75th OREGON LEGISLATIVE ASSEMBLY--2009 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 599
 
                           A-Engrossed
 
                         House Bill 2181
                  Ordered by the House April 29
            Including House Amendments dated April 29
 
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.
 
  Authorizes local governments to establish local improvement
district within which owners  { + of record + } of qualifying
residential and commercial property may receive loan financing
 { - of energy efficiency and renewable - }   { + for purpose of
paying cost-effective + } energy improvements to property.
  Authorizes State Department of Energy to make loans to finance
 { + cost-effective + } energy   { - efficiency - }  improvements
to existing real property in districts.
 
                        A BILL FOR AN ACT
Relating to energy conserving improvements in existing buildings.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2009 Act is added to and made
a part of ORS 223.387 to 223.399. + }
  SECTION 2.  { + (1) As used in this section:
  (a) 'Energy improvements' means energy efficiency and renewable
energy improvements to qualifying real property authorized by:
  (A) A local government implementing a program established under
subsection (2) of this section; or
  (B) The State Department of Energy for a loan issued under
subsection (9) of this section to an owner of qualifying real
property.
  (b) 'Local government' means cities and counties.
  (c) 'Qualifying real property' means single-family or
multifamily residential dwellings or commercial or industrial
buildings that the local government has determined can be
benefited by energy improvements.
  (2) Subject to subsection (3) of this section, a local
government may establish a program to make loans to owners of
record of qualifying real property for the purpose of paying for
cost-effective energy improvements to the qualifying real
property financed with the net proceeds and interest earnings of
revenue bonds authorized by this section.
  (3) Before establishing a program under this section, the local
government shall provide notice to utilities that distribute
 
electric energy or natural gas within the areas in which the
local government will operate the program.
  (4) A local government that establishes a program under this
section may:
  (a) Require performance of an energy audit on the qualifying
real property before the local government approves a loan for
energy improvements to the property;
  (b) Impose requirements intended to ensure that the loan is
consistent with the purpose of the program; and
  (c) Impose requirements and conditions on loans that are
designed to ensure timely repayment of the loans.
  (5) If the owner of record of qualifying real property requests
a loan under this section, the local government implementing the
program may:
  (a) Enter into a loan agreement with the owner, and any other
person benefited by the loan, in a principal amount sufficient to
pay:
  (A) The costs of energy improvements the local government
determines will benefit the qualifying real property and the
borrowers;
  (B) The costs of the energy audit; and
  (C) The costs and reserves of the program.
  (b) Charge the borrower an interest rate on the principal
amount that is sufficient to pay the financing costs of the
program, including loan delinquencies.
  (c) Charge periodic fees to pay for program costs.
  (6) The local government implementing the program that lends
money for qualifying real property may:
  (a) Secure the loan with a lien on the benefited qualifying
real property in the manner and with the same priority as a lien
for assessments for local improvements authorized by ORS 223.393.
  (b) Assess the benefited qualifying real property for the
amounts due under a loan agreement.
  (c) Enforce a lien and collect an assessment authorized by this
section as provided in ORS 223.505 to 223.650.
  (d) Secure a loan in any other manner that the local government
determines is reasonable.
  (7) In lieu of enforcing liens and collecting assessments as
provided in subsection (6) of this section, a local government
may certify the assessment, in the manner provided in ORS
310.060, to the county assessor of each county in which benefited
qualifying real property is located. If the assessments are
certified as provided in this subsection, the county assessor
shall:
  (a) Enter the assessment upon the county assessment roll
against the property described in the certificate, in the manner
that other local government assessments are entered;
  (b) Collect, account for and enforce the assessments in the
manner that local government taxes are collected, accounted for
and enforced; and
  (c) Transfer, as provided by law, the assessments collected to
the local government that imposed the assessment.
  (8) A local government may issue revenue bonds pursuant to ORS
287A.150 to finance program costs, including the costs of making
loans for energy improvements.
  (9) The State Department of Energy may lend money under the
provisions of ORS 470.060 to 470.080 and 470.090 to a local
government that establishes a program under this section or, in
cooperation with a local government implementing a program under
this section, to owners of qualifying real property within the
jurisdiction of the local government implementing a program under
this section. If the department lends money under this section,
the department, in cooperation with the Housing and Community
Services Department, shall establish by rule the type and extent
of energy improvements a property owner may finance with a loan
that will be made from money provided by the State Department of
Energy. In establishing the type and extent of energy
improvements that may be financed, the departments shall consider
the amount of energy that can be conserved and the
cost-effectiveness of particular types of energy
improvements. + }
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