74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 565
A-Engrossed
House Bill 2210
Ordered by the House February 9
Including House Amendments dated February 9
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for State Department of Energy)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
{ - Creates or expands property tax exemptions for facilities
producing ethanol, biofuel or certain fuel additives. Allows
taxing district to opt out of exemptions. Limits period for which
new facilities may claim exemption. - }
Creates income tax credit for production or collection of
biomass used to produce biofuel. { + Declares qualifying
facilities for collection and storage of biomass to be eligible
for consideration under strategic investment program. Requires
biennial study of biofuel sector impact on jobs. + }
Creates income tax credit for consumer use of biofuel fuel
blends or solid biofuel. { + Creates income tax credit for
consumer use of biofuel blends for primary home space
heating. + }
Establishes renewable fuel use standards. Prohibits sale of
gasoline that contains certain additives. Modifies energy
facility siting requirement exemptions.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to fuel; creating new provisions; amending ORS 215.203,
215.213, 215.283, 283.327, 308A.056, 314.752, 318.031, 469.320,
646.905, 646.910 and 646.957; and prescribing an effective
date.
Be It Enacted by the People of the State of Oregon:
{ +
PRODUCERS OF BIOFUEL RAW MATERIALS + }
SECTION 1. { + Sections 2 and 3 of this 2007 Act are added to
and made a part of ORS chapter 315. + }
SECTION 2. { + (1) As used in this section:
(a) 'Agricultural producer' means a person that produces
biomass that is used in Oregon as biofuel or to produce biofuel.
(b) 'Biofuel' means liquid, gaseous or solid fuels derived from
biomass.
(c) 'Biomass' means organic matter that is available on a
renewable or recurring basis and that is derived from:
(A) Forest or rangeland woody debris from harvesting or
thinning conducted to improve forest ecological health and reduce
uncharacteristic stand replacing wildfire risk;
(B) Agricultural residues;
(C) Offal and tallow from animal rendering;
(D) Food wastes collected as provided under ORS chapter 459 or
459A;
(E) Yard or wood debris collected as provided under ORS chapter
459 or 459A;
(F) Wastewater solids; or
(G) Crops grown solely to be used for energy.
(d) 'Biomass' does not mean wood that has been treated with
creosote, pentachlorophenol, inorganic arsenic or other inorganic
chemical compounds.
(e) 'Biomass collector' means a person that collects biomass to
be used in Oregon as biofuel or to produce biofuel.
(2)(a) An agricultural producer or biomass collector shall be
allowed a credit against the taxes that would otherwise be due
under ORS chapter 316 or, if the taxpayer is a corporation, under
ORS chapter 317 or 318 for:
(A) The production of biomass that is used in Oregon as biofuel
or to produce biofuel; or
(B) The collection of biomass that is used in Oregon as biofuel
or to produce biofuel.
(b) A credit under this section may be claimed in the tax year
in which the agricultural producer or biomass collector transfers
biomass to a biofuel producer.
(3) The amount of the credit shall be calculated as follows:
(a) Determine the quantity of biomass transferred to a biofuel
producer during the tax year;
(b) Categorize the biomass into appropriate categories; and
(c) Multiply the quantity of biomass in a particular category
by the appropriate credit rate for that category, expressed in
dollars and cents, that is prescribed in section 5 of this 2007
Act.
(4) The amount of the credit claimed under this section for any
tax year may not exceed the tax liability of the taxpayer.
(5)(a) A biofuel producer shall provide a written receipt to an
agricultural producer or biomass collector at the time biomass is
transferred from the agricultural producer or biomass collector
to the biofuel producer. The receipt must state the quantity and
type of biomass being transferred and that the biomass is to be
used to produce biofuel.
(b) Each agricultural producer or biomass collector shall
maintain the receipts described in this subsection in their
records for a period of at least five years after the tax year in
which the credit is claimed or for a longer period of time
prescribed by the Department of Revenue.
(6) The credit shall be claimed on a form prescribed by the
Department of Revenue that contains the information required by
the department.
(7) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a particular tax year may be
carried forward and offset against the taxpayer's tax liability
for the next succeeding tax year. Any credit remaining unused in
the next succeeding tax year may be carried forward and used in
the second succeeding tax year, and likewise any credit not used
in that second succeeding tax year may be carried forward and
used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in
the fourth succeeding tax year, but may not be carried forward
for any tax year thereafter.
(8) In the case of a credit allowed under this section:
(a) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
(b) If a change in the status of the 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.
(c) If a change in the taxable year of the taxpayer occurs as
described in ORS 314.085, or if the department terminates the
taxpayer's taxable year under ORS 314.440, the credit allowed
under this section shall be prorated or computed in a manner
consistent with ORS 314.085. + }
SECTION 3. { + (1) A person that has obtained a tax credit
under section 2 of this 2007 Act may transfer the credit for
consideration to a taxpayer subject to tax under ORS chapter 316,
317 or 318.
(2) To transfer the tax credit, the taxpayer earning the credit
and the taxpayer that will claim the credit shall jointly file a
notice of tax credit transfer with the Department of Revenue. The
notice shall be given on a form prescribed by the department that
contains all of the following:
(a) The name, address and taxpayer identification number of the
transferor and transferee;
(b) The amount of the tax credit; and
(c) Any other information required by the department.
(3) Notwithstanding subsection (1) of this section, a tax
credit may not be transferred under this section:
(a) From an agricultural producer to a biomass collector
claiming a credit for collecting the biomass; or
(b) From a biomass collector to an agricultural producer
claiming a credit for producing the biomass. + }
SECTION 4. { + Section 5 of this 2007 Act is added to and made
a part of ORS chapter 469. + }
SECTION 5. { + To be eligible for the tax credit under section
2 of this 2007 Act, the biomass must be produced or collected in
Oregon as a feedstock for bioenergy or biofuel production in
Oregon. The credit rates for biomass are:
(1) For oil seed crops, $_____ per pound.
(2) For grain crops, including but not limited to wheat, barley
and triticale, $_____ per bushel.
(3) For virgin oil or alcohol delivered for production in
Oregon from Oregon-based feedstock, $_____ per gallon.
(4) For used cooking oil or waste grease, $_____ per gallon.
(5) For wastewater biosolids, $_____ per wet ton.
(6) For woody biomass collected from nursery, orchard,
agricultural or forest zoned property in Oregon, including but
not limited to, prunings, thinning, plantation rotations, log
landing or slash resulting from harvest or forest health
stewardship, $_____ per green ton.
(7) For grass, wheat, straw or other vegetative biomass from
agricultural crops, $_____ per green ton.
(8) For yard debris and municipally generated food waste,
$_____ per wet ton.
(9) For animal manure or rendering offal, $_____ per wet
ton. + }
SECTION 6. { + Sections 2, 3 and 5 of this 2007 Act apply to
tax credits for tax years beginning on or after January 1, 2008,
and before January 1, 2013. + }
SECTION 7. { + Facilities for the collection and storage of
biomass or for the production of biofuel, both as defined in
section 2 of this 2007 Act, are eligible projects for purposes of
ORS 285C.600 to 285C.626. + }
SECTION 8. ORS 314.752 is amended to read:
314.752. (1) Except as provided in ORS 314.740 (5)(b), the tax
credits allowed or allowable to a C corporation for purposes of
ORS chapter 317 or 318 shall not be allowed to an S corporation.
The business tax credits allowed or allowable for purposes of ORS
chapter 316 shall be allowed or are allowable to the shareholders
of the S corporation.
(2) In determining the tax imposed under ORS chapter 316, as
provided under ORS 314.734, on income of the shareholder of an S
corporation, there shall be taken into account the shareholder's
pro rata share of business tax credit (or item thereof) that
would be allowed to the corporation (but for subsection (1) of
this section) or recapture or recovery thereof. The credit (or
item thereof), recapture or recovery shall be passed through to
shareholders in pro rata shares as determined in the manner
prescribed under section 1377(a) of the Internal Revenue Code.
(3) The character of any item included in a shareholder's pro
rata share under subsection (2) of this section shall be
determined as if such item were realized directly from the source
from which realized by the corporation, or incurred in the same
manner as incurred by the corporation.
(4) If the shareholder is a nonresident and there is a
requirement applicable for the business tax credit that in the
case of a nonresident the credit be allowed in the proportion
provided in ORS 316.117, then that provision shall apply to the
nonresident shareholder.
(5) As used in this section, 'business tax credit' means a tax
credit granted to personal income taxpayers to encourage certain
investment, to create employment, economic opportunity or
incentive or for charitable, educational, scientific, literary or
public purposes that is listed under this subsection as a
business tax credit or is designated as a business tax credit by
law or by the Department of Revenue by rule and includes but is
not limited to the following credits: ORS 285C.309 (tribal taxes
on reservation enterprise zones), ORS 315.104 (forestation and
reforestation), ORS 315.134 (fish habitat improvement), ORS
315.138 (fish screening, by-pass devices, fishways), ORS 315.156
(crop gleaning), ORS 315.164 and 315.169 (farmworker housing),
ORS 315.204 (dependent care assistance), ORS 315.208 (dependent
care facilities), ORS 315.213 (contributions for child care), ORS
315.254 (youth apprenticeship sponsorship), ORS 315.304
(pollution control facility), ORS 315.324 (plastics recycling),
ORS 315.354 and ORS 469.207 (energy conservation facilities), ORS
315.507 (electronic commerce), ORS 315.511 (advanced
telecommunications facilities), ORS 315.604 (bone marrow
transplant expenses) and ORS 317.115 (fueling stations necessary
to operate an alternative fuel vehicle) { + and section 2 of
this 2007 Act (biomass production for biofuel) + }.
SECTION 9. ORS 318.031 is amended to read:
318.031. It being the intention of the Legislative Assembly
that this chapter and ORS chapter 317 shall be administered as
uniformly as possible (allowance being made for the difference in
imposition of the taxes), ORS 305.140 and 305.150, ORS chapter
314 and the following sections are incorporated into and made a
part of this chapter: ORS 285C.309, 315.104, 315.134, 315.156,
315.204, 315.208, 315.213, 315.254, 315.304, 315.507, 315.511 and
315.604 { + and section 2 of this 2007 Act + } (all only to the
extent applicable
{ - for - } { + to + } a corporation) and ORS chapter 317.
SECTION 9a. { + The Economic and Community Development
Department shall biennially conduct a job impact study. The study
will assess the number of new jobs created in the biofuel sector
in this state, average wage rates for those jobs and the
provision of health care and other benefits. In addition, the
study will investigate the extent to which workforce training
opportunities are being provided to employees. + }
SECTION 9b. { + (1) The Economic and Community Development
Department shall conduct the first study under section 9a of this
2007 Act two years after the effective date of this 2007 Act.
(2) Section 9a of this 2007 Act is repealed January 2,
2025. + }
{ +
RENEWABLE FUEL STANDARDS + }
SECTION 10. ORS 646.905 is amended to read:
646.905. As used in ORS 646.910 to 646.920:
(1) 'Alcohol' means a volatile flammable liquid having the
general formula CnH(2n+1)OH used or sold for the purpose of
blending or mixing with gasoline for use in propelling motor
vehicles, and commonly or commercially known or sold as an
alcohol, and includes ethanol or methanol.
{ + (2) 'Biodiesel' means:
(a) A motor vehicle fuel comprised of mono-alkyl esters of long
chain fatty acids derived from vegetable oils, animal fats or
other nonpetroleum resources, not including palm oil, designated
as B100 and complying with ASTM D 6751; or
(b) A diesel fuel substitute produced from nonpetroleum
renewable resources (including vegetable oils, animal fats and
other nonpetroleum resources, but excluding palm oil) that
complies with ASTM D 975.
(3) 'Certificate of analysis' means:
(a) A document verifying that B100 biodiesel has been analyzed
and complies with, at a minimum, the following ASTM D 6751
biodiesel fuel test methods and specifications:
(A) Flash point (ASTM D 93);
(B) Acid number (ASTM D 664);
(C) Cloud point (ASTM D 2500);
(D) Water and sediment (ASTM D 2709);
(E) Visual appearance (ASTM D 4176);
(F) Free glycerin (ASTM D 6854); and
(G) Total glycerin (ASTM D 6854); and
(b) Certification of feedstock origination describing the
percent of the feedstock sourced outside of the states of Oregon,
Washington, Idaho and Montana. + }
{ - (2) - } { + (4) + } 'Co-solvent' means an alcohol other
than methanol which is blended with either methanol or ethanol or
both to minimize phase separation in gasoline.
{ - (3) - } { + (5) + } 'Ethanol' means ethyl alcohol, a
flammable liquid having the formula C2H5OH used or sold for the
purpose of blending or mixing with gasoline for use in motor
vehicles.
{ - (4) - } { + (6) + } 'Gasoline' means any fuel sold for
use in spark ignition engines whether leaded or unleaded.
{ - (5) - } { + (7) + } 'Methanol' means methyl alcohol, a
flammable liquid having the formula CH3OH used or sold for the
purpose of blending or mixing with gasoline for use in motor
vehicles.
{ - (6) - } { + (8) + } 'Motor vehicles' means all
vehicles, vessels, watercraft, engines, machines or mechanical
contrivances that are propelled by internal combustion engines or
motors.
{ - (7) - } { + (9) + } 'Nonretail dealer' means any person
who owns, operates, controls or supervises an establishment at
which motor vehicle fuel is dispensed through a card- or
key-activated fuel dispensing device to nonretail customers.
{ - (8) - } { + (10) + } 'Retail dealer' means any person
who owns, operates, controls or supervises an establishment at
which gasoline is sold or offered for sale to the public.
{ - (9) - } { + (11) + } 'Wholesale dealer' means any
person engaged in the sale of gasoline if the seller knows or has
reasonable cause to believe the buyer intends to resell the
gasoline in the same or an altered form to another.
SECTION 11. ORS 646.957 is amended to read:
646.957. { + (1) + } In accordance with any applicable
provision of ORS chapter 183, the Director of Agriculture, not
later than December 1, 1997, shall adopt rules to carry out the
provisions of ORS 646.947 to 646.963. Such rules may include, but
are not limited to, motor vehicle fuel grade advertising, pump
grade labeling, testing procedures, quality standards and
identification requirements for motor vehicle fuels { + , ethanol
and biodiesel + }. Rules adopted by the director under this
section shall be consistent, to the extent the director considers
appropriate, with the most recent standards adopted by the
American Society for Testing and Materials. As standards of the
society are revised, the director shall revise the rules in a
manner consistent with the revisions unless the director
determines that those revised rules will significantly interfere
with the director's ability to carry out the provisions of ORS
646.947 to 646.963. Rules adopted pursuant to this section must
adequately protect confidential business information and trade
secrets that the director or the director's authorized agent may
discover when inspecting books, papers and records pursuant to
ORS 646.955.
{ + (2) Testing requirements, specifications and frequency of
testing for each production lot of biodiesel or biodiesel blend
produced or brought into this state shall be defined by the
director by rule. + }
SECTION 12. { + Sections 13 to 15, 17 and 18 of this 2007 Act
are added to and made a part of ORS 646.910 to 646.920. + }
SECTION 13. { + (1) The State Department of Agriculture shall
study and monitor biodiesel fuel production, use and sales and
certificates of analysis in this state.
(2) When the production of biodiesel in this state from sources
in Oregon, Washington, Idaho and Montana reaches a level of at
least 5 million gallons on an annualized basis for at least three
months, the department shall notify all retail dealers, nonretail
dealers and wholesale dealers in this state, in a notice that
meets the requirements of subsection (5) of this section.
(3) When the production of biodiesel in this state from sources
in Oregon, Washington, Idaho and Montana reaches a level of at
least 15 million gallons on an annualized basis for at least
three months, the department shall notify all retail dealers,
nonretail dealers and wholesale dealers in this state, in a
notice that meets the requirements of subsection (5) of this
section.
(4) All retail dealers, nonretail dealers and wholesale dealers
in Oregon are required to provide, upon the request of the
department, a certificate of analysis for biodiesel received.
(5) The notices required under this section shall inform retail
dealers, nonretail dealers and wholesale dealers that:
(a) The production of biodiesel has reached the level described
in subsection (2) or (3) of this section, as appropriate; and
(b) Three months from the date of the notice, a retail dealer,
nonretail dealer or wholesale dealer may sell or offer for sale
only diesel fuel described in section 14 of this 2007 Act. + }
SECTION 14. { + (1) Three months after the date of the notice
given under section 13 (2) of this 2007 Act, a retail dealer,
nonretail dealer or wholesale dealer may not sell or offer for
sale diesel fuel unless the diesel fuel contains at least two
percent biodiesel by volume.
(2) Three months after the date of the notice given under
section 13 (3) of this 2007 Act, a retail dealer, nonretail
dealer or wholesale dealer may not sell or offer for sale diesel
fuel unless the diesel fuel contains at least five percent
biodiesel by volume. Diesel fuel containing more than five
percent biodiesel by volume must be labeled as provided by the
State Department of Agriculture by rule.
(3) The department shall adopt standards for biodiesel sold in
this state. The department shall consult the specifications
established for biodiesel in ASTM International specification D
6751, in forming its standards. The department may review
specifications adopted by ASTM International, or equivalent
organizations, and revise the standards adopted pursuant to this
subsection as necessary.
(4) The minimum biodiesel fuel content requirement under
subsections (1) and (2) of this section does not apply to diesel
fuel sold or offered for sale for use by railroad
locomotives. + }
SECTION 15. { + (1) Each biodiesel producer, each operator of
a biodiesel bulk facility and each person who imports biodiesel
into this state for sale in this state shall keep for at least
one year, at the person's registered place of business, the
certificate of analysis for each batch or production lot of B100
biodiesel sold or delivered in this state.
(2) The Director of Agriculture, or the director's authorized
agent, upon reasonable oral or written notice, may make such
examinations of books, papers, records and equipment the director
requires to be kept by a biodiesel producer, facility operator or
importer as may be necessary to carry out the duties of the
director under ORS 646.910 to 646.920.
(3) The director, or the director's authorized agent, may test
biodiesel for the purpose of inspecting the biodiesel of any
producer, bulk facility, business or other establishment that
sells, offers for sale, distributes, transports, hauls, delivers
or stores biodiesel that is subsequently sold or offered for
sale, for compliance with the motor fuel quality standards
adopted pursuant to ORS 646.957.
(4) For the purpose of ensuring the quality of B100 biodiesel,
the director, or the director's authorized agent, may obtain, at
no cost to the department and as often as deemed necessary, a
representative sample of B100 biodiesel from any producer, bulk
facility, business or other establishment that sells, offers for
sale, distributes, transports, hauls, delivers or stores
biodiesel. The State Department of Agriculture shall adopt rules
establishing the number of samples to be tested. The entire cost
of transportation and testing of the samples shall be the
responsibility of and invoiced directly to the business from
which the sample was obtained. + }
SECTION 16. { + Sections 14 and 15 of this 2007 Act become
operative on a date that is three months following the date of
the first notice required under section 13 (2) of this 2007
Act. + }
SECTION 17. { + (1) The State Department of Agriculture shall
study and monitor ethanol fuel production, use and sales in this
state.
(2) When capacity of ethanol production facilities in Oregon
reaches a level of at least 40 million gallons, the department
shall notify all retail dealers, nonretail dealers and wholesale
dealers in this state, in a notice that meets the requirements of
subsection (3) of this section.
(3) The notice under subsection (2) of this section shall
inform retail dealers, nonretail dealers and wholesale dealers
that:
(a) The capacity of ethanol production facilities in Oregon has
reached the levels described in subsection (2) of this section;
and
(b) Three months from the date of the notice, a retail dealer,
nonretail dealer or wholesale dealer may sell or offer for sale
only gasoline described in section 18 of this 2007 Act. + }
SECTION 18. { + (1) A retail dealer, nonretail dealer or
wholesale dealer may not sell or offer for sale gasoline unless
the gasoline contains 10 percent ethanol by volume.
(2) Gasoline containing ethanol that is sold or offered for
sale meets the requirements of this section if the gasoline,
exclusive of denaturants and permitted contaminants, contains not
less than 9.2 percent by volume of agriculturally derived,
denatured ethanol that complies with the standards for ethanol
adopted by the State Department of Agriculture.
(3) The department shall adopt standards for ethanol blended
with gasoline sold in this state. The standards adopted shall
require that the gasoline blended with ethanol:
(a) Contains ethanol that is derived from agricultural or woody
waste or residue;
(b) Contains ethanol denatured as specified in 27 C.F.R. parts
20 and 21;
(c) Complies with the volatility requirements specified in 40
C.F.R. part 80;
(d) Complies with or is produced from a gasoline base stock
that complies with ASTM International specification D4814;
(e) Is not blended with casinghead gasoline, absorption
gasoline, drip gasoline or natural gasoline after it has been
sold, transferred or otherwise removed from a refinery or
terminal; and
(f) Complies with ASTM International specification D4806.
(4) The department may review specifications adopted by ASTM
International, or equivalent organizations, and federal
regulations and revise the standards adopted pursuant to this
section as necessary. + }
SECTION 19. { + Section 18 of this 2007 Act becomes operative
on a date that is three months following the date of the notice
required under section 17 of this 2007 Act. + }
{ +
GASOLINE ADDITIVE RESTRICTIONS + }
SECTION 20. ORS 646.910 is amended to read:
646.910. { - No - } { + (1) A + } wholesale or retail
dealer may { + not + } sell or offer to sell any gasoline
blended or mixed with { + :
(a) + } { - Alcohol - } { + Ethanol + } unless the blend or
mixture meets the specifications or registration requirements
established by the United States Environmental Protection Agency
pursuant to section 211 of the Clean Air Act, 42 U.S.C. section
7545 and 40 C.F.R. Part 79 { - . - } { + ;
(b) Methyl tertiary butyl ether in concentrations that exceed
0.15 percent by volume; or
(c) A total of all of the following oxygenates that exceeds
one-tenth of one percent, by weight, of:
(A) Diisopropylether.
(B) Ethyl tert-butylether.
(C) Iso-butanol.
(D) Iso-propanol.
(E) N-butanol.
(F) N-propanol.
(G) Sec-butanol.
(H) Tert-amyl methyl ether.
(I) Tert-butanol.
(J) Tert-pentanol or tert-amyl alcohol.
(K) Any other additive that has not been approved by the
California Air Resources Board or the United States Environmental
Protection Agency.
(2) Nothing in this section shall prohibit transshipment
through this state, or storage incident to the transshipment, of
gasoline that contains methyl tertiary butyl ether in
concentrations that exceed 0.15 percent by volume or any of the
oxygenates listed in subsection (1)(c) of this section, provided:
(a) The gasoline is used or disposed of outside this state; and
(b) The gasoline is segregated from gasoline intended for use
within this state. + }
SECTION 21. { + The amendments to ORS 646.910 by section 20 of
this 2007 Act become operative November 1, 2009. + }
SECTION 22. { + Section 23 of this 2007 Act is added to and
made a part of ORS 646.910 to 646.920. + }
SECTION 23. { + Notwithstanding ORS 646.910, a person may
sell, supply or offer to sell or supply gasoline in this state
that contains any oxygenate other than ethanol, if the California
Air Resources Board, the California Environmental Policy Council
or the United States Environmental Protection Agency allows the
use of the oxygenate. + }
SECTION 24. { + Section 23 of this 2007 Act becomes operative
on the effective date of this 2007 Act. + }
{ +
STATE GOVERNMENT USE OF BIOFUEL + }
SECTION 25. ORS 283.327 is amended to read:
283.327. (1) To the maximum extent economically possible,
state-owned motor vehicles shall use alternative fuel for
operation.
(2) State agencies shall acquire only motor vehicles capable of
using alternative fuel, except that acquired vehicles assigned to
areas unable economically to dispense alternative fuel need not
be so configured.
(3) Each agency owning motor vehicles shall comply with all
safety standards established by the United States Department of
Transportation in the conversion, operation and maintenance of
vehicles using alternative fuel.
{ + (4) To the maximum extent economically possible,
state-owned structures shall use biofuel, or direct-application
electricity generated from biofuel, where diesel is currently
utilized for stationary or back-up generation. + }
{ +
BIOFUEL CONSUMER INCOME TAX CREDITS + }
SECTION 26. { + Sections 27 and 28 of this 2007 Act are added
to and made a part of ORS chapter 315. + }
SECTION 27. { + (1) As used in this section and section 28 of
this 2007 Act:
(a) 'Alternative fuel vehicle' means a motor vehicle that can
operate on a fuel blend.
(b) 'Biodiesel' has the meaning given that term in ORS 646.905.
(c) 'Biomass' has the meaning given that term in section 2 of
this 2007 Act.
(d) 'Bone dry ton' means matter that is dried to less than one
percent moisture content and that weighs 2,000 pounds.
(e) 'Fuel blend' means diesel fuel of blends equal to or
exceeding 99 percent biodiesel or gasoline of a blend equal to or
exceeding 85 percent methanol or ethanol.
(2)(a) A resident individual shall be allowed a credit against
the taxes otherwise due under ORS chapter 316 for costs paid or
incurred to purchase fuel blends for use in an alternative fuel
vehicle.
(b) A resident individual shall be allowed a credit against the
taxes otherwise due under ORS chapter 316 for costs paid or
incurred to purchase forest or agriculture waste or residue
densified and dried prepared solid biofuel that contains 100
percent biomass.
(3) The amount of the credit shall be calculated as follows:
(a) Determine the quantity of fuel blend or solid biofuel
purchased by the taxpayer during the tax year;
(b) Categorize the fuel blend or solid biofuel as prescribed in
rules adopted under section 31 of this 2007 Act; and
(c) Multiply the quantity of fuel blend or solid biofuel in a
particular category by the appropriate credit rate for that
category, expressed in dollars and cents, that is prescribed in
rules adopted under section 31 of this 2007 Act.
(4) Notwithstanding subsection (3) of this section:
(a) The credit allowed under this section for diesel blended
fuel may not exceed $0.50 per gallon and in any one tax year may
not exceed $200 per Oregon registered motor vehicle that is owned
or leased by the taxpayer under a lease of greater than 30 days'
duration and that is capable of using a fuel blend.
(b) The credit allowed for gasoline blended fuel may not exceed
$0.50 per gallon and in any one tax year may not exceed $200 per
Oregon registered motor vehicle that is owned or leased by the
taxpayer under a lease of greater than 30 days' duration and that
is capable of using a fuel blend.
(c) The credit allowed for forest or agriculture waste or
residue densified and dried prepared solid biofuel may not exceed
$10 per bone dry ton of solid biofuel and in any one tax year may
not exceed $200 per taxpayer.
(d) The credit allowed in any one tax year may not exceed the
tax liability of the taxpayer and may not be carried forward to a
subsequent tax year.
(5) For each tax year for which a credit is claimed under this
section, the taxpayer shall maintain records sufficient to
determine the taxpayer's purchase of qualifying fuel blends. A
taxpayer shall maintain the records required under this
subsection for at least five years.
(6) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
(7) 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.
(8) 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.
(9) A husband and wife who file separate returns for a taxable
year may each claim a share of the tax credit that would have
been allowed on a joint return in proportion to the contribution
of each. + }
SECTION 28. { + (1) A resident individual shall be allowed a
tax credit against the taxes otherwise due under ORS chapter 316
for costs paid or incurred to purchase fuel for primary home
space heating that is at least 20 percent biodiesel. The credit
allowed under this section is the lesser of five cents per gallon
or $200.
(2) The credit allowed in any one tax year may not exceed the
tax liability of the taxpayer and may not be carried forward to a
subsequent tax year.
(3) For each tax year for which a credit is claimed under this
section, the taxpayer shall maintain records sufficient to
determine the taxpayer's purchase of qualifying fuel for primary
home space heating. A taxpayer shall maintain the records
required under this subsection for at least five years.
(4) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
(5) 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.
(6) 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.
(7) A husband and wife who file separate returns for a taxable
year may each claim a share of the tax credit that would have
been allowed on a joint return in proportion to the contribution
of each. + }
SECTION 29. { + Sections 27 and 28 of this 2007 Act apply to
tax years beginning on or after January 1, 2007, and before
January 1, 2012. + }
SECTION 30. { + Section 31 of this 2007 Act is added to and
made a part of ORS chapter 469. + }
SECTION 31. { + (1) The State Department of Energy shall by
rule:
(a) Identify categories of fuel blend and solid biofuel that
qualify for the personal income tax credit allowed under section
27 of this 2007 Act; and
(b) Subject to section 27 (4) of this 2007 Act, for each
category identified in rules adopted under this section,
prescribe a dollar rate per quantity of fuel blend or solid
biofuel, to be used to calculate the amount of credit allowed
under section 27 of this 2007 Act.
(2) The department shall review rules adopted under this
section at least annually. + }
SECTION 32. { + The State Department of Energy shall adopt
rules under section 31 of this 2007 Act on or before 60 days
after the effective date of this 2007 Act. + }
{ +
ENERGY FACILITY SITING PROCESS; + }
{ +
EXCEPTIONS + }
SECTION 33. ORS 469.320 is amended to read:
469.320. (1) Except as provided in subsections (2) and (5) of
this section, no facility shall be constructed or expanded unless
a site certificate has been issued for the site thereof in the
manner provided in ORS 469.300 to 469.563, 469.590 to 469.619,
469.930 and 469.992. No facility shall be constructed or operated
except in conformity with the requirements of ORS 469.300 to
469.563, 469.590 to 469.619, 469.930 and 469.992.
(2) A site certificate is not required for:
(a) An energy facility for which no site certificate has been
issued that, on August 2, 1993, had operable electric generating
equipment for a modification that uses the same fuel type and
increases electric generating capacity, if:
(A) The site is not enlarged; and
(B) The ability of the energy facility to use fuel for
electricity production under peak steady state operating
conditions is not more than 200 million Btu per hour greater than
it was on August 2, 1993, or the energy facility expansion is
called for in the short-term plan of action of an energy resource
plan that has been acknowledged by the Public Utility Commission
of Oregon.
(b) Construction or expansion of any interstate natural gas
pipeline or associated underground natural gas storage facility
authorized by and subject to the continuing regulation of the
Federal Energy Regulatory Commission or successor agency.
(c) An energy facility, except coal and nuclear power plants,
if the energy facility:
(A) Sequentially produces electrical energy and useful thermal
energy from the same fuel source; and
(B) Under normal operating conditions, has a useful thermal
energy output of no less than 33 percent of the total energy
output or the fuel chargeable to power heat rate value is not
greater than 6,000 Btu per kilowatt hour.
(d) Temporary storage, at the site of a nuclear-fueled thermal
power plant for which a site certificate has been issued by the
State of Oregon, of radioactive waste from the plant.
(e) An energy facility as defined in ORS 469.300 (11)(a)(G), if
the plant also produces a secondary fuel used on site for the
production of heat or electricity, if the output of the primary
fuel is less than six billion Btu of heat a day.
(f) An energy facility as defined in ORS 469.300 (11)(a)(G), if
the facility:
(A) Exclusively uses { + biomass, including but not limited
to + } grain, whey, potatoes, oil seeds, waste vegetable oil or
cellulosic biomass { + , + } as the source of material for
conversion to a liquid fuel;
(B) Has received local land use approval under the applicable
acknowledged comprehensive plan and land use regulations of the
affected local government and the facility complies with any
statewide planning goals or rules of the Land Conservation and
Development Commission that are directly applicable to the
facility;
(C) Requires no new electric transmission lines or gas or
petroleum product pipelines that would require a site certificate
under subsection (1) of this section; { - and - }
(D) Produces synthetic fuel, at least 90 percent of which is
used in an industrial or refueling facility located within one
mile of the facility or is transported from the facility by rail
or barge { + ; and
(E) Emits less than 118 pounds of carbon dioxide per million
Btu from fossil fuel used for conversion energy + }.
(g) A standby generation facility, if the facility complies
with all of the following:
(A) The facility has received local land use approval under the
applicable acknowledged comprehensive plan and land use
regulations of the affected local government and the facility
complies with all statewide planning goals and applicable rules
of the Land Conservation and Development Commission;
(B) The standby generators have been approved by the Department
of Environmental Quality as having complied with all applicable
air and water quality requirements. For an applicant that
proposes to provide the physical facilities for the installation
of standby generators, the requirement of this subparagraph may
be met by agreeing to require such a term in the lease contract
for the facility; and
(C) The standby generators are electrically incapable of being
interconnected to the transmission grid. For an applicant that
proposes to provide the physical facilities for the installation
of standby generators, the requirement of this subparagraph may
be met by agreeing to require such a term in the lease contract
for the facility.
(3) The Energy Facility Siting Council may review and, if
necessary, revise the fuel chargeable to power heat rate value
set forth in subsection (2)(c)(B) of this section. In making its
determination, the council shall ensure that the fuel chargeable
to power heat rate value for facilities set forth in subsection
(2)(c)(B) of this section remains significantly lower than the
fuel chargeable to power heat rate value for the best available,
commercially viable thermal power plant technology at the time of
the revision.
(4) Any person who proposes to construct or enlarge an energy
facility and who claims an exemption under subsection (2)(a),
(c), (f) or (g) of this section from the requirement to obtain a
site certificate shall request the Energy Facility Siting Council
to determine whether the proposed facility qualifies for the
claimed exemption. The council shall make its determination
within 60 days after the request for exemption is filed. An
appeal from the council's determination on a request for
exemption shall be made under ORS 469.403, except that the scope
of review by the Supreme Court shall be the same as a review by a
circuit court under ORS 183.484. The record on review by the
Supreme Court shall be the record established in the council
proceeding on the exemption.
(5) Notwithstanding subsection (1) of this section, a separate
site certificate shall not be required for:
(a) Transmission lines, storage facilities, pipelines or
similar related or supporting facilities, if such related or
supporting facilities are addressed in and are subject to a site
certificate for another energy facility;
(b) Expansion within the site or within the energy generation
area of a facility for which a site certificate has been issued,
if the existing site certificate has been amended to authorize
expansion; or
(c) Expansion, either within the site or outside the site, of
an existing council certified surface facility related to an
underground gas storage reservoir, if the existing site
certificate is amended to authorize expansion.
(6) If the substantial loss of the steam host causes a facility
exempt under subsection (2)(c) of this section to substantially
fail to meet the exemption requirements under subsection (2)(c)
of this section, the electric generating facility shall cease to
operate one year after the substantial loss of the steam host
unless an application for a site certificate has been filed in
accordance with the provisions of ORS 469.300 to 469.563.
(7) As used in this section:
(a) 'Standby generation facility' means an electric power
generating facility, including standby generators and the
physical structures necessary to install and connect standby
generators, that provides temporary electric power in the event
of a power outage and that is electrically incapable of being
interconnected with the transmission grid.
(b) 'Total energy output' means the sum of useful thermal
energy output and useful electrical energy output.
(c) 'Useful thermal energy' means the verifiable thermal energy
used in any viable industrial or commercial process, heating or
cooling application.
(8) Notwithstanding the definition of 'energy facility' in ORS
469.300 (11)(a)(J), an electric power generating plant with an
average electric generating capacity of less than 35 megawatts
produced from wind energy at a single energy facility or within a
single energy generation area may elect to obtain a site
certificate in the manner provided in ORS 469.300 to 469.563,
469.590 to 469.619, 469.930 and 469.992. An election to obtain a
site certificate under this subsection shall be final upon
submission of an application for a site certificate.
{ +
EXCLUSIVE FARM USE FOR ON-FARM + }
{ +
BIOFUEL PRODUCTION + }
SECTION 34. ORS 215.203 is amended to read:
215.203. (1) Zoning ordinances may be adopted to zone
designated areas of land within the county as exclusive farm use
zones. Land within such zones shall be used exclusively for farm
use except as otherwise provided in ORS 215.213, 215.283 or
215.284. Farm use zones shall be established only when such
zoning is consistent with the comprehensive plan.
(2)(a) As used in this section, 'farm use' means the current
employment of land for the primary purpose of obtaining a profit
in money by raising, harvesting and selling crops or the feeding,
breeding, management and sale of, or the produce of, livestock,
poultry, fur-bearing animals or honeybees or for dairying and the
sale of dairy products or any other agricultural or horticultural
use or animal husbandry or any combination thereof. 'Farm use'
includes the preparation, storage and disposal by marketing or
otherwise of the products or by-products raised on such land for
human or animal use. 'Farm use' also includes the current
employment of land for the primary purpose of obtaining a profit
in money by stabling or training equines including but not
limited to providing riding lessons, training clinics and
schooling shows. 'Farm use' also includes the propagation,
cultivation, maintenance and harvesting of aquatic, bird and
animal species that are under the jurisdiction of the State Fish
and Wildlife Commission, to the extent allowed by the rules
adopted by the commission. 'Farm use' includes the on-site
construction and maintenance of equipment and facilities used for
the activities described in this subsection. 'Farm use' does not
include the use of land subject to the provisions of ORS chapter
321, except land used exclusively for growing cultured Christmas
trees as defined in subsection (3) of this section or land
described in ORS 321.267 (3) or 321.824 (3).
(b) 'Current employment' of land for farm use includes:
(A) Farmland, the operation or use of which is subject to any
farm-related government program;
(B) Land lying fallow for one year as a normal and regular
requirement of good agricultural husbandry;
(C) Land planted in orchards or other perennials, other than
land specified in subparagraph (D) of this paragraph, prior to
maturity;
(D) Land not in an exclusive farm use zone which has not been
eligible for assessment at special farm use value in the year
prior to planting the current crop and has been planted in
orchards, cultured Christmas trees or vineyards for at least
three years;
(E) Wasteland, in an exclusive farm use zone, dry or covered
with water, neither economically tillable nor grazeable, lying in
or adjacent to and in common ownership with a farm use land and
which is not currently being used for any economic farm use;
(F) Except for land under a single family dwelling, land under
buildings supporting accepted farm practices, including the
processing facilities allowed by ORS 215.213 (1)(x) and 215.283
(1)(u) { + and the processing of farm crops into biofuel as
commercial activities in conjunction with farm use under ORS
215.213 (2)(c) and 215.283 (2)(a) + };
(G) Water impoundments lying in or adjacent to and in common
ownership with farm use land;
(H) Any land constituting a woodlot, not to exceed 20 acres,
contiguous to and owned by the owner of land specially valued for
farm use even if the land constituting the woodlot is not
utilized in conjunction with farm use;
(I) Land lying idle for no more than one year where the absence
of farming activity is due to the illness of the farmer or member
of the farmer's immediate family. For purposes of this paragraph,
illness includes injury or infirmity whether or not such illness
results in death;
(J) Any land described under ORS 321.267 (3) or 321.824 (3);
{ - and - }
(K) Land used for the primary purpose of obtaining a profit in
money by breeding, raising, kenneling or training of greyhounds
for racing { - . - } { + ; and + }
{ + (L) Land used for the processing of farm crops into
biofuel, as defined in section 2 of this 2007 Act, if:
(i) Only the crops of the landowner are being processed;
(ii) The biofuel from all of the crops purchased for processing
into biofuel is used on the farm of the landowner; or
(iii) The landowner is custom processing crops into biofuel
from other landowners in the area for their use or sale. + }
(c) As used in this subsection, 'accepted farming practice '
means a mode of operation that is common to farms of a similar
nature, necessary for the operation of such farms to obtain a
profit in money, and customarily utilized in conjunction with
farm use.
(3) 'Cultured Christmas trees' means trees:
(a) Grown on lands used exclusively for that purpose, capable
of preparation by intensive cultivation methods such as plowing
or turning over the soil;
(b) Of a marketable species;
(c) Managed to produce trees meeting U.S. No. 2 or better
standards for Christmas trees as specified by the Agriculture
Marketing Services of the United States Department of
Agriculture; and
(d) Evidencing periodic maintenance practices of shearing for
Douglas fir and pine species, weed and brush control and one or
more of the following practices: Basal pruning, fertilizing,
insect and disease control, stump culture, soil cultivation,
irrigation.
SECTION 35. ORS 215.213 is amended to read:
215.213. (1) In counties that have adopted marginal lands
provisions under ORS 197.247 (1991 Edition), the following uses
may be established in any area zoned for exclusive farm use:
(a) Public or private schools, including all buildings
essential to the operation of a school.
(b) Churches and cemeteries in conjunction with churches.
(c) The propagation or harvesting of a forest product.
(d) Utility facilities necessary for public service, including
wetland waste treatment systems but not including commercial
facilities for the purpose of generating electrical power for
public use by sale or transmission towers over 200 feet in
height. A utility facility necessary for public service may be
established as provided in ORS 215.275.
(e) A dwelling on real property used for farm use if the
dwelling is occupied by a relative of the farm operator or the
farm operator's spouse, which means a child, parent, stepparent,
grandchild, grandparent, stepgrandparent, sibling, stepsibling,
niece, nephew or first cousin of either, if the farm operator
does or will require the assistance of the relative in the
management of the farm use and the dwelling is located on the
same lot or parcel as the dwelling of the farm operator.
Notwithstanding ORS 92.010 to 92.190 or the minimum lot or parcel
size requirements under ORS 215.780, if the owner of a dwelling
described in this paragraph obtains construction financing or
other financing secured by the dwelling and the secured party
forecloses on the dwelling, the secured party may also foreclose
on the homesite, as defined in ORS 308A.250, and the foreclosure
shall operate as a partition of the homesite to create a new
parcel.
(f) Nonresidential buildings customarily provided in
conjunction with farm use.
(g) Primary or accessory dwellings customarily provided in
conjunction with farm use. For a primary dwelling, the dwelling
must be on a lot or parcel that is managed as part of a farm
operation and is not smaller than the minimum lot size in a farm
zone with a minimum lot size acknowledged under ORS 197.251.
(h) Operations for the exploration for and production of
geothermal resources as defined by ORS 522.005 and oil and gas as
defined by ORS 520.005, including the placement and operation of
compressors, separators and other customary production equipment
for an individual well adjacent to the wellhead. Any activities
or construction relating to such operations shall not be a basis
for an exception under ORS 197.732 (1)(a) or (b).
(i) Operations for the exploration for minerals as defined by
ORS 517.750. Any activities or construction relating to such
operations shall not be a basis for an exception under ORS
197.732 (1)(a) or (b).
(j) A site for the disposal of solid waste that has been
ordered to be established by the Environmental Quality Commission
under ORS 459.049, together with equipment, facilities or
buildings necessary for its operation.
(k) One manufactured dwelling or recreational vehicle, or the
temporary residential use of an existing building, in conjunction
with an existing dwelling as a temporary use for the term of a
hardship suffered by the existing resident or a relative of the
resident. Within three months of the end of the hardship, the
manufactured dwelling or recreational vehicle shall be removed or
demolished or, in the case of an existing building, the building
shall be removed, demolished or returned to an allowed
nonresidential use. The governing body or its designee shall
provide for periodic review of the hardship claimed under this
paragraph. A temporary residence approved under this paragraph is
not eligible for replacement under paragraph (t) of this
subsection.
(L) The breeding, kenneling and training of greyhounds for
racing in any county with a population of more than 200,000 in
which there is located a greyhound racing track or in a county
with a population of more than 200,000 that is contiguous to such
a county.
(m) Climbing and passing lanes within the right of way existing
as of July 1, 1987.
(n) Reconstruction or modification of public roads and
highways, including the placement of utility facilities overhead
and in the subsurface of public roads and highways along the
public right of way, but not including the addition of travel
lanes, where no removal or displacement of buildings would occur,
or no new land parcels result.
(o) Temporary public road and highway detours that will be
abandoned and restored to original condition or use at such time
as no longer needed.
(p) Minor betterment of existing public road and highway
related facilities, such as maintenance yards, weigh stations and
rest areas, within right of way existing as of July 1, 1987, and
contiguous public-owned property utilized to support the
operation and maintenance of public roads and highways.
(q) A replacement dwelling to be used in conjunction with farm
use if the existing dwelling has been listed in a county
inventory as historic property as defined in ORS 358.480.
(r) Creation of, restoration of or enhancement of wetlands.
(s) A winery, as described in ORS 215.452.
(t) Alteration, restoration or replacement of a lawfully
established dwelling that:
(A) Has intact exterior walls and roof structure;
(B) Has indoor plumbing consisting of a kitchen sink, toilet
and bathing facilities connected to a sanitary waste disposal
system;
(C) Has interior wiring for interior lights;
(D) Has a heating system; and
(E) In the case of replacement:
(i) Is removed, demolished or converted to an allowable
nonresidential use within three months of the completion of the
replacement dwelling. A replacement dwelling may be sited on any
part of the same lot or parcel. A dwelling established under this
paragraph shall comply with all applicable siting standards.
However, the standards shall not be applied in a manner that
prohibits the siting of the dwelling. If the dwelling to be
replaced is located on a portion of the lot or parcel not zoned
for exclusive farm use, the applicant, as a condition of
approval, shall execute and record in the deed records for the
county where the property is located a deed restriction
prohibiting the siting of a dwelling on that portion of the lot
or parcel. The restriction imposed shall be irrevocable unless a
statement of release is placed in the deed records for the
county. The release shall be signed by the county or its designee
and state that the provisions of this paragraph regarding
replacement dwellings have changed to allow the siting of another
dwelling. The county planning director or the director's designee
shall maintain a record of the lots and parcels that do not
qualify for the siting of a new dwelling under the provisions of
this paragraph, including a copy of the deed restrictions and
release statements filed under this paragraph; and
(ii) For which the applicant has requested a deferred
replacement permit, is removed or demolished within three months
after the deferred replacement permit is issued. A deferred
replacement permit allows construction of the replacement
dwelling at any time. If, however, the established dwelling is
not removed or demolished within three months after the deferred
replacement permit is issued, the permit becomes void. The
replacement dwelling must comply with applicable building codes,
plumbing codes, sanitation codes and other requirements relating
to health and safety or to siting at the time of construction. A
deferred replacement permit may not be transferred, by sale or
otherwise, except by the applicant to the spouse or a child of
the applicant.
(u) Farm stands if:
(A) The structures are designed and used for the sale of farm
crops or livestock grown on the farm operation, or grown on the
farm operation and other farm operations in the local
agricultural area, including the sale of retail incidental items
and fee-based activity to promote the sale of farm crops or
livestock sold at the farm stand if the annual sale of incidental
items and fees from promotional activity do not make up more than
25 percent of the total annual sales of the farm stand; and
(B) The farm stand does not include structures designed for
occupancy as a residence or for activity other than the sale of
farm crops or livestock and does not include structures for
banquets, public gatherings or public entertainment.
(v) An armed forces reserve center, if the center is within
one-half mile of a community college. For purposes of this
paragraph, 'armed forces reserve center' includes an armory or
National Guard support facility.
(w) A site for the takeoff and landing of model aircraft,
including such buildings or facilities as may reasonably be
necessary. Buildings or facilities shall not be more than 500
square feet in floor area or placed on a permanent foundation
unless the building or facility preexisted the use approved under
this paragraph. The site shall not include an aggregate surface
or hard surface area unless the surface preexisted the use
approved under this paragraph. As used in this paragraph, 'model
aircraft' means a small-scale version of an airplane, glider,
helicopter, dirigible or balloon that is used or intended to be
used for flight and is controlled by radio, lines or design by a
person on the ground.
(x) A facility for the processing of farm crops { + , or the
production of biofuel as defined in section 2 of this 2007 Act,
that is + } located on a farm operation that provides at least
one-quarter of the farm crops processed at the facility. The
building established for the processing facility shall not exceed
10,000 square feet of floor area exclusive of the floor area
designated for preparation, storage or other farm use or devote
more than 10,000 square feet to the processing activities within
another building supporting farm uses. A processing facility
shall comply with all applicable siting standards but the
standards shall not be applied in a manner that prohibits the
siting of the processing facility.
(y) Fire service facilities providing rural fire protection
services.
(z) Irrigation canals, delivery lines and those structures and
accessory operational facilities associated with a district as
defined in ORS 540.505.
(aa) Utility facility service lines. Utility facility service
lines are utility lines and accessory facilities or structures
that end at the point where the utility service is received by
the customer and that are located on one or more of the
following:
(A) A public right of way;
(B) Land immediately adjacent to a public right of way,
provided the written consent of all adjacent property owners has
been obtained; or
(C) The property to be served by the utility.
(bb) Subject to the issuance of a license, permit or other
approval by the Department of Environmental Quality under ORS
454.695, 459.205, 468B.050, 468B.053 or 468B.055, or in
compliance with rules adopted under ORS 468B.095, and as provided
in ORS 215.246 to 215.251, the land application of reclaimed
water, agricultural or industrial process water or biosolids for
agricultural, horticultural or silvicultural production, or for
irrigation in connection with a use allowed in an exclusive farm
use zone under this chapter.
(2) In counties that have adopted marginal lands provisions
under ORS 197.247 (1991 Edition), the following uses may be
established in any area zoned for exclusive farm use subject to
ORS 215.296:
(a) A primary dwelling in conjunction with farm use or the
propagation or harvesting of a forest product on a lot or parcel
that is managed as part of a farm operation or woodlot if the
farm operation or woodlot:
(A) Consists of 20 or more acres; and
(B) Is not smaller than the average farm or woodlot in the
county producing at least $2,500 in annual gross income from the
crops, livestock or forest products to be raised on the farm
operation or woodlot.
(b) A primary dwelling in conjunction with farm use or the
propagation or harvesting of a forest product on a lot or parcel
that is managed as part of a farm operation or woodlot smaller
than required under paragraph (a) of this subsection, if the lot
or parcel:
(A) Has produced at least $20,000 in annual gross farm income
in two consecutive calendar years out of the three calendar years
before the year in which the application for the dwelling was
made or is planted in perennials capable of producing upon
harvest an average of at least $20,000 in annual gross farm
income; or
(B) Is a woodlot capable of producing an average over the
growth cycle of $20,000 in gross annual income.
(c) Commercial activities that are in conjunction with farm
use { + , + } { - but not including the processing of farm
crops as described in - } { + including the commercial
processing of farm crops into biofuel under + } subsection (1)(x)
of this section.
(d) Operations conducted for:
(A) Mining and processing of geothermal resources as defined by
ORS 522.005 and oil and gas as defined by ORS 520.005, not
otherwise permitted under subsection (1)(h) of this section;
(B) Mining, crushing or stockpiling of aggregate and other
mineral and other subsurface resources subject to ORS 215.298;
(C) Processing, as defined by ORS 517.750, of aggregate into
asphalt or portland cement; and
(D) Processing of other mineral resources and other subsurface
resources.
(e) Community centers owned by a governmental agency or a
nonprofit community organization and operated primarily by and
for residents of the local rural community, hunting and fishing
preserves, public and private parks, playgrounds and campgrounds.
Subject to the approval of the county governing body or its
designee, a private campground may provide yurts for overnight
camping. No more than one-third or a maximum of 10 campsites,
whichever is smaller, may include a yurt. The yurt shall be
located on the ground or on a wood floor with no permanent
foundation. Upon request of a county governing body, the Land
Conservation and Development Commission may provide by rule for
an increase in the number of yurts allowed on all or a portion of
the campgrounds in a county if the commission determines that the
increase will comply with the standards described in ORS 215.296
(1). A public park or campground may be established as provided
under ORS 195.120. As used in this paragraph, 'yurt' means a
round, domed shelter of cloth or canvas on a collapsible frame
with no plumbing, sewage disposal hookup or internal cooking
appliance.
(f) Golf courses.
(g) Commercial utility facilities for the purpose of generating
power for public use by sale.
(h) Personal-use airports for airplanes and helicopter pads,
including associated hangar, maintenance and service facilities.
A personal-use airport as used in this section means an airstrip
restricted, except for aircraft emergencies, to use by the owner,
and, on an infrequent and occasional basis, by invited guests,
and by commercial aviation activities in connection with
agricultural operations. No aircraft may be based on a
personal-use airport other than those owned or controlled by the
owner of the airstrip. Exceptions to the activities permitted
under this definition may be granted through waiver action by the
Oregon Department of Aviation in specific instances. A
personal-use airport lawfully existing as of September 13, 1975,
shall continue to be permitted subject to any applicable rules of
the Oregon Department of Aviation.
(i) A facility for the primary processing of forest products,
provided that such facility is found to not seriously interfere
with accepted farming practices and is compatible with farm uses
described in ORS 215.203 (2). Such a facility may be approved for
a one-year period which is renewable. These facilities are
intended to be only portable or temporary in nature. The primary
processing of a forest product, as used in this section, means
the use of a portable chipper or stud mill or other similar
methods of initial treatment of a forest product in order to
enable its shipment to market. Forest products, as used in this
section, means timber grown upon a parcel of land or contiguous
land where the primary processing facility is located.
(j) A site for the disposal of solid waste approved by the
governing body of a city or county or both and for which a permit
has been granted under ORS 459.245 by the Department of
Environmental Quality together with equipment, facilities or
buildings necessary for its operation.
(k) Dog kennels not described in subsection (1)(L) of this
section.
(L) Residential homes as defined in ORS 197.660, in existing
dwellings.
(m) The propagation, cultivation, maintenance and harvesting of
aquatic species that are not under the jurisdiction of the State
Fish and Wildlife Commission or insect species. Insect species
shall not include any species under quarantine by the State
Department of Agriculture or the United States Department of
Agriculture. The county shall provide notice of all applications
under this paragraph to the State Department of Agriculture.
Notice shall be provided in accordance with the county's land use
regulations but shall be mailed at least 20 calendar days prior
to any administrative decision or initial public hearing on the
application.
(n) Home occupations as provided in ORS 215.448.
(o) Transmission towers over 200 feet in height.
(p) Construction of additional passing and travel lanes
requiring the acquisition of right of way but not resulting in
the creation of new land parcels.
(q) Reconstruction or modification of public roads and highways
involving the removal or displacement of buildings but not
resulting in the creation of new land parcels.
(r) Improvement of public road and highway related facilities
such as maintenance yards, weigh stations and rest areas, where
additional property or right of way is required but not resulting
in the creation of new land parcels.
(s) A destination resort that is approved consistent with the
requirements of any statewide planning goal relating to the
siting of a destination resort.
(t) Room and board arrangements for a maximum of five unrelated
persons in existing residences.
(u) A living history museum related to resource based
activities owned and operated by a governmental agency or a local
historical society, together with limited commercial activities
and facilities that are directly related to the use and enjoyment
of the museum and located within authentic buildings of the
depicted historic period or the museum administration building,
if areas other than an exclusive farm use zone cannot accommodate
the museum and related activities or if the museum administration
buildings and parking lot are located within one quarter mile of
the metropolitan urban growth boundary. As used in this
paragraph:
(A) 'Living history museum' means a facility designed to depict
and interpret everyday life and culture of some specific historic
period using authentic buildings, tools, equipment and people to
simulate past activities and events; and
(B) 'Local historical society' means the local historical
society, recognized as such by the county governing body and
organized under ORS chapter 65.
(v) Operations for the extraction and bottling of water.
(w) An aerial fireworks display business that has been in
continuous operation at its current location within an exclusive
farm use zone since December 31, 1986, and possesses a
wholesaler's permit to sell or provide fireworks.
(x) A landscaping business, as defined in ORS 671.520, or a
business providing landscape architecture services, as described
in ORS 671.318, if the business is pursued in conjunction with
the growing and marketing of nursery stock on the land that
constitutes farm use.
(3) In counties that have adopted marginal lands provisions
under ORS 197.247 (1991 Edition), a single-family residential
dwelling not provided in conjunction with farm use may be
established on a lot or parcel with soils predominantly in
capability classes IV through VIII as determined by the
Agricultural Capability Classification System in use by the
United States Department of Agriculture Soil Conservation Service
on October 15, 1983. A proposed dwelling is subject to approval
of the governing body or its designee in any area zoned for
exclusive farm use upon written findings showing all of the
following:
(a) The dwelling or activities associated with the dwelling
will not force a significant change in or significantly increase
the cost of accepted farming practices on nearby lands devoted to
farm use.
(b) The dwelling is situated upon generally unsuitable land for
the production of farm crops and livestock, considering the
terrain, adverse soil or land conditions, drainage and flooding,
location and size of the tract. A lot or parcel shall not be
considered unsuitable solely because of its size or location if
it can reasonably be put to farm use in conjunction with other
land.
(c) Complies with such other conditions as the governing body
or its designee considers necessary.
(4) In counties that have adopted marginal lands provisions
under ORS 197.247 (1991 Edition), one single-family dwelling, not
provided in conjunction with farm use, may be established in any
area zoned for exclusive farm use on a lot or parcel described in
subsection (7) of this section that is not larger than three
acres upon written findings showing:
(a) The dwelling or activities associated with the dwelling
will not force a significant change in or significantly increase
the cost of accepted farming practices on nearby lands devoted to
farm use;
(b) If the lot or parcel is located within the Willamette River
Greenway, a floodplain or a geological hazard area, the dwelling
complies with conditions imposed by local ordinances relating
specifically to the Willamette River Greenway, floodplains or
geological hazard areas, whichever is applicable; and
(c) The dwelling complies with other conditions considered
necessary by the governing body or its designee.
(5) Upon receipt of an application for a permit under
subsection (4) of this section, the governing body shall notify:
(a) Owners of land that is within 250 feet of the lot or parcel
on which the dwelling will be established; and
(b) Persons who have requested notice of such applications and
who have paid a reasonable fee imposed by the county to cover the
cost of such notice.
(6) The notice required in subsection (5) of this section shall
specify that persons have 15 days following the date of postmark
of the notice to file a written objection on the grounds only
that the dwelling or activities associated with it would force a
significant change in or significantly increase the cost of
accepted farming practices on nearby lands devoted to farm use.
If no objection is received, the governing body or its designee
shall approve or disapprove the application. If an objection is
received, the governing body shall set the matter for hearing in
the manner prescribed in ORS 215.402 to 215.438. The governing
body may charge the reasonable costs of the notice required by
subsection (5)(a) of this section to the applicant for the permit
requested under subsection (4) of this section.
(7) Subsection (4) of this section applies to a lot or parcel
lawfully created between January 1, 1948, and July 1, 1983. For
the purposes of this section:
(a) Only one lot or parcel exists if:
(A) A lot or parcel described in this section is contiguous to
one or more lots or parcels described in this section; and
(B) On July 1, 1983, greater than possessory interests are held
in those contiguous lots, parcels or lots and parcels by the same
person, spouses or a single partnership or business entity,
separately or in tenancy in common.
(b) 'Contiguous' means lots, parcels or lots and parcels that
have a common boundary, including but not limited to, lots,
parcels or lots and parcels separated only by a public road.
(8) A person who sells or otherwise transfers real property in
an exclusive farm use zone may retain a life estate in a dwelling
on that property and in a tract of land under and around the
dwelling.
(9) No final approval of a nonfarm use under this section shall
be given unless any additional taxes imposed upon the change in
use have been paid.
(10) Roads, highways and other transportation facilities and
improvements not allowed under subsections (1) and (2) of this
section may be established, subject to the approval of the
governing body or its designee, in areas zoned for exclusive farm
use subject to:
(a) Adoption of an exception to the goal related to
agricultural lands and to any other applicable goal with which
the facility or improvement does not comply; or
(b) ORS 215.296 for those uses identified by rule of the Land
Conservation and Development Commission as provided in section 3,
chapter 529, Oregon Laws 1993.
SECTION 36. ORS 215.283 is amended to read:
215.283. (1) The following uses may be established in any area
zoned for exclusive farm use:
(a) Public or private schools, including all buildings
essential to the operation of a school.
(b) Churches and cemeteries in conjunction with churches.
(c) The propagation or harvesting of a forest product.
(d) Utility facilities necessary for public service, including
wetland waste treatment systems but not including commercial
facilities for the purpose of generating electrical power for
public use by sale or transmission towers over 200 feet in
height. A utility facility necessary for public service may be
established as provided in ORS 215.275.
(e) A dwelling on real property used for farm use if the
dwelling is occupied by a relative of the farm operator or the
farm operator's spouse, which means a child, parent, stepparent,
grandchild, grandparent, stepgrandparent, sibling, stepsibling,
niece, nephew or first cousin of either, if the farm operator
does or will require the assistance of the relative in the
management of the farm use and the dwelling is located on the
same lot or parcel as the dwelling of the farm operator.
Notwithstanding ORS 92.010 to 92.190 or the minimum lot or parcel
size requirements under ORS 215.780, if the owner of a dwelling
described in this paragraph obtains construction financing or
other financing secured by the dwelling and the secured party
forecloses on the dwelling, the secured party may also foreclose
on the homesite, as defined in ORS 308A.250, and the foreclosure
shall operate as a partition of the homesite to create a new
parcel.
(f) Primary or accessory dwellings and other buildings
customarily provided in conjunction with farm use.
(g) Operations for the exploration for and production of
geothermal resources as defined by ORS 522.005 and oil and gas as
defined by ORS 520.005, including the placement and operation of
compressors, separators and other customary production equipment
for an individual well adjacent to the wellhead. Any activities
or construction relating to such operations shall not be a basis
for an exception under ORS 197.732 (1)(a) or (b).
(h) Operations for the exploration for minerals as defined by
ORS 517.750. Any activities or construction relating to such
operations shall not be a basis for an exception under ORS
197.732 (1)(a) or (b).
(i) A site for the disposal of solid waste that has been
ordered to be established by the Environmental Quality Commission
under ORS 459.049, together with equipment, facilities or
buildings necessary for its operation.
(j) The breeding, kenneling and training of greyhounds for
racing.
(k) Climbing and passing lanes within the right of way existing
as of July 1, 1987.
(L) Reconstruction or modification of public roads and
highways, including the placement of utility facilities overhead
and in the subsurface of public roads and highways along the
public right of way, but not including the addition of travel
lanes, where no removal or displacement of buildings would occur,
or no new land parcels result.
(m) Temporary public road and highway detours that will be
abandoned and restored to original condition or use at such time
as no longer needed.
(n) Minor betterment of existing public road and highway
related facilities such as maintenance yards, weigh stations and
rest areas, within right of way existing as of July 1, 1987, and
contiguous public-owned property utilized to support the
operation and maintenance of public roads and highways.
(o) A replacement dwelling to be used in conjunction with farm
use if the existing dwelling has been listed in a county
inventory as historic property as defined in ORS 358.480.
(p) Creation of, restoration of or enhancement of wetlands.
(q) A winery, as described in ORS 215.452.
(r) Farm stands if:
(A) The structures are designed and used for the sale of farm
crops or livestock grown on the farm operation, or grown on the
farm operation and other farm operations in the local
agricultural area, including the sale of retail incidental items
and fee-based activity to promote the sale of farm crops or
livestock sold at the farm stand if the annual sale of incidental
items and fees from promotional activity do not make up more than
25 percent of the total annual sales of the farm stand; and
(B) The farm stand does not include structures designed for
occupancy as a residence or for activity other than the sale of
farm crops or livestock and does not include structures for
banquets, public gatherings or public entertainment.
(s) Alteration, restoration or replacement of a lawfully
established dwelling that:
(A) Has intact exterior walls and roof structure;
(B) Has indoor plumbing consisting of a kitchen sink, toilet
and bathing facilities connected to a sanitary waste disposal
system;
(C) Has interior wiring for interior lights;
(D) Has a heating system; and
(E) In the case of replacement:
(i) Is removed, demolished or converted to an allowable
nonresidential use within three months of the completion of the
replacement dwelling. A replacement dwelling may be sited on any
part of the same lot or parcel. A dwelling established under this
paragraph shall comply with all applicable siting standards.
However, the standards shall not be applied in a manner that
prohibits the siting of the dwelling. If the dwelling to be
replaced is located on a portion of the lot or parcel not zoned
for exclusive farm use, the applicant, as a condition of
approval, shall execute and record in the deed records for the
county where the property is located a deed restriction
prohibiting the siting of a dwelling on that portion of the lot
or parcel. The restriction imposed shall be irrevocable unless a
statement of release is placed in the deed records for the
county. The release shall be signed by the county or its designee
and state that the provisions of this paragraph regarding
replacement dwellings have changed to allow the siting of another
dwelling. The county planning director or the director's designee
shall maintain a record of the lots and parcels that do not
qualify for the siting of a new dwelling under the provisions of
this paragraph, including a copy of the deed restrictions and
release statements filed under this paragraph; and
(ii) For which the applicant has requested a deferred
replacement permit, is removed or demolished within three months
after the deferred replacement permit is issued. A deferred
replacement permit allows construction of the replacement
dwelling at any time. If, however, the established dwelling is
not removed or demolished within three months after the deferred
replacement permit is issued, the permit becomes void. The
replacement dwelling must comply with applicable building codes,
plumbing codes, sanitation codes and other requirements relating
to health and safety or to siting at the time of construction. A
deferred replacement permit may not be transferred, by sale or
otherwise, except by the applicant to the spouse or a child of
the applicant.
(t) A site for the takeoff and landing of model aircraft,
including such buildings or facilities as may reasonably be
necessary. Buildings or facilities shall not be more than 500
square feet in floor area or placed on a permanent foundation
unless the building or facility preexisted the use approved under
this paragraph. The site shall not include an aggregate surface
or hard surface area unless the surface preexisted the use
approved under this paragraph. As used in this paragraph, 'model
aircraft' means a small-scale version of an airplane, glider,
helicopter, dirigible or balloon that is used or intended to be
used for flight and is controlled by radio, lines or design by a
person on the ground.
(u) A facility for the processing of farm crops { + , or the
production of biofuel as defined in section 2 of this 2007 Act,
that is + } located on a farm operation that provides at least
one-quarter of the farm crops processed at the facility. The
building established for the processing facility shall not exceed
10,000 square feet of floor area exclusive of the floor area
designated for preparation, storage or other farm use or devote
more than 10,000 square feet to the processing activities within
another building supporting farm uses. A processing facility
shall comply with all applicable siting standards but the
standards shall not be applied in a manner that prohibits the
siting of the processing facility.
(v) Fire service facilities providing rural fire protection
services.
(w) Irrigation canals, delivery lines and those structures and
accessory operational facilities associated with a district as
defined in ORS 540.505.
(x) Utility facility service lines. Utility facility service
lines are utility lines and accessory facilities or structures
that end at the point where the utility service is received by
the customer and that are located on one or more of the
following:
(A) A public right of way;
(B) Land immediately adjacent to a public right of way,
provided the written consent of all adjacent property owners has
been obtained; or
(C) The property to be served by the utility.
(y) Subject to the issuance of a license, permit or other
approval by the Department of Environmental Quality under ORS
454.695, 459.205, 468B.050, 468B.053 or 468B.055, or in
compliance with rules adopted under ORS 468B.095, and as provided
in ORS 215.246 to 215.251, the land application of reclaimed
water, agricultural or industrial process water or biosolids for
agricultural, horticultural or silvicultural production, or for
irrigation in connection with a use allowed in an exclusive farm
use zone under this chapter.
(z) A county law enforcement facility that lawfully existed on
August 20, 2002, and is used to provide rural law enforcement
services primarily in rural areas, including parole and
post-prison supervision, but not including a correctional
facility as defined under ORS 162.135.
(2) The following nonfarm uses may be established, subject to
the approval of the governing body or its designee in any area
zoned for exclusive farm use subject to ORS 215.296:
(a) Commercial activities that are in conjunction with farm
use { + , + } { - but not including the processing of farm
crops as described in - } { + including the commercial
processing of farm crops into biofuel under + } subsection (1)(u)
of this section.
(b) Operations conducted for:
(A) Mining and processing of geothermal resources as defined by
ORS 522.005 and oil and gas as defined by ORS 520.005 not
otherwise permitted under subsection (1)(g) of this section;
(B) Mining, crushing or stockpiling of aggregate and other
mineral and other subsurface resources subject to ORS 215.298;
(C) Processing, as defined by ORS 517.750, of aggregate into
asphalt or portland cement; and
(D) Processing of other mineral resources and other subsurface
resources.
(c) Private parks, playgrounds, hunting and fishing preserves
and campgrounds. Subject to the approval of the county governing
body or its designee, a private campground may provide yurts for
overnight camping. No more than one-third or a maximum of 10
campsites, whichever is smaller, may include a yurt. The yurt
shall be located on the ground or on a wood floor with no
permanent foundation. Upon request of a county governing body,
the Land Conservation and Development Commission may provide by
rule for an increase in the number of yurts allowed on all or a
portion of the campgrounds in a county if the commission
determines that the increase will comply with the standards
described in ORS 215.296 (1). As used in this paragraph, 'yurt'
means a round, domed shelter of cloth or canvas on a collapsible
frame with no plumbing, sewage disposal hookup or internal
cooking appliance.
(d) Parks and playgrounds. A public park may be established
consistent with the provisions of ORS 195.120.
(e) Community centers owned by a governmental agency or a
nonprofit community organization and operated primarily by and
for residents of the local rural community. A community center
authorized under this paragraph may provide services to veterans,
including but not limited to emergency and transitional shelter,
preparation and service of meals, vocational and educational
counseling and referral to local, state or federal agencies
providing medical, mental health, disability income replacement
and substance abuse services, only in a facility that is in
existence on January 1, 2006. The services may not include direct
delivery of medical, mental health, disability income replacement
or substance abuse services.
(f) Golf courses.
(g) Commercial utility facilities for the purpose of generating
power for public use by sale.
(h) Personal-use airports for airplanes and helicopter pads,
including associated hangar, maintenance and service facilities.
A personal-use airport, as used in this section, means an
airstrip restricted, except for aircraft emergencies, to use by
the owner, and, on an infrequent and occasional basis, by invited
guests, and by commercial aviation activities in connection with
agricultural operations. No aircraft may be based on a
personal-use airport other than those owned or controlled by the
owner of the airstrip. Exceptions to the activities permitted
under this definition may be granted through waiver action by the
Oregon Department of Aviation in specific instances. A
personal-use airport lawfully existing as of September 13, 1975,
shall continue to be permitted subject to any applicable rules of
the Oregon Department of Aviation.
(i) Home occupations as provided in ORS 215.448.
(j) A facility for the primary processing of forest products,
provided that such facility is found to not seriously interfere
with accepted farming practices and is compatible with farm uses
described in ORS 215.203 (2). Such a facility may be approved for
a one-year period which is renewable. These facilities are
intended to be only portable or temporary in nature. The primary
processing of a forest product, as used in this section, means
the use of a portable chipper or stud mill or other similar
methods of initial treatment of a forest product in order to
enable its shipment to market. Forest products, as used in this
section, means timber grown upon a parcel of land or contiguous
land where the primary processing facility is located.
(k) A site for the disposal of solid waste approved by the
governing body of a city or county or both and for which a permit
has been granted under ORS 459.245 by the Department of
Environmental Quality together with equipment, facilities or
buildings necessary for its operation.
(L) One manufactured dwelling or recreational vehicle, or the
temporary residential use of an existing building, in conjunction
with an existing dwelling as a temporary use for the term of a
hardship suffered by the existing resident or a relative of the
resident. Within three months of the end of the hardship, the
manufactured dwelling or recreational vehicle shall be removed or
demolished or, in the case of an existing building, the building
shall be removed, demolished or returned to an allowed
nonresidential use. The governing body or its designee shall
provide for periodic review of the hardship claimed under this
paragraph. A temporary residence approved under this paragraph is
not eligible for replacement under subsection (1)(s) of this
section.
(m) Transmission towers over 200 feet in height.
(n) Dog kennels not described in subsection (1)(j) of this
section.
(o) Residential homes as defined in ORS 197.660, in existing
dwellings.
(p) The propagation, cultivation, maintenance and harvesting of
aquatic species that are not under the jurisdiction of the State
Fish and Wildlife Commission or insect species. Insect species
shall not include any species under quarantine by the State
Department of Agriculture or the United States Department of
Agriculture. The county shall provide notice of all applications
under this paragraph to the State Department of Agriculture.
Notice shall be provided in accordance with the county's land use
regulations but shall be mailed at least 20 calendar days prior
to any administrative decision or initial public hearing on the
application.
(q) Construction of additional passing and travel lanes
requiring the acquisition of right of way but not resulting in
the creation of new land parcels.
(r) Reconstruction or modification of public roads and highways
involving the removal or displacement of buildings but not
resulting in the creation of new land parcels.
(s) Improvement of public road and highway related facilities,
such as maintenance yards, weigh stations and rest areas, where
additional property or right of way is required but not resulting
in the creation of new land parcels.
(t) A destination resort that is approved consistent with the
requirements of any statewide planning goal relating to the
siting of a destination resort.
(u) Room and board arrangements for a maximum of five unrelated
persons in existing residences.
(v) Operations for the extraction and bottling of water.
(w) Expansion of existing county fairgrounds and activities
directly relating to county fairgrounds governed by county fair
boards established pursuant to ORS 565.210.
(x) A living history museum related to resource based
activities owned and operated by a governmental agency or a local
historical society, together with limited commercial activities
and facilities that are directly related to the use and enjoyment
of the museum and located within authentic buildings of the
depicted historic period or the museum administration building,
if areas other than an exclusive farm use zone cannot accommodate
the museum and related activities or if the museum administration
buildings and parking lot are located within one quarter mile of
an urban growth boundary. As used in this paragraph:
(A) 'Living history museum' means a facility designed to depict
and interpret everyday life and culture of some specific historic
period using authentic buildings, tools, equipment and people to
simulate past activities and events; and
(B) 'Local historical society' means the local historical
society recognized by the county governing body and organized
under ORS chapter 65.
(y) An aerial fireworks display business that has been in
continuous operation at its current location within an exclusive
farm use zone since December 31, 1986, and possesses a
wholesaler's permit to sell or provide fireworks.
(z) A landscaping business, as defined in ORS 671.520, or a
business providing landscape architecture services, as described
in ORS 671.318, if the business is pursued in conjunction with
the growing and marketing of nursery stock on the land that
constitutes farm use.
(3) Roads, highways and other transportation facilities and
improvements not allowed under subsections (1) and (2) of this
section may be established, subject to the approval of the
governing body or its designee, in areas zoned for exclusive farm
use subject to:
(a) Adoption of an exception to the goal related to
agricultural lands and to any other applicable goal with which
the facility or improvement does not comply; or
(b) ORS 215.296 for those uses identified by rule of the Land
Conservation and Development Commission as provided in section 3,
chapter 529, Oregon Laws 1993.
SECTION 37. ORS 308A.056 is amended to read:
308A.056. (1) As used in ORS 308A.050 to 308A.128, 'farm use'
means the current employment of land for the primary purpose of
obtaining a profit in money by:
(a) Raising, harvesting and selling crops;
(b) Feeding, breeding, managing or selling livestock, poultry,
fur-bearing animals or honeybees or the produce thereof;
(c) Dairying and selling dairy products;
(d) Stabling or training equines, including but not limited to
providing riding lessons, training clinics and schooling shows;
(e) Propagating, cultivating, maintaining or harvesting aquatic
species and bird and animal species to the extent allowed by the
rules adopted by the State Fish and Wildlife Commission;
(f) On-site constructing and maintaining equipment and
facilities used for the activities described in this subsection;
(g) Preparing, storing or disposing of, by marketing or
otherwise, the products or by-products raised for human or animal
use on land described in this section; or
(h) Using land described in this section for any other
agricultural or horticultural use or animal husbandry or any
combination thereof.
(2) 'Farm use' does not include the use of land subject to
timber and forestland taxation under ORS chapter 321, except land
used exclusively for growing cultured Christmas trees or land
described in ORS 321.267 (3) or 321.824 (3) (relating to land
used to grow certain hardwood timber, including hybrid
cottonwood).
(3) For purposes of this section, land is currently employed
for farm use if the land is:
(a) Farmland, the operation or use of which is subject to any
farm-related government program;
(b) Land lying fallow for one year as a normal and regular
requirement of good agricultural husbandry;
(c) Land planted in orchards or other perennials, other than
land specified in paragraph (d) of this subsection, prior to
maturity;
(d) Land not in an exclusive farm use zone that has not been
eligible for assessment at special farm use value in the year
prior to planting the current crop and has been planted in
orchards, cultured Christmas trees or vineyards for at least
three years;
(e) Wasteland, in an exclusive farm use zone, dry or covered
with water, neither economically tillable nor grazeable, lying in
or adjacent to and in common ownership with farm use land and
that is not currently being used for any economic farm use;
(f) Except for land under a single family dwelling, land under
buildings supporting accepted farming practices, including the
processing facilities allowed by ORS 215.213 (1)(x) and 215.283
(1)(u) { + and the processing of farm crops into biofuel as
commercial activities in conjunction with farm use under ORS
215.213 (2)(c) and 215.283 (2)(a) + };
(g) Water impoundments lying in or adjacent to and in common
ownership with farm use land;
(h) Any land constituting a woodlot, not to exceed 20 acres,
contiguous to and owned by the owner of land specially valued for
farm use even if the land constituting the woodlot is not
utilized in conjunction with farm use;
(i) Land lying idle for no more than one year when the absence
of farming activity is the result of the illness of the farmer or
a member of the farmer's immediate family, including injury or
infirmity, regardless of whether the illness results in death;
(j) Land described under ORS 321.267 (3) or 321.824 (3)
(relating to land used to grow certain hardwood timber, including
hybrid cottonwood); { - or - }
(k) Land used for the primary purpose of obtaining a profit in
money by breeding, raising, kenneling or training greyhounds for
racing { - . - } { + ; or
(L) Land used for the processing of farm crops into biofuel, as
defined in section 2 of this 2007 Act, if:
(i) Only the crops of the landowner are being processed;
(ii) The biofuel from all of the crops purchased for processing
into biofuel is used on the farm of the landowner; or
(iii) The landowner is custom processing crops into biofuel
from other landowners in the area for their use or sale. + }
(4) As used in this section:
(a) 'Accepted farming practice' means a mode of operation that
is common to farms of a similar nature, necessary for the
operation of these similar farms to obtain a profit in money and
customarily utilized in conjunction with farm use.
(b) 'Cultured Christmas trees' means trees:
(A) Grown on lands used exclusively for that purpose, capable
of preparation by intensive cultivation methods such as plowing
or turning over the soil;
(B) Of a marketable species;
(C) Managed to produce trees meeting U.S. No. 2 or better
standards for Christmas trees as specified by the Agricultural
Marketing Service of the United States Department of Agriculture;
and
(D) Evidencing periodic maintenance practices of shearing for
Douglas fir and pine species, weed and brush control and one or
more of the following practices:
(i) Basal pruning;
(ii) Fertilizing;
(iii) Insect and disease control;
(iv) Stump culture;
(v) Soil cultivation; or
(vi) Irrigation.
SECTION 38. { + The amendments to ORS 308A.056 by section 37
of this 2007 Act apply to tax years beginning on or after July 1,
2008. + }
{ +
MISCELLANEOUS + }
SECTION 39. { + Nothing in sections 2, 3 and 5 of this 2007
Act or ORS 215.203, 215.213, 215.283, 308A.056 and 469.320:
(1) Supersedes any authority under ORS chapter 459 or 459A for
cities and counties to regulate the collection of solid waste; or
(2) Authorizes the collection of solid waste within a city or
county without permission of the city or county. + }
{ +
CAPTIONS + }
SECTION 40. { + The unit captions used in this 2007 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2007 Act. + }
{ +
EFFECTIVE DATE + }
SECTION 41. { + This 2007 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-fourth
Legislative Assembly adjourns sine die. + }
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