74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
HA to A-Eng. HB 2172
LC 819/HB 2172-A5
HOUSE AMENDMENTS TO
A-ENGROSSED HOUSE BILL 2172
By COMMITTEE ON REVENUE
May 10
On page 2 of the printed A-engrossed bill, line 10, delete '
10, 12, 13, 15 and'.
After line 21, insert:
' (7) 'Nonroad Oregon diesel engine' means any Oregon diesel
engine that was not designed primarily to propel a motor vehicle
on public highways of this state.'.
In line 22, delete '(7)' and insert '(8)'.
In line 25, delete '(8)' and insert '(9)'.
Delete lines 28 and 29 and insert:
' (10) 'Public highway' has the meaning given that term in ORS
825.005.
' (11) 'Repower' means to scrap an old diesel engine and
replace it with a new engine, a used engine or a remanufactured
engine, or with electric motors, drives or fuel cells, with a
minimum useful life of seven years.'.
In line 30, delete '(10)' and insert '(12)'.
In line 34, delete '(11)' and insert '(13)'.
In line 35, delete '(12)' and insert '(14)'.
After line 36, insert:
' { + SECTION 6a. + } Section 6 of this 2007 Act is amended
to read:
' { + Sec. 6. + } As used in sections 6 to { - 16 - }
{ + 10 + } of this 2007 Act:
' (1) 'Combined weight' has the meaning given that term in ORS
825.005.
' (2) 'Cost-effectiveness threshold' means the cost, in
dollars, per ton of diesel particulate matter reduced, as
established by rule of the Environmental Quality Commission.
' (3) 'Heavy-duty truck' means a motor vehicle or combination
of vehicles operated as a unit that has a combined weight that is
greater than 26,000 pounds.
' (4) 'Incremental cost' means the cost of a qualifying repower
or retrofit less a baseline cost that would otherwise be incurred
in the normal course of business.
' (5) 'Medium-duty truck' means a motor vehicle or combination
of vehicles operated as a unit that has a combined weight that is
greater than 14,000 pounds but less than or equal to 26,000
pounds.
' (6) 'Motor vehicle' has the meaning given that term in ORS
825.005.
' (7) 'Nonroad Oregon diesel engine' means any Oregon diesel
engine that was not designed primarily to propel a motor vehicle
on public highways of this state.
' (8) 'Oregon diesel engine' means an engine at least 50
percent of the use of which, as measured by miles driven or hours
operated, will occur in Oregon for the three years following the
repowering or retrofitting of the engine.
' (9) 'Oregon diesel truck engine' means a diesel engine in a
truck at least 50 percent of the use of which, as measured by
miles driven or hours operated, has occurred in Oregon for the
two years preceding the scrapping of the engine.
' (10) 'Public highway' has the meaning given that term in ORS
825.005.
' (11) 'Repower' means to scrap an old diesel engine and
replace it with a new engine, a used engine or a remanufactured
engine, or with electric motors, drives or fuel cells, with a
minimum useful life of seven years.
' (12) 'Retrofit' means to equip a diesel engine with new
emissions-reducing parts or technology after the manufacture of
the original engine. A retrofit must use the greatest degree of
emissions reduction available for the particular application of
the equipment retrofitted that meets the cost-effectiveness
threshold.
' (13) 'Scrap' means to destroy and render inoperable.
' (14) 'Truck' means a motor vehicle or combination of vehicles
operated as a unit that has a combined weight that is greater
than 14,000 pounds.
' { + SECTION 6b. + } { + The amendments to section 6 of
this 2007 Act by section 6a of this 2007 Act become operative on
January 2, 2018. + } ' .
In line 42, delete 'Includes' and insert 'May not exceed'.
On page 3, after line 2, insert:
' { + SECTION 7a. + } Section 7 of this 2007 Act is amended
to read:
' { + Sec. 7. + } (1) The Environmental Quality Commission by
rule shall establish standards related to the certified cost
necessary to perform a qualifying repower or retrofit { - ,
including but not limited to rules establishing the certified
cost for purposes of the tax credit established in section 12 of
this 2007 Act - } .
' (2) For the purposes of subsection (1) of this section,
certified cost:
' (a) May not exceed the incremental cost of labor and hardware
that the Department of Environmental Quality finds necessary to
perform a qualifying repower or retrofit;
' (b) Does not include the cost of any portion of a repower or
retrofit undertaken to comply with any applicable local, state or
federal pollution or emissions law or for ordinary maintenance,
repair or replacement of a diesel engine; and
' (c) May not exceed the cost-effectiveness threshold.
' { + SECTION 7b. + } { + The amendments to section 7 of
this 2007 Act by section 7a of this 2007 Act become operative on
January 2, 2018. + } ' .
In line 4, after 'repower' insert 'of a nonroad Oregon diesel
engine'.
Delete line 10.
In line 13, delete the period and insert '; and
' (c) A requirement that a qualifying repower or retrofit does
not include the repower or retrofit of a vehicle or engine for
which a grant, loan or tax credit under section 10 or 12 of this
2007 Act has been awarded or allowed, unless the repower or
retrofit will reduce emissions further than the repower or
retrofit funded by the grant, loan or tax credit.
' { + SECTION 8a. + } Section 8 of this 2007 Act is amended
to read:
' { + Sec. 8. + } (1) The Environmental Quality Commission by
rule shall establish standards for the qualifying repower of a
nonroad Oregon diesel engine or retrofit of an Oregon diesel
engine { - , including but not limited to rules establishing
repower or retrofit qualifications for purposes of the tax credit
established in section 12 of this 2007 Act - } .
' (2) The standards adopted by the commission under this
section must include:
' (a) A requirement for the reduction of diesel particulate
matter emissions by at least 25 percent compared with the
baseline emissions for the relevant engine year and application;
' (b) A list of technologies approved as qualifying repowers or
retrofits that have been verified by the United States
Environmental Protection Agency or the California Air Resources
Board; and
' (c) A requirement that a qualifying repower or retrofit does
not include the repower or retrofit of a vehicle or engine for
which a grant { - , - } { + or + } loan { - or tax
credit - } under section 10 { - or 12 - } of this 2007 Act
has been awarded or allowed, unless the repower or retrofit will
reduce emissions further than the repower or retrofit funded by
the grant { - , - } { + or + } loan { - or tax credit - } .
' { + SECTION 8b. + } { + The amendments to section 8 of
this 2007 Act by section 8a of this 2007 Act become operative on
January 2, 2018. + } ' .
In line 28, delete 'or' and insert 'and'.
In line 29, delete 'repowers or'.
In line 30, delete the second 'and'.
After line 30, insert:
' (b) Grants and loans to the owners and operators of nonroad
Oregon diesel engines for up to 25 percent of the certified costs
of qualifying repowers as described in sections 7 and 8 of this
2007 Act; and'.
In line 31, delete '(b)' and insert '(c)'.
Delete lines 32 through 34 and insert:
' (2) In determining'.
In line 38, delete 'or private'.
In line 45, delete '(1)(b)' and insert '(1)(c)'.
On page 4, line 4, delete '(1)(b)' and insert '(1)(c)'.
In line 6, delete '(1)(b)' and insert '(1)(c)'.
In line 7, delete 'or private'.
After line 19, insert:
' (7) The department may perform activities necessary to ensure
that recipients of grants and loans from the Clean Diesel Engine
Fund comply with applicable requirements. If the department
determines that a recipient has not complied with applicable
requirements, it may order the recipient to refund all grant or
loan moneys and may impose penalties pursuant to ORS 468.140.'.
In line 27, delete 'vehicle' and insert 'engine'.
Delete lines 29 through 45 and delete page 5.
On page 6, delete line 1 and insert:
' { + SECTION 12. + } { + (1) A personal income or corporate
income or excise taxpayer is allowed a credit against the taxes
that are otherwise due under ORS chapter 316, 317 or 318 for the
certified costs of a repower of a nonroad Oregon diesel engine or
retrofit of an Oregon diesel engine that occurs after the
effective date of this 2007 Act if:
' (a) The repower or retrofit has been identified as qualifying
for the credit under rules adopted by the Environmental Quality
Commission under section 8 of this 2007 Act;
' (b) The engine will constitute an Oregon diesel engine; and
' (c) The taxpayer has obtained a tax credit cost certification
from the Department of Environmental Quality under section 16 of
this 2007 Act for the cost of the repower or retrofit.
' (2) The maximum amount of the tax credit allowed under this
section is limited to:
' (a) 25 percent of the certified cost of each qualifying
repower; and
' (b) 50 percent of the certified cost of each qualifying
retrofit.
' (3) The amount of the tax credit allowed to the taxpayer
under this section in any one tax year may not exceed the tax
liability of the taxpayer for the tax year.
' (4) Any tax credit that is allowed under this section, but
limited by subsection (3) of this section, and that is not used
by the taxpayer in a particular tax year may be carried forward
and offset against the taxpayer's tax liability as prescribed in
subsection (3) of this section for the next succeeding tax year.
Any credit remaining unused in the next succeeding tax year may
be carried forward and offset against the taxpayer's tax
liability as prescribed in subsection (3) of this section for the
second succeeding tax year. Any credit remaining unused in the
second succeeding tax year may be carried forward and offset
against the taxpayer's tax liability as prescribed in subsection
(3) of this section for the third succeeding tax year, but may
not be carried forward for any tax year thereafter.
' (5) The credit allowed under this section is not in lieu of
any depreciation or amortization deduction for the engine to
which the taxpayer otherwise may be entitled for purposes of ORS
chapter 316, 317 or 318. The taxpayer's adjusted basis for
determining gain or loss may not be decreased by any tax credits
allowed under this section.
' (6)(a) The Department of Revenue may disallow the credit
allowed under this section if the department finds that the
credit was obtained by fraud or misrepresentation, or if the
department learns that the engine that was the subject of the
qualifying repower or retrofit was destroyed by arson committed
by the taxpayer, or if the engine no longer meets the
requirements for obtaining the tax credit.
' (b) If the tax credit is disallowed pursuant to this
subsection, notwithstanding ORS 314.410 or other law, all prior
tax relief provided to the taxpayer shall be forfeited, the
department shall proceed to collect those taxes not paid by the
taxpayer as a result of the prior granting of the credit and the
taxpayer shall be denied any further credit provided under this
section.
' (c) The department may perform activities necessary to ensure
that recipients of the tax credit comply with applicable
requirements.
' (7)(a) A nonresident individual shall be allowed the credit
computed in the same manner and subject to the same limitations
as the credit allowed a resident by this section. However, the
credit shall be prorated using the proportion provided in ORS
316.117.
' (b) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed by this section shall be prorated or computed in a
manner consistent with ORS 314.085.
' (c) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
' (8) The taxpayer shall claim the credit on a form prescribed
by the Department of Revenue containing the information required
by the Department of Revenue. The taxpayer shall maintain the tax
credit cost certification issued by the Department of
Environmental Quality under section 16 of this 2007 Act in the
records of the taxpayer for the length of time prescribed by the
Department of Revenue and shall provide a copy of the cost
certification to the Department of Revenue if requested.
' (9) A taxpayer may not claim a credit under this section and
ORS 315.304 with respect to the same diesel engine or group of
diesel engines. A taxpayer may claim a credit under this section
and under ORS 469.185 to 469.225 with respect to the same diesel
engine or group of diesel engines if the taxpayer and diesel
engines otherwise meet the requirements to be allowed a tax
credit under ORS 469.185 to 469.225.
' (10) The amount of tax credits allowed under this section
during each calendar year may not exceed $3 million. + } ' .
In line 18, delete '2007' and insert '2008'.
On page 7, line 6, after the period insert 'In determining the
amount of a tax credit under this section, the department shall
reduce the incremental cost of a qualifying repower or retrofit
by the value of any existing financial incentive that directly
reduces the cost of the qualifying repower or retrofit, including
tax credits, grants, loans or any other public financial
assistance.'.
After line 15, insert:
' { + SECTION 16a. + } { + Sections 12 to 16 of this 2007
Act are repealed on January 2, 2018. + } ' .
In line 25, delete 'January 1, 2004' and insert 'the effective
date of this 2007 Act'.
In line 26, delete 'oxides of nitrogen' and insert '
particulate matter' and delete '2.5' and insert '0.01'.
On page 9, line 5, delete '$3 million' and insert ' $500,000'.
In line 7, delete '$3 million' and insert '$500,000'.
----------