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 602
A-Engrossed
House Bill 2182
Ordered by the House March 27
Including House Amendments dated March 27
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.
Broadens definition of alternative fuel projects eligible for
loan funds as small scale local energy project.
Increases term of service for members of Small Scale Local
Energy Project Advisory Committee.
A BILL FOR AN ACT
Relating to small scale local energy projects; creating new
provisions; and amending ORS 470.050 and 470.070.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 470.050 is amended to read:
470.050. As used in this chapter, unless the context requires
otherwise:
(1) 'Alternative fuel project' means:
(a) { - A fleet of vehicles - } { + Equipment, including
vehicles that are not used primarily for personal, family or
household purposes, + } that { - are - } { + is + } modified
or acquired directly from a factory and that:
(A) { - Use - } { + Uses + } an alternative fuel including
electricity,
{ - ethanol - } { + biofuel + }, gasohol with at least
{ - 10 - } { + 20 + } percent denatured alcohol content,
hydrogen, hythane, methane, methanol, natural gas, propane or any
other fuel approved by the Director of the State Department of
Energy; and
(B) { - Produce - } { + Produces + } lower { - or
equivalent - } exhaust emissions or { - are - } { + is + }
more energy efficient than { + equivalent equipment + }
{ - vehicles - } fueled by gasoline { + or diesel + }; and
(b) A facility, including a fueling station, { + or
equipment + } necessary to { + produce alternative fuel or + }
operate { + equipment that uses + } an alternative fuel
{ - vehicle fleet - } .
(2) 'Applicant' means an applicant for a small scale local
energy project loan.
(3) 'Committee' means the Small Scale Local Energy Project
Advisory Committee created under ORS 470.070.
(4) 'Cooperative' means a cooperative corporation organized
under ORS chapter 62.
(5) 'Director' means the Director of the State Department of
Energy appointed under ORS 469.040.
(6) 'Eligible federal agency' means a federal agency or public
corporation created by the federal government that proposes to
use a loan for a small scale energy project. 'Eligible federal
agency' does not include a federal agency or public corporation
created by the federal government that proposes to use a loan for
a small scale energy project to generate electricity for sale.
(7) 'Eligible state agency' means a state officer, board,
commission, department, institution, branch or agency of the
state whose costs are paid wholly or in part from funds held in
the State Treasury.
(8) 'Loan' includes the purchase or other acquisition of
evidence of indebtedness and money used for the purchase or other
acquisition of evidence of indebtedness.
(9) 'Loan contract' means the evidence of indebtedness and all
instruments used in the purchase or acquisition of the evidence
of indebtedness. For eligible federal or state agencies or
municipal corporations that are tax exempt entities, a loan
contract may include a lease purchase agreement with respect to
personal property.
(10) 'Loan fund' means the Small Scale Local Energy Project
Loan Fund created by Article XI-J of the Oregon Constitution.
(11) 'Municipal corporation' has the meaning given in ORS
297.405 and also includes any Indian tribe or authorized Indian
tribal organization or any combination of two or more of these
tribes or organizations acting jointly in connection with a small
scale local energy project.
(12) 'Oregon business' means a sole proprietorship,
partnership, company, cooperative, corporation or other form of
business entity that is organized or authorized to do business
under Oregon law for profit.
(13) 'Recycling project' means a facility or equipment that
converts waste into a new and usable product.
(14) 'Small business' means:
(a) An Oregon business that is:
(A) A retail or service business employing 50 or fewer persons
at the time the loan is made; or
(B) An industrial or manufacturing business employing 200 or
fewer persons at the time the loan is made; or
(b) An Oregon subsidiary of a sole proprietorship, partnership,
company, cooperative, corporation or other form of business
entity for which the total number of employees for both the
subsidiary and the parent sole proprietorship, partnership,
company, cooperative, corporation or other form of business
entity at the time the loan is made is:
(A) Fifty or fewer persons if the subsidiary is a retail or
service business; and
(B) Two hundred or fewer if the subsidiary is an industrial or
manufacturing business.
(15) 'Sinking fund' means the Small Scale Local Energy Project
Administration and Bond Sinking Fund created in ORS 470.300.
(16) 'Small scale local energy project' means:
(a) A system, mechanism or series of mechanisms located
primarily in Oregon that directly or indirectly uses or enables
the use of, by the applicant or another person, renewable
resources including, but not limited to, solar, wind, geothermal,
biomass, waste heat or water resources to produce energy,
including heat, electricity and substitute fuels, to meet a local
community or regional energy need in this state;
(b) A system, mechanism or series of mechanisms located
primarily in Oregon or providing substantial benefits to Oregon
that directly or indirectly conserves energy or enables the
conservation of energy by the applicant or another person,
including energy used in transportation;
(c) A recycling project;
(d) An alternative fuel project;
(e) An improvement that increases the production or efficiency,
or extends the operating life, of a system, mechanism, series of
mechanisms or project otherwise described in this subsection,
including but not limited to restarting a dormant project;
(f) A system, mechanism or series of mechanisms installed in a
facility or portions of a facility that directly or indirectly
reduces the amount of energy needed for the construction and
operation of the facility and that meets the sustainable building
practices standard established by the State Department of Energy
by rule; or
(g) A project described in paragraphs (a) to (f) of this
subsection, whether or not the existing project was originally
financed under this chapter, together with any refinancing
necessary to remove prior liens or encumbrances against the
existing project.
(h) A project described in paragraphs (a) to (g) of this
subsection that conserves energy or produces energy by generation
or by processing or collection of a renewable resource.
SECTION 2. ORS 470.070 is amended to read:
470.070. (1) The Director of the State Department of Energy
shall appoint a Small Scale Local Energy Project Advisory
Committee to review applications made under ORS 470.060 and rules
adopted under ORS 470.080, and make recommendations thereon to
the director.
(2) Seven members shall be appointed to the Small Scale Local
Energy Project Advisory Committee. Each member shall be appointed
to serve a { - two-year - } { + four-year + } term,
commencing on the date of appointment, and until a successor is
appointed and qualified. The members shall represent the interest
of the citizens of this state and shall be knowledgeable in the
areas of small scale energy technology, natural resource
development, environmental protection, finance, agriculture,
local government operations and utility operations. At least
three members shall reside outside the Willamette Valley.
(3) The committee shall elect its own presiding officer, adopt
rules for its procedure and meet on call of the presiding officer
or a majority of the members. A majority of the members shall
constitute a quorum to do business. The director shall provide
administrative facilities and services for the committee.
(4) Members of the Small Scale Local Energy Project Advisory
Committee shall be entitled to expenses as provided by ORS
292.495.
SECTION 3. { + (1) The amendments to ORS 470.050 by section 1
of this 2009 Act apply to applications to obtain loan funds for
small scale local energy projects first filed with the State
Department of Energy on or after the effective date of this 2009
Act.
(2) The amendments to ORS 470.070 by section 2 of this 2009 Act
apply to terms begun on or after the effective date of this 2009
Act. + }
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