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 780
House Bill 2254
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for Housing and Community Services Department)
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 as
introduced.
Gives Housing and Community Services Department policy-making
authority for disbursement of Housing Development and Guarantee
Account revenue earnings and moneys appropriated from Housing and
Community Services Department Electricity Public Purpose Charge
Fund. Eliminates interest rate formula for loans from account
revenues. Allows department to set interest rate on loans made
from account revenues and fund assistance moneys based on factors
specific to project.
A BILL FOR AN ACT
Relating to provision of financial assistance by the Housing and
Community Services Department; creating new provisions; and
amending ORS 456.587, 458.625, 458.655 and 757.612.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 456.587 is amended to read:
456.587. (1) The Housing and Community Services Department
Electricity Public Purpose Charge Fund is established in the
State Treasury, separate and distinct from the General Fund.
Interest earned by the Housing and Community Services Department
Electricity Public Purpose Charge Fund shall be credited to the
fund. Moneys in the fund are continuously appropriated to the
Housing and Community Services Department to be used for purposes
specified in ORS { - 757.612 (3)(b)(D) - } { + 458.625
(2) + }.
(2) The Housing and Community Services Department Low-Income
Electric Bill Payment Assistance Fund is established in the State
Treasury, separate and distinct from the General Fund. Interest
earned by the Housing and Community Services Department
Low-Income Electric Bill Payment Assistance Fund shall be
credited to the fund. Moneys in the fund are continuously
appropriated to the Housing and Community Services Department for
purposes described in ORS 757.612 (7).
SECTION 2. ORS 458.625 is amended to read:
458.625. (1) The Housing and Community Services Department may
disburse the revenue earned from investment of the principal in
the Housing Development and Guarantee Account { + and moneys
from the Housing and Community Services Department Electricity
Public Purpose Charge Fund + } to expand this state's supply of
{ - housing for - } low and very low income { - families and
individuals - } { + housing + }, including, but not limited to,
housing for persons over 65 years of age, persons with
disabilities, farmworkers and Native Americans. { - The State
Housing Council shall have a policy that provides for
distribution by the department of account investment revenue
disbursements statewide while concentrating account investment
revenue disbursements in those areas of the state with the
greatest need for low and very low income housing, as determined
by the council. - } { + Notwithstanding ORS 456.555 (5), the
department shall establish a housing policy for distributing the
account investment revenue and fund moneys on a statewide basis
while concentrating the disbursements in areas of the state that
have the greatest need for low and very low income housing. + }
(2) { + Subject to subsection (4) of this section, + } the
department may disburse { + the + } account investment
revenue { + and fund moneys + }, { + + }in the form of grants
or loans as determined by the department, for any or all of the
following purposes:
{ - (a) To organizations as defined in ORS 458.610 and to
for-profit business entities to construct new housing or to
acquire or rehabilitate existing structures, or both, for housing
for persons of low or very low income, or both; - }
{ + (a) Providing for organizations or for-profit business
entities to construct, acquire or rehabilitate structures to
produce low or very low income housing. + }
(b) { - To provide - } { + Providing + } nonprofit
organizations, as set forth in ORS 458.210 to 458.240,
{ + with + } technical { - assistance - } or predevelopment
costs { + assistance + }, or both. Predevelopment costs include,
but are not limited to, site acquisition, architectural services
and project consultants. Predevelopment costs do not include
costs described in paragraph (c) of this subsection { + . + }
{ - ; - }
(c) { - For costs to develop - } { + Developing + }
nonprofit organizations that show sufficient evidence of having
strong community support and a strong likelihood of producing low
or very low income housing. Account investment revenue { + or
fund moneys + } may not be used by an organization for
{ - its - } general operations { + . + } { - ; - }
(d) { - To match - } { + Matching + } public and private
moneys available from other sources for purposes of
{ - production of - } { + producing + } low or very low income
housing { + . + } { - ; or - }
(e) { - For purposes of - } Administration of the account,
not to exceed { + the equivalent of + } five percent of the
account investment revenue.
{ + (f) Administration of the fund, not to exceed the
equivalent of five percent of the amounts credited to the
fund. + }
(3) The department shall give preference in making grants or
loans to those entities that the department determines will:
(a) Provide the greatest number of low and very low income
housing units constructed, acquired or rehabilitated for the
amount of account investment revenue { + and fund moneys + }
expended by matching account investment revenue { + and fund
moneys + } with other grant, loan or eligible in-kind
contributions;
(b) Ensure the longest use for the units as low or very low
income housing units; or
(c) Include social services to occupants of the proposed
housing, including but not limited to, programs that address home
health care, mental health care, alcohol and drug treatment and
post-treatment care, child care and case management.
(4) Account investment revenue derived in any calendar year may
be used to construct, acquire or rehabilitate { - housing
for - } low and very low income { - persons - } { +
housing + } but not more than 25 percent of the account
investment revenue derived in any calendar year may be used to
construct, acquire or rehabilitate housing for low income
households. Account investment revenue not disbursed by the
department as grants or loans to construct, acquire or
rehabilitate low or very low income housing may be retained and
credited as account principal.
{ - (5) Loans disbursed from account investment revenue shall
bear an interest rate equal to the interest rate paid on United
States Treasury long-term obligations as identified by the
department. - }
{ + (5) The department may set interest rates on loans made
under this section based upon the factors relevant for each
specific project. The department shall adopt rules identifying
typical factors that the department will consider in establishing
interest rates on loans made under this section. + }
SECTION 3. ORS 458.655 is amended to read:
458.655. (1) The Home Ownership Assistance Account shall be
administered by the Housing and Community Services Department to
expand the state's supply of homeownership housing for low and
very low income families and individuals, including, but not
limited to, housing for persons over 65 years of age, persons
with disabilities, farmworkers and Native Americans. The State
Housing Council shall have a policy of distributing funds
statewide while concentrating funds in those areas of the state
with the greatest need, as determined by the council, for low and
very low income homeownership housing. { - However, the
council's policy of distributing funds may differ from the
distribution policy for the Housing Development and Guarantee
Account. - }
(2) Funds in the Home Ownership Assistance Account shall be
granted to organizations, as defined in ORS 458.610, that both
sponsor and manage low income homeownership programs, including
lease-to-own programs, for the construction of new homeownership
housing or for the acquisition or rehabilitation of existing
structures for homeownership housing for persons of low or very
low income, or both.
(3) The council shall develop a policy for disbursing grants
for any or all of the following purposes:
(a) To aid low income homeownership programs, including program
administration, in purchasing land, providing assistance with
down payment costs, or providing homeownership training and
qualification services or any combination thereof. No Home
Ownership Assistance Account funds shall be used by an
organization for its general operations or for a substantial
portion of construction or rehabilitation costs;
(b) To match public and private moneys available from other
sources for purposes of the provision of low or very low income
homeownership housing; or
(c) To administer the Home Ownership Assistance Account, not to
exceed five percent of the revenue.
(4) The council, in developing policy under subsection (3) of
this section, shall give preference in making grants to those
entities that propose to:
(a) Provide the greatest number of low and very low income
homeownership housing units constructed, acquired or
rehabilitated for the amount of account money expended by
matching account funds with other grant, loan or eligible in-kind
contributions;
(b) Ensure the longest use for the units as low or very low
income homeownership housing units, such as by including some
form of equity recapture, as determined by the council; and
(c) Include social services for occupants and proposed
occupants of the proposed housing, including but not limited to,
programs that address home health care, mental health care,
alcohol and drug treatment and post-treatment care, child care,
homeownership training, mortgage qualification service, credit
repair and case management.
SECTION 4. ORS 757.612 is amended to read:
757.612. (1) There is established an annual public purpose
expenditure standard for electric companies and Oregon Community
Power to fund new cost-effective local energy conservation, new
market transformation efforts, the above-market costs of new
renewable energy resources and new low-income weatherization. The
public purpose expenditure standard shall be funded by the public
purpose charge described in subsection (2) of this section.
(2)(a) Beginning on the date an electric company or Oregon
Community Power offers direct access to its retail electricity
consumers, except residential electricity consumers, the electric
company or Oregon Community Power shall collect a public purpose
charge from all of the retail electricity consumers located
within its service area until January 1, 2026. Except as provided
in paragraph (b) of this subsection, the public purpose charge
shall be equal to three percent of the total revenues collected
by the electric company, Oregon Community Power or the
electricity service supplier from its retail electricity
consumers for electricity services, distribution, ancillary
services, metering and billing, transition charges and other
types of costs included in electric rates on July 23, 1999.
(b) For an aluminum plant that averages more than 100 average
megawatts of electricity use per year, beginning on March 1,
2002, the electric company or Oregon Community Power whose
territory abuts the greatest percentage of the site of the
aluminum plant shall collect from the aluminum company a public
purpose charge equal to one percent of the total revenue from the
sale of electricity services to the aluminum plant from any
source.
(3)(a) The Public Utility Commission shall establish rules
implementing the provisions of this section relating to electric
companies and Oregon Community Power.
(b) Subject to paragraph (e) of this subsection, funds
collected by an electric company or Oregon Community Power
through public purpose charges shall be allocated as follows:
(A) Sixty-three percent for new cost-effective conservation and
new market transformation.
(B) Nineteen percent for the above-market costs of constructing
and operating new renewable energy resources with a nominal
electric generating capacity, as defined in ORS 469.300, of 20
megawatts or less.
(C) Thirteen percent for new low-income weatherization.
(D) Five percent shall be transferred to the Housing and
Community Services Department Electricity Public Purpose Charge
Fund established by ORS 456.587 (1) { - and used for the
purpose of providing grants as described in ORS 458.625 (2) - } .
(c) The costs of administering subsections (1) to (6) of this
section for an electric company or Oregon Community Power shall
be paid out of the funds collected through public purpose
charges. The commission may require that an electric company or
Oregon Community Power direct funds collected through public
purpose charges to the state agencies responsible for
implementing subsections (1) to (6) of this section in order to
pay the costs of administering such responsibilities.
(d) The commission shall direct the manner in which public
purpose charges are collected and spent by an electric company or
Oregon Community Power and may require an electric company or
Oregon Community Power to expend funds through competitive bids
or other means designed to encourage competition, except that
funds dedicated for low-income weatherization shall be directed
to the Housing and Community Services Department as provided in
subsection (7) of this section. The commission may also direct
that funds collected by an electric company or Oregon Community
Power through public purpose charges be paid to a nongovernmental
entity for investment in public purposes described in subsection
(1) of this section. Notwithstanding any other provision of this
subsection:
(A) At least 80 percent of the funds allocated for conservation
shall be spent within the service area of the electric company
that collected the funds; or
(B) If Oregon Community Power collected the funds, at least 80
percent of the funds allocated for conservation shall be spent
within the service area of Oregon Community Power.
(e)(A) The first 10 percent of the funds collected annually by
an electric company or Oregon Community Power under subsection
(2) of this section shall be distributed to education service
districts, as described in ORS 334.010, that are located in the
service territory of the electric company or Oregon Community
Power. The funds shall be distributed to individual education
service districts according to the weighted average daily
membership (ADMw) of the component school districts of the
education service district for the prior fiscal year as
calculated under ORS 327.013. The commission shall establish by
rule a methodology for distributing a proportionate share of
funds under this paragraph to education service districts that
are only partially located in the service territory of the
electric company or Oregon Community Power.
(B) An education service district that receives funds under
this paragraph shall use the funds first to pay for energy audits
for school districts located within the education service
district. An education service district may not expend additional
funds received under this paragraph on a school district facility
until an energy audit has been completed for that school
district. To the extent practicable, an education service
district shall coordinate with the State Department of Energy and
incorporate federal funding in complying with this paragraph.
Following completion of an energy audit for an individual school
district, the education service district may expend funds
received under this paragraph to implement the energy audit. Once
an energy audit has been conducted and completely implemented for
each school district within the education service district, the
education service district may expend funds received under this
paragraph for any of the following purposes:
(i) Conducting energy audits. A school district shall conduct
an energy audit prior to expending funds on any other purpose
authorized under this paragraph unless the school district has
performed an energy audit within the three years immediately
prior to receiving the funds.
(ii) Weatherization and upgrading the energy efficiency of
school district facilities.
(iii) Energy conservation education programs.
(iv) Purchasing electricity from environmentally focused
sources and investing in renewable energy resources.
(f) The commission may not establish a different public purpose
charge than the public purpose charge described in subsection (2)
of this section.
(4)(a) An electric company that satisfies its obligations under
this section shall have no further obligation to invest in
conservation, new market transformation or new low-income
weatherization or to provide a commercial energy conservation
services program and is not subject to ORS 469.631 to 469.645 and
469.860 to 469.900.
(b) Oregon Community Power, for any period during which Oregon
Community Power collects a public purpose charge under subsection
(2) of this section:
(A) Shall have no other obligation to invest in conservation,
new market transformation or new low-income weatherization or to
provide a commercial energy conservation services program; and
(B) Is not subject to ORS 469.631 to 469.645 and 469.860 to
469.900.
(5)(a) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year
shall receive a credit against public purpose charges billed by
an electric company or Oregon Community Power for that site. The
amount of the credit shall be equal to the total amount of
qualifying expenditures for new energy conservation, not to
exceed 68 percent of the annual public purpose charges, and the
above-market costs of purchases of new renewable energy resources
incurred by the retail electricity consumer, not to exceed 19
percent of the annual public purpose charges, less administration
costs incurred under this subsection. The credit may not exceed,
on an annual basis, the lesser of:
(A) The amount of the retail electricity consumer's qualifying
expenditures; or
(B) The portion of the public purpose charge billed to the
retail electricity consumer that is dedicated to new energy
conservation, new market transformation or the above-market costs
of new renewable energy resources.
(b) To obtain a credit under this subsection, a retail
electricity consumer shall file with the State Department of
Energy a description of the proposed conservation project or new
renewable energy resource and a declaration that the retail
electricity consumer plans to incur the qualifying expenditure.
The State Department of Energy shall issue a notice of
precertification within 30 days of receipt of the filing, if such
filing is consistent with this subsection. The credit may be
taken after a retail electricity consumer provides a letter from
a certified public accountant to the State Department of Energy
verifying that the precertified qualifying expenditure has been
made.
(c) Credits earned by a retail electricity consumer as a result
of qualifying expenditures that are not used in one year may be
carried forward for use in subsequent years.
(d)(A) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year may
request that the State Department of Energy hire an independent
auditor to assess the potential for conservation investments at
the site. If the independent auditor determines there is no
available conservation measure at the site that would have a
simple payback of one to 10 years, the retail electricity
consumer shall be relieved of 54 percent of its payment
obligation for public purpose charges related to the site. If the
independent auditor determines that there are potential
conservation measures available at the site, the retail
electricity consumer shall be entitled to a credit against public
purpose charges related to the site equal to 54 percent of the
public purpose charges less the estimated cost of available
conservation measures.
(B) A retail electricity consumer shall be entitled each year
to the credit described in this subsection unless a subsequent
independent audit determines that new conservation investment
opportunities are available. The State Department of Energy may
require that a new independent audit be performed on the site to
determine whether new conservation measures are available,
provided that the independent audits shall occur no more than
once every two years.
(C) The retail electricity consumer shall pay the cost of the
independent audits described in this subsection.
(6) Electric utilities and retail electricity consumers shall
receive a fair and reasonable credit for the public purpose
expenditures of their energy suppliers. The State Department of
Energy shall adopt rules to determine eligible expenditures and
the methodology by which such credits are accounted for and used.
The rules also shall adopt methods to account for eligible public
purpose expenditures made through consortia or collaborative
projects.
(7)(a) In addition to the public purpose charge provided under
subsection (2) of this section, an electric company or Oregon
Community Power shall collect funds for low-income electric bill
payment assistance in an amount determined under paragraph (b) of
this subsection.
(b) The commission shall establish the amount to be collected
by each electric company in calendar year 2008 from retail
electricity consumers served by the company, and the rates to be
charged to retail electricity consumers served by the company, so
that the total anticipated collection for low-income electric
bill payment assistance by all electric companies in calendar
year 2008 is $15 million. In calendar year 2009 and subsequent
calendar years, the commission may not change the rates
established for retail electricity consumers, but the total
amount collected in a calendar year for low-income electric bill
payment assistance may vary based on electricity usage by retail
electricity consumers and changes in the number of retail
electricity consumers in this state. In no event shall a retail
electricity consumer be required to pay more than $500 per month
per site for low-income electric bill payment assistance.
(c) Funds collected by the low-income electric bill payment
assistance charge shall be paid into the Housing and Community
Services Department Low-Income Electric Bill Payment Assistance
Fund established by ORS 456.587 (2). Moneys deposited in the fund
under this paragraph shall be used by the Housing and Community
Services Department for the purpose of funding low-income
electric bill payment assistance. The department's cost of
administering this subsection shall be paid out of funds
collected by the low-income electric bill payment assistance
charge. Moneys deposited in the fund under this paragraph shall
be expended solely for low-income electric bill payment
assistance. Funds collected from an electric company or Oregon
Community Power shall be expended in the service area of the
electric company or Oregon Community Power from which the funds
are collected.
(d) The Housing and Community Services Department, in
consultation with the federal Advisory Committee on Energy, shall
determine the manner in which funds collected under this
subsection will be allocated by the department to energy
assistance program providers for the purpose of providing
low-income bill payment and crisis assistance, including programs
that effectively reduce service disconnections and related costs
to retail electricity consumers and electric utilities. Priority
assistance shall be directed to low-income electricity consumers
who are in danger of having their electricity service
disconnected.
(e) Interest on moneys deposited in the Housing and Community
Services Department Low-Income Electric Bill Payment Assistance
Fund established by ORS 456.587 (2) may be used to provide
heating bill payment and crisis assistance to electricity
consumers whose primary source of heat is not electricity.
(f) Notwithstanding ORS 757.310, the commission may allow an
electric company or Oregon Community Power to provide reduced
rates or other payment or crisis assistance or low-income program
assistance to a low-income household eligible for assistance
under the federal Low Income Home Energy Assistance Act of 1981,
as amended and in effect on July 23, 1999.
(8) For purposes of this section, 'retail electricity
consumers' includes any direct service industrial consumer that
purchases electricity without purchasing distribution services
from the electric utility.
(9) For purposes of this section, amounts collected by Oregon
Community Power through public purpose charges are not considered
moneys received from electric utility operations.
SECTION 5. { + (1) Notwithstanding the amendments to ORS
458.625 by section 2 of this 2009 Act, the statewide distribution
policy adopted by the State Housing Council under ORS 458.625 (1)
(2007 Edition) that is in effect immediately prior to the
effective date of this 2009 Act shall remain in effect until the
Housing and Community Services Department adopts a superseding
statewide distribution policy under ORS 458.625 (1).
(2) The amendments to ORS 458.625 by section 2 of this 2009 Act
apply to interest rates charged on loans the department makes on
or after the effective date of this 2009 Act. + }
----------