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 2213
 
                           B-Engrossed
 
                         House Bill 3488
                  Ordered by the House June 12
       Including House Amendments dated May 9 and June 12
 
Sponsored by Representatives BRUUN, WITT; Representatives
  DINGFELDER, HANNA
 
 
                             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.
 
    { - Expands business energy tax credit to include credit for
renewable energy resource equipment manufacturing facilities.
Defines 'renewable energy resource equipment manufacturing
facility' and directs State Department of Energy to adopt
standards related to such facilities. Increases maximum income
tax credits for alternative energy devices used for domestic
water heating and residential solar electric systems. - }
    { - Applies to facilities and alternative energy devices
acquired, erected, constructed or installed on or after January
1, 2007, and to tax years beginning on or after January 1,
2007. - }
   { +  Exempts alternative energy system from property tax if
system is net metering system or other system primarily designed
to offset onsite electricity use. + }
  Authorizes Public Utility Commission to establish rates for
renewable energy generation facilities.
  Authorizes public utility to use moneys obtained through
cost-of-service rate to provide renewable energy generation
facilities to property owners or customers.
  Takes effect on 91st day following adjournment sine die.
 
                        A BILL FOR AN ACT
Relating to renewable energy; creating new provisions; amending
  ORS 307.175 and 757.247; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 307.175 is amended to read:
  307.175. (1) Property equipped with solar, geothermal, wind,
water, fuel cell or methane gas energy systems for the purpose of
heating, cooling or generating electrical energy shall be exempt
from ad valorem taxation in an amount that equals any positive
amount obtained by subtracting the real market value of the
property as if it were not equipped with such systems, from the
real market value of the property so equipped.
  (2) This section applies to tax years beginning prior to July
1, 2012.
 
 
  (3)  { + Except as provided in subsection (4) of this
section, + } this section does not apply to property owned or
leased by any
  { - individual or legal entity - }  { +  person + } whose
principal business activity is directly or indirectly the
production, transportation or distribution of energy, including
but not limited to public utilities as defined in ORS 757.005 and
people's utility districts as defined in ORS 261.010.
   { +  (4) This section applies to an alternative energy system
that is owned or leased by a person whose principal business
activity is directly or indirectly the production, transportation
or distribution of energy if the system is a net metering system
or other system primarily designed to offset onsite electricity
use by the person. + }
  SECTION 2.  { + The amendments to ORS 307.175 by section 1 of
this 2007 Act apply to tax years beginning on or after July 1,
2007. + }
  SECTION 3. ORS 757.247 is amended to read:
  757.247.  { + (1) + } The Public Utility Commission may
authorize a public utility to file and place into effect tariff
schedules establishing rates or charges for  { + renewable energy
generation facilities, or for + } energy conservation measures,
services or payments { + , + } provided to individual property
owners or customers.  Application of the schedule shall be
subject to agreement between the public utility and the property
owner or customer receiving service at the time the
 { + renewable energy generation facilities or + } conservation
measures, services or payments are initially provided.
   { +  (2) + }   { - The - }  { +  A tariff + } schedule
 { + under this section + } may include provisions for the
payment of the rates or charges over a period of time and for the
application of the payment obligation to successive property
owners or customers at the premises where the  { +  renewable
energy generation facilities or + } conservation measures or
services were installed or performed or with respect to which the
  { - conservation - }  payments were made.
   { +  (3) + }   { - The - }  { +  A + } public utility shall
record a notice of   { - the - }   { + any + } payment obligation
 { + required of a property owner or customer under this section
 + }in the records maintained by the county clerk under ORS
205.130. The commission may prescribe by rule   { - under the
applicable provisions of ORS 183.325 to 183.400 - }  other
methods by which the public utility shall notify property owners
or customers of any such payment obligation.
   { +  (4) A public utility may use moneys obtained through a
rate established under ORS 757.603 (2)(a) to provide renewable
energy generation facilities to property owners or customers
under this section. A public utility may not charge interest to a
property owner or customer for facilities acquired with moneys
obtained through a rate established under ORS 757.603 (2)(a). + }
  SECTION 4.  { + 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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