Bill Text: OR SB583 | 2013 | Regular Session | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to alternative fuel vehicles; appropriating money; and prescribing an effective date.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2013-08-21 - Effective date, October 7, 2013. [SB583 Detail]

Download: Oregon-2013-SB583-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 3224

                           A-Engrossed

                         Senate Bill 583
                 Ordered by the Senate April 10
           Including Senate Amendments dated April 10

Sponsored by Senator STARR

                             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.

  Establishes Alternative Fuel Vehicle Revolving Fund.
Continuously appropriates moneys in fund to State Department of
Energy. Permits public bodies  { + and tribes + } to borrow from
fund to purchase alternative fuel vehicles { +  and convert
existing vehicles that use gasoline or diesel to alternative fuel
vehicles + }.
   { +  Establishes income tax credit for alternative fuel
vehicle contributions. Limits amount of allowable tax credits.
  Takes effect on 91st day following adjournment sine die. + }

                        A BILL FOR AN ACT
Relating to alternative fuel vehicles; appropriating money; and
  prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + As used in sections 1 to 7 of this 2013 Act:
  (1) 'Alternative fuel vehicle' means a motor vehicle, as
defined in ORS 801.360, that is manufactured or modified to use
an alternative fuel, including but not limited to 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 that produces lower exhaust emissions
or is more energy efficient than equivalent equipment fueled by
gasoline or diesel.
  (2) 'Public body' has the meaning given that term in ORS
174.109.
  (3) 'Tribe' means a federally recognized Indian tribe in
Oregon. + }
  SECTION 2.  { + (1) The Alternative Fuel Vehicle Revolving Fund
is established in the State Treasury, separate and distinct from
the General Fund. Interest earned by the Alternative Fuel Vehicle
Revolving Fund shall be credited to the fund. The moneys in the
Alternative Fuel Vehicle Revolving Fund are continuously
appropriated to the State Department of Energy to be used for the
purposes described in section 3 of this 2013 Act.
  (2) The State Treasurer may accept contributions, donations,
bequests, gifts or grants from any source, whether public or

private. Moneys received under this subsection shall be deposited
into the Alternative Fuel Vehicle Revolving Fund.
  (3) The Alternative Fuel Vehicle Revolving Fund shall consist
of:
  (a) Moneys appropriated by the Legislative Assembly;
  (b) Any other revenues derived from contributions, donations,
bequests, gifts or grants;
  (c) Other amounts deposited in the fund from any source;
  (d) All repayments of moneys borrowed from the fund; and
  (e) All interest payments made by borrowers from the fund.
  (4) The State Treasurer may invest and reinvest moneys in the
Alternative Fuel Vehicle Revolving Fund in the manner provided by
law. All earnings from such investment and reinvestment shall be
credited to the Alternative Fuel Vehicle Revolving Fund. + }
  SECTION 3.  { + (1) The State Department of Energy shall use
the moneys in the Alternative Fuel Vehicle Revolving Fund for a
loan program to provide loans to public bodies and tribes to:
  (a) Assist in the purchase of new alternative fuel vehicles by
providing funding for the additional cost of purchasing
alternative fuel vehicles as compared to vehicles that are not
alternative fuel vehicles; or
  (b) Convert existing vehicles that use gasoline or diesel to
alternative fuel vehicles.
  (2) Funding priority under subsection (1) of this section must
be given to vehicle conversions.
  (3) The department may also use the moneys in the Alternative
Fuel Vehicle Revolving Fund to pay the expenses of the department
in administering the Alternative Fuel Vehicle Revolving Fund and
the loan program. + }
  SECTION 4.  { + (1) In administering the Alternative Fuel
Vehicle Revolving Fund, the State Department of Energy shall:
  (a) Allocate funds for loans in accordance with procedures
adopted by the department by rule.
  (b) Use accounting, auditing and fiscal procedures that conform
to generally accepted government accounting standards.
  (c) Seek to maximize the ability of the Alternative Fuel
Vehicle Revolving Fund to operate on a self-sustaining basis and
to maintain a perpetual source of financing to provide loans as
described in section 3 of this 2013 Act.
  (2) In connection with the loan program, the department may:
  (a) Establish requirements for loans made from the Alternative
Fuel Vehicle Revolving Fund to ensure that adequate funds will be
available in the fund to pay the costs of administering the fund
and the loan program.
  (b) Exercise any remedies available to the department in
connection with defaults on loans of advanced funds made to
public bodies and tribes. + }
  SECTION 5.  { + (1) Any public body or tribe desiring a loan
from the Alternative Fuel Vehicle Revolving Fund shall submit an
application to the State Department of Energy. The application
shall be in such form as may be specified by the department.
  (2) Any public body or tribe receiving a loan from the
Alternative Fuel Vehicle Revolving Fund shall establish and
maintain a dedicated source of revenue or other acceptable source
of revenue for the repayment of the loan. + }
  SECTION 6.  { + Notwithstanding any limitation contained in any
other provision of law or local charter, a public body or tribe
may:
  (1) Borrow money from the Alternative Fuel Vehicle Revolving
Fund through the State Department of Energy; and
  (2) Enter into loan agreements and make related agreements with
the department, in which the public body or tribe agrees to repay
the borrowed money in accordance with the terms of the loan
agreement. + }
  SECTION 7.  { + (1) The State Department of Energy shall
establish by rule policies for establishing loan terms and
interest rates for loans made from the Alternative Fuel Vehicle
Revolving Fund that ensure that the objectives of sections 1 to 7
of this 2013 Act are met and that adequate funds are maintained
in the Alternative Fuel Vehicle Revolving Fund to meet future
needs. In establishing the policy, the department shall take into
consideration at least the following factors:
  (a) The ability of a public body or tribe to repay a loan.
  (b) Current market rates of interest.
   + }  { +  (2) The department may establish an interest rate
ranging from zero to the market rate. The department may
establish the loan term, provided that the loan is fully
amortized not later than six years after the purchase of a new
alternative fuel vehicle or the conversion of a vehicle that uses
gasoline or diesel to an alternative fuel vehicle. + }  { +
  (3) The department shall adopt by rule any procedures or
standards necessary to carry out the provisions of sections 1 to
7 of this 2013 Act. + }
  SECTION 8.  { + Section 9 of this 2013 Act is added to and made
a part of ORS chapter 315. + }
  SECTION 9.  { + (1) A credit against the taxes that are
otherwise due under ORS chapter 316 or, if the taxpayer is a
corporation, under ORS chapter 317 or 318, is allowed to a
taxpayer for certified alternative fuel vehicle contributions
made by the taxpayer during the tax year to the Alternative Fuel
Vehicle Revolving Fund established under section 2 of this 2013
Act.
  (2)(a) The Department of Revenue shall, in cooperation with the
State Department of Energy, conduct an auction of tax credits
under this section. The Department of Revenue may not auction
more than $3 million of tax credits under this section. The
department may conduct the auction in the manner that the
department determines is best suited to maximize the return to
the state on the sale of tax credit certifications and shall
announce a reserve bid prior to conducting the auction. The
reserve amount shall be at least 95 percent of the total amount
of the tax credit. Moneys necessary to reimburse the Department
of Revenue for the actual costs incurred by the department in
administering an auction, not to exceed 0.25 percent of auction
proceeds, are continuously appropriated to the department. The
Department of Revenue shall deposit net receipts from the auction
required under this section in the Alternative Fuel Vehicle
Revolving Fund established under section 2 of this 2013 Act. Net
receipts from the auction required under this section shall be
used to provide loans as described in section 3 of this 2013 Act.
  (b) The State Department of Energy shall adopt rules for the
administration and implementation of this section.
  (3) Contributions made under this section shall be deposited in
the Alternative Fuel Vehicle Revolving Fund.
  (4)(a) Upon receipt of a contribution, the State Department of
Energy shall issue to the taxpayer written certification of the
amount certified for tax credit under this section to the extent
the amount certified for tax credit, when added to all amounts
previously certified for tax credit under this section, does not
exceed $3 million for the tax year beginning January 1, 2013.
  (b) The State Department of Energy and the Department of
Revenue are not liable, and a refund of a contributed amount need
not be made, if a taxpayer who has received tax credit
certification is unable to use all or a portion of the tax credit
to offset the tax liability of the taxpayer.
  (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 tax year may be
carried forward and offset against the taxpayer's tax liability
for the next succeeding tax year. Any credit remaining unused in
the next succeeding tax year may be carried forward and used in
the second succeeding tax year, and, likewise, any credit not
used in the second succeeding tax year may be carried forward and
used in the third succeeding tax year but may not be carried
forward for any tax year thereafter.
  (7) If a tax credit is claimed under this section by a
nonresident or part-year resident taxpayer, the amount shall be
allowed without proration under ORS 316.117.
  (8) If the amount of contribution for which a tax credit
certification is made is allowed as a deduction for federal tax
purposes, the amount of the contribution shall be added to
federal taxable income for Oregon tax purposes. + }
  SECTION 10.  { + Section 9 of this 2013 Act applies to tax
years beginning on or after January 1, 2013, and before January
1, 2015. + }
  SECTION 11.  { + 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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