Bill Text: OR HB3675 | 2010 | 1st Special Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to financing energy efficiency; and declaring an emergency.
Spectrum: Unknown
Status: (Passed) 2010-03-23 - Chapter 92, (2010 Laws): Effective date March 23, 2010. [HB3675 Detail]
Download: Oregon-2010-HB3675-Introduced.html
Bill Title: Relating to financing energy efficiency; and declaring an emergency.
Spectrum: Unknown
Status: (Passed) 2010-03-23 - Chapter 92, (2010 Laws): Effective date March 23, 2010. [HB3675 Detail]
Download: Oregon-2010-HB3675-Introduced.html
75th OREGON LEGISLATIVE ASSEMBLY--2010 Special 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 125 House Bill 3675 Sponsored by COMMITTEE ON SUSTAINABILITY AND ECONOMIC DEVELOPMENT SUMMARY The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject to consideration by the Legislative Assembly. It is an editor's brief statement of the essential features of the measure as introduced. Clarifies provisions related to energy efficiency and sustainable technology loan program. Allows Director of State Department of Energy by rule to establish base efficiency package fee. Declares emergency, effective on passage. A BILL FOR AN ACT Relating to financing energy efficiency; creating new provisions; amending ORS 470.530, 470.575, 470.610, 470.635, 470.640, 470.655 and 470.660 and sections 42 and 49, chapter 753, Oregon Laws 2009; repealing section 46a, chapter 753, Oregon Laws 2009; and declaring an emergency. Be It Enacted by the People of the State of Oregon: SECTION 1. { + ORS 470.505 does not apply to the pilot programs described in sections 42 to 45, chapter 753, Oregon Laws 2009. + } SECTION 2. ORS 470.575 is amended to read: 470.575. (1) The Loan Offset Grant Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned by the Loan Offset Grant Fund shall be credited to the Loan Offset Grant Fund. Moneys in the fund are continuously appropriated to the State Department of Energy for use as provided in this section. (2) The fund shall consist of any moneys directed by law, gift, grant or donation to the fund { + 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 that would otherwise result in a marginally higher overall cost to the applicant when energy costs and the financing and repayment costs for the project are considered, by using the fund moneys to help produce a monthly cost savings for the applicant; or (b) To transfer to an appropriate fund for carrying out any purpose under this chapter specified as a condition of a gift, grant or donation. SECTION 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 contractor designated by the project manager or a person approved by the department completes an energy savings projection or similar evaluation for the property that will benefit from the small scale local energy project. The projection or other evaluation shall be in writing and shall, at a minimum, identify the following: (a) The recommended base efficiency package for the structure. A base energy package may include improvements to existing supply lines and equipment. (b) Any optional package recommended for the structure. (c) The estimated net monthly cost to the applicant when energy savings, project repayment costs, tax or other incentives, loan offset grants { + , 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. (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 project managers or any utility if actual energy savings are less than the estimated savings or if the construction process or constructed project is unsatisfactory in any way. (4) If the base efficiency package or recommended optional package includes the use of nontraditional technology, the projection or other evaluation shall include a statement that the technology is nontraditional, initialed by the prospective loan applicant. (5) An energy efficiency and sustainable technology loan may be used only for a project constructed by a contractor certified under ORS 701.119. (6) Prior to the disbursement of the loan moneys to the contractor, a project manager or other person approved by the department shall verify that the small scale local energy project has been completed in a manner consistent with energy efficiency and sustainable technology loan program requirements. If this state or any agency of this state adopts or recognizes an energy efficiency scoring system for buildings, the department may require that the verification described in this subsection include the determination of an energy efficiency score for the property benefited by the project. (7) The department shall periodically consult with contractors certified under 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 470.655 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 moneys from the Loan Offset Grant Fund. The fee may not exceed ___ 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 5. ORS 470.610 is amended to read: 470.610. (1) The State Treasurer, at the request of the Director of the State Department of Energy, from time to time may issue and sell revenue bonds in the name of and on behalf of the State of Oregon in compliance with the applicable provisions of ORS chapter 286A in the principal amount { - the director considers - } necessary to carry out the purposes of ORS 470.500 to 470.710, or for paying or refunding any revenue bonds previously issued on behalf of the State Department of Energy for those purposes. { + At least once every ___, the director shall estimate the anticipated demand for loans under the energy efficiency and sustainable technology loan program, and shall make a written declaration of this amount to the State Treasurer. + } (2) All bonds shall be special revenue obligations of the State of Oregon, and, unless paid from the proceeds of other bonds, shall be payable as to principal, redemption premium, if any, and interest, through the Energy Revenue Bond Repayment Fund solely from the revenues, moneys and other assets of the Energy Project Bond Loan Fund and the Energy Project Supplemental Fund that may be pledged for that payment. The Director of the State Department of Energy shall determine for each fiscal quarter the amount that will fall due during that fiscal quarter for bonds issued under this section, other amounts described in ORS 470.585 and any expected significant changes in bond obligations for upcoming fiscal quarters and the amount necessary to adequately fund reserves. The director shall request that the State Treasurer make transfers from the Energy Project Bond Loan Fund and Energy Project Supplemental Fund to the Energy Revenue Bond Repayment Fund as the director believes prudent to ensure the continuing payment of maturing obligations and the funding of reserves. (3) Prior to an issuance of revenue bonds under this section, the director shall prepare and sign a written declaration setting forth the amount of the bonds to be issued and the terms and conditions for issuance. If the State Treasurer approves the declaration, the State Treasurer shall certify the approval on the declaration. The approved declaration shall be known as an ' energy revenue bond declaration.' Each bond declaration shall be deemed to be and shall constitute conclusive proof of the authorization to issue the bonds described in the bond declaration and may contain further pledges and covenants as determined by the director or the State Treasurer. SECTION 6. ORS 470.640 is amended to read: 470.640. (1) Except as provide in subsection (2) of this section, the amount of an energy efficiency and sustainable technology loan may not exceed $40,000 { - . - } { + for residential dwellings served by a single meter of the utility that is to provide on-bill financing. The loan limit described in this subsection does not apply to other buildings such as multifamily housing and mixed-use structures. + } (2) The loan amount limit described in subsection (1) of this section shall increase annually on January 1 of each year, beginning January 1, 2011. The loan amount limit shall increase from the most recently established loan amount limit by a percentage equal to the percentage increase in the Portland-Salem Consumer Price Index for All Urban Consumers for All Items as reported by the Bureau of Labor Statistics of the United States Department of Labor. SECTION 7. ORS 470.660 is amended to read: 470.660. (1) { - If - } { + All investor-owned utilities, except those that have withheld consent under ORS 470.510 (3), shall establish on-bill financing systems. 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 affected customers for loan repayment separately from any utility customer meter billings. SECTION 8. 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 project manager shall provide the promotion, technical and financial support and verifications necessary to administer the energy efficiency and sustainable technology loan program in the territory served by the project manager. (2) The project manager shall serve a sustainable energy territory established by the director. The project manager shall provide loan program information and technical and financial information to promote energy efficiency and use of renewable energy at the neighborhood and community levels. The project manager shall be responsible for small scale local energy project verification and for monitoring program effectiveness for energy efficiency and sustainable technology loans and small scale local energy program loans. The project manager may administer the energy efficiency and sustainable technology loan program within the territory. (3)(a) Except as provided in this subsection, the boundaries of a sustainable energy territory must be consistent with the service territory of a local electric utility. (b) The boundaries of a sustainable energy territory may be consistent with the service territory of a local gas utility if: (A) The local electric utility is a consumer-owned electric utility that elects not to be the project manager for the sustainable energy territory; and (B) The service territory of the local electric utility and the service territory of the local gas utility overlap. (c) Notwithstanding paragraphs (a) and (b) of this subsection, if the project manager for the sustainable energy territory is other than the Public Purpose Fund Administrator or a consumer-owned utility, the director may adjust the boundaries of the territory or create a larger or smaller territory if the director believes that the territory boundaries as adjusted or created by the director would better accomplish the goals of the energy efficiency and sustainable technology loan program. (4) A { + city, county, metropolitan service district or other + } local government { + entity + }, { + or a + } nonprofit, for-profit, tribal or state entity { + , + } may be a project manager if the entity meets the qualifications established by the director under this section and is approved by the director to provide promotion, outreach and customer support related to the energy efficiency and sustainable technology loan program within a sustainable energy territory. The Public Purpose Fund Administrator is an ex officio sustainable energy project manager. The Public Purpose Fund Administrator shall act as the project manager in any sustainable energy territory that is not served by another project manager. (5) The director shall establish a sustainable energy project manager certification program. However, the Public Purpose Fund Administrator or a consumer-owned utility is not required to obtain a sustainable energy project manager certificate and the Public Purpose Fund Administrator is not subject to any qualifications established by the director for a project manager. SECTION 9. { + Section 10 of this 2010 Act is added to and made a part of ORS chapter 470. + } SECTION 10. { + All investor-owned utilities and consumer-owned utilities that have energy efficiency and sustainable technology loan programs shall, at the request of the Director of the State Department of Energy, provide the director with the following information regarding the loans: (1) Repayment performance; (2) Default rates; (3) Energy savings data; and (4) Any other information specified by rule adopted by the director pursuant to ORS 470.140. + } SECTION 11. Section 42, chapter 753, Oregon Laws 2009, is amended to read: { + Sec. 42. + } (1) The Director of the State Department of Energy shall initiate the energy efficiency and sustainable technology loan program described in { - sections 2 to 41 of this 2009 Act - } { + ORS 470.500 to 470.710 + } in phases through a series of pilot programs, limiting the geographic availability and other features of the program as the director considers necessary to facilitate an orderly and successful implementation of the program. The director shall initiate the program { + on a statewide basis + }as quickly as the director considers practicable { + , but in no event later than June 30, 2011, + } to achieve the benefits of the program while ensuring high participant satisfaction and program integrity. (2) The director shall endeavor to establish pilot programs initially in sustainable energy territories that reflect a variety of population densities. The director may give preference to territories that request to participate in the pilot program. SECTION 12. { + (1) The amendments to ORS 470.635 by section 3 of this 2010 Act apply to energy savings projections or similar evaluations completed on or after the effective date of this 2010 Act. (2) The amendments to ORS 470.655 by section 4 of this 2010 Act apply to energy efficiency and sustainable technology loans approved on or after ___. (3) The amendments to ORS 470.610 by section 5 of this 2010 Act apply to revenue bonds for which the Director of the State Department of Energy submits a written declaration pursuant to ORS 470.610 (3) to the State Treasurer on or after the effective date of this 2010 Act. (4) The amendments to ORS 470.640 by section 6 of this 2010 Act apply to energy efficiency and sustainable technology loans approved on or after ___. + } SECTION 13. { + The amendments to ORS 470.660 by section 7 of this 2010 Act become operative ___. + } SECTION 14. { + (1) Section 1 of this 2010 Act is repealed January 2, 2016. (2) Section 46a, chapter 753, Oregon Laws 2009, is repealed. + } SECTION 15. Section 49, chapter 753, Oregon Laws 2009, is amended to read: { + Sec. 49. + } Sections 42, 43, 44, 45, 46 { - , 46a - } and 47a { + , chapter 753, Oregon Laws 2009, + } { - of this 2009 Act - } are repealed January 2, 2016. SECTION 16. { + This 2010 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2010 Act takes effect on its passage. + } ----------