Bill Text: OR HB2436 | 2013 | Regular Session | Enrolled
Bill Title: Relating to energy efficiency and sustainable technology loan program.
Spectrum: Committee Bill
Status: (Passed) 2013-03-18 - Chapter 8, (2013 Laws): Effective date January 1, 2014. [HB2436 Detail]
Download: Oregon-2013-HB2436-Enrolled.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
Enrolled
House Bill 2436
Introduced and printed pursuant to House Rule 12.00. Presession
filed (at the request of House Interim Committee on Energy,
Environment and Water)
CHAPTER ................
AN ACT
Relating to energy efficiency and sustainable technology loan
program; creating new provisions; amending ORS 468A.040,
470.050, 470.505, 470.530, 470.535, 470.540, 470.550, 470.555,
470.560, 470.565, 470.630, 470.635, 470.650, 470.660, 470.665,
470.675 and 701.119 and section 49, chapter 753, Oregon Laws
2009; and repealing section 46, chapter 753, Oregon Laws 2009.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 470.050 is amended to read:
470.050. As used in this chapter, unless the context requires
otherwise:
(1) 'Alternative fuel project' means:
(a) 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.
Enrolled House Bill 2436 (HB 2436-INTRO) Page 1
(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.
(14) 'Jobs, Energy and Schools Fund' means the fund established
under ORS 470.575.
(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.
(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.
(17) 'Loan offset grant' means moneys from the 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.
(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:
Enrolled House Bill 2436 (HB 2436-INTRO) Page 2
(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) 'Primary contractor' means a contractor that:
(a) Has entered into a contract with an owner of property for
which a proposed small scale local energy project will be
located;
(b) Is responsible for the completion of the small scale local
energy project;
(c) Undertakes to complete the small scale local energy
project; and
(d) Is responsible for any subcontractors performing work on
the small scale local energy project. + }
{ - (23) - } { + (24) + } '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) - } { + (25) + } 'Recycling project' means a
facility or equipment that converts waste into a new and usable
product.
{ - (25) - } { + (26) + } '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.
{ - (26) - } { + (27) + } '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) - } { + (28) + } '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.
Enrolled House Bill 2436 (HB 2436-INTRO) Page 3
(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. 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) - } { + (29) + } 'Small Scale Local Energy Project
Administration and Bond Sinking Fund' means the fund created
under ORS 470.300.
{ - (29) - } { + (30) + } '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) - } { + (31) + } '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.
{ - (31) 'Sustainable energy territory' means the geographic
service area that a sustainable energy project manager is
responsible for serving. - }
{ + (32) 'Utility service territory' means the allocated
territory in which a utility subject to this chapter provides a
utility service. For the purposes of this subsection, 'allocated
territory' and 'utility service' have the meanings given those
terms in ORS 758.400. + }
SECTION 2. ORS 470.560 is amended to read:
470.560. (1) The State Department of Energy shall adopt rules
establishing certification standards for { + primary + }
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
{ + primary + } contractor holding the certification { + and
all the primary contractor's subcontractors + } 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 { + primary + } contractor:
(a) Prove that the { + primary + } contractor { - has - }
{ + and the primary contractor's subcontractors have + }
sufficient skill to { - ensure that the contractor can - }
Enrolled House Bill 2436 (HB 2436-INTRO) Page 4
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 { + for primary
contractors + }.
(4) The Construction Contractors Board may issue a qualifying
{ + primary + } contractor a certification authorizing the
{ + primary + } contractor to participate in the construction of
small scale local energy projects financed through the energy
efficiency and sustainable technology loan program. A
{ + primary + } contractor seeking certification shall apply to
the board as provided under ORS 701.119.
(5) The State Department of Energy shall identify certified
{ + primary + } contractors that provide employees with health
insurance benefits as preferred service providers and may take
other actions as practicable to encourage certified
{ + primary + } contractors to provide employees with health
insurance benefits.
SECTION 3. ORS 470.635 is amended to read:
470.635. (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 { + primary + } contractor designated by the
{ + sustainable energy + } 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, base efficiency package fees and other relevant
economic factors are considered.
(d) The monthly cost to the applicant to repay the loan
principal and finance charges.
Enrolled House Bill 2436 (HB 2436-INTRO) Page 5
(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 lack sufficient
relationship to the structure to be subject to a fixture filing
or real property lien.
(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 { + sustainable energy + } 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 { + primary + }
contractor certified under ORS 701.119.
(6) Prior to the disbursement of the loan moneys to the { +
primary + } contractor, a { + sustainable energy + } 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
{ + primary + } contractors certified under ORS 701.119 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 4. ORS 701.119 is amended to read:
701.119. (1) A licensed contractor that possesses an
appropriate endorsement may apply to the Construction Contractors
Board for certification to participate { + as a primary
contractor, as defined in ORS 470.050, + }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 ORS 470.560.
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
Enrolled House Bill 2436 (HB 2436-INTRO) Page 6
described in ORS 701.108, 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 5. ORS 470.530 is amended to read:
470.530. (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 { + sustainable
energy + } project manager shall provide the promotion, technical
and financial support and verifications necessary to administer
{ - the - } { + an + } energy efficiency and sustainable
technology loan { - program in the territory served by the
project manager - } .
{ + (2) A sustainable energy project manager may administer
an energy efficiency and sustainable technology loan only within
a utility service territory of an investor-owned or
consumer-owned utility that provides electricity or gas
services. + }
{ - (2) - } { + (3) + } { - The project manager shall
serve a sustainable energy territory established by the
director. - } { + A sustainable energy project manager shall
serve the utility service territory for which the sustainable
energy project manager has been selected by the director. + }The
{ + sustainable energy + } 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 { + sustainable
energy + } 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
{ + sustainable energy + } project manager may administer the
energy efficiency and sustainable technology loan program within
the { + utility service + } 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 city, county, metropolitan service district or other
local government entity, or a nonprofit, for-profit, tribal or
state entity, may be a { + sustainable energy + } project
manager if the entity meets the qualifications established by the
director under this section and is approved by the director to
Enrolled House Bill 2436 (HB 2436-INTRO) Page 7
provide promotion, outreach and customer support related to the
energy efficiency and sustainable technology loan program within
a { - sustainable energy - } { + utility service + }
territory. The Public Purpose Fund Administrator is an ex officio
sustainable energy project manager. The Public Purpose Fund
Administrator shall act as the { + sustainable energy + }
project manager in any { - sustainable energy - } { + utility
service + } territory that is not served by another
{ + sustainable energy + } 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 { + sustainable
energy + } project manager.
SECTION 6. ORS 470.535 is amended to read:
470.535. (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 { + sustainable
energy + } 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 - }
{ + utility service + } territory; and
(c) Any additional information required by the director by
rule.
(3) After reviewing all applications received, the director may
select a { + sustainable energy + } project manager. In
selecting the { + sustainable energy + } 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 { + sustainable
energy + } 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 7. ORS 470.555 is amended to read:
470.555. (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 - } { + investor-owned electric utilities + }. The
Enrolled House Bill 2436 (HB 2436-INTRO) Page 8
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 ORS
470.530 (3)(b), if the local gas utility is - } An
investor-owned { + gas + }
{ - utility, the - } utility may act as { - the - } { + a
sustainable energy + } project manager for the { + utility
service + } territory { + serviced by the utility + } or may
contract with the Public Purpose Fund Administrator to act as
{ + the sustainable energy + }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 - } { + A + } consumer-owned utility
shall be the { + sustainable energy + } project manager { + for
the utility service territory serviced by the utility + } if the
utility agrees to promote energy efficiency and sustainable
technology loans as part of { - any - } { + an + } energy
efficiency or renewable energy program offered by the utility. A
consumer-owned utility may conduct energy efficiency and
renewable energy programs within the { + utility service + }
territory of the utility regardless of whether the { + utility
service + } 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 - }
{ + a + } gas utility and { - a consumer-owned - }
{ + an + } 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 - } { + a
utility service + } territory does not prevent a consumer-owned
utility from conducting { - any - } { + an + } energy
efficiency or renewable energy program offered by the utility. If
the consumer-owned utility declines to
{ - become the - } { + serve as a sustainable energy + }
project manager for the { + utility service + } 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 { +
sustainable energy + } project manager as described in ORS
470.535 and 470.540.
(6) Subject to approval by the director, a { + sustainable
energy + } project manager may contract with a qualified third
party to assist the { + sustainable energy + } 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 - }
{ + serving a utility service territory. If a utility service
territory is served by a sustainable energy project manager, the
appointment of additional sustainable energy project managers may
be made only by entering into a subcontract approved by the
Enrolled House Bill 2436 (HB 2436-INTRO) Page 9
existing sustainable energy 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 { + 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.
(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 { + the + } utilities to engage and inform utility customers
about the energy efficiency and sustainable technology loan
program. The Public Purpose Fund Administrator and
{ + sustainable energy + } project managers shall coordinate
with gas utilities regarding any changes to a gas pipeline and
with electric utilities regarding electric charging or any
changes to electrical connections that are external to a
structure. The Public Purpose Fund Administrator and
{ + sustainable energy + } project managers shall coordinate
with a gas utility regarding the installation of appliances used
for space heating, water heating and compressed natural gas
refueling.
SECTION 8. ORS 470.565 is amended to read:
470.565. (1) At the request of a loan applicant, a
{ + primary + } 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 - } { +
utility service territory not served by 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 - } { + utility service
territory not served by a sustainable energy + } project manager
in the same manner as an application submitted through a
{ + sustainable energy + } 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 - }
{ + utility service territory not served by a sustainable
energy + } 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.
SECTION 9. ORS 470.630 is amended to read:
470.630. (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 { + sustainable energy + } project
manager only for the purpose of enabling the { + sustainable
energy + } project manager to issue energy efficiency and
Enrolled House Bill 2436 (HB 2436-INTRO) Page 10
sustainable technology loans and small scale local energy program
loans to applicants in the { - sustainable energy - }
{ + utility service + } territory served by the { + sustainable
energy + } project manager.
(2) The { + sustainable energy + } 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
{ + sustainable energy + } project manager to an applicant
located in the { - sustainable energy - } { + utility
service + } territory served by the { + sustainable energy + }
project manager must have the features described in ORS 470.150
and 470.645 and is subject to the requirements and processes
imposed under ORS 470.500 to 470.710 for energy efficiency and
sustainable technology loans issued by the Director of the State
Department of Energy. A { + sustainable energy + } 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 { + small scale local energy + } project as provided in
ORS 470.680 or 470.685.
SECTION 10. ORS 470.660 is amended to read:
470.660. (1) All investor-owned utilities, except those that
have withheld consent under ORS 470.510 (3), shall provide
on-bill financing, except as described in subsection (4) of this
section. After 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
Enrolled House Bill 2436 (HB 2436-INTRO) Page 11
affected customers for loan repayment separately from any utility
customer meter billings.
SECTION 11. ORS 470.665 is amended to read:
470.665. (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 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 12. ORS 470.675 is amended to read:
470.675. (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. - }
SECTION 13. ORS 468A.040 is amended to read:
Enrolled House Bill 2436 (HB 2436-INTRO) Page 12
468A.040. (1) By rule the Environmental Quality Commission may
require permits for air contamination sources classified by type
of air contaminants, by type of air contamination source or by
area of the state. The permits shall be issued as provided in ORS
468.065. A permit subject to the federal operating permit program
shall be issued in accordance with the rules adopted under ORS
468A.310.
(2) If a request for review of the final Department of
Environmental Quality action, or any part thereof, is made on an
application for a permit issued under the federal operating
permit program established under ORS 468A.310 in accordance with
the rules adopted by the commission, the effect of the contested
conditions and any conditions that are not severable from those
contested shall be stayed upon a showing that compliance with the
contested conditions during the pendency of the appeal would
require substantial expenditures or losses that would not be
incurred if the permittee prevails on the merits of the review
and there exists a reasonable likelihood of success on the
merits. The department may require that the contested conditions
not be stayed if the department finds that substantial
endangerment of public health or welfare would result from the
staying of the conditions.
(3) Any source under an existing permit shall:
(a) Comply with the conditions of the existing permit during
any modification or reissuance proceeding; and
(b) To the extent conditions of any new or modified permit are
stayed under subsection (2) of this section, comply with the
conditions of the existing permit that correspond to the stayed
conditions, unless compliance would be technologically
incompatible with compliance with other conditions of the new or
modified permit that have not been stayed.
(4) For purposes of this section, a small scale local energy
project, as defined in ORS 470.050 { - (27)(a) - } , located in
a maintenance area or nonattainment area, and any infrastructure
related to that project located in the same area, is considered
to provide a net air quality benefit to the extent required by
this chapter if the project provides reductions in each air
contaminant in the maintenance area or nonattainment area equal
to the ratio specified in rules adopted by the commission, unless
the department determines that the project will pose a material
threat to compliance with air quality standards in the
maintenance area or nonattainment area.
(5) As used in this section:
(a) 'Maintenance area' has the meaning given that term in rules
adopted by the commission.
(b) 'Nonattainment area' has the meaning given that term in
rules adopted by the commission.
SECTION 14. ORS 470.505 is amended to read:
470.505. Notwithstanding any other provision of this chapter,
if the Director of the State Department of Energy determines that
the State Department of Energy is unable to issue a sufficient
number of energy efficiency and sustainable technology loans to
offset the reasonable cost to the department of operating the
loan program, the director may delay or suspend the energy
efficiency and sustainable technology loan program in one or more
{ - sustainable energy - } { + utility service + }
territories or may delay or suspend any feature of the energy
efficiency and sustainable technology loan program.
SECTION 15. ORS 470.540 is amended to read:
Enrolled House Bill 2436 (HB 2436-INTRO) Page 13
470.540. (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 { + sustainable energy + } 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
{ + sustainable energy + } 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 { +
sustainable energy + } project manager. However, the director may
at any time select a different applicant as the proposed
{ + sustainable energy + } project manager or may reinitiate the
certification process.
(3) Upon deciding to certify the proposed { + sustainable
energy + } 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 { + sustainable
energy + } project manager if:
(a) A request to appeal under ORS 470.545 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 16. ORS 470.550 is amended to read:
470.550. (1) Unless the sustainable energy project manager is
the Public Purpose Fund Administrator or a consumer-owned
utility, the certification of a { + sustainable energy + }
project manager shall be for a five-year term. The Director of
the State Department of Energy shall issue the { + sustainable
energy + } project manager a certification approval letter that
states any conditions applicable to the certification.
(2) The director may terminate the certification of a { +
sustainable energy + } 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 { + sustainable energy + } project
manager criteria established by the director; or
(d) Failure to perform other certification conditions.
SECTION 17. ORS 470.650 is amended to read:
470.650. (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 { + sustainable
energy + } 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
Enrolled House Bill 2436 (HB 2436-INTRO) Page 14
part of an application fee for the loan and may waive all or part
of the project initiation fee.
SECTION 18. Section 49, chapter 753, Oregon Laws 2009, as
amended by section 15, chapter 92, Oregon Laws 2010, is amended
to read:
{ + Sec. 49. + } Sections 42, 43, 44, 45 { - , 46 - } and
47a, chapter 753, Oregon Laws 2009, are repealed January 2, 2016.
SECTION 19. { + Section 46, chapter 753, Oregon Laws 2009, is
repealed. + }
SECTION 20. { + The amendments to ORS 470.560, 470.565,
470.635 and 701.119 by sections 2 to 4 and 8 of this 2013 Act
apply to applications for certification to participate in the
construction of small scale local energy projects that are
submitted on or after the effective date of this 2013 Act. + }
SECTION 21. { + Notwithstanding the amendments to ORS 470.530,
470.535, 470.555, 470.565, 470.630, 470.660 and 470.665 by
sections 5 to 11 of this 2013 Act, a sustainable energy project
manager serving a sustainable energy territory before the
effective date of this 2013 Act may continue to serve that
sustainable energy territory until the Director of the State
Department of Energy selects another sustainable energy project
manager for that sustainable energy territory. + }
----------
Passed by House February 20, 2013
.............................................................
Ramona J. Line, Chief Clerk of House
.............................................................
Tina Kotek, Speaker of House
Passed by Senate March 12, 2013
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 2436 (HB 2436-INTRO) Page 15
Received by Governor:
......M.,............., 2013
Approved:
......M.,............., 2013
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2013
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 2436 (HB 2436-INTRO) Page 16
