Bill Text: OR HB2894 | 2013 | Regular Session | Engrossed

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Bill Title: Relating to energy incentive programs; prescribing an effective date.

Spectrum: Committee Bill

Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2894 Detail]

Download: Oregon-2013-HB2894-Engrossed.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 3211

                         Minority Report

                           C-Engrossed

                         House Bill 2894
                  Ordered by the Senate June 21
 Including House Amendments dated April 2 and May 23 and Senate
            Minority Report Amendments dated June 21

Sponsored by nonconcurring members of the Senate Committee on
  Finance and Revenue: Senators BAERTSCHIGER JR, GEORGE

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.

  For purposes of tax credits for energy conservation projects,
increases amount of eligible cost for which credit may be claimed
using informational filing system in place of certification and
for which entire credit may be claimed in first allowable tax
year.
  Applies to tax years beginning on or after January 1, 2014.
  Includes acquisition of alternative fuel vehicle fleet in
definition of transportation project for which tax credit may be
claimed. Applies to tax years beginning on or after January 1,
2015.
   { +  Requires electric company, or Oregon Community Power,
that collects public purpose charge to establish process by which
individual who is residential electricity consumer and who
provides proof of receiving financial assistance from state or
federal government may request to no longer pay public purpose
charge. + }
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to energy incentive programs; creating new provisions;
  amending ORS 315.331, 469B.285, 469B.320 and 469B.344; and
  prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 315.331 is amended to read:
  315.331. (1) A credit is allowed against the taxes otherwise
due under ORS chapter 316 or, if the taxpayer is a corporation,
under ORS chapter 317 or 318, for an energy conservation project
that is certified under ORS 469B.270 to 469B.306. The credit is
allowed as follows:
  (a) Except as provided in paragraph (b) of this subsection, the
credit allowed in each of the first two tax years in which the
credit is claimed shall be 10 percent of the certified cost of
the facility, but may not exceed the tax liability of the
taxpayer.  The credit allowed in each of the succeeding three
years shall be five percent of the certified cost, but may not
exceed the tax liability of the taxpayer.
  (b) If the certified cost of the facility does not exceed
  { - $20,000 - }   { + $50,000 + }, the total amount of the
credit allowable under subsection (3) of this section may be
claimed in the first tax year for which the credit may be
claimed, but may not exceed the tax liability of the taxpayer.
  (2) In order for a tax credit to be allowable under this
section:
  (a) The project must be located in Oregon.
  (b) The project must have received final certification from the
Director of the State Department of Energy under ORS 469B.270 to
469B.306.
  (c) If the project is a research and development project, it
must receive, prior to certification under ORS 469B.288, a
recommendation from a qualified third party selected by the
director.
  (d) If the project is new construction or a total building
retrofit, then the project must achieve, at a minimum, the energy
efficiency standards required for:
  (A) LEED Platinum certification;
  (B) A four globes rating from the Green Globes program;
  (C) A nationally or regionally recognized and appropriate
sustainable building program whose performance standards are
equivalent to the standards required for LEED Platinum
certification or a four globes rating from the Green Globes
program, as determined by the department; or
  (D) Verification that the construction conformed to the
standards of the Reach Code adopted pursuant to ORS 455.500.
  (3) The total amount of credit allowable to an eligible
taxpayer under this section may not exceed 35 percent of the
certified cost of the project.
  (4)(a) Upon any sale, termination of the lease or contract,
exchange or other disposition of the project, notice thereof
shall be given to the director, who shall revoke the certificate
covering the project as of the date of such disposition.
  (b) A new owner, or, upon re-leasing of the project, a new
lessee, may apply for a new certificate under ORS 469B.291. The
new lessee or owner must meet the requirements of ORS 469B.270 to
469B.306 and may claim a tax credit under this section only if
all moneys owed by the new owner or lessee to the State of Oregon
have been paid, if the project continues to operate and if all
conditions in the final certification are met. The tax credit
available to the new owner shall be limited to the amount of
credit not claimed by the former owner or, for a new lessee, the
amount of credit not claimed by the lessee under all previous
leases. The State Department of Energy may waive the requirement
that a new owner or lessee apply for a new certificate under ORS
469B.291 if the remaining credit is less than $20,000.
  (c) The department may not revoke the certificate covering a
project under paragraph (a) of this subsection if the tax credit
associated with the project has been transferred to a taxpayer
who is an eligible applicant under ORS 469B.285.
  (5) The tax credit allowed under this section for any one tax
year may not exceed the tax liability of the taxpayer.
  (6) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a particular year may be carried
forward and offset against the taxpayer's tax liability for the
next succeeding tax year. Any credit remaining unused in that
next succeeding tax year may be carried forward and used in the
second succeeding tax year, and likewise, any credit not used in
that second succeeding tax year may be carried forward and used
in the third succeeding tax year, and likewise, any credit not
used in that third succeeding tax year may be carried forward and
used in the fourth succeeding tax year, and likewise, any credit
not used in that fourth succeeding tax year may be carried
forward and used in the fifth succeeding tax year, but may not be
carried forward for any tax year thereafter. Credits may be
carried forward to and used in a tax year beyond the years
specified in subsection (1) of this section only as provided in
this subsection.
  (7) The credit allowed under this section is not in lieu of any
depreciation or amortization deduction for the project to which
the taxpayer otherwise may be entitled for purposes of ORS
chapter 316, 317 or 318 for such year.
  (8) The taxpayer's adjusted basis for determining gain or loss
may not be decreased by any tax credits allowed under this
section.
  (9) The definitions in ORS 469B.270 apply to this section.
  SECTION 2. ORS 469B.285, as amended by section 21, chapter 45,
Oregon Laws 2012, is amended to read:
  469B.285. (1) Prior to the installation or construction of an
energy conservation project, any person may apply to the State
Department of Energy for preliminary certification under ORS
469B.288 if:
  (a) The project complies with the standards adopted by the
Director of the State Department of Energy; and
  (b) The applicant will be the owner, contract purchaser or
lessee of the project at the time of installation or construction
of the project.
  (2) An application for preliminary certification shall be made
in writing on a form prepared by the department and shall
contain:
  (a) A statement that the applicant plans to acquire, construct
or install a project that substantially reduces the consumption
of purchased energy or uses energy more efficiently.
  (b) A detailed description of the project and its operation and
information showing that the project will operate as represented
in the application and remain in operation for at least five
years, unless the director by rule specifies another period of
operation.
  (c) Information on the amount by which consumption of purchased
energy by the applicant will be reduced, and, if applicable,
information about the expected level of sustainable building
practices project performance.
  (d) The anticipated total project cost.
  (e) Information on the number and type of jobs, directly
connected to the allowance of the credit, that will be:
  (A) Created by the project; and
  (B) Sustained throughout the construction, installation and
operation of the project.
  (f) Information demonstrating that the project will comply with
applicable state and local laws and regulations and obtain
required licenses and permits.
  (g) Information relating to the standards described in ORS
469B.279.
  (h) A recommendation for a research and development project as
demonstrative of innovation that has been made by a qualified
third party selected by the director.
  (i) Any other information the director considers necessary to
determine whether the project is in accordance with the
provisions of ORS 469B.270 to 469B.306, and any applicable rules
or standards adopted by the director.
  (3) An application for preliminary certification shall be
accompanied by a fee established under ORS 469B.294. The director
may refund all or a portion of the fee if the application for
certification is rejected.
  (4) The director may allow an applicant to file the application
for preliminary certification after the start of installation or
construction of the project if the director finds that:

  (a) Filing the application before the start of installation or
construction is inappropriate because special circumstances
render filing earlier unreasonable; and
  (b) The project would otherwise qualify for certification under
ORS 469B.270 to 469B.306.
  (5) The director may, by rule, waive preliminary certification
under ORS 469B.288, or may establish an informational filing
system in place of preliminary certification, for projects that:
  (a) Have eligible costs of less than   { - $20,000 - }
 { + $50,000 + };
  (b) Consist of measures that the director determines to be
eligible for waiver of preliminary certification; and
  (c) Comply with any other requirements established by the
director.
  (6) A preliminary certification shall remain valid for a period
of three calendar years after the date on which the preliminary
certification is issued by the director, after which the
certification becomes invalid even if:
  (a) The applicant is awaiting identification of a pass-through
partner; or
  (b) The preliminary certification has been amended.
  SECTION 3. ORS 469B.344, as amended by section 10, chapter 45,
Oregon Laws 2012, is amended to read:
  469B.344. (1)(a) The total amount of potential tax credits for
all transportation projects in this state may not, at the time of
preliminary certification under ORS 469B.329, exceed $20 million
for any biennium.
  (b) For each tax year, the Director of the State Department of
Energy may allocate a percentage of the amount allowed in
paragraph (a) of this subsection to alternative fuel vehicle
  { - infrastructure - }  projects and a percentage to transit
services.
  (2) Notwithstanding ORS 315.336, in the event that the director
receives applications for preliminary certification with a total
amount of potential tax credits in excess of the limits set by
the director pursuant to subsection (1)(b) of this section, the
director shall allocate the issuance of preliminary
certifications among applicants as follows:
  (a) If an excess of applications for credits for transit
services is received, the director shall allocate the issuance of
preliminary certifications among applicants for credits for
transit services and proportionately reduce the amount of allowed
credit, with no applicant receiving more than 20 percent of the
amount established under subsection (1)(b) of this section for
transit services.
  (b) The director may allocate the issuance of preliminary
certifications among applicants for credits for alternative fuel
vehicle   { - infrastructure - }  projects and may award credits
for less than the amount otherwise allowed applicants.
  (c) If, after making any reductions required under paragraph
(a) of this subsection, an unallocated amount remains, the
director shall allocate this additional amount among applicants
affected by the percentage restriction in paragraph (a) of this
subsection.
  SECTION 4. ORS 469B.320, as amended by section 7, chapter 45,
Oregon Laws 2012, is amended to read:
  469B.320. As used in ORS 315.336 and 469B.320 to 469B.347:
   { +  (1) 'Acquisition of an alternative fuel vehicle fleet '
includes the replacement of two or more vehicles that are not
used primarily for personal, family or household purposes, that
are modified or acquired directly from the factory and that:
  (a) Use 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 as an alternative fuel; and
  (b) Produce lower exhaust emissions, or are more energy
efficient, than equivalent vehicles fueled by gasoline or
diesel. + }
    { - (1) - }   { + (2) + } 'Alternative fuel vehicle
infrastructure project ' includes a facility for mixing, storing,
compressing or dispensing fuels for alternative fuel vehicles,
and any other necessary and reasonable equipment.
   { +  (3) 'Alternative fuel vehicle project' means:
  (a) The acquisition of an alternative fuel vehicle fleet; or
  (b) An alternative fuel vehicle infrastructure project. + }
    { - (2) - }   { + (4) + } 'Cost' includes capital
expenditures and core expenses such as vehicle repair, fuel,
personnel and administrative expenses.
    { - (3) - }   { + (5) + } 'Transportation project' means:
  (a) Transit services provided to members of the public by a
public or nonprofit entity that receives state or federal funding
for those services, or is the direct recipient of funding from an
entity that receives state or federal funding for the services;
or
  (b) An alternative fuel vehicle   { - infrastructure - }
project.
  SECTION 5.  { + (1) The amendments to ORS 315.331, 469B.285 and
469B.344 by sections 1 to 3 of this 2013 Act apply to tax years
beginning on or after January 1, 2014.
  (2) The amendments to ORS 469B.320 by section 4 of this 2013
Act apply to tax years beginning on or after January 1, 2015. + }
  SECTION 6.  { + Section 7 of this 2013 Act is added to and made
a part of ORS 757.600 to 757.689. + }
  SECTION 7.  { + If an electric company or Oregon Community
Power collects the public purpose charge described in ORS
757.612, the electric company or Oregon Community Power shall
establish a process by which an individual who is a residential
electricity consumer and who provides proof of receiving
financial assistance from the state or federal government may
request the electric company or Oregon Community Power to no
longer impose the public purpose charge on the individual. If
such an individual makes a request under this section, the
electric company or Oregon Community Power may not impose the
public purpose charge on the individual. + }
  SECTION 8.  { + This 2013 Act takes effect on the 91st day
after the date on which the 2013 regular session of the
Seventy-seventh Legislative Assembly adjourns sine die. + }
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