75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
HA to A-Eng. HB 2626
LC 1597/HB 2626-A11
HOUSE AMENDMENTS TO
A-ENGROSSED HOUSE BILL 2626
By COMMITTEE ON REVENUE
May 18
On page 1 of the printed A-engrossed bill, delete lines 6
through 10 and delete pages 2 through 35 and insert:
' { + SECTION 1. + } { + Sections 2 to 41 of this 2009 Act
are added to and made a part of ORS chapter 470. + }
'
{ + LOAN PROGRAM ADMINISTRATION + }
' { + SECTION 2. + } { + (1) The Director of the State
Department of Energy shall administer the energy efficiency and
sustainable technology loan program for the purpose of providing
financing, promotion and technical support to encourage
significant investments in energy efficiency, renewable energy
and energy conservation.
' (2) The goals of the loan program are to:
' (a) Provide capital at the lowest possible cost for the
purpose of supporting energy efficiency and conservation and
renewable energy projects for residential and commercial
structures;
' (b) Expand, and to simplify taking advantage of,
opportunities for small scale local energy project financing;
' (c) Leverage multiple sources of public and private capital
through a unified and strategic funding mechanism;
' (d) Provide technical and financing information to the public
and to businesses;
' (e) Foster energy savings;
' (f) Stimulate job growth; and
' (g) Help substantially reduce carbon emissions. + }
' { + SECTION 3. + } { + (1) Except as provided in
subsection (3) of this section, the State Department of Energy
may enter into contracts for the issuance of energy efficiency
and sustainable technology loans. Except as provided in section
40 of this 2009 Act, the department shall finance the loans using
moneys from the Small Scale Local Energy Project Loan Fund, the
Energy Project Supplemental Fund or the Energy Project Bond Loan
Fund, or from a combination of those funds.
' (2) The sustainable energy project manager may enter into
agreements with trade associations and other public and private
entities for the promotion or marketing of the energy efficiency
and sustainable technology loan program.
' (3) The department must obtain the consent of the utility
before operating an energy efficiency and sustainable technology
loan program within the service territory of:
' (a) An investor-owned electric utility that serves fewer than
20,000 customers; or
' (b) An investor-owned gas utility that is actively
administering an energy conservation program established:
' (A) On or before January 1, 2009; and
' (B) Without assistance from a nongovernmental entity that
receives public purpose charge moneys under ORS 757.612. + }
' { + SECTION 4. + } { + The Public Utility Commission may
adopt rules for carrying out the duties, functions and powers of
the commission and the Public Purpose Fund Administrator under
sections 2 to 41 of this 2009 Act. + }
' { + SECTION 5. + } { + The State Department of Energy may
contract for persons to perform the duties of the department
under sections 2 to 41 of this 2009 Act including, but not
limited to, the development of standardized base efficiency
packages and standardized optional packages, energy efficiency
and sustainable technology loan evaluation, processing and
collection. A loan processed by a person contracting with the
department, other than a loan processed by a sustainable energy
project manager, must include the department as a party to the
loan. + }
' { + SECTION 6. + } { + (1) The State Department of Energy
shall send a quarterly report to the Small Scale Local Energy
Project Advisory Committee. The report shall include, but need
not be limited to, a summary of:
' (a) The total amount of energy efficiency and sustainable
technology loans issued;
' (b) The types of projects being funded by the loans; and
' (c) The characteristics of loan recipients.
' (2) The committee shall review the report to determine
whether the goals of the loan program are being implemented and
whether applicable rules and statutory standards are met. The
committee may send comments regarding the report to the Director
of the State Department of Energy. + }
'
{ + PROJECT MANAGERS + }
' { + SECTION 7. + } { + (1) Except as provided in
subsection (5) of this section, the Director of the State
Department of Energy may establish qualifications for sustainable
energy project managers and may exercise oversight to ensure
project manager compliance with those qualifications. A project
manager shall provide the promotion, technical and financial
support and verifications necessary to administer the energy
efficiency and sustainable technology loan program in the
territory served by the project manager.
' (2) The project manager shall serve a sustainable energy
territory established by the director. The project manager shall
provide loan program information and technical and financial
information to promote energy efficiency and use of renewable
energy at the neighborhood and community levels. The project
manager shall be responsible for small scale local energy project
verification and for monitoring program effectiveness for energy
efficiency and sustainable technology loans and small scale local
energy program loans. The project manager may administer the
energy efficiency and sustainable technology loan program within
the territory.
' (3)(a) Except as provided in this subsection, the boundaries
of a sustainable energy territory must be consistent with the
service territory of a local electric utility.
' (b) The boundaries of a sustainable energy territory may be
consistent with the service territory of a local gas utility if:
' (A) The local electric utility is a consumer-owned electric
utility that elects not to be the project manager for the
sustainable energy territory; and
' (B) The service territory of the local electric utility and
the service territory of the local gas utility overlap.
' (c) Notwithstanding paragraphs (a) and (b) of this
subsection, if the project manager for the sustainable energy
territory is other than the Public Purpose Fund Administrator or
a consumer-owned utility, the director may adjust the boundaries
of the territory or create a larger or smaller territory if the
director believes that the territory boundaries as adjusted or
created by the director would better accomplish the goals of the
energy efficiency and sustainable technology loan program.
' (4) A local government, nonprofit, for-profit, tribal or
state entity may be a project manager if the entity meets the
qualifications established by the director under this section and
is approved by the director to provide promotion, outreach and
customer support related to the energy efficiency and sustainable
technology loan program within a sustainable energy territory.
The Public Purpose Fund Administrator is an ex officio
sustainable energy project manager. The Public Purpose Fund
Administrator shall act as the project manager in any sustainable
energy territory that is not served by another project manager.
' (5) The director shall establish a sustainable energy project
manager certification program. However, the Public Purpose Fund
Administrator or a consumer-owned utility is not required to
obtain a sustainable energy project manager certificate and the
Public Purpose Fund Administrator is not subject to any
qualifications established by the director for a project
manager. + }
' { + SECTION 8. + } { + (1) The Director of the State
Department of Energy shall initiate the certification process for
a sustainable energy project manager by publishing a request for
proposals.
' (2) An applicant for certification as a project manager shall
submit information to the director that includes:
' (a) Background information about the applicant including, but
not limited to, the qualifications, relevant experience,
financial status and staff of the applicant;
' (b) A proposed plan for implementing and administering the
goals and requirements of the energy efficiency and sustainable
technology loan program in the sustainable energy territory; and
' (c) Any additional information required by the director by
rule.
' (3) After reviewing all applications received, the director
may select a project manager. In selecting the project manager,
the director shall consider the following factors:
' (a) The organizational experience of the applicant and the
capacity of the applicant to successfully implement the energy
efficiency and sustainable technology loan program goals and
requirements.
' (b) The strength of the applicant's proposed plan for
implementing the goals and requirements of the energy efficiency
and sustainable technology loan program.
' (c) The cost at which the applicant can conduct outreach,
promotion, loan applicant support and project verification
services necessary to implement the energy efficiency and
sustainable technology loan program.
' (d) Any other factors the director adopts by rule or
directive.
' (4) An applicant may not be certified as a project manager if
the applicant has a fiduciary or other obligation that creates an
actual or apparent conflict of interest that may interfere with
achieving the goals of the energy efficiency and sustainable
technology loan program. + }
' { + SECTION 9. + } { + (1) Upon selecting a proposed
sustainable energy project manager, the Director of the State
Department of Energy shall notify all unsuccessful applicants for
the position that another candidate is proposed for appointment.
The director shall negotiate with the proposed project manager
regarding any modifications to the service cost estimates or
other features of the applicant's proposed plan that are
necessary to ensure that the applicant will meet the goals and
requirements of the energy efficiency and sustainable technology
loan program and State Department of Energy rules.
' (2) To the extent practicable, the director shall certify a
project manager not later than four months after publication of
the request for proposals and not later than two months after the
selection of the proposed project manager. However, the director
may at any time select a different applicant as the proposed
project manager or may reinitiate the certification process.
' (3) Upon deciding to certify the proposed project manager,
the director shall give notice of the decision to all
unsuccessful candidates, the public and the Small Scale Local
Energy Project Advisory Committee. The director may approve the
final certification of the project manager if:
' (a) A request to appeal under section 10 of this 2009 Act is
not filed within 15 days after the date the notice is sent; and
' (b) The committee does not undertake a review of the proposed
certification within 15 days after the date the notice is
sent. + }
' { + SECTION 10. + } { + (1) A person that believes a
decision of the Director of the State Department of Energy to
certify a sustainable energy project manager is inconsistent with
applicable rules or statutes may file a request to appeal with
the Small Scale Local Energy Project Advisory Committee. Unless
the request for appeal is filed by a nonprofit entity, the
request must be accompanied by a $2,000 appeal fee. The fee shall
be waived for a nonprofit entity. The committee may initiate a
review on its own motion.
' (2) A majority of the committee may authorize the presiding
officer of the committee to appeal the certification decision to
the Governor. The presiding officer may initiate an appeal to the
Governor no later than 30 days after receiving a request for
appeal or 15 days after the committee initiates a review on its
own motion.
' (3) The decision of the Governor is final. If the Governor
does not act within 30 days after receiving the appeal from the
presiding officer of the committee, the appeal is denied. + }
' { + SECTION 11. + } { + (1) Unless the sustainable energy
project manager is the Public Purpose Fund Administrator or a
consumer-owned utility, the certification of a project manager
shall be for a five-year term. The Director of the State
Department of Energy shall issue the project manager a
certification approval letter that states any conditions
applicable to the certification.
' (2) The director may terminate the certification of a project
manager for:
' (a) Failure to adequately implement an applicable plan for
implementing the energy efficiency and sustainable technology
loan program;
' (b) Noncompliance with the regulatory or statutory
requirements of the energy efficiency and sustainable technology
loan program;
' (c) Failure to meet any project manager criteria established
by the director; or
' (d) Failure to perform other certification conditions. + }
' { + SECTION 12. + } { + (1) Except as provided in
subsection (2) of this section, if a sustainable energy territory
is all or part of the service territory for an investor-owned
electric utility, the Public Purpose Fund Administrator shall be
the sustainable energy project manager for the sustainable energy
territory. The Public Purpose Fund Administrator shall inform the
Public Utility Commission and the State Department of Energy of
the activities of the administrator by filing a yearly action
plan and an end-of-year report with the commission and the
department.
' (2) For a sustainable energy territory described in section 7
(3)(b) of this 2009 Act, if the local gas utility is an
investor-owned utility, the utility may act as the project
manager for the territory or may contract with the Public Purpose
Fund Administrator to act as project manager on behalf of the
utility.
' (3) If a territory is served by a consumer-owned utility and
is outside the service territory of an investor-owned electric
utility, the consumer-owned utility shall be the project manager
if the utility agrees to promote energy efficiency and
sustainable technology loans as part of any energy efficiency or
renewable energy program offered by the utility. A consumer-owned
utility may conduct energy efficiency and renewable energy
programs within the territory of the utility regardless of
whether the territory is served by an energy efficiency and
sustainable technology loan program. A consumer-owned utility may
decline to participate in the energy efficiency and sustainable
technology loan program.
' (4) If a customer is served by both an investor-owned gas
utility and a consumer-owned electric utility that have energy
efficiency and sustainable technology loan programs, the utility
that supplies the customer's primary source of heat for the
property shall supply loan program services for that customer.
' (5) The existence of an energy efficiency and sustainable
technology loan program, or the appointment of a sustainable
energy project manager, in a sustainable energy territory does
not prevent a consumer-owned utility from conducting any energy
efficiency or renewable energy program offered by the utility. If
the consumer-owned utility declines to become the project manager
for the territory, the utility may:
' (a) Continue with existing utility services and policies; or
' (b) Work with the Director of the State Department of Energy
to solicit and select a qualified entity to serve as the project
manager as described in sections 8 and 9 of this 2009 Act.
' (6) Subject to approval by the director, a project manager
may contract with a qualified third party to assist the project
manager in providing project manager services within the
territory. If a sustainable energy territory is served by a
project manager, the appointment of additional project managers
shall be a subcontract approved by the existing project manager.
If the third party is acting as a financier, the third party is
not required to comply with laws regulating utilities based on
the actions of the third party as a financier. The project
manager may enter into agreements with trade associations and
other public and private entities for the promotion or marketing
of the energy efficiency and sustainable technology loan program.
' (7) The Public Purpose Fund Administrator and sustainable
energy project managers shall cooperate with, and coordinate
their outreach and promotional efforts with, local utilities and
other stakeholders to promote energy efficiency and renewable
energy and to use the customer contacts, resources and capacity
of utilities to engage and inform utility customers about the
energy efficiency and sustainable technology loan program. The
Public Purpose Fund Administrator and project managers shall
coordinate with gas utilities regarding any changes to a gas
pipeline and with electric utilities regarding any changes to
electrical connections that are external to a structure. The
Public Purpose Fund Administrator and project managers shall
coordinate with a gas utility regarding the installation of
appliances used for space heating, water heating, electric
charging and compressed natural gas refueling. + }
'
{ + CONTRACTORS + }
' { + SECTION 13. + } { + (1) The State Department of Energy
shall adopt rules establishing certification standards for
contractors participating in the construction of small scale
local energy projects financed through the energy efficiency and
sustainable technology loan program. The department shall design
the standards to ensure that the project work performed by a
contractor holding the certification is of high quality and will
result in a high degree of customer satisfaction.
' (2) The certification standards established by the department
must, at a minimum, require that the contractor:
' (a) Prove that the contractor has sufficient skill to ensure
that the contractor can successfully install energy efficiency,
renewable energy or weatherization projects.
' (b) Not be a contractor listed by the Commissioner of the
Bureau of Labor and Industries under ORS 279C.860 as ineligible
to receive a contract or subcontract for public works.
' (c) Be an equal opportunity employer or small business or be
a minority or women business enterprise or disadvantaged business
enterprise as those terms are defined in ORS 200.005.
' (d) Demonstrate a history of compliance with the rules and
other requirements of the Construction Contractors Board and of
the Workers' Compensation Division and the Occupational Safety
and Health Division of the Department of Consumer and Business
Services.
' (e) Employ at least 80 percent of employees used for energy
efficiency and sustainable technology loan program projects from
the local work force, if a sufficient supply of skilled workers
is available locally.
' (f) Demonstrate a history of compliance with federal and
state wage and hour laws.
' (g) Pay wages to employees used for energy efficiency and
sustainable technology loan program projects at a rate equal to
at least 180 percent of the state minimum wage.
' (3) The State Department of Energy shall consult with the
Public Purpose Fund Administrator and utilities when developing
contractor certification standards.
' (4) The Construction Contractors Board may issue a qualifying
contractor a certification authorizing the contractor to
participate in the construction of small scale local energy
projects financed through the energy efficiency and sustainable
technology loan program. A contractor seeking certification shall
apply to the board as provided under section 51 of this 2009 Act.
' (5) The State Department of Energy shall identify certified
contractors that provide employees with health insurance benefits
as preferred service providers and may take other actions as
practicable to encourage certified contractors to provide
employees with health insurance benefits. + }
' { + SECTION 14. + } { + (1) At the request of a loan
applicant, a contractor that is authorized to participate in the
construction of small scale local energy projects financed
through the energy efficiency and sustainable technology loan
program may conduct an energy savings projection or similar
evaluation for a property and conduct post-project verifications
of energy savings in a sustainable energy territory that does not
have a sustainable energy project manager.
' (2) The State Department of Energy shall process a loan
application submitted by an applicant in a sustainable energy
territory that does not have a project manager in the same manner
as an application submitted through a project manager.
' (3) The department may approve an energy efficiency and
sustainable technology loan for property located in a sustainable
energy territory that does not have a project manager if:
' (a) On-bill financing is available to the loan applicant
through a local utility serving the benefited property; or
' (b) The department and the loan applicant agree to an
alternative method for ensuring repayment of the loan. + }
'
{ + FUNDS + }
' { + SECTION 15. + } { + (1) The Energy Project
Supplemental Fund is established in the State Treasury, separate
and distinct from the General Fund. Interest earned by the Energy
Project Supplemental Fund shall be credited to the Energy Project
Supplemental Fund.
' (2) The Energy Project Supplemental Fund shall consist of any
moneys received for purposes of the energy efficiency and
sustainable technology loan program or for small scale local
energy program loans other than moneys deposited to:
' (a) The Small Scale Local Energy Project Loan Fund.
' (b) The Small Scale Local Energy Project Administration and
Bond Sinking Fund.
' (c) The Energy Project Bond Loan Fund.
' (d) The Loan Offset Grant Fund, except that Loan Offset Grant
Fund moneys used to offset the energy efficiency and sustainable
technology loan or small scale local energy program loan
repayment obligation of a borrower shall be deposited to the
Energy Project Supplemental Fund.
' (e) The Energy Revenue Bond Repayment Fund.
' (3) Moneys in the Energy Project Supplemental Fund are
continuously appropriated to the State Department of Energy for
the following purposes:
' (a) To provide funding, separately or in conjunction with
moneys from the Small Scale Local Energy Project Loan Fund and
the Energy Project Bond Loan Fund, for energy efficiency and
sustainable technology loans and small scale local energy program
loans;
' (b) For transfer to the Energy Revenue Bond Repayment Fund,
to the extent that moneys available in the Energy Project Bond
Loan Fund are insufficient to provide the amount determined
prudent by the Director of the State Department of Energy under
section 22 (2) of this 2009 Act; and
' (c) To pay costs incurred by the State Department of Energy
or the director in implementing or administering loan programs
for small scale local energy projects.
' (4) The State Treasurer may establish any subaccounts in the
Energy Project Supplemental Fund that the treasurer or the
director considers reasonable for the efficient administration of
the fund. + }
' { + SECTION 16. + } { + (1) The Loan Offset Grant Fund is
established in the State Treasury, separate and distinct from the
General Fund. Interest earned by the Loan Offset Grant Fund shall
be credited to the Loan Offset Grant Fund. Moneys in the fund are
continuously appropriated to the State Department of Energy for
use as provided in this section.
' (2) The fund shall consist of any moneys directed by law,
gift, grant or donation to the fund.
' (3) The department shall use fund moneys:
' (a) To promote energy efficiency, renewable energy and energy
conservation projects that would otherwise result in a marginally
higher overall cost to the applicant when energy costs and the
financing and repayment costs for the project are considered, by
using the fund moneys to help produce a monthly cost savings for
the applicant; or
' (b) To transfer to an appropriate fund for carrying out any
purpose under this chapter specified as a condition of a gift,
grant or donation. + }
' { + SECTION 17. + } { + (1) The Energy Project Bond Loan
Fund is established in the State Treasury, separate and distinct
from the General Fund. Interest earned by the Energy Project Bond
Loan Fund shall be credited to the fund.
' (2) The fund shall consist of:
' (a) Net proceeds from the issuance of revenue bonds under
section 22 of this 2009 Act that are deposited to the fund;
' (b) Moneys from project initiation fees under section 31 of
this 2009 Act;
' (c) Repayments of any moneys loaned from the fund and
interest earned on those moneys;
' (d) Any moneys appropriated to the fund;
' (e) Moneys from the sale of refunding bonds under section 22
of this 2009 Act and any accrued interest on those bonds; and
' (f) Interest earned on cash balances invested under section
20 of this 2009 Act.
' (3) Moneys in the fund are continuously appropriated to the
State Department of Energy for the following purposes:
' (a) Subject to section 24 of this 2009 Act, to issue and
administer small scale local energy program loans and energy
efficiency and sustainable technology loans and to administer the
loan programs.
' (b) For transfer to the Energy Revenue Bond Repayment Fund
for the payment of bond obligations, the costs of issuing bonds
described in subsection (2) of this section and the costs of
administering the revenue bond program and for the funding of
bond payment reserves. Transfers under this paragraph shall be
carried out as determined by the Director of the State Department
of Energy under section 22 (2) of this 2009 Act. + }
{ + ' (4) The State Treasurer may establish any subaccounts
in the Energy Project Bond Loan Fund that the treasurer or the
director considers reasonable for the efficient administration of
the fund. + }
' { + SECTION 18. + } { + (1) The Energy Revenue Bond
Repayment Fund is established in the State Treasury, separate and
distinct from the General Fund. Interest earned by the Energy
Revenue Bond Repayment Fund shall be credited to the fund. Moneys
in the fund may be invested as provided in ORS 293.701 to
293.820. Moneys in the fund are continuously appropriated to the
State Department of Energy for the payment of:
' (a) Administrative expenses of the State Department of Energy
and the Director of the State Department of Energy for energy
efficiency and sustainable technology loans and small scale local
energy program loans made from the proceeds of energy project
revenue bonds, to the extent those expenses are not paid from the
Energy Project Bond Loan Fund, the Energy Project Supplemental
Fund or the Loan Offset Grant Fund;
' (b) Administrative expenses incurred by the State Treasurer
under this chapter;
' (c) Principal, interest and any redemption premiums of energy
project revenue bonds;
' (d) Net investment earnings on moneys loaned to municipal
corporations from energy project revenue bonds under section 22
of this 2009 Act but withheld as provided in ORS 470.230; and
' (e) Costs of issuing revenue bonds and obtaining credit
enhancement for those revenue bonds.
' (2) The Energy Revenue Bond Repayment Fund shall consist of
moneys transferred to the fund from the Energy Project Bond Loan
Fund and Energy Project Supplemental Fund by the State Treasurer
as provided in section 22 (2) of this 2009 Act. + }
' { + SECTION 19. + } { + The State Department of Energy may
request proposals for and select one or more financial managers
for the energy efficiency and sustainable technology loan
program. The function of a financial manager is:
' (1) To assist in energy efficiency and sustainable technology
loan program development;
' (2) To cooperate with federal and state agencies and public
and private entities for the purpose of securing federal funding,
public and private investments of capital and gifts, grants and
donations for the purpose of financing small scale local energy
projects; and
' (3) To provide a platform for the blending of private and
public capital from various sources including, but not limited
to, small scale local energy project financing, moneys from the
Energy Project Bond Loan Fund, the Loan Offset Grant Fund and the
Energy Project Supplemental Fund, private activity bonds and
grant moneys. + }
' { + SECTION 20. + } { + Private utilities and other
private entities may invest capital with an energy efficiency and
sustainable technology loan program financial manager for use in
carrying out the loan program. The Public Utility Commission may
establish a reasonable rate of return that a financial manager
may pay to a utility investing capital under this section. In
establishing the rate of return, the commission shall consider
the risk to the utility in providing the investment capital. + }
' { + SECTION 21. + } { + To achieve the energy efficiency
and sustainable technology loan program goals described in
section 2 of this 2009 Act, the Director of the State Department
of Energy may enter into agreements to disburse supplemental
capital funds through the Small Scale Local Energy Project Loan
Fund and the Energy Project Supplemental Fund if:
' (1) The director estimates that interest rates and total
costs to program applicants that would result from the use of the
supplemental capital funds are lower than would result from the
use of bond proceeds; and
' (2) The supplemental capital funds are made subject to any
requirements adopted by the director by rule to ensure adequate
protection of project moneys. + }
'
{ + BONDS + }
' { + SECTION 22. + } { + (1) The State Treasurer, at the
request of the Director of the State Department of Energy, from
time to time may issue and sell revenue bonds in the name of and
on behalf of the State of Oregon in compliance with the
applicable provisions of ORS chapter 286A in the principal amount
the director considers necessary to carry out the purposes of
sections 2 to 41 of this 2009 Act, or for paying or refunding any
revenue bonds previously issued on behalf of the State Department
of Energy for those purposes.
' (2) All bonds shall be special revenue obligations of the
State of Oregon, and, unless paid from the proceeds of other
bonds, shall be payable as to principal, redemption premium, if
any, and interest, through the Energy Revenue Bond Repayment Fund
solely from the revenues, moneys and other assets of the Energy
Project Bond Loan Fund and the Energy Project Supplemental Fund
that may be pledged for that payment. The Director of the State
Department of Energy shall determine for each fiscal quarter the
amount that will fall due during that fiscal quarter for bonds
issued under this section, other amounts described in section 18
of this 2009 Act and any expected significant changes in bond
obligations for upcoming fiscal quarters and the amount necessary
to adequately fund reserves. The director shall request that the
State Treasurer make transfers from the Energy Project Bond Loan
Fund and Energy Project Supplemental Fund to the Energy Revenue
Bond Repayment Fund as the director believes prudent to ensure
the continuing payment of maturing obligations and the funding of
reserves.
' (3) Prior to an issuance of revenue bonds under this section,
the director shall prepare and sign a written declaration setting
forth the amount of the bonds to be issued and the terms and
conditions for issuance. If the State Treasurer approves the
declaration, the State Treasurer shall certify the approval on
the declaration. The approved declaration shall be known as an
'energy revenue bond declaration.' Each bond declaration shall be
deemed to be and shall constitute conclusive proof of the
authorization to issue the bonds described in the bond
declaration and may contain further pledges and covenants as
determined by the director or the State Treasurer. + }
' { + SECTION 23. + } { + (1) Revenue bonds issued under
section 22 of this 2009 Act do not constitute a debt, liability
or general obligation of this state or any political subdivision
of this state or a pledge of the faith and credit of this state
or any political subdivision of this state, but shall be payable
solely from the revenues, moneys and other assets of the Energy
Project Bond Loan Fund and the Energy Project Supplemental Fund
that are pledged to the repayment in the energy revenue bond
declaration.
' (2) Each revenue bond issued under section 22 of this 2009
Act shall contain on the face of the bond a statement that the
department is not obligated to pay the bond or the interest on
the bond except from the revenues or assets pledged for those
payments and that neither the faith and credit nor the taxing
power of this state or any political subdivision of this state is
pledged to the payment of the principal of or the interest on the
bond.
' (3) A utility or sustainable energy project manager is not
liable for the payment of the principal of or the interest on any
bond issued under this section. + }
' { + SECTION 24. + } { + The bonds issued by the State
Treasurer under section 22 of this 2009 Act and the energy
revenue bond declaration may:
' (1) Pledge all or any part of the fees received by the State
Department of Energy under section 31 of this 2009 Act and all or
any part of the moneys received in payment of energy efficiency
and sustainable technology loans and small scale local energy
program loans that are funded with revenue from bonds issued
under section 22 of this 2009 Act, interest on those amounts and
other moneys credited to the Energy Project Bond Loan Fund.
' (2) Pledge any moneys, loans or grants received from the
federal government, this state or any city, county or political
subdivision of this state for payment of revenue bonds issued
under section 22 of this 2009 Act.
' (3) Vest in a trustee appointed by the Director of the State
Department of Energy and approved by the State Treasurer such
property, rights, powers and duties in trust as the director may
determine. + }
'
{ + LOCAL GOVERNMENTS + }
' { + SECTION 25. + } { + (1) Subject to the approval of the
Director of the State Department of Energy, a local government,
public utility or other legally organized entity may direct
moneys to the Energy Project Supplemental Fund or Loan Offset
Grant Fund for use within a limited geographic area of this state
as a source of capital for financing energy efficiency and
sustainable technology loans, small scale local energy program
loans or loan offset grants.
' (2) Any moneys deposited under this section shall be
separately accounted for and shall be managed consistently with
small scale local energy project goals and any agreement between
the State Department of Energy and the entity providing the
moneys. The moneys may be disbursed only for use as designated
by, and in the geographic area designated by, the entity
providing the moneys. + }
'
{ + PROGRAM LOANS + }
' { + SECTION 26. + } { + (1) The State Department of Energy
may disburse energy efficiency and sustainable technology loan
and small scale local energy program loan moneys by providing the
loan moneys through a sustainable energy project manager or
providing the loan moneys to or through an entity described in
ORS 470.060. Loan moneys may be disbursed through a project
manager only for the purpose of enabling the project manager to
issue energy efficiency and sustainable technology loans and
small scale local energy program loans to applicants in the
sustainable energy territory served by the project manager.
' (2) The project manager may issue a loan from moneys
disbursed under this section only if adequate security exists to
ensure repayment of the loan. An energy efficiency and
sustainable technology loan from a project manager to an
applicant located in the sustainable energy territory served by
the project manager must have the features described in section
29 of this 2009 Act and ORS 470.150 and is subject to the
requirements and processes imposed under sections 2 to 41 of this
2009 Act for energy efficiency and sustainable technology loans
issued by the Director of the State Department of Energy. A
project manager that issues an energy efficiency and sustainable
technology loan to support a small scale local energy project may
record a fixture filing and lien on the property that benefits
from the project as provided in section 36 or 37 of this 2009
Act. + }
' { + SECTION 27. + } { + (1) The State Department of Energy
may not complete an agreement for the issuance of an energy
efficiency and sustainable technology loan unless the sustainable
energy project manager, a contractor designated by the project
manager or a person approved by the department completes an
energy savings projection or similar evaluation for the property
that will benefit from the small scale local energy project. The
projection or other evaluation shall be in writing and shall, at
a minimum, identify the following:
' (a) The recommended base efficiency package for the
structure. A base energy package may include improvements to
existing supply lines and equipment.
' (b) Any optional package recommended for the structure.
' (c) The estimated net monthly cost to the applicant when
energy savings, project repayment costs, tax or other incentives,
loan offset grants and other relevant economic factors are
considered.
' (d) The monthly cost to the applicant to repay the loan
principal and finance charges.
' (e) If the base efficiency package or recommended optional
package includes the use of nontraditional technology, a
description of the nontraditional technology.
' (2) A base efficiency package or optional package may not
provide for achieving energy efficiency upgrades through the use
of appliances or other equipment that do not become incorporated
into the structure.
' (3) The projection or other evaluation shall state in a clear
and conspicuous manner:
' (a) That the estimated net monthly cost to the applicant
contained in the projection or other evaluation does not
represent a guarantee of project performance or results; and
' (b) That no liability attaches to the department, any state
agency or officer, the project managers or any utility if actual
energy savings are less than the estimated savings or if the
construction process or constructed project is unsatisfactory in
any way.
' (4) If the base efficiency package or recommended optional
package includes the use of nontraditional technology, the
projection or other evaluation shall include a statement that the
technology is nontraditional, initialed by the prospective loan
applicant.
' (5) An energy efficiency and sustainable technology loan may
be used only for a project constructed by a contractor certified
under section 51 of this 2009 Act.
' (6) Prior to the disbursement of the loan moneys to the
contractor, a project manager or other person approved by the
department shall verify that the small scale local energy project
has been completed in a manner consistent with energy efficiency
and sustainable technology loan program requirements. If this
state or any agency of this state adopts or recognizes an energy
efficiency scoring system for buildings, the department may
require that the verification described in this subsection
include the determination of an energy efficiency score for the
property benefited by the project.
' (7) The department shall periodically consult with
contractors certified under section 51 of this 2009 Act for the
purpose of updating average cost and projected savings figures
used for energy savings projections or other evaluations under
this section. The department shall encourage the use of methods
for conducting energy savings projections or other evaluations
under this section that are cost-effective and time-effective,
take advantage of economies of scale and produce results that are
accurate and are replicable for equivalent base energy
packages. + }
' { + SECTION 28. + } { + (1) Except as provide in
subsection (2) of this section, the amount of an energy
efficiency and sustainable technology loan may not exceed
$40,000.
' (2) The loan amount limit described in subsection (1) of this
section shall increase annually on January 1 of each year,
beginning January 1, 2011. The loan amount limit shall increase
from the most recently established loan amount limit by a
percentage equal to the percentage increase in the Portland-Salem
Consumer Price Index for All Urban Consumers for All Items as
reported by the Bureau of Labor Statistics of the United States
Department of Labor. + }
' { + SECTION 29. + } { + An application for an energy
efficiency and sustainable technology loan must contain:
' (1) Information sufficient to identify real or personal
property located within this state against which a fixture filing
and lien may be filed under section 36 or 37 of this 2009 Act to
secure the loan and sufficient to allow verification that the
property owner is the applicant or has consented to the fixture
filing and lien;
' (2) A clear and conspicuous disclosure:
' (a) That a lien or other form of security for the energy
efficiency and sustainable technology loan need not be paid in
full upon a sale of the property, but all amounts due under the
repayment plan as of the sale date must be paid before the sale
closes; and
' (b) That some lenders may be unwilling to make a mortgage on
a property that is subject to a lien or other form of security
for the energy efficiency and sustainable technology loan;
' (3) The loan applicant must sign a loan contract that recites
all terms and conditions required under this chapter for an
energy efficiency and sustainable technology loan; and
' (4) The department must be satisfied that all conditions
required under ORS 470.090 to support the loan have been
satisfied. + }
' { + SECTION 30. + } { + (1) If an applicant for a loan to
construct a residential small scale local energy project has
household income that may qualify the person for a weatherization
program operated by the Housing and Community Services
Department, the sustainable energy project manager shall refer
the applicant to the department. This subsection does not
prohibit a project manager from accepting an application from a
person who has been denied, or is receiving, assistance under a
department weatherization program.
' (2) If an applicant for a loan to construct a residential
small scale local energy project has household income that is
less than 250 percent of the federal poverty guidelines, upon
request by the applicant, the State Department of Energy may
waive all or part of an application fee for the loan and may
waive all or part of the project initiation fee or add all or
part of the project initiation fee to the principal of an issued
loan. + }
'
{ + FEES + }
' { + SECTION 31. + } { + Except as provided in section 30
of this 2009 Act, an applicant for an energy efficiency and
sustainable technology loan approved by the State Department of
Energy shall pay the department a project initiation fee. The
department may establish the fee amount by rule, not to exceed
four percent of the approved loan amount. If the department does
not establish the fee amount, the fee shall be two percent of the
approved loan amount. + }
'
{ + ON-BILL FINANCING + }
' { + SECTION 32. + } { + (1) If an investor-owned utility
serving a sustainable energy territory has established an on-bill
financing system, an energy efficiency and sustainable technology
loan shall be repaid by on-bill financing unless the loan
agreement specifies that the State Department of Energy and the
borrower have agreed to an alternative method for ensuring
repayment of the loan.
' (2) Unless the Public Utility Commission grants an
investor-owned utility a waiver under subsection (4) of this
section, the on-bill financing system of the utility must:
' (a) Enable a customer to make a single payment to satisfy the
periodic utility charges and repayment on an energy efficiency
and sustainable technology loan;
' (b) Provide a clearly identifiable line item or separate
statement in the utility bill that shows the energy efficiency
and sustainable technology loan repayment amount; and
' (c) Direct energy efficiency and sustainable technology loan
repayment amounts collected by the utility to the appropriate
sustainable energy project manager or to the department for
deposit to the credit of the Small Scale Local Energy Project
Administration and Bond Sinking Fund, Energy Project Bond Loan
Fund or Energy Project Supplemental Fund.
' (3) The Public Utility Commission shall adopt rules for the
use of on-bill financing by investor-owned utilities. The rules
may include, but need not be limited to, rules regarding
nonpayment, insufficient payment, delinquency notices, repayment
charge transfers, processing fees, late fees and refunds. The
commission may not adopt any rule that imposes responsibility for
the repayment of an energy efficiency and sustainable technology
loan on the utility.
' (4) The commission may waive the requirement that an
investor-owned utility provide on-bill financing for one or more
loans if the commission determines that providing the on-bill
financing is not practicable. If the commission grants a utility
a waiver under this subsection, the utility shall bill the
affected customers for loan repayment separately from any utility
customer meter billings. + }
' { + SECTION 33. + } { + (1) If a consumer-owned utility
serving a sustainable energy territory has established an on-bill
financing system, an energy efficiency and sustainable technology
loan shall be repaid by on-bill financing unless the loan
agreement specifies that the State Department of Energy and the
borrower have agreed to an alternative method for ensuring
repayment of the loan.
' (2) Unless the Director of the State Department of Energy
grants a consumer-owned utility a waiver under subsection (4) of
this section, the on-bill financing system of the utility must:
' (a) Enable a customer to make a single payment to satisfy the
periodic utility charges and repayment on an energy efficiency
and sustainable technology loan;
' (b) Provide a clearly identifiable line item or separate
statement in the utility bill that shows the energy efficiency
and sustainable technology loan repayment amount; and
' (c) Direct energy efficiency and sustainable technology loan
repayment amounts collected by the utility to the appropriate
sustainable energy project manager or to the department for
deposit to the credit of the Small Scale Local Energy Project
Administration and Bond Sinking Fund, Energy Project Bond Loan
Fund or Energy Project Supplemental Fund.
' (3) The director may adopt rules for the use of on-bill
financing by consumer-owned utilities. The rules may include, but
need not be limited to, rules regarding nonpayment, insufficient
payment, delinquency notices, repayment charge transfers,
processing fees, late fees and refunds. The director may not
adopt any rule that imposes responsibility for the repayment of
an energy efficiency and sustainable technology loan on the
utility.
' (4) The director may waive the requirement that a
consumer-owned utility provide on-bill financing for one or more
loans if the director determines, after consultation with the
Bonneville Power Administration, that providing the on-bill
financing is not practicable. If the director grants a waiver
under this subsection, the utility shall bill the affected
customers for loan repayment separately from any utility customer
account or customer meter billings. + }
' { + SECTION 34. + } { + If a customer is served by both
an electric utility and a gas utility that both have an on-bill
financing system, a loan repaid through on-bill financing shall
be repaid through the on-bill financing system of the utility
that supplies the customer's primary source of heat for the
property. + }
' { + SECTION 35. + } { + (1) If a utility incurs reasonable
costs in implementing an on-bill financing system that exceed any
moneys received by the utility to assist in the implementation,
the costs are legitimate costs for ratemaking purposes.
' (2) A loan repayment charge for an energy efficiency and
sustainable technology loan may include, but need not be limited
to, the amount of the loan, interest on the loan and the cost
incurred by the State Department of Energy to implement, promote
and administer the energy efficiency and sustainable technology
loan program.
' (3) The amount of an energy efficiency and sustainable
technology loan repayment and any moneys received by a utility to
assist in the implementation of an on-bill financing system are
not gross revenue for purposes of calculating franchise fees or
other regulatory assessments.
' (4) If there is a change in ownership or other interest in
property benefited by an energy efficiency and sustainable
technology loan, and the loan relies on an on-bill financing
system for collection of the loan repayment charge, the utility
shall transfer the loan repayment charge to the utility customer
account of the person acquiring the ownership or other interest
in the property. + }
'
{ + REPAYMENT AND LIENS + }
' { + SECTION 36. + } { + (1) Subject to ORS 470.170, the
State Department of Energy may identify forms of acceptable
security for energy efficiency and sustainable technology loans
that the department determines will achieve the goals and
requirements of the energy efficiency and sustainable technology
loan program and that provide adequate security for repayment of
the loans.
' (2) For loans from the Small Scale Local Energy Project Loan
Fund, the department may record a fixture filing as defined in
ORS 79.0102 covering those building materials to be attached to
the real property pursuant to an energy efficiency and
sustainable technology loan that remain easily detachable from
the property and are not essential to a structure or the use of a
structure. The department shall record a lien on the real
property benefited by the loan for those indebtedness amounts
that are not secured by a fixture filing. The department may
record a filing or lien under this section only on a property for
which the property owner has agreed to the installation of a base
efficiency package or optional package benefiting the property.
' (3) An energy efficiency and sustainable technology loan must
provide for repayment through an on-bill financing system unless
the department finds that an alternative method for repaying the
loan would provide suitable security for the loan and the
department and the borrower specify the alternative repayment
method in the loan agreement. + }
' { + SECTION 37. + } { + (1) The State Department of Energy
or a sustainable energy project manager may act on behalf of the
Director of the State Department of Energy for the purpose of
recording a lien in favor of the director as required by ORS
470.170 (3) against property benefited by an energy efficiency
and sustainable technology loan.
' (2) A lien described in this section attaches to the property
and is perfected upon recording in the county deed records.
' (3) In an action to foreclose a lien created under this
section, the court shall include in the lien amount all costs for
filing and recording the lien. The court shall award a prevailing
party in the foreclosure action reasonable attorney fees and
costs. + }
' { + SECTION 38. + } { + A person that acquired an interest
in a property in good faith and for a valuable consideration
before the date a lien described in section 36 or 37 of this 2009
Act attached to the property under ORS 470.170 may avoid
foreclosure of the lien by paying any delinquencies and
collection costs associated with the underlying loan repayment
charge and assuming normal payments in compliance with the energy
efficiency and sustainable technology loan agreement repayment
provisions. + }
' { + SECTION 39. + } { + A person entering into an
agreement to sell, rent, lease or otherwise confer a right in the
person's real property that is benefited by an energy efficiency
and sustainable technology loan for which a loan repayment charge
or other repayment obligation applies or for which a fixture
filing, lien or other form of security exists shall, prior to any
party signing the agreement, give notice of the loan repayment
charge, repayment obligation, filing, lien or other security
affecting the property to the other parties to the agreement. + }
'
{ + LOAN OFFSET GRANTS + }
' { + SECTION 40. + } { + (1) The State Department of Energy
may use loan offset grant moneys for any of the following if, in
the absence of the grant moneys, a utility customer would incur
higher overall monthly costs when energy costs and small scale
local energy project costs are considered:
' (a) Offsetting the cost of an approved small scale local
energy project.
' (b) Reducing the loan repayment burden of an energy
efficiency and sustainable technology loan borrower.
' (c) Creating a financial incentive for energy efficiency,
renewable energy and energy conservation projects that may not
result in significant energy cost savings.
' (d) Providing support, in coordination with the Oregon
Innovation Council or other sustainable energy technology
research bodies or companies, for small scale local energy
projects that use nontraditional technology.
' (2) If a small scale local energy program loan applicant is a
person with an income limited as described in section 30 (2) of
this 2009 Act, the department may use loan offset grant moneys
for an optional package or to offset reasonable costs associated
with structural improvements that are not included in the base
efficiency package, but that are necessary to the proper
installation of the base efficiency package.
' (3) The Director of the State Department of Energy may
investigate and test the feasibility of using mechanisms other
than the disbursing of Loan Offset Grant Fund moneys for
accomplishing the purposes described in subsection (1) of this
section. + }
'
{ + APPRENTICESHIP AND JOB TRAINING + }
' { + SECTION 41. + } { + (1) The State Department of Energy
shall collaborate with the State Workforce Investment Board and
other interested parties to identify opportunities for
apprenticeship and for job training and development that would
further the goals of sections 2 to 41 of this 2009 Act and
provide valuable skills to Oregon workers.
' (2) In adopting any rules for carrying out apprenticeship and
job training and development under the energy efficiency and
sustainable technology loan program, the department and the board
shall consult with representatives from:
' (a) State workforce programs;
' (b) Organized labor;
' (c) The State Apprenticeship and Training Council;
' (d) The Bureau of Labor and Industries; and
' (e) Consumer advocacy organizations.
' (3) In addition to consulting with entities described in
subsection (2) of this section, in adopting any rules for
carrying out apprenticeship and job training and development
under the energy efficiency and sustainable technology loan
program, the department and the board may seek input from
organizations representing construction contractors. + }
'
{ + PILOT PROGRAMS + }
' { + SECTION 42. + } { + (1) The Director of the State
Department of Energy shall initiate the energy efficiency and
sustainable technology loan program described in sections 2 to 41
of this 2009 Act in phases through a series of pilot programs,
limiting the geographic availability and other features of the
program as the director considers necessary to facilitate an
orderly and successful implementation of the program. The
director shall initiate the program as quickly as the director
considers practicable to achieve the benefits of the program
while ensuring high participant satisfaction and program
integrity.
' (2) The director shall endeavor to establish pilot programs
initially in sustainable energy territories that reflect a
variety of population densities. The director may give preference
to territories that request to participate in the pilot
program. + }
' { + SECTION 43. + } { + (1) The Public Purpose Fund
Administrator shall initiate pilot programs in investor-owned
utility service territories to demonstrate the feasibility of
innovative approaches to financing and installing energy
efficiency and sustainable technology measures as described in
sections 2 to 41 of this 2009 Act in residences and commercial
buildings in urban and rural communities. The pilot programs
shall test:
' (a) The effectiveness of direct contact, door-to-door, media
outlet and other community-focused outreach and solicitation
strategies designed to provide potential energy efficiency and
sustainable technology loan program participants with information
about energy efficiency and renewable energy opportunities under
the program and under similar local, state and federal incentive
programs;
' (b) The costs and benefits of taking alternative approaches
to energy audits, including but not limited to, the
identification of measures that are cost-effective and
time-effective, take advantage of economies of scale and produce
results that are accurate and are replicable for equivalent base
efficiency packages;
' (c) Ways to assist program participants in understanding and
accessing small scale local energy project funding and making
informed decisions in selecting appropriate energy efficiency and
renewable energy projects;
' (d) The effectiveness of various levels of loan offset grants
as an incentive to program participation;
' (e) The effectiveness of on-billing financing as a means of
loan repayment and the effectiveness of fixture filings, liens or
other forms of security for loans;
' (f) The feasibility and effectiveness of coordinated
installations of residential and commercial structure energy
packages overseen by a single project manager;
' (g) The manner in which the program interacts or conflicts
with existing consumer-owned utility loan programs and other
utility and regional energy efficiency programs;
' (h) The relative demand for loan program services among
residential and commercial properties and between low-income and
other households, and factors that influence that relative
demand;
' (i) The administrative costs and participation rates
associated with various forms of loan security; and
' (j) Other strategies and measures identified by the State
Department of Energy or the Public Utility Commission.
' (2) The Public Purpose Fund Administrator shall report to the
commission no later than October 1, 2010. The administrator shall
provide a copy of the report to the State Department of Energy.
The report shall evaluate the effectiveness of the pilot
programs, and shall include an evaluation of the extent to which
various strategies and measures:
' (a) Help to produce significantly higher rates of energy
savings or renewable energy production;
' (b) Increase participation in energy efficiency and renewable
energy programs;
' (c) Increase the number of energy efficiency and renewable
energy measures installed per building; and
' (d) Reduce the administrative cost per building of providing
energy efficiency and renewable energy services.
' (3) The commission shall review the report and:
' (a) Order full implementation of the successful energy
efficiency and sustainable technology loan program measures and
strategies in investor-owned utility service territories; or
' (b) Order the partial implementation of energy efficiency and
sustainable technology loan program measures and strategies and
make recommendations to the Legislative Assembly for appropriate
statutory modification of the program.
' (4) When carrying out pilot programs under this section, the
Public Purpose Fund Administrator and sustainable energy project
managers shall cooperate and coordinate their efforts with the
efforts of local utilities and encourage utilities to promote
energy efficiency and renewable energy and to engage in outreach
and promotional efforts to inform customers of the utility about
the energy efficiency and sustainable technology loan program.
The Public Purpose Fund Administrator and project managers shall
coordinate with gas utilities regarding any changes to a gas
pipeline and with electric utilities regarding any changes to
electrical connections that are external to a structure. The
Public Purpose Fund Administrator and project managers shall
coordinate with a gas utility regarding the installation of
appliances used for space heating, water heating, electric
charging and compressed natural gas refueling. + }
' { + SECTION 44. + } { + (1) The Director of the State
Department of Energy shall consult with the Bonneville Power
Administration, consumer-owned utilities and other interested
parties to develop a pilot program for energy efficiency and
sustainable technology as described in sections 2 to 41 of this
2009 Act for use in the consumer-owned utility service
territories. The director shall solicit one or more
consumer-owned utilities to act as sustainable energy project
managers for the pilot program. The director shall solicit
utilities to act as project managers for the developed pilot
program no later than 180 days after the effective date of this
2009 Act.
' (2) The pilot program shall test:
' (a) The effectiveness of direct contact, door-to-door, media
outlet and other community-focused outreach and solicitation
strategies designed to provide potential energy efficiency and
sustainable technology loan program participants with information
about energy efficiency and renewable energy opportunities under
the program and under similar local, state and federal incentive
programs;
' (b) The costs and benefits of taking alternative approaches
to energy audits, including but not limited to identifying
measures that are cost-effective and time-effective, taking
advantage of economies of scale and producing results that are
accurate and are replicable for equivalent base efficiency
packages;
' (c) Ways to assist program participants in understanding and
accessing small scale local energy project funding and making
informed decisions in selecting appropriate energy efficiency and
renewable energy projects;
' (d) The effectiveness of various levels of loan offset grants
as incentives to program participation;
' (e) The effectiveness of on-billing financing as a means of
loan repayment and the effectiveness of fixture filings, liens or
other forms of security for loans;
' (f) The feasibility and effectiveness of coordinated
installations of residential and commercial structure energy
packages overseen by a single project manager;
' (g) The manner in which the program interacts or conflicts
with existing consumer-owned utility loan programs and other
utility and regional energy efficiency programs;
' (h) The relative demand for loan program services among
residential and commercial properties and between low-income and
other households, and factors that influence that relative
demand;
' (i) The administrative costs and participation rates
associated with various forms of loan security; and
' (j) Other strategies and measures identified by the director
in consultation with the Bonneville Power Administration.
' (3) The sustainable energy project managers in the
consumer-owned utility service areas shall report to the director
no later than October 1, 2010. The report shall evaluate the
effectiveness of the pilot program and shall include an
evaluation of the extent to which various program strategies and
measures:
' (a) Help to produce significantly higher rates of energy
savings or renewable energy production;
' (b) Increase participation in energy efficiency and renewable
energy programs;
' (c) Increase the number of energy efficiency and renewable
energy measures installed per building; and
' (d) Reduce the administrative cost per building of providing
energy efficiency and renewable energy services.
' (4) When carrying out pilot programs under this section, the
director and the sustainable energy project managers shall
cooperate and coordinate their efforts with the efforts of local
utilities and encourage utilities to promote energy efficiency
and renewable energy and to engage in outreach and promotional
efforts to inform customers of the utility about the energy
efficiency and sustainable technology loan program. + }
' { + SECTION 45. + } { + A contractor may construct small
scale local energy projects financed under a pilot program
described in sections 42 to 44 of this 2009 Act without being
certified under section 51 of this 2009 Act if:
' (1) No certified contractor is available to construct the
project;
' (2) The Public Purpose Fund Administrator or the sustainable
energy project manager has approved allowing the contractor to
implement projects financed under the energy efficiency and
sustainable technology loan program; and
' (3) The contractor pays wages to employees used for energy
efficiency and sustainable technology loan program projects at a
rate equal to at least 180 percent of the state minimum wage or,
if the project is for a commercial structure or is subject to
prevailing wage laws, the prevailing wage for each trade or
occupation employed. As used in this subsection, 'commercial
structure' means a structure other than a residential structure
as defined in ORS 701.005. + }
' { + SECTION 46. + } { + If there is a change in ownership
or other interest in property benefited by an energy efficiency
and sustainable technology loan, and the loan relies on an
on-bill financing system for collection of the loan repayment
charge, the utility shall transfer the loan repayment charge to
the utility customer account of the person acquiring the
ownership or other interest in the property. + }
'
{ + MISCELLANEOUS PROVISIONS + }
' { + SECTION 47. + } { + The cost of adopting rules under
ORS 470.140 to carry out sections 2 to 41 of this 2009 Act:
' (1) May be paid from the Loan Offset Grant Fund or Energy
Project Bond Loan Fund; or
' (2) May be paid from the Small Scale Local Energy Project
Administration and Bond Sinking Fund created under ORS 470.300 if
the Director of the State Department of Energy and the State
Treasurer find that:
' (a) A cash flow projection for the sinking fund shows that,
for the term of the sinking fund bonds outstanding at the time
the Director of the State Department of Energy transfers the
moneys, remaining moneys in the sinking fund, together with
expected loan contract payments and fund earnings, will improve
the financial basis of the program and will continue to be
adequate to pay bond principal, interest, redemption premiums, if
any, and administration costs; and
' (b) The transfer will not create the need for issuance of any
bonds. + }
' { + SECTION 48. + } { + The State Department of Energy
shall adopt rules establishing contractor certification standards
required under section 13 of this 2009 Act no later than December
1, 2010. The Construction Contractors Board shall implement a
certification system for contractors under section 51 of this
2009 Act no later than January 1, 2011. + }
' { + SECTION 49. + } { + Sections 42, 43, 44, 45 and 46 of
this 2009 Act are repealed January 2, 2016. + }
' { + SECTION 50. + } { + Sections 51 and 52 of this 2009
Act are added to and made a part of ORS chapter 701. + }
' { + SECTION 51. + } { + (1) A licensed contractor that
possesses an appropriate endorsement may apply to the
Construction Contractors Board for certification to participate
in the construction of small scale local energy projects financed
through the energy efficiency and sustainable technology loan
program. The board may issue the certification to a contractor
that meets the standards established by the State Department of
Energy under section 13 of this 2009 Act. The board may charge a
reasonable fee for certifying a contractor.
' (2) If the board receives information that the contractor has
failed to comply with the certification standards established by
the department or has violated a wage and hours standard
described in section 52 of this 2009 Act, the board shall hold a
hearing and may revoke the certification.
' (3) The board shall give the department notice of the
issuance or revocation of a certification under this section. + }
' { + SECTION 52. + } { + (1) If a project financed under
the energy efficiency and sustainable technology loan program is
to be constructed for a commercial structure, the State
Department of Energy shall require that the certified contractor
pay the employees used for the project at the prevailing wage
rate determined by the Commissioner of the Bureau of Labor and
Industries for each trade or occupation employed. If a project is
not to be constructed for a commercial structure, but the
department is uncertain whether prevailing wage requirements
apply to the project, the department shall consult with the
Bureau of Labor and Industries. As used in this subsection,
'commercial structure' means a structure that is not a
residential structure.
' (2) If the Construction Contractors Board receives a
complaint that a contractor certified under section 51 of this
2009 Act has failed to comply with a wage and hours standard for
work on a project financed under the energy efficiency and
sustainable technology loan program, the board shall forward the
complaint to the Bureau of Labor and Industries. If the bureau
determines that the contractor has violated a wage and hours
standard for work on a project financed under the loan program,
the bureau shall notify the board of the determination. + }
' { + SECTION 53. + } { + Section 14 of this 2009 Act
becomes operative January 1, 2011. + }
'
{ + AMENDMENTS TO OREGON REVISED STATUTES + }
' { + SECTION 54. + } 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 that are modified or acquired
directly from a factory and that:
' (A) Use an alternative fuel including electricity, ethanol,
gasohol with at least 10 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 lower or equivalent exhaust emissions or are more
energy efficient than vehicles fueled by gasoline; and
' (b) A facility, including a fueling station, necessary to
operate an alternative fuel vehicle fleet.
' (2) 'Applicant' means an applicant for a { + loan to
construct a + } small scale local energy project { - loan - } .
' { + (3) 'Base efficiency package' means the package of
energy efficiency upgrades or renewable energy projects for a
property that, when energy savings, project repayment costs, tax
or other incentives, loan offset grants and other relevant
economic factors are considered, is estimated to not increase the
utility bill of the customer over the loan repayment term. + }
' { - (3) - } { + (4) + } 'Committee' means the Small Scale
Local Energy Project Advisory Committee created under ORS
470.070.
' { - (4) - } { + (5) + } 'Cooperative' means a cooperative
corporation organized under ORS chapter 62.
' { - (5) - } { + (6) + } 'Director' means the Director of
the State Department of Energy appointed under ORS 469.040.
' { - (6) - } { + (7) + } '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
{ + local + } 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
{ + local + } energy project to generate electricity for sale.
' { - (7) - } { + (8) + } '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.
' { + (9) 'Energy efficiency and sustainable technology loan
' means a loan for a small scale local energy project that is
repayable by means of:
' (a) A charge included with the participant's utility customer
account billing; or
' (b) An alternative repayment method identified by the
department and the borrower and specified in the loan agreement.
' (10) 'Energy Project Bond Loan Fund' means the fund
established under section 17 of this 2009 Act.
' (11) 'Energy Project Supplemental Fund' means the fund
established under section 15 of this 2009 Act.
' (12) 'Energy Revenue Bond Repayment Fund' means the fund
established under section 18 of this 2009 Act.
' (13) 'Energy savings projection' means an examination of the
energy performance and site characteristics of a property that,
at a minimum, identifies:
' (a) A base efficiency package; and
' (b) Any additional optional measures that a customer is able
to repay and that the sustainable energy project manager believes
to be feasible for the site. + }
' { - (8) - } { + (14) + } '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) - } { + (15) + } '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. - }
' { + (16) 'Loan offset grant' means moneys from the Loan
Offset Grant Fund that are used to help offset the initial
project costs or loan payments for energy efficiency, renewable
energy and energy conservation projects.
' (17) 'Loan Offset Grant Fund' means the fund established
under section 16 of this 2009 Act.
' (18) 'Loan repayment charge' means an amount charged to a
utility customer account through on-bill financing as a mechanism
for the repayment of an energy efficiency and sustainable
technology loan. + }
' { - (11) - } { + (19) + } '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.
' { + (20) 'On-bill financing' means a mechanism for
collecting the repayment of an energy efficiency and sustainable
technology loan through a utility customer account billing
system.
' (21) 'Optional package' means measures for promoting energy
efficiency or the use of renewable energy:
' (a) That are in addition to the measures described in the
customer's base efficiency package;
' (b) For which a customer has the ability to repay; and
' (c) That the sustainable energy project manager believes to
be feasible for the site. + }
' { - (12) - } { + (22) + } '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.
' { + (23) 'Public Purpose Fund Administrator' means the
entity designated by the Public Utility Commission to administer
moneys collected by a company through the public purpose charge
described under ORS 757.612. + }
' { - (13) - } { + (24) + } 'Recycling project' means a
facility or equipment that converts waste into a new and usable
product.
' { - (14) - } { + (25) + } '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. - }
' { + (26) 'Small scale local energy program loan' means a
loan for a small scale local energy project other than an energy
efficiency and sustainable technology loan. + }
' { - (16) - } { + (27) + } '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.
' { + (28) 'Small Scale Local Energy Project Administration
and Bond Sinking Fund' means the fund created under ORS 470.300.
' (29) 'Small Scale Local Energy Project Loan Fund' means the
loan fund created by Article XI-J of the Oregon Constitution and
appropriated to the State Department of Energy under ORS 470.130.
' (30) 'Sustainable energy project manager' means the
organization responsible for promoting the energy efficiency and
sustainable technology loan program and related incentives for
energy efficiency and renewable energy at the neighborhood and
community level.
' (31) 'Sustainable energy territory' means the geographic
service area that a sustainable energy project manager is
responsible for serving. + }
' { + SECTION 55. + } ORS 470.060 is amended to read:
' 470.060. { - (1) Any individual who is a resident of
Oregon, an Oregon business, a nonprofit or public cooperative, a
nonprofit corporation, an eligible federal agency, an eligible
state agency, a public corporation created by the state, an
intergovernmental entity created pursuant to an intergovernmental
agreement under ORS 190.003 to 190.130, or a municipal
corporation may file with the State Department of Energy an
application to obtain loan funds for a small scale local energy
project as provided in this chapter. - }
' { + (1) The following may file with the State Department of
Energy an application to obtain moneys for a small scale local
energy project as provided in this chapter:
' (a) An individual who is an Oregon resident;
' (b) An Oregon business;
' (c) A nonprofit or public cooperative;
' (d) A nonprofit corporation;
' (e) An eligible federal agency;
' (f) An eligible state agency;
' (g) A public corporation created by this state;
' (h) An intergovernmental entity created pursuant to an
intergovernmental agreement under ORS 190.003 to 190.130;
' (i) A special district;
' (j) A local improvement district; or
' (k) A municipal corporation. + }
' (2) Applications to obtain { - funds - } { +
financing + } for a small scale local energy project shall be
made in writing on a form prescribed by the State Department of
Energy. Applications submitted to the State Department of Energy
shall:
' (a) Describe the nature and purpose of the proposed small
scale local energy project.
' (b) State whether any purposes other than energy production,
but consistent with energy production, will be served by the
proposed small scale local energy project, and the nature of the
other purposes, if any.
' (c) Include an evaluation of the potential of the small scale
local energy project to meet local community energy needs.
' (d) Include an evaluation of the potential environmental
impacts of the small scale local energy project.
' (e) State whether any moneys other than those in the loan
fund are proposed to be used for the development of the proposed
small scale local energy project, and whether any other moneys
are available or have been sought for the project.
' (f) Describe the source of { - funds - } { + moneys + }
for repayment of the loan applied for.
' (3) { + If the application is for a loan other than an
energy efficiency and sustainable technology loan to an
individual, + } a fee of one-tenth of one percent of the amount
of the loan applied for or $2,500, whichever is less, shall be
submitted with each application. In addition, the applicant may
be required to pay for costs incurred in connection with the
application that exceed the application fee and which the
Director of the State Department of Energy determines are
incurred solely in connection with processing the application.
The applicant shall be advised of any additional costs the
applicant must pay before the costs are incurred.
' { + SECTION 56. + } 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, { + other than applications for
energy efficiency and sustainable technology loans, + } and make
recommendations { - thereon - } { + regarding those
applications + } to the director.
' (2) { - Seven - } { + Nine + } members shall be appointed
to the Small Scale Local Energy Project Advisory Committee. Each
member shall be appointed to serve a two-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 57. + } ORS 470.080 is amended to read:
' 470.080. (1) After consultation with the Small Scale Local
Energy Project Advisory Committee, the Director of the State
Department of Energy shall establish by rule standards and
criteria for small scale local energy projects to be funded under
{ - the provisions of ORS 470.060 to 470.080 and 470.090. - }
{ + this chapter + } { + other than projects funded through
energy efficiency and sustainable technology loans. + } The
standards and criteria shall operate to encourage diversity in
projects funded, give preference to the maximum extent practical
to projects proposed by individuals and small businesses, ensure
acceptability of environmental impacts and shall require
consideration of the potential contribution of a project if
developed at other suitable locations to meeting the energy needs
of this state. The standards and criteria shall give the least
preference to projects proposed by an eligible federal agency.
' (2) All applications submitted under ORS 470.060 shall be
reviewed by the State Department of Energy. The department may
request that the applicant submit additional information or
revise the application. The department shall:
' (a) Determine whether the application meets the standards and
criteria adopted under subsection (1) of this section; and
' (b) Recommend approval or denial of the loan application, and
if approval is recommended in what amount the loan should be
made.
' (3) After concluding its review, unless the application meets
the criteria established by the committee under subsection (4) of
this section, the department shall refer the application and its
findings and recommendation to the committee for its review. The
department shall notify the applicant of the date, time and place
of any oral presentation to the committee on the application. The
committee shall review the application and the department's
findings and recommendations and advise the director whether the
proposed small scale local energy project meets the criteria
established by the director under subsection (1) of this section,
whether the project should be financed with moneys from the
{ + Small Scale Local Energy Project + } Loan Fund and in what
amount the loan should be made if approved.
' (4) The committee may provide for direct referral of an
application by the department to the director if the application
meets criteria established by the committee.
' { + SECTION 58. + } ORS 470.090 is amended to read:
' 470.090. (1) After consideration of the recommendation of the
Small Scale Local Energy Project Advisory Committee or the State
Department of Energy as provided by ORS 470.080, the Director of
the State Department of Energy may approve or reject the
financing of a small scale local energy project described in an
application filed as provided in ORS 470.060, using moneys in the
Small Scale Local Energy Project Loan Fund. Approval of a loan by
the director shall include a certification of the amount of the
loan.
' (2) The director's approval of a loan for a small scale local
energy project shall be based on a finding that:
' (a) The proposed small scale local energy project meets
established standards and criteria under ORS 470.080;
' (b) The proposed project is consistent with the preservation
and enhancement of environmental quality;
' (c) The proposed project is feasible and a reasonable risk
from practical and economic standpoints;
' (d) The plan for development of the project is satisfactory;
' (e) The applicant is qualified, creditworthy and responsible
and is willing and able to enter into a contract with the
director for development and repayment as provided in ORS
470.150 { + or section 29 of this 2009 Act + };
' (f) There is a need for the proposed small scale local energy
project and the applicant's financial resources are adequate to
provide the working capital to maintain the project after
completion;
' (g) Moneys in the loan fund are or will be available for the
development of the proposed small scale local energy project;
' (h) A dwelling constructed before January 1, 1979, that will
be served by a proposed space heating project is weatherized
according to the standards established under ORS 469.155;
' (i) Except for a proposed space heating project for a
dwelling under paragraph (h) of this subsection, the loan does
not finance any project for which the projected economic value of
the energy savings of the project during the first year the
project is implemented is equal to or greater than the cost of
the project; and
' (j) The loan will not preclude individuals and small
businesses from access to loan { - funds - } { + moneys + }.
' (3) The director shall notify the applicant and the presiding
officer of the committee of the director's action and of the
reasons for that action. The director shall inform the applicant
of the review procedure established in ORS 470.100.
' { + SECTION 59. + } ORS 470.100 is amended to read:
' 470.100. (1) If the Director of the State Department of
Energy rejects a loan application or approves a loan amount
different than that requested by the applicant, the applicant may
request that the Small Scale Local Energy Project Advisory
Committee review the director's action.
' (2) The committee may review the director's action on its own
motion or at the request of the applicant. A majority of the
members of the committee may authorize the presiding officer of
the committee to appeal the director's action to the Governor.
' (3) An appeal of the director's action may be initiated by
the presiding officer of the committee no later than 45 days
after the date the applicant receives notice of the director's
action under ORS 470.090.
' (4) The decision of the Governor is final. If the Governor
fails to act within 30 days after receiving the appeal, the
appeal shall be considered to be denied.
' (5) Notwithstanding ORS chapter 183, a decision of the
director or the Governor on an application for { - loan
funds - } { + financing + } under ORS 470.090 or this section
is not subject to judicial review.
' { + SECTION 60. + } ORS 470.110 is amended to read:
' 470.110. The Director of the State Department of Energy may
accept gifts of money or other property from any source, given
for the purposes of ORS 470.050 to 470.120, 470.140 (1) and
470.150 to 470.210. Money so received shall be paid into the
{ + Small Scale Local Energy Project + } Loan Fund. Money or
other property so received shall be used for the purposes for
which received.
' { + SECTION 61. + } ORS 470.120 is amended to read:
' 470.120. If the applicant receives from any source other than
the { - loan fund any funds - } { + Small Scale Local Energy
Project Loan Fund, the Energy Project Supplemental Fund or the
Energy Project Bond Loan Fund any moneys + } to assist in the
development of the project, the amount of the loan to the
applicant from the
{ - loan fund - } { + Small Scale Local Energy Project Loan
Fund, Energy Project Supplemental Fund or Energy Project Bond
Loan Fund + } shall be limited to that amount necessary for the
development of those portions of the project not funded by other
sources.
' { + SECTION 62. + } ORS 470.130 is amended to read:
' 470.130. All moneys in the { + Small Scale Local Energy
Project + } Loan Fund created by Article XI-J of the Oregon
Constitution are appropriated continuously to the State
Department of Energy and shall be used for the purposes
{ - provided in - } { + authorized under + } this chapter.
' { + SECTION 63. + } ORS 470.140 is amended to read:
' 470.140. (1) In accordance with the applicable provisions of
ORS chapter 183, the Director of the State Department of Energy
may adopt rules considered necessary to carry out the purposes of
this chapter.
' (2) The director shall submit to the Legislative Assembly and
the Governor a biennial report of the transactions of the { +
Small Scale Local Energy Project + } Loan Fund and the { + Small
Scale Local Energy Project Administration and Bond + } Sinking
Fund in such detail as will accurately indicate the condition of
the funds.
' { + SECTION 64. + } ORS 470.150 is amended to read:
' 470.150. Except as provided in ORS 470.155 { + and
470.170 + }, if the Director of the State Department of Energy
approves the financing of a small scale local energy project, the
director, on behalf of the state, and the applicant may enter
into a loan contract, secured by a first lien or by other good
and sufficient collateral in the manner provided in ORS 470.155
to 470.210. For purposes of this section, the interest of the
State Department of Energy under a lease purchase contract
entered into with an eligible federal or state agency or a
municipal corporation may constitute good and sufficient
collateral. The contract:
' (1) May provide that the director, on behalf of the state,
must approve the arrangements made by the applicant for the
development, operation and maintenance of the small scale local
energy project, using moneys in the { + Small Scale Local Energy
Project + } Loan Fund for the project development.
' (2) Shall provide a plan for repayment by the applicant to
the { + Small Scale Local Energy Project Administration and
Bond + } Sinking Fund of moneys borrowed from the loan fund used
for the development of the small scale local energy project and
interest on those moneys used at a rate of interest the director
determines is necessary to provide adequate funds to recover the
administrative expenses incurred { - under this chapter - }
{ + in connection with the loan + }. The director shall set the
interest rate at an incremental rate above the interest rate on
the underlying bonds { + in an amount sufficient to recover all
program-related costs including, but not limited to,
implementation, financing, administration and promotional costs
for the program + }. The incremental rate for projects proposed
by an eligible federal agency shall be greater than the
incremental rate charged to any other governmental borrower. The
repayment plan, among other matters:
' (a) Shall provide for commencement of repayment by the
applicant of moneys used for project development and interest
thereon not later than two years after the date of the loan
contract or at any other time as the director may provide. In
addition to any other prepayment option provided in a borrower's
loan agreement, the department shall provide a borrower the
opportunity to prepay the borrower's loan, without any additional
premium, by defeasing such loan to the call date of the bond or
bonds funding the applicable loan, or any refunding bonds linked
to the loan, but such defeasance shall occur only if the director
finds that after the defeasance, the sinking fund will have
sufficient funds to make payments required under ORS 470.300 (1).
' (b) May provide for reasonable extension of the time for
making any repayment in emergency or hardship circumstances, if
approved by the director.
' (c) Shall provide for evidence of debt assurance of and
security for repayment by the applicant considered necessary or
proper by the director.
' (d) Shall set forth the period of loan { + , + } which
{ - shall - } { + may + } not exceed the usable life of the
completed project, or 30 years from the date of the loan
contract, whichever is less.
' (e) May set forth a procedure for formal declaration of
default of payment by the director, including formal notification
of all relevant federal, state and local agencies; and further, a
procedure for notification of all relevant federal, state and
local agencies that declaration of default has been rescinded
when appropriate.
' (3) May include provisions satisfactory to the director for
field inspection, the director to be the final judge of
completion of the project.
' (4) May provide that the liability of the state under the
contract is contingent upon the availability of moneys in the
loan fund for use in the planning and development of the project.
' (5) May include further provisions the director considers
necessary to ensure expenditure of the funds for the purposes set
forth in the approved application.
' (6) May provide that the director may institute an
appropriate action or suit to prevent use of the project financed
by the loan fund by any person who is delinquent in the repayment
of any moneys due the sinking fund.
' { + (7) If the project is being financed by an energy
efficiency and sustainable technology loan or small scale local
energy program loan, in addition to the requirements of
subsections (1) to (6) of this section, shall include:
' (a) For an energy efficiency and sustainable technology loan
that relies on an on-bill financing system for the collection of
a loan repayment charge, an agreement by the applicant to notify
a person acquiring ownership of, or an interest in, the property
from the applicant that the loan repayment charge will be
transferred to the utility customer account of the person
acquiring the ownership or interest unless the loan is discharged
before or at the time the ownership or interest transfers;
' (b) A plainly worded acknowledgment by the applicant that
failure to make payments as required under the loan agreement may
result in the foreclosure of a property lien or other debt
collection actions;
' (c) A waiver stating that the applicant waives any
jurisdictional or other irregularities or defects in:
' (A) The energy efficiency and sustainable technology loan
program;
' (B) A small scale local energy project;
' (C) The small scale local energy program loan provisions;
' (D) This chapter; or
' (E) Department rules that relate in any way to the loan
repayment charge, real property lien provisions or any form or
combination of loan security or to the requirement to satisfy the
loan obligation;
' (d) If the applicant is not the owner of the property to be
burdened by the loan repayment charge, fixture filing or real
property lien, provision for participation by the property owner
as a party to the contract or a notarized authorization by the
owner for the fixture filing and lien; and
' (e) A description of any other conditions required by the
department. + }
' { + SECTION 65. + } ORS 470.160 is amended to read:
' 470.160. If the Director of the State Department of Energy
approves a loan for a small scale local energy project, the State
Treasurer shall pay moneys for such project from the { + Small
Scale Local Energy Project + } Loan Fund { + or Energy Project
Revenue Bond Loan Fund + } in accordance with the terms of the
loan contract, as prescribed by the director.
' { + SECTION 66. + } ORS 470.170 is amended to read:
' 470.170. (1) { + (a) Except as otherwise provided in this
subsection, + } when a loan is made under this chapter to an
applicant other than a municipal corporation, the loan shall be
secured pursuant to a mortgage, trust deed, security agreement,
pledge, assignment or similar instrument, by a security interest
or lien on real or personal property in the full amount of the
loan or as the Director of the State Department of Energy shall
require for adequate security, including but not limited to
long-term leasehold interests or equitable interests in real
property or personal property. In lieu of, or in addition to, any
of the collateral otherwise described in this
{ - subsection - } { + paragraph + }, the applicant may secure
the loan by providing credit enhancement, including but not
limited to a letter of credit or payment bond, or a guaranty
acceptable to the director.
' { + (b) To the extent consistent with any declaration,
pledge or agreement for bonds issued under ORS 470.220 to
470.290, an energy efficiency and sustainable technology loan
shall be secured as provided in sections 36 or 37 of this 2009
Act. + }
' (2) When a loan is made to a municipal corporation for the
development of a small scale local energy project under this
chapter, the loan shall be secured as the director shall require
for adequate security. The security may be in the form of a lien,
mortgage, interest under a lease-purchase contract or other form
of security acceptable to the director and the municipal
corporation.
' (3) When a loan made under this chapter is secured by a lien
on the real property of the applicant, the director shall perfect
the lien by recording as provided by law.
' (4) Upon payment of all amounts loaned to an applicant
pursuant to this chapter, the director shall file a satisfaction
or release notice that indicates repayment of the loan.
' (5) The director may cause to be instituted appropriate
proceedings to foreclose liens for delinquent loan payments, and
shall pay the proceeds of any such foreclosure, less the
director's expenses incurred in foreclosing, into the { + Small
Scale Local Energy Project Administration and Bond + } Sinking
Fund { + if the loan was issued from the Small Scale Local
Energy Project Loan Fund, or into the Energy Project Bond Loan
Fund if the loan was from the Energy Project Bond Loan Fund + }.
In a foreclosure proceeding the director may bid on property
offered for sale in the proceedings and may acquire title to the
property on behalf of the state.
' (6) The director may take any action, make any disbursement,
hold any funds or institute any action or proceeding necessary to
protect the state's interest.
' (7) The director may settle, compromise or release, for
reasons other than uncollectibility as provided in ORS 293.240,
all or part of any loan obligation so long as the director's
action is consistent with the purposes of this chapter and does
not impair the ability to pay the administrative expenses of the
State Department of Energy or the obligations of any bonds then
outstanding.
' { + SECTION 67. + } ORS 470.190 is amended to read:
' 470.190. If an applicant fails to comply with a contract
entered into with the Director of the State Department of Energy
for development and repayment as provided in ORS 470.150 { + or
section 29 of this 2009 Act + }, the director, in addition to
remedies provided in ORS 470.170 and 470.180, may seek other
appropriate legal remedies to secure the loan and may contract as
provided in ORS 470.150 with any other person for continuance of
development and for repayment of moneys from the { + Small Scale
Local Energy Project + } Loan Fund { + or from the Energy
Project Bond Loan Fund + } used therefor and interest thereon.
' { + SECTION 68. + } ORS 470.230 is amended to read:
' 470.230. Except as provided in ORS 470.270, all moneys
obtained from the sale of { + general obligation + } bonds under
ORS 470.220 to 470.290 { + and Article XI-J of the Oregon
Constitution + } shall be credited by the State Treasurer to the
{ + Small Scale Local Energy Project + } Loan Fund. Those moneys
shall be used only for the purposes stated in Article XI-J of the
Oregon Constitution { + , + } { - and ORS 470.050 to 470.120,
470.140 (1) and 470.150 to 470.210, - } including payment of the
costs of issuing the bonds and of obtaining credit enhancement
for the bonds, and making payments of interest on bonds issued
pursuant to the provisions of ORS 470.220 to 470.290 if there are
insufficient funds in the { + Small Scale Local Energy Project
Administration and Bond + }Sinking Fund to make the payments
referred to in ORS 470.300 (1). Moneys loaned to municipal
corporations but withheld by the State Department of Energy for
security or to pay for future project costs may remain in the
loan fund. Pending the use of the moneys in the loan fund for the
proper purposes, the moneys may be invested in the manner
provided by law.
' { + SECTION 69. + } ORS 470.240 is amended to read:
' 470.240. All { + general obligation + } bonds issued under
ORS 470.220 to 470.290 { + and Article XI-J of the Oregon
Constitution + } shall contain a direct promise of the State of
Oregon to pay the principal amount of the bonds, plus any accrued
interest and any redemption premium. The principal of and the
interest and redemption premium, if any, upon the bonds, when
due, shall be paid at the fiscal agency of the State of Oregon.
The charges imposed by that agency for its services shall be
paid, upon approval by the State Treasurer, from the { + Small
Scale Local Energy Project Administration and Bond + } Sinking
Fund.
' { + SECTION 70. + } ORS 470.270 is amended to read:
' 470.270. (1) After consultation with the State Treasurer, the
Director of the State Department of Energy may issue { + general
obligation + } refunding bonds for the purpose of refunding
outstanding bonds issued under ORS 470.220 to 470.290 { + and
Article XI-J of the Oregon Constitution + }. The refunding bonds
may be sold in the same manner as other bonds are sold under ORS
470.220 to 470.290. All moneys obtained from the sale of
refunding bonds shall be credited by the State Treasurer to the
{ + Small Scale Local Energy Project Administration and Bond
+ }Sinking Fund. { - The issuance of the refunding bonds, the
maturity date, and other details thereof, the rights of the
holders thereof, and the duties of the Governor, Secretary of
State and State Treasurer with respect thereto, shall be governed
by the provisions of ORS 470.220 to 470.290. - } The refunding
bonds may be issued to refund bonds previously issued for
refunding purposes. Pending the use of moneys obtained from the
sale of refunding bonds for proper purposes, such moneys may be
invested in the manner provided by law.
' (2) Notwithstanding any provision of ORS 470.150, if the
State Department of Energy issues taxable refunding bonds at a
lower interest rate to refund outstanding general obligation
bonds, and is unable to allow loan recipients to receive a
portion of the interest savings, the director shall allow the
loan recipient to prepay the outstanding loan balance upon the
request of the recipient. The director shall respond to such a
request within 30 days after receiving the request by specifying
the outstanding principal balance after applying reserves held by
the state for the borrower and the prepayment premium as listed
in the bond document, loan document or bond purchase agreement.
' (3) The department shall pursue opportunities for refunding
bonds to reduce interest sums payable by the department. When the
department refunds a bond with tax-exempt bonds, the department
shall share, on an equitable basis, the savings from any
refunding with the borrowers whose loans were made with the
proceeds of the refunded bonds in an amount consistent with a
finding by the director that the sinking fund has, and will
continue to have, sufficient funds to make payments required
under ORS 470.300 (1). The department may not refund tax-exempt
bonds with taxable bonds, unless the department is able to share
the savings associated with such a refunding with the borrowers
whose loans are linked to such bonds. At least 120 days before
the date on which the department intends to issue refunding
bonds, the director shall notify each borrower whose loan was
made from the proceeds of the bonds being refunded and shall
offer the borrower the opportunity to prepay the borrower's loan.
A borrower shall respond within 60 days of the date of the notice
described in this subsection if the borrower intends to prepay
the borrower's loan.
' { + SECTION 71. + } ORS 470.280 is amended to read:
' 470.280. (1) The State Treasurer shall make payment of the
principal of and the interest and redemption premium, if any, on
any { + general obligation + } bond issued under ORS 470.220 to
470.290 from the { + Small Scale Local Energy Project
Administration and Bond + } Sinking Fund.
' (2) The State Treasurer shall compute and determine in
January of each year, after the sale of bonds under ORS 470.220
to 470.290 { + and Article XI-J of the Oregon Constitution + },
the amount of principal, interest and redemption premiums that
will fall due during the year on bonds then outstanding and
unpaid and shall maintain or hold in the sinking fund sufficient
moneys to pay such maturing obligations.
' { + SECTION 72. + } ORS 470.300 is amended to read:
' 470.300. (1) There hereby is created the Small Scale Local
Energy Project Administration and Bond Sinking Fund, separate and
distinct from the General Fund, to provide for payment of:
' (a) Administrative expenses of the State Department of Energy
and the Director of the State Department of Energy in processing
applications, investigating potential small scale local energy
projects and proposed loans and servicing and collecting
outstanding loans made { - under this chapter - } { + from
the Small Scale Local Energy Project Loan Fund + }, if the
expense is not paid directly by the applicant.
' (b) Administrative expenses of the State Treasurer in
carrying out the duties, functions and powers imposed upon the
State Treasurer by this chapter.
' (c) Principal, interest and redemption premium, if any, of
all bonds issued pursuant to the provisions of ORS 470.220 to
470.290 { + and Article XI-J of the Oregon Constitution + }.
' (d) Net investment earnings on any funds loaned to municipal
corporations but withheld as provided in ORS 470.230.
' (e) Costs of issuing the bonds and of obtaining credit
enhancement for the bonds.
' (2) The fund created by subsection (1) of this section shall
consist of:
' (a) Application fees required by ORS 470.060, unless the
department requires the applicant to pay the fee directly for a
cost incurred in connection with the application.
' (b) Repayment of moneys loaned to applicants from the
{ + Small Scale Local Energy Project + } Loan Fund, including
interest on such moneys.
' (c) Such moneys as may be appropriated to the fund by the
Legislative Assembly.
' (d) Moneys obtained from the sale of refunding bonds
{ + under ORS 470.220 to 470.290 + } and any accrued interest on
such bonds.
' (e) Moneys received from ad valorem taxes levied pursuant to
Article XI-J of the Oregon Constitution, and all moneys that the
Legislative Assembly may provide in lieu of such taxes.
' (f) Interest earned on cash balances invested by the State
Treasurer.
' (g) Moneys transferred from the { - Small Scale Local
Energy Project - } loan fund.
' { + (h) Gifts, grants, donations or other moneys for
promoting small scale local energy program loan purposes and
goals. + }
' (3) The director, with the approval of the State Treasurer,
may transfer moneys from the sinking fund to the loan fund if:
' (a) A cash flow projection shows that, for the term of the
bonds outstanding at the time the director transfers the moneys,
remaining moneys in the sinking fund, together with expected loan
contract payments and fund earnings, will improve the financial
basis of the program and will continue to be adequate to pay bond
principal, interest, redemption premiums, if any, and
administration costs; and
' (b) The transfer will not create the need for issuance of any
bonds.
' (4) The director, with the approval of the State Treasurer,
may establish separate and distinct accounts within the sinking
fund to accomplish the purpose of this section.
' { + SECTION 73. + } ORS 470.310 is amended to read:
' 470.310. (1) If there are insufficient funds in the
{ + Small Scale Local Energy Project Administration and Bond
+ }Sinking Fund to make the payments referred to in ORS 470.300
(1), the Director of the State Department of Energy may request
the funds necessary for such payments from the Legislative
Assembly or the Emergency Board.
' (2) When the director determines that moneys in sufficient
amount are available in the sinking fund, the State Treasurer
shall reimburse the General Fund without interest, in an amount
equal to the amount allocated by the Legislative Assembly or the
Emergency Board pursuant to subsection (1) of this section. The
moneys used to reimburse the General Fund under this subsection
shall not be considered a budget item on which a limitation is
otherwise fixed by law, but shall be in addition to any specific
appropriations or amounts authorized to be expended from
continually appropriated moneys.
'
{ + CAPTIONS + }
' { + SECTION 74. + } { + The unit captions used in this
2009 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 2009 Act. + }
'
{ + EMERGENCY + }
' { + SECTION 75. + } { + This 2009 Act being necessary for
the immediate preservation of the public peace, health and
safety, an emergency is declared to exist, and this 2009 Act
takes effect on its passage. + } ' .
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