for sub-mission of application materials. [2011 c.730 §45;2012 c.45 §22]

469B.294 Fees for certification; rules.By rule and after hearing, the Director of theState Department of Energy may adopt aschedule of reasonable fees that the StateDepartment of Energy may require of appli-cants for preliminary or final certification ofan energy conservation project under ORS469B.270 to 469B.306. Before the adoption orrevision of the fees, the department shall es-timate the total cost of the program to thedepartment. The fees shall be used to recoverthe anticipated cost of administering and en-forcing the provisions of ORS 469B.270 to469B.306, including filing, investigating,granting and rejecting applications for certi-fication and ensuring compliance with ORS469B.270 to 469B.306 and shall be designednot to exceed the total cost estimated by thedepartment. Any excess fees shall be held bythe department and shall be used by the de-partment to reduce any future fee increases.The fee may vary according to the size andcomplexity of the project. The fee is notconsidered part of the cost of the project tobe certified. [2011 c.730 §46]

469B.297 Certificate required for taxcredits; certification not to exceed fiveyears. (1) A certificate issued under ORS469B.291 is required for purposes of obtainingtax credits in accordance with ORS 315.331.Such certification shall be granted for a pe-riod not to exceed five years. The five-yearperiod shall begin with the tax year of theapplicant during which the completed appli-cation for final certification of the projectunder ORS 469B.291 is received by the StateDepartment of Energy.

(2) If the original owner of the certificateuses any portion of the credit, the certificatebecomes nontransferable.

(3) For a transferee holding a credit thathas been transferred under ORS 469B.276,the five-year period shall begin with the taxyear in which the transferee pays for thecredit. [2011 c.730 §47]

469B.300 Revocation of certificate;forfeiture of tax credits; collection. (1)Under the procedures for a contested caseunder ORS chapter 183, the Director of theState Department of Energy may order therevocation of a certificate issued under ORS469B.291 if the director finds that:


(b) The holder of the certificate or theoperator of the project has failed to con-struct or operate the project in compliancewith the plans, specifications and proceduresin the certificate; or

(c) The project is no longer in operation.(2) As soon as an order of revocation un-

der this section becomes final, the directorshall notify the Department of Revenue andthe project owner, contract purchaser orlessee of the order of revocation. Upon no-tification, the Department of Revenue imme-diately shall proceed to collect those taxesnot paid by the certificate holder as a resultof the tax credits provided to the certificateholder under ORS 315.331, from the certif-icate holder or a successor in interest to thebusiness interests of the certificate holder.All prior tax credits provided to the holderof the certificate by virtue of the certificateshall be forfeited.

(3)(a) The Department of Revenue shallhave the benefit of all laws of this state per-taining to the collection of income and excisetaxes and may proceed to collect theamounts described in subsection (2) of thissection from the person that obtained certi-fication from the State Department of En-ergy, or any successor in interest to thebusiness interests of that person. An assess-ment of tax is not necessary and a statuteof limitation does not preclude the collectionof taxes described in this subsection.

(b) For purposes of this subsection, alender, bankruptcy trustee or other personthat acquires an interest through bankruptcyor through foreclosure of a security interestis not considered to be a successor in inter-est to the business interests of the personthat obtained certification.

(4) If the certificate is ordered revokedpursuant to subsection (1)(b) of this section,the certificate holder shall be denied anyfurther relief under ORS 315.331 in con-nection with the project from and after the



date that the order of revocation becomesfinal.

(5) Notwithstanding subsections (1) to (4)of this section, a certificate or portion of acertificate held by a transferee under ORS469B.276 may not be considered revoked forpurposes of the transferee, the tax credit al-lowable to the transferee under ORS469B.276 may not be reduced, and a trans-feree is not liable under subsections (2) to (4)of this section. [2011 c.730 §48]

469B.303 Limitations on amount ofpotential tax credits for energy conser-vation projects; allocation; rules. (1) Thetotal amount of potential tax credits for allenergy conservation projects in this statemay not, at the time of preliminary certi-fication under ORS 469B.288, exceed:

(a) $28 million for any biennium; or(b) $7.5 million for the six months begin-

ning July 1, 2017, and ending December 31,2017.

(2) In the event that the Director of theState Department of Energy receives appli-cations for preliminary certification with atotal amount of certified costs for potentialtax credits in excess of the limitations insubsection (1) of this section, the directorshall allocate the issuance of preliminarycertifications according to standards and cri-teria established by rule by the director. [2011c.730 §49]

469B.306 Policies and procedures;standards for single energy conservationproject; rules. The State Department of En-ergy shall by rule establish policies and pro-cedures for the administration andenforcement of the provisions of ORS 315.331and 469B.270 to 469B.306 and section 36,chapter 730, Oregon Laws 2011, includingstandards for what constitutes a single en-ergy conservation project. [2011 c.730 §50]

TRANSPORTATION PROJECTS469B.320 Definitions for ORS 315.336

and 469B.320 to 469B.347. As used in ORS315.336 and 469B.320 to 469B.347:

(1) “Alternative fuel vehicle infrastruc-ture project” includes a facility for mixing,storing, compressing or dispensing fuels foralternative fuel vehicles, and any other nec-essary and reasonable equipment.

(2) “Cost” includes capital expendituresand core expenses such as vehicle repair,fuel, personnel and administrative expenses.

(3) “Transportation project” means:(a) Transit services provided to members

of the public by a public or nonprofit entitythat receives state or federal funding forthose services, or is the direct recipient of

funding from an entity that receives state orfederal funding for the services; or

(b) An alternative fuel vehicle infra-structure project. [2011 c.730 §56; 2012 c.45 §7]

Note: The amendments to 469B.320 by section 13,chapter 774, Oregon Laws 2013, apply to tax years be-ginning on or after January 1, 2015. See section 17,chapter 774, Oregon Laws 2013. The text that applies totax years beginning on or after January 1, 2015, is setforth for the user’s convenience.

469B.320. As used in ORS 315.336 and 469B.320 to469B.347:

(1) “Acquisition of an alternative fuel vehiclefleet” includes the replacement of two or more vehiclesthat are not used primarily for personal, family orhousehold purposes, that are modified or acquired di-rectly from the factory and that:

(a) Use an alternative fuel, including electricity,biofuel, gasohol with at least 20 percent denatured al-cohol content, hydrogen, Hythane, methane, methanol,natural gas, propane or any other fuel approved by theDirector of the State Department of Energy as an al-ternative fuel; and

(b) Produce lower exhaust emissions, or are moreenergy efficient, than equivalent vehicles fueled by gas-oline or diesel.

(2) “Alternative fuel vehicle infrastructure project”includes a facility for mixing, storing, compressing ordispensing fuels for alternative fuel vehicles, and anyother necessary and reasonable equipment.

(3) “Alternative fuel vehicle project” means:(a) The acquisition of an alternative fuel vehicle

fleet; or(b) An alternative fuel vehicle infrastructure proj-

ect.(4) “Cost” includes capital expenditures and core

expenses such as vehicle repair, fuel, personnel and ad-ministrative expenses.

(5) “Transportation project” means:(a) Transit services provided to members of the

public by a public or nonprofit entity that receives stateor federal funding for those services, or is the directrecipient of funding from an entity that receives stateor federal funding for the services; or

(b) An alternative fuel vehicle project.

469B.323 Transferability of project taxcredit; determination of prices; rules. (1)The owner of a transportation project maytransfer a tax credit for the project in ex-change for a cash payment equal to thepresent value of the tax credit.


(3) The department shall recalculatecredit transfer prices quarterly, employingthe formula established under subsection (2)of this section. [2011 c.730 §57]

469B.326 Application for preliminarycertification; eligibility; contents; fees;certification to remain valid for threeyears; rules. (1) Prior to the acquisition or



performance of a transportation project, aperson may apply to the State Departmentof Energy for preliminary certification forthe project under ORS 469B.329 if:

(a) The project complies with the stan-dards adopted by the Director of the StateDepartment of Energy; and

(b) The applicant will be the owner, con-tract purchaser or lessee of the project atthe time of acquisition or performance of theproject.


(a) A statement that the applicant plansto acquire or perform a project that substan-tially reduces the consumption of purchasedpetroleum energy.

(b) A detailed description of the projectand its operation and information showingthat the project will operate as representedin the application and remain in operationfor at least five years, unless the director byrule specifies another period of operation.

(c) Information on the amount by whichconsumption of purchased petroleum energyby the applicant will be reduced, and, if ap-plicable, information about the expected levelof project performance.

(d) The anticipated total project cost.(e) Information on the number and types

of jobs, directly connected to the allowanceof the credit, that will be:

(A) Created by the project; and(B) Sustained throughout the acquisition

and performance of the project.(f) Information demonstrating that the

project will comply with applicable state andlocal laws and regulations and obtain re-quired licenses and permits.

(g) Any other information the directorconsiders necessary to determine whetherthe project is in accordance with the pro-visions of ORS 469B.320 to 469B.347, and anyapplicable rules or standards adopted by thedirector.


(4) The director may allow an applicantto file the application for preliminary certi-fication after the start of acquisition or per-formance of the project if the director findsthat:

(a) Filing the application before the startof acquisition or performance is inappropri-

ate because special circumstances render fil-ing earlier unreasonable; and

(b) The project would otherwise qualifyfor certification under ORS 469B.320 to469B.347.

(5) A preliminary certification shall re-main valid for a period of three calendaryears after the date on which the prelimi-nary certification is issued by the director,after which the certification becomes invalideven if:

(a) The applicant is awaiting identifica-tion of a pass-through partner; or

(b) The preliminary certification has beenamended. [2011 c.730 §58; 2012 c.45 §8]

469B.329 Submissions for preliminarycertification; alteration, conditions, sus-pension or denial of preliminary certi-fication. (1) The Director of the StateDepartment of Energy may require an appli-cant for certification of a transportationproject to submit plans, specifications andcontract terms, and after examination of theplans, specifications and terms may requestcorrections and revisions.

(2) If the director determines that theproject is technically feasible and should op-erate in accordance with the representationsmade by the applicant, and is in accordancewith the provisions of ORS 469B.320 to469B.347 and any applicable rules or stan-dards adopted by the director, the directormay issue a preliminary certificate approvingthe acquisition or performance of the project.The certificate shall indicate the potentialamount of tax credit allowable and shall listany conditions for claiming the credit.

(3) In accordance with ORS chapter 183,the director may issue an order altering,conditioning, suspending or denying prelimi-nary certification if the director determinesthat:

(a) The project does not comply with theprovisions of ORS 469B.320 to 469B.347 andapplicable rules and standards;

(b) The applicant has previously receivedpreliminary or final certification for theproject;

(c) The applicant was directly involved inan act for which the director has levied civilpenalties or revoked, canceled or suspendedany certification under ORS 469B.130 to469B.169 or 469B.320 to 469B.347; or

(d) The applicant or the principal, direc-tor, officer, owner, majority shareholder ormember of the applicant, or the manager ofthe applicant if the applicant is a limited li-ability company, is in arrears for paymentsowed to any government agency while in anycapacity with direct or indirect control overa business. [2011 c.730 §59]



469B.332 Final certification; eligibility;contents of application; rules. (1) A finalcertification for a transportation project maynot be issued by the Director of the StateDepartment of Energy under this section un-less:

(a) The project was acquired or per-formed under a preliminary certificate of ap-proval issued under ORS 469B.329;

(b) The applicant demonstrates the abilityto provide the information required by ORS469B.326 (2) and does not violate any condi-tion that may be imposed as described insubsection (4) of this section; and

(c) The project was acquired or per-formed in accordance with the applicableprovisions of ORS 469B.320 to 469B.347 andany applicable rules or standards adopted bythe director.

(2) A person may apply to the State De-partment of Energy for final certification ofa project:

(a) If the person received preliminarycertification for the project under ORS469B.329; and

(b) After completion of the acquisition orperformance of the project.



(b)(A) The actual cost of the project at-tested to by a certified public accountantwho is not an employee of the applicant orthe applicant’s completed audit in compli-ance with federal Office of Management andBudget Circular A-133; or

(B) If the actual cost of the project is lessthan $50,000, copies of receipts for acquisi-tion and performance of the project;


(d) The number and types of jobs, directlyconnected to the allowance of the credit,created by the acquisition and performanceof the project over the five-year period be-ginning on the date of issuance of the pre-liminary certification under ORS 469B.329;

(e) Information sufficient to demonstratethat the project will remain in operation forat least five years, unless the director byrule specifies another period of operation;

(f) Documentation of compliance withapplicable state and local laws and regu-lations and licensing and permitting require-ments as defined by the director; and

(g) Any other information determined bythe director to be necessary prior to issuance

of a final certificate, including inspection ofthe project by the department.

(4) After the filing of the application un-der this section, the director may issue thecertificate together with any conditions thatthe director determines are appropriate topromote the purposes of ORS 315.336 and469B.320 to 469B.347. If the applicant is anentity subject to regulation by the PublicUtility Commission, the director may consultwith the commission prior to issuance of thecertificate. The action of the director shallinclude certification of the actual cost of theproject. However, the director may not cer-tify an amount for tax credit purposes thatis more than the amount of credit approvedin the preliminary certificate issued for theproject.

(5) If the director rejects an applicationfor final certification, or certifies a lesseramount of credit than was claimed in theapplication, the director shall send to theapplicant written notice of the action, to-gether with a statement of the findings andreasons for the action, by certified mail, be-fore the 60th day after the filing of the ap-plication. Failure of the director to actconstitutes rejection of the application.

(6) Upon approval of an application forfinal certification of a project, the directorshall certify the project. The final certifica-tion shall indicate the amount of projectedenergy savings attributable to the projectand the certified cost of the project.

(7) The director may establish by ruletimelines and intermediate deadlines for sub-mission of application materials. [2011 c.730 §60;2012 c.45 §9]

469B.335 Fees for certification; rules.By rule and after hearing, the Director of theState Department of Energy may adopt aschedule of reasonable fees that the StateDepartment of Energy may require of appli-cants for preliminary or final certification ofa transportation project under ORS 469B.320to 469B.347. Before the adoption or revisionof the fees, the department shall estimate thetotal cost of the program to the department.The fees shall be used to recover the antic-ipated cost of administering and enforcingthe provisions of ORS 469B.320 to 469B.347,including filing, investigating, granting andrejecting applications for certification andensuring compliance with ORS 469B.320 to469B.347 and shall be designed not to exceedthe total cost estimated by the department.Any excess fees shall be held by the depart-ment and shall be used by the department toreduce any future fee increases. The fee mayvary according to the size and complexity ofthe project. The fee is not considered part ofthe cost of the project to be certified. [2011c.730 §61]



469B.338 Certificate required for taxcredits; certification not to exceed fiveyears. (1) A certificate issued under ORS469B.332 is required for purposes of obtainingtax credits in accordance with ORS 315.336.Such certification shall be granted for a pe-riod not to exceed five years. The five-yearperiod shall begin with the tax year of theapplicant during which the completed appli-cation for final certification of the transpor-tation project under ORS 469B.332 isreceived by the State Department of Energy.

(2) If the original owner of the certificateuses any portion of the credit, the certificatebecomes nontransferable.

(3) For a transferee holding a credit thathas been transferred under ORS 469B.323,the five-year period shall begin with the taxyear in which the transferee pays for thecredit. [2011 c.730 §62]

469B.341 Revocation of certificate;forfeiture of tax credits; collection. (1)Under the procedures for a contested caseunder ORS chapter 183, the Director of theState Department of Energy may order therevocation of a certificate issued under ORS469B.332 if the director finds that:


(b) The holder of the certificate or theoperator of the transportation project hasfailed to acquire or perform the project incompliance with the plans, specifications andcontract terms in the certificate; or

(c) The project is no longer in operation.(2) As soon as an order of revocation un-

der this section becomes final, the directorshall notify the Department of Revenue andthe project owner, contract purchaser orlessee of the order of revocation. Upon no-tification, the Department of Revenue imme-diately shall proceed to collect those taxesnot paid by the certificate holder as a resultof the tax credits provided to the certificateholder under ORS 315.336, from the certif-icate holder or a successor in interest to thebusiness interests of the certificate holder.All prior tax credits provided to the holderof the certificate by virtue of the certificateshall be forfeited.

(3)(a) The Department of Revenue shallhave the benefit of all laws of this state per-taining to the collection of income and excisetaxes and may proceed to collect theamounts described in subsection (2) of thissection from the person that obtained certi-fication from the State Department of En-ergy, or any successor in interest to thebusiness interests of that person. An assess-ment of tax is not necessary and a statuteof limitation does not preclude the collection

of taxes described in subsection (2) of thissection.

(b) For purposes of this subsection, alender, bankruptcy trustee or other personthat acquires an interest through bankruptcyor through foreclosure of a security interestis not considered to be a successor in inter-est to the business interests of the personthat obtained certification.

(4) If the certificate is ordered revokedpursuant to subsection (1)(b) of this section,the certificate holder shall be denied anyfurther relief under ORS 315.336 in con-nection with the project from and after thedate that the order of revocation becomesfinal.

(5) Notwithstanding subsections (1) to (4)of this section, a certificate or portion of acertificate held by a transferee under ORS469B.323 may not be considered revoked forpurposes of the transferee, the tax credit al-lowable to the transferee under ORS469B.323 may not be reduced, and a trans-feree is not liable under subsections (2) to (4)of this section. [2011 c.730 §63]

469B.344 Limitation on amount of po-tential tax credits for transportationprojects. (1)(a) The total amount of potentialtax credits for all transportation projects inthis state may not, at the time of preliminarycertification under ORS 469B.329, exceed $20million for any biennium.

(b) For each tax year, the Director of theState Department of Energy may allocate apercentage of the amount allowed in para-graph (a) of this subsection to alternativefuel vehicle infrastructure projects and apercentage to transit services.

(2) Notwithstanding ORS 315.336, in theevent that the director receives applicationsfor preliminary certification with a totalamount of potential tax credits in excess ofthe limits set by the director pursuant tosubsection (1)(b) of this section, the directorshall allocate the issuance of preliminarycertifications among applicants as follows:

(a) If an excess of applications for creditsfor transit services is received, the directorshall allocate the issuance of preliminarycertifications among applicants for creditsfor transit services and proportionately re-duce the amount of allowed credit, with noapplicant receiving more than 20 percent ofthe amount established under subsection(1)(b) of this section for transit services.

(b) The director may allocate the issu-ance of preliminary certifications among ap-plicants for credits for alternative fuelvehicle infrastructure projects and mayaward credits for less than the amount oth-erwise allowed applicants.



(c) If, after making any reductions re-quired under paragraph (a) of this subsection,an unallocated amount remains, the directorshall allocate this additional amount amongapplicants affected by the percentage re-striction in paragraph (a) of this subsection.[2011 c.730 §64; 2012 c.45 §10]

Note: Section 10, chapter 774, Oregon Laws 2013,provides:

Sec. 10. During the biennium beginning July 1,2013, the limit imposed under ORS 469B.344 (1)(a) on thetotal amount of potential tax credits for all transporta-tion projects in this state shall be reduced by the totalamount of potential tax credits auctioned under section9 of this 2013 Act during the biennium beginning July1, 2013. [2013 c.774 §10]

Note: The amendments to 469B.344 by section 15,chapter 774, Oregon Laws 2013, apply to tax years be-ginning on or after January 1, 2015. See section 17,chapter 774, Oregon Laws 2013. The text that applies totax years beginning on or after January 1, 2015, is setforth for the user’s convenience.

469B.344. (1)(a) The total amount of potential taxcredits for all transportation projects in this state maynot, at the time of preliminary certification under ORS469B.329, exceed $20 million for any biennium.

(b) For each tax year, the Director of the StateDepartment of Energy may allocate a percentage of theamount allowed in paragraph (a) of this subsection toalternative fuel vehicle projects and a percentage totransit services.

(2) Notwithstanding ORS 315.336, in the event thatthe director receives applications for preliminary certi-fication with a total amount of potential tax credits inexcess of the limits set by the director pursuant tosubsection (1)(b) of this section, the director shall allo-cate the issuance of preliminary certifications amongapplicants as follows:

(a) If an excess of applications for credits fortransit services is received, the director shall allocatethe issuance of preliminary certifications among appli-cants for credits for transit services and proportionatelyreduce the amount of allowed credit, with no applicantreceiving more than 20 percent of the amount estab-lished under subsection (1)(b) of this section for transitservices.

(b) The director may allocate the issuance of pre-liminary certifications among applicants for credits foralternative fuel vehicle projects and may award creditsfor less than the amount otherwise allowed applicants.

(c) If, after making any reductions required underparagraph (a) of this subsection, an unallocated amountremains, the director shall allocate this additionalamount among applicants affected by the percentagerestriction in paragraph (a) of this subsection.

469B.347 Policies and procedures;standards for single transportation proj-ect; rules. The State Department of Energyshall by rule establish policies and proce-dures for the administration and enforcementof the provisions of ORS 315.336 and469B.320 to 469B.347, including standards forwhat constitutes a single transportationproject. [2011 c.730 §65]

BIOFUELS AND BIOMASS469B.400 Fuel blends and solid

biofuels; qualification for tax credits;rules. The State Department of Energy shallby rule identify categories of fuel blend andsolid biofuel that qualify for the personal in-come tax credit allowed under ORS 315.465.[Formerly 469.785]

Note: Sections 8a and 8b (2), chapter 739, OregonLaws 2007, provide:

Sec. 8a. The State Department of Energy shall pe-riodically conduct an impact study of the biofuels pro-gram. The study will include but is not limited to thefollowing criteria with respect to the biofuel sector inthis state:

(1) Jobs created;(2) Average wage rates for those jobs;(3) The provision of health care and other benefits;(4) The extent to which workforce training oppor-

tunities are being provided to employees;(5) The number of acres of biofuel feedstock

planted;(6) The number of gallons of biofuel blended fuel

produced and consumed in the state;(7) The cost of fuel with biofuel blends and how

that compares with the cost of petroleum fuel;(8) Environmental impacts such as reductions in

greenhouse gas emissions and other toxic air pollution;(9) The impact of biofuel feedstock production on

the price of commodity crops and the cost of food sta-ples; and

(10) The extent to which Oregon producers importbiofuel or biofuel feedstock from outside the state. [2007c.739 §8a]

Sec. 8b. (2) Section 8a of this 2007 Act is repealedJanuary 2, 2025. [2007 c.739 §8b(2)]

469B.403 Biomass; eligibility for taxcredits. To be eligible for the tax credit un-der ORS 315.141, the biomass must beproduced or collected in Oregon as afeedstock for bioenergy or biofuel productionin Oregon. The credit rates for biomass are:

(1) For oilseed crops, $0.05 per pound.(2) For grain crops, including but not

limited to wheat, barley and triticale, $0.90per bushel.

(3) For virgin oil or alcohol delivered forproduction in Oregon from Oregon-basedfeedstock, $0.10 per gallon.

(4) For used cooking oil or waste grease,$0.10 per gallon.

(5) For wastewater biosolids, $10.00 perwet ton.

(6) For woody biomass collected fromnursery, orchard, agricultural, forest orrangeland property in Oregon, including butnot limited to prunings, thinning, plantationrotations, log landing or slash resulting fromharvest or forest health stewardship, $10.00per bone dry ton.

(7) For grass, wheat, straw or othervegetative biomass from agricultural crops,$10.00 per bone dry ton.



(8) For animal manure or rendering offal,$5.00 per wet ton. [Formerly 469.790]

Note: Section 6, chapter 739, Oregon Laws 2007,provides:

Sec. 6. (1) ORS 315.141, 315.144 and 469.790[renumbered 469B.403] apply to tax credits for tax yearsbeginning on or after January 1, 2007, and before Jan-uary 1, 2018.

(2) Notwithstanding subsection (1) of this section,a tax credit is not allowed for wheat grain (other thannongrain wheat material) for tax years beginning beforeJanuary 1, 2009, or on or after January 1, 2018. [2007c.739 §6; 2007 c.590 §5; 2009 c.913 §18; 2011 c.730 §2]

PENALTIES469B.991 Civil penalty when contrac-

tor certificate revoked. (1) The Director ofthe State Department of Energy may imposea civil penalty against a contractor if a con-tractor certificate is revoked under ORS469B.118. The amount of the penalty shall beequal to the total amount of tax relief esti-mated to have been provided under ORS

316.116 or 317.115 to the contractor or topurchasers of the system for which acontractor’s certificate has been revoked.

(2) The State Department of Energy maynot collect any of the amount of a civil pen-alty imposed under subsection (1) of thissection from a purchaser of the system forwhich the final certificate has been revoked.However, the Department of Revenue shallproceed under ORS 469B.118 (3) to collecttaxes not paid by a taxpayer if the tax creditis ordered forfeited because of thattaxpayer’s fraud or misrepresentation underORS 469B.118 (1)(a).

(3) Civil penalties under this sectionshall be imposed as provided in ORS 183.745.

(4) A penalty recovered under this sec-tion shall be paid into the State Treasuryand credited to the General Fund and isavailable for general governmental expenses.[Formerly 469.994]


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