76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
Enrolled
House Bill 2960
Sponsored by Representatives BAILEY, J SMITH, FREEMAN, READ,
Senators EDWARDS, ROSENBAUM, DINGFELDER; Representatives
BARNHART, BENTZ, BOONE, CANNON, CLEM, DEMBROW, KENNEMER, TOMEI,
Senator DEVLIN (Presession filed.)
CHAPTER ................
AN ACT
Relating to energy; creating new provisions; amending ORS
470.050, 470.570, 470.575, 470.585, 470.590, 470.605, 470.655,
470.700, 470.715 and 757.612 and section 1, chapter 92, Oregon
Laws 2010; appropriating money; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) The Clean Energy Deployment Fund is
established in the State Treasury, separate and distinct from the
General Fund. Interest earned by the Clean Energy Deployment Fund
shall be credited to the Clean Energy Deployment Fund. Moneys in
the fund are continuously appropriated to the State Department of
Energy for use as provided in section 2 of this 2011 Act.
(2) The department may accept grants, donations, contributions
or gifts from any source for deposit in the Clean Energy
Deployment Fund. + }
SECTION 2. { + (1) The State Department of Energy shall
establish the clean energy deployment program to provide grants
and loans to support energy efficiency or clean energy projects
in this state. The department shall establish criteria for
qualifications of the projects by rule.
(2)(a) The department may use funds from the Jobs, Energy and
Schools Fund and the Clean Energy Deployment Fund to provide
loans and grants to school districts that have projects to
weatherize, upgrade and retrofit kindergarten through grade 12
public schools in this state, in order to improve energy
efficiency.
(b) A school district that finances a project through the clean
energy deployment program may not self-perform work constituting
more than five percent of the total cost of the project being
financed.
(c) All school projects financed pursuant to paragraph (a) of
this subsection through the clean energy deployment program are
deemed to be public works projects and are subject to the
prevailing wage requirements of ORS 279C.800 to 279C.870.
(3) The department may contract for the implementation of the
clean energy deployment program in all or parts of this state
with a sustainable energy project manager as defined in ORS
470.050. + }
Enrolled House Bill 2960 (HB 2960-B) Page 1
SECTION 3. { + (1) School districts that participate in the
clean energy deployment program established in section 2 of this
2011 Act may finance projects to:
(a) Weatherize, upgrade and retrofit kindergarten through grade
12 public schools;
(b) Retrofit school bus fleets to operate on compressed natural
gas or other alternative fuels such as propane or to operate with
high-efficiency types of engines such as hybrid electric engines;
or
(c) Replace school bus fleets with school buses that operate on
compressed natural gas or other alternative fuels such as propane
or that operate with high-efficiency types of engines such as
hybrid electric engines.
(2) The projects described in subsection (1) of this section
shall be designed to improve energy efficiency, decrease fuel
costs, increase use of alternative fuels and decrease emissions
of air contaminants.
(3) School districts may finance the projects described in
subsection (1) of this section by:
(a) Paying directly for the projects;
(b) Receiving lower interest loans from the Clean Energy
Deployment Fund or the Small Scale Local Energy Project Loan
Fund, supported by:
(A) Grant moneys from the Jobs, Energy and Schools Fund;
(B) Public purpose charges directed to a school district in
areas served by investor-owned utilities under ORS 757.612;
(C) Qualified Energy Conservation Bonds issued under the Energy
Improvement and Extension Act of 2008 or other federal loan
programs; or
(D) Revenues generated by the savings in energy costs resulting
from the energy efficiency improvements;
(c) Issuing general obligation bonds, subject to the bond
election requirements under ORS 328.210; or
(d) Using any other source of moneys. + }
SECTION 4. { + (1) The State Department of Energy shall
establish and administer a four-year high performance schools
pilot program within the clean energy deployment program
established in section 2 of this 2011 Act to create energy
savings projects at public schools in this state. To facilitate
short-term implementation of the pilot program, the department
shall establish a schedule of projects, procured through a
central contracting system, that will allow school districts to
apply for energy efficiency projects encompassing both short-term
and long-term improvements to existing public schools.
(2) The factors by which the State Department of Energy shall
consider applications from school districts in this state for
projects to be funded through the high performance schools pilot
program shall include, but are not limited to:
(a) The comprehensiveness of the project improvements, with
special attention given to improvements designed to attain
compliance with standards set in the State of Oregon Structural
Specialty Code and Fire and Life Safety Code and also to improve
seismic safety of school buildings;
(b) The incorporation of biomass to generate onsite heat at
school district facilities;
(c) Geographic diversity;
(d) The use of matching funds from other governmental and
private sources;
(e) The timeliness of the projects;
Enrolled House Bill 2960 (HB 2960-B) Page 2
(f) Whether the projects are supported by an energy management
plan adopted by the school district that includes a program for
monitoring and verifying energy cost savings from the projects;
(g) Whether the projects include retrofit or replacement of
school bus fleets to operate:
(A) On compressed natural gas or other alternative fuels such
as propane; or
(B) With high-efficiency types of engines such as hybrid
electric engines;
(h) The amount of cost savings generated by the proposed
improvements; and
(i) The extent to which projects incorporate ongoing
measurement, verification, reporting and guarantees of actual
energy use.
(3) Before approving a project under this section that includes
elements unrelated to energy efficiency and that is designed to
attain compliance with standards set in the State of Oregon
Structural Specialty Code and Fire and Life Safety Code and to
improve seismic safety of school buildings, the State Department
of Energy must find that:
(a) The project showcases new or improved technologies or
designs that promise cost-effective energy efficiency if adopted
by the marketplace, including elements unrelated to energy
efficiency that are practically inseparable from the project, and
would not receive adequate financing unless those unrelated
elements are also eligible for financing as part of the project;
or
(b) The elements unrelated to energy efficiency are closely
integrated with the energy efficiency improvements within the
project, and elimination of these elements would result in
significant additional expense or delays in completing the
project. + }
SECTION 5. { + Section 4 of this 2011 Act is repealed on June
30, 2015. + }
SECTION 6. { + (1) The Public Utility Commission shall prepare
a report on:
(a) The feasibility of energy efficiency power purchase
agreements;
(b) The cost effectiveness of packaging energy efficiency
investments for sale to public utilities as the equivalent of new
energy generation facilities;
(c) The potential avoided costs to ratepayers of energy
efficiency power purchase agreements; and
(d) The most effective means of maximizing energy efficiency
achieved from energy efficiency power purchase agreements through
monitoring and verification.
(2) The commission shall direct public utilities to provide
necessary data on individual energy efficiency projects
sufficient for the commission to complete the study.
(3) The commission shall submit the report to an appropriate
interim committee of the Legislative Assembly on or before
December 1, 2012. + }
SECTION 7. { + Section 6 of this 2011 Act is repealed on
January 2, 2013. + }
SECTION 8. { + (1) As used in this section:
(a) 'Green Globes program' means a building guidance and
assessment program to advance overall environmental performance
and sustainability of commercial buildings established by the
Green Building Initiative.
Enrolled House Bill 2960 (HB 2960-B) Page 3
(b) 'LEED' means the Leadership in Energy and Environmental
Design rating system for certification of energy efficient and
environmentally sustainable buildings established by the United
States Green Building Council.
(c) 'LEED Silver' means the second of four tiers of standards
for certification in the LEED rating system.
(d) 'Two globes' means the second of four tiers of ratings for
certification in the Green Globes program rating system.
(2) If general obligation bonds are issued under Article XI-P
of the Oregon Constitution, and proceeds from the bonds are used
for the construction, improvement, remodel, equipment,
maintenance or repair of a building of a school district, the
building of the school district that is constructed, improved,
remodeled, equipped, maintained or repaired must qualify for, at
a minimum:
(a) LEED Silver certification;
(b) A two globes rating from the Green Globes program; or
(c) An equivalent numeric rating from a nationally recognized,
accepted and appropriate sustainable development rating system as
determined by the State Department of Energy. + }
SECTION 9. ORS 470.575, as amended by section 2, chapter 92,
Oregon Laws 2010, is amended to read:
470.575. (1) The { - Loan Offset Grant - } { + Jobs, Energy
and Schools + } Fund is established in the State Treasury,
separate and distinct from the General Fund. Interest earned by
the { - Loan Offset Grant - } { + Jobs, Energy and
Schools + } Fund shall be credited to the { - Loan Offset
Grant - } { + Jobs, Energy and Schools + } 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 and moneys from base efficiency
package fees collected pursuant to ORS 470.655.
(3) The department shall use fund moneys:
(a) To promote energy efficiency, renewable energy and energy
conservation projects { + , including the clean energy deployment
program established in section 2 of this 2011 Act, + } 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 - } { + a
lower- or zero-interest cost of loans obtained through the Small
Scale Local Energy Project Loan Fund established in section 1,
Article XI-J of the Oregon Constitution, or the Clean Energy
Deployment Fund established in section 1 of this 2011 Act + } 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 10. ORS 757.612 is amended to read:
757.612. (1) There is established an annual public purpose
expenditure standard for electric companies and Oregon Community
Power to fund new cost-effective local energy conservation, new
market transformation efforts, the above-market costs of new
renewable energy resources and new low-income weatherization. The
public purpose expenditure standard shall be funded by the public
purpose charge described in subsection (2) of this section.
(2)(a) Beginning on the date an electric company or Oregon
Community Power offers direct access to its retail electricity
consumers, except residential electricity consumers, the electric
Enrolled House Bill 2960 (HB 2960-B) Page 4
company or Oregon Community Power shall collect a public purpose
charge from all of the retail electricity consumers located
within its service area until January 1, 2026. Except as provided
in paragraph (b) of this subsection, the public purpose charge
shall be equal to three percent of the total revenues collected
by the electric company, Oregon Community Power or the
electricity service supplier from its retail electricity
consumers for electricity services, distribution, ancillary
services, metering and billing, transition charges and other
types of costs included in electric rates on July 23, 1999.
(b) For an aluminum plant that averages more than 100 average
megawatts of electricity use per year, beginning on March 1,
2002, the electric company or Oregon Community Power whose
territory abuts the greatest percentage of the site of the
aluminum plant shall collect from the aluminum company a public
purpose charge equal to one percent of the total revenue from the
sale of electricity services to the aluminum plant from any
source.
(3)(a) The Public Utility Commission shall establish rules
implementing the provisions of this section relating to electric
companies and Oregon Community Power.
(b) Subject to paragraph (e) of this subsection, funds
collected by an electric company or Oregon Community Power
through public purpose charges shall be allocated as follows:
(A) Sixty-three percent for new cost-effective
conservation { + , + }
{ - and - } new market transformation.
(B) Nineteen percent for the above-market costs of constructing
and operating new renewable energy resources with a nominal
electric generating capacity, as defined in ORS 469.300, of 20
megawatts or less.
(C) Thirteen percent for new low-income weatherization.
(D) Five percent shall be transferred to the Housing and
Community Services Department Electricity Public Purpose Charge
Fund established by ORS 456.587 (1) and used for the purpose of
providing grants as described in ORS 458.625 (2).
(c) The costs of administering subsections (1) to (6) of this
section for an electric company or Oregon Community Power shall
be paid out of the funds collected through public purpose
charges. The commission may require that an electric company or
Oregon Community Power direct funds collected through public
purpose charges to the state agencies responsible for
implementing subsections (1) to (6) of this section in order to
pay the costs of administering such responsibilities.
(d) The commission shall direct the manner in which public
purpose charges are collected and spent by an electric company or
Oregon Community Power and may require an electric company or
Oregon Community Power to expend funds through competitive bids
or other means designed to encourage competition, except that
funds dedicated for low-income weatherization shall be directed
to the Housing and Community Services Department as provided in
subsection (7) of this section. The commission may also direct
that funds collected by an electric company or Oregon Community
Power through public purpose charges be paid to a nongovernmental
entity for investment in public purposes described in subsection
(1) of this section. Notwithstanding any other provision of this
subsection:
(A) At least 80 percent of the funds allocated for conservation
shall be spent within the service area of the electric company
that collected the funds; or
Enrolled House Bill 2960 (HB 2960-B) Page 5
(B) If Oregon Community Power collected the funds, at least 80
percent of the funds allocated for conservation shall be spent
within the service area of Oregon Community Power.
(e)(A) The first 10 percent of the funds collected annually by
an electric company or Oregon Community Power under subsection
(2) of this section shall be distributed to { - education
service districts, as described in ORS 334.010, - } { + school
districts + } that are located in the service territory of the
electric company or Oregon Community Power. The funds shall be
distributed to individual
{ - education service - } { + school + } districts according
to the weighted average daily membership (ADMw) of { - the
component school districts of the education service district - }
{ + each school district + } for the prior fiscal year as
calculated under ORS 327.013. The commission shall establish by
rule a methodology for distributing a proportionate share of
funds under this paragraph to { - education service - } { +
school + } districts that are only partially located in the
service territory of the electric company or Oregon Community
Power.
(B) { - An education service - } { + A school + } district
that receives funds under this paragraph shall use the funds
first to pay for energy audits for { - school districts - }
{ + schools + } located within the
{ - education service - } { + school + } district. { - An
education service - } { + A school + } district may not expend
additional funds received under this paragraph on a school
{ - district - } facility until an energy audit has been
completed for that school { - district - } { + facility + }.
To the extent practicable, { - an education service - } { + a
school + } district shall coordinate with the State Department of
Energy and incorporate federal funding in complying with this
paragraph. Following completion of an energy audit for an
individual school
{ - district, the education service - } { + , the school + }
district may expend funds received under this paragraph to
implement the energy audit. Once an energy audit has been
conducted and completely implemented for each school
{ - district - } within the { - education service - } { +
school + } district, the { - education service - } { +
school + } district may expend funds received under this
paragraph for any of the following purposes:
(i) Conducting energy audits. A school district shall conduct
an energy audit prior to expending funds on any other purpose
authorized under this paragraph unless the school district has
performed an energy audit within the three years immediately
prior to receiving the funds.
(ii) Weatherization and upgrading the energy efficiency of
school district facilities.
(iii) Energy conservation education programs.
(iv) Purchasing electricity from environmentally focused
sources and investing in renewable energy resources.
(f) The commission may not establish a different public purpose
charge than the public purpose charge described in subsection (2)
of this section.
(g) If the commission directs funds collected through public
purpose charges to a nongovernmental entity, the entity shall:
(A) Include on the entity's board of directors an ex officio
member designated by the commission, who shall also serve on the
entity's nominating committee for filling board vacancies.
Enrolled House Bill 2960 (HB 2960-B) Page 6
(B) Require the entity's officers and directors to provide an
annual disclosure of economic interest to be filed with the
commission on or prior to April 15 of each calendar year for
public review in a form similar to the statement of economic
interest required for public officials under ORS 244.060.
(C) Require the entity's officers and directors to declare
actual and potential conflicts of interest at regular meetings of
the entity's governing body when such conflicts arise, and
require an officer or director to abstain from participating in
any discussion or vote on any item where that officer or director
has an actual conflict of interest. For the purposes of this
subparagraph, 'actual conflict of interest' and 'potential
conflict of interest' have the meanings given those terms in ORS
244.020.
(D) Arrange for an independent auditor to audit the entity's
financial statements annually, and direct the auditor to file an
audit opinion with the commission for public review.
(E) File with the commission annually the entity's budget,
action plan and quarterly and annual reports for public review.
(F) At least once every five years, contract for an independent
management evaluation to review the entity's operations,
efficiency and effectiveness, and direct the independent reviewer
to file a report with the commission for public review.
(h) The commission may remove from the board of directors of a
nongovernmental entity an officer or director who fails to
provide an annual disclosure of economic interest or declare
actual or potential conflict of interest, as described in
paragraph (g)(B) and (C) of this subsection, in connection with
the allocation or expenditure of funds collected through public
purpose charges and directed to the entity.
(4)(a) An electric company that satisfies its obligations under
this section shall have no further obligation to invest in
conservation, new market transformation or new low-income
weatherization or to provide a commercial energy conservation
services program and is not subject to ORS 469.631 to 469.645 and
469.860 to 469.900.
(b) Oregon Community Power, for any period during which Oregon
Community Power collects a public purpose charge under subsection
(2) of this section:
(A) Shall have no other obligation to invest in conservation,
new market transformation or new low-income weatherization or to
provide a commercial energy conservation services program; and
(B) Is not subject to ORS 469.631 to 469.645 and 469.860 to
469.900.
(5)(a) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year
shall receive a credit against public purpose charges billed by
an electric company or Oregon Community Power for that site. The
amount of the credit shall be equal to the total amount of
qualifying expenditures for new energy conservation, not to
exceed 68 percent of the annual public purpose charges, and the
above-market costs of purchases of new renewable energy resources
incurred by the retail electricity consumer, not to exceed 19
percent of the annual public purpose charges, less administration
costs incurred under this subsection. The credit may not exceed,
on an annual basis, the lesser of:
(A) The amount of the retail electricity consumer's qualifying
expenditures; or
(B) The portion of the public purpose charge billed to the
retail electricity consumer that is dedicated to new energy
Enrolled House Bill 2960 (HB 2960-B) Page 7
conservation, new market transformation or the above-market costs
of new renewable energy resources.
(b) To obtain a credit under this subsection, a retail
electricity consumer shall file with the State Department of
Energy a description of the proposed conservation project or new
renewable energy resource and a declaration that the retail
electricity consumer plans to incur the qualifying expenditure.
The State Department of Energy shall issue a notice of
precertification within 30 days of receipt of the filing, if such
filing is consistent with this subsection. The credit may be
taken after a retail electricity consumer provides a letter from
a certified public accountant to the State Department of Energy
verifying that the precertified qualifying expenditure has been
made.
(c) Credits earned by a retail electricity consumer as a result
of qualifying expenditures that are not used in one year may be
carried forward for use in subsequent years.
(d)(A) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year may
request that the State Department of Energy hire an independent
auditor to assess the potential for conservation investments at
the site. If the independent auditor determines there is no
available conservation measure at the site that would have a
simple payback of one to 10 years, the retail electricity
consumer shall be relieved of 54 percent of its payment
obligation for public purpose charges related to the site. If the
independent auditor determines that there are potential
conservation measures available at the site, the retail
electricity consumer shall be entitled to a credit against public
purpose charges related to the site equal to 54 percent of the
public purpose charges less the estimated cost of available
conservation measures.
(B) A retail electricity consumer shall be entitled each year
to the credit described in this subsection unless a subsequent
independent audit determines that new conservation investment
opportunities are available. The State Department of Energy may
require that a new independent audit be performed on the site to
determine whether new conservation measures are available,
provided that the independent audits shall occur no more than
once every two years.
(C) The retail electricity consumer shall pay the cost of the
independent audits described in this subsection.
(6) Electric utilities and retail electricity consumers shall
receive a fair and reasonable credit for the public purpose
expenditures of their energy suppliers. The State Department of
Energy shall adopt rules to determine eligible expenditures and
the methodology by which such credits are accounted for and used.
The rules also shall adopt methods to account for eligible public
purpose expenditures made through consortia or collaborative
projects.
(7)(a) In addition to the public purpose charge provided under
subsection (2) of this section, an electric company or Oregon
Community Power shall collect funds for low-income electric bill
payment assistance in an amount determined under paragraph (b) of
this subsection.
(b) The commission shall establish the amount to be collected
by each electric company in calendar year 2008 from retail
electricity consumers served by the company, and the rates to be
charged to retail electricity consumers served by the company, so
that the total anticipated collection for low-income electric
Enrolled House Bill 2960 (HB 2960-B) Page 8
bill payment assistance by all electric companies in calendar
year 2008 is $15 million. In calendar year 2009 and subsequent
calendar years, the commission may not change the rates
established for retail electricity consumers, but the total
amount collected in a calendar year for low-income electric bill
payment assistance may vary based on electricity usage by retail
electricity consumers and changes in the number of retail
electricity consumers in this state. In no event shall a retail
electricity consumer be required to pay more than $500 per month
per site for low-income electric bill payment assistance.
(c) Funds collected by the low-income electric bill payment
assistance charge shall be paid into the Housing and Community
Services Department Low-Income Electric Bill Payment Assistance
Fund established by ORS 456.587 (2). Moneys deposited in the fund
under this paragraph shall be used by the Housing and Community
Services Department for the purpose of funding low-income
electric bill payment assistance. The department's cost of
administering this subsection shall be paid out of funds
collected by the low-income electric bill payment assistance
charge. Moneys deposited in the fund under this paragraph shall
be expended solely for low-income electric bill payment
assistance. Funds collected from an electric company or Oregon
Community Power shall be expended in the service area of the
electric company or Oregon Community Power from which the funds
are collected.
(d) The Housing and Community Services Department, in
consultation with the federal Advisory Committee on Energy, shall
determine the manner in which funds collected under this
subsection will be allocated by the department to energy
assistance program providers for the purpose of providing
low-income bill payment and crisis assistance, including programs
that effectively reduce service disconnections and related costs
to retail electricity consumers and electric utilities. Priority
assistance shall be directed to low-income electricity consumers
who are in danger of having their electricity service
disconnected.
(e) Interest on moneys deposited in the Housing and Community
Services Department Low-Income Electric Bill Payment Assistance
Fund established by ORS 456.587 (2) may be used to provide
heating bill payment and crisis assistance to electricity
consumers whose primary source of heat is not electricity.
(f) Notwithstanding ORS 757.310, the commission may allow an
electric company or Oregon Community Power to provide reduced
rates or other payment or crisis assistance or low-income program
assistance to a low-income household eligible for assistance
under the federal Low Income Home Energy Assistance Act of 1981,
as amended and in effect on July 23, 1999.
(8) For purposes of this section, 'retail electricity
consumers' includes any direct service industrial consumer that
purchases electricity without purchasing distribution services
from the electric utility.
(9) For purposes of this section, amounts collected by Oregon
Community Power through public purpose charges are not considered
moneys received from electric utility operations.
SECTION 11. ORS 470.050 is amended to read:
470.050. As used in this chapter, unless the context requires
otherwise:
(1) 'Alternative fuel project' means:
Enrolled House Bill 2960 (HB 2960-B) Page 9
(a) Equipment, including vehicles that are not used primarily
for personal, family or household purposes, that is modified or
acquired directly from a factory and that:
(A) Uses an alternative fuel including electricity, biofuel,
gasohol with at least 20 percent denatured alcohol content,
hydrogen, hythane, methane, methanol, natural gas, propane or any
other fuel approved by the Director of the State Department of
Energy; and
(B) Produces lower exhaust emissions or is more energy
efficient than equivalent equipment fueled by gasoline or diesel;
and
(b) A facility, including a fueling station, or equipment
necessary to produce alternative fuel or operate equipment that
uses an alternative fuel.
(2) 'Applicant' means an applicant for a loan to construct a
small scale local energy project.
(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.
(4) 'Committee' means the Small Scale Local Energy Project
Advisory Committee created under ORS 470.070.
(5) 'Cooperative' means a cooperative corporation organized
under ORS chapter 62.
(6) 'Director' means the Director of the State Department of
Energy appointed under ORS 469.040.
(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.
(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 ORS 470.580.
(11) 'Energy Project Supplemental Fund' means the fund
established under ORS 470.570.
(12) 'Energy Revenue Bond Repayment Fund' means the fund
established under ORS 470.585.
(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.
Enrolled House Bill 2960 (HB 2960-B) Page 10
{ + (14) 'Jobs, Energy and Schools Fund' means the fund
established under ORS 470.575. + }
{ - (14) - } { + (15) + } 'Loan' includes the purchase or
other acquisition of evidence of indebtedness and money used for
the purchase or other acquisition of evidence of indebtedness.
{ - (15) - } { + (16) + } '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.
{ - (16) - } { + (17) + } 'Loan offset grant' means moneys
from the { - Loan Offset Grant - } { + Jobs, Energy and
Schools + } 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 ORS 470.575. - }
(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.
(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.
(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.
(24) 'Recycling project' means a facility or equipment that
converts waste into a new and usable product.
(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:
Enrolled House Bill 2960 (HB 2960-B) Page 11
(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.
(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.
(27) 'Small scale local energy project' means { + any of the
following + }:
(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 - } { + . For purposes of this paragraph,
'system, mechanism or series of mechanisms' includes related and
integrated upgrades to attain compliance with standards set in
the State of Oregon Structural Specialty Code and Fire and Life
Safety Code, and seismic safety upgrades. + }
(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 { + or the clean energy
deployment program + } and related incentives for energy
efficiency and renewable energy at the neighborhood and community
level.
Enrolled House Bill 2960 (HB 2960-B) Page 12
(31) 'Sustainable energy territory' means the geographic
service area that a sustainable energy project manager is
responsible for serving.
SECTION 12. ORS 470.570 is amended to read:
470.570. (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 - } { + Jobs, Energy and
Schools + } Fund, except that { - Loan Offset Grant - } { +
Jobs, Energy and Schools + } 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 ORS 470.610
(2); 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 13. ORS 470.585 is amended to read:
470.585. (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 - } { + Jobs, Energy and
Schools + } Fund;
Enrolled House Bill 2960 (HB 2960-B) Page 13
(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 ORS 470.610
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 ORS 470.610 (2).
SECTION 14. ORS 470.590 is amended to read:
470.590. 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 - }
{ + Jobs, Energy and Schools + } Fund and the Energy Project
Supplemental Fund, private activity bonds and grant moneys.
SECTION 15. ORS 470.605 is amended to read:
470.605. (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 - } { +
Jobs, Energy and Schools + } 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.
SECTION 16. ORS 470.655, as amended by section 4, chapter 92,
Oregon Laws 2010, is amended to read:
470.655. (1) Except as provided in ORS 470.650, 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. Upon request of the loan applicant, the
department may add all or part of a project initiation fee to the
principal of an issued loan. 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.
(2) The Director of the State Department of Energy may by rule
establish a base efficiency package fee for energy efficiency and
sustainable technology loans if the loans are not financed by
Enrolled House Bill 2960 (HB 2960-B) Page 14
moneys from the { - Loan Offset Grant - } { + Jobs, Energy
and Schools + } Fund. The fee may not exceed 10 percent of the
estimated economic benefit for the base efficiency package. Any
fees collected by the department under this subsection shall be
deposited in the fund.
SECTION 17. ORS 470.700 is amended to read:
470.700. (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 ORS 470.650 (2),
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 - } { + Jobs,
Energy and Schools + } Fund moneys for accomplishing the purposes
described in subsection (1) of this section.
SECTION 18. ORS 470.715 is amended to read:
470.715. The cost of adopting rules under ORS 470.140 to carry
out ORS 470.500 to 470.710:
(1) May be paid from the { - Loan Offset Grant - } { +
Jobs, Energy and Schools + } 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 19. Section 1, chapter 92, Oregon Laws 2010, is amended
to read:
{ + Sec. 1. + } (1) ORS 470.505 does not apply to the pilot
programs described in sections 42 to 45, chapter 753, Oregon Laws
2009.
Enrolled House Bill 2960 (HB 2960-B) Page 15
(2) Notwithstanding any other provision of ORS chapter 470, if
the Director of the State Department of Energy determines that
available financial resources in the { - Loan Offset Grant - }
{ + Jobs, Energy and Schools + } Fund established in ORS 470.575
are insufficient to allow operation of the pilot programs
described in sections 42 to 45, chapter 753, Oregon Laws 2009,
the director may delay or suspend the pilot programs.
SECTION 20. { + This 2011 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2011 Act takes effect on
its passage. + }
----------
Passed by House June 13, 2011
.............................................................
Ramona Kenady Line, Chief Clerk of House
.............................................................
Bruce Hanna, Speaker of House
.............................................................
Arnie Roblan, Speaker of House
Passed by Senate June 20, 2011
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 2960 (HB 2960-B) Page 16
Received by Governor:
......M.,............., 2011
Approved:
......M.,............., 2011
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2011
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 2960 (HB 2960-B) Page 17