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BETC - Renewable Energy Projects
Introduction

 
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Oregon Laws, 2010, Chapter 76, Section 2 limits the amount of potential tax credits for facilities (projects) using or producing renewable energy resources or listed as renewable energy resources under ORS 469.185 to $300 million for the biennium ending June 30, 2011. To meet these limits, ORS 469.195(2) established a tiered priority system and the criteria that the Oregon Department of Energy (Department) Director may consider in deciding whether to grant a Business Energy Tax Credit (BETC) for these facilities. The statute requires the Director to subject facilities with higher projected costs to closer scrutiny and compare facilities of similar costs against each other.
 
ELIGIBILITY
 
To be eligible to apply an applicant must meet the following requirements:
  • Be a trade, business or rental property owner with a business site in Oregon or be an Oregon non-profit organization, tribe, or public entity that partners with an Oregon business or resident;
  • Own or be the contract buyer of the facility; and
  • Use the equipment or lease it to another person or business in Oregon; and
  • Not have started physical construction; and
  • Must complete the facility and receive final certification before by July 1, 2012.
 
PROCESS
 
Applications will be processed differently depending on the projected facility costs. Click on the following links to be directed to the appropriate tier for your facility (project) based on your projected facility costs:
 
ODOE News release (Dec. 22, 2010):
New renewable energy BETC applications readied for 2011
 
 

Tier One - projected facility costs < $500,000
For the remainder of the biennium (ending June 30, 2011), the Oregon Department of Energy allocates $15 million in tax credits for Tier One proposals that will be available in three phases of funding:
 
Once Tier 1 funds are exhausted, the application and payment will be returned to the applicant and there will be no waitlist created for any of the Tier 1 phases.

 
PROCESS
 
The Business Energy Tax Credit program experienced a number of changes over the past year, including legislative modifications in February 2010. The Oregon Department of Energy set up a tiered system for renewable energy proposals and allocated tax credits by funding periods for smaller renewable energy projects, processed on a first-come, first-served basis.
  

Tier One Phase 3 opened April 11, 2011, as of April 12, 2011 the Oregon Department of Energy received 165 applications that exceeded the $5 million in tax credits available. ODOE is no longer accepting Tier One applications. Due to mandatory application processing timelines, ODOE is not creating a waitlist. ODOE will mail status updates to all applicants. For the remainder of the biennium ending June 30, 2011, ODOE is not accepting any additional renewable BETC applications.
 
 

 

  

High Performance Homes and Homebuilder Installed Renewable Energy Facilities
 
A High-Performance Home and a Homebuilder Installed Renewable Energy Facility includes a renewable energy resource facility in a single family dwelling that meets specified technical requirements as listed in the BETC administrative rules. The installer must provide a two-year (minimum) warranty covering all parts and labor for a renewable energy resource facility. A homebuyer cannot apply for a Residential Energy Tax Credit for a Renewable Energy Facility that was covered under the Business Energy Tax Credit.
 
Please read the instructions for Tier One applications prior to submitting a Homebuilder Project Application, provided above.
 
Renewable energy resource facilities may include:
*(a) Solar Domestic Water Heating – The credit amount is equal to $0.60 per kWh saved as determined by the ODOE solar domestic water heating yield table.
 
*(b) Photovoltaic – The credit amount is based on $3 per watt of installed capacity.
 
*(c) Ground-Source Heat Pump – The credit amount is equal to $0.60 per kWh saved.
 
*(d) Active Solar Space Heating – The credit amount is equal to $0.60 per kWh saved based on a calculation procedure approved by ODOE staff.
 
(e) Passive Solar – The credit amount is equal to $600 per home plus $0.60 per square foot of heated floor space based on a calculation procedure approved by ODOE staff.
 
(f) Other – Other renewable energy resource facilities (e.g. wind turbines, fuel cells) will be evaluated on a case-by-case basis and the credit amount will be equal to $0.60 per kWh saved.
 
(g) Renewable-Equivalent Envelope – The credit amount is 3,333 kWh/y, which equates to a $2,000 tax credit.
 
(h) Certified, Passive House – The credit amount is 6,667 kWh/y, which equates to a $4,000 tax credit.
* System must be installed by an Oregon Department of Energy-certified technician.
 
RESOURCES:

Tier Two - projected facility costs >/= $500,000 but < $6,000,000
For the remainder of the biennium (ending June 30, 2011), the Oregon Department of Energy allocates $10 million in tax credits for Tier Two proposals. ODOE will accept Tier Two applications starting March 7, 2011 through April 8, 2011. 
 
Tier Two applications received in June & October 2010 are currently being reviewed, information about the review processes can be found on the Tier Two June-August 2010 and Tier Two October-December 2010 webpages. 

PROCESS

All tier two facilities will be required to submit their application through a competitive application process. Please review the BETC Opportunity Announcement - Tier Two for all the requirements to submit a tier two application. These requirements are in addition to the requirements in statute and rule. 
 
Changes were made to the opportunity announcement and forms since the last funding period. Please read the entire opportunity announcement, available below, before submitting your application. Some notable changes are:
  • Applicant must submit four (4) copies of their new application packet
  • Applicant must indicate if and how they plan to take the Federal Business Energy Investment Tax Credit (ITC), if not ODOE will assume the applicant is taking it as a grant
  • Applicant may request a lower tax credit amount
  • Estimated facility completion date must be by April 30, 2012 to provide ODOE adequate time to process the complete final application

 
SCHEDULE
 

Event
Due Date
Date of Issuance
March 4, 2011
Date Applications Accepted
March 7, 2011
Written Questions Due
March 27, 2011 by 5PM Pacific
Questions & Answers Posted
March 31, 2011
Applications Due
April 8, 2011 by 5 PM Pacific
Program Priority Review
April & May 2011
Technical Review (approx.)
May & June 2011
Click here to view a list of the applications eligible to proceed to the technical standards review. 
BETC Preliminary Certificate Notification (approx.)
prior to June 30, 2011

  
QUESTIONS & ANSWERS
 
Questions, including requests for explanations of the meaning or interpretation of provisions of the opportunity announcement and application forms, must be submitted via e-mail, arrive by the date and time specified in the schedule above, and be addressed to the attention of only the SPC (betcoa@odoe.state.or.us). To help ensure questions are answered and responses are posted appropriately, please identify Tier Two in your subject line.
 
Answers to questions submitted will be posted every few days up to the final due date.
 
March 2011 Posted Questions & Answers (updated March 31, 2011)

Archived Questions and Answers from Prior Funding Periods

Tier Three - projected facility costs >/= $6,000,000
For the remainder of the biennium (ending June 30, 2011), the Oregon Department of Energy allocated $10 million in tax credits for Tier Three proposals. ODOE accepted Tier Three applications from January 24 through February 28, 2011.  Applications received during that period are currently being reviewed, more information can be found at the January - June 2011 webpage.
 
Tier Three applications received in June & July 2010 are currently being reviewed, information about the review process can be found on the Tier Three June-November 2010 webpage. 
 
PROCESS
 
All tier three facilities will be required to submit their application through a competitive application process. Please review the BETC Opportunity Announcement - Tier Three for all the requirements to submit a tier three application. These requirements are in addition to the requirements in statute and rule. 
 
 
SCHEDULE 

Event
Due Date
Date of Issuance
January 21, 2011
Date Applications Accepted
January 24, 2011
Written Questions Due
February 13, 2011 by 5PM PST
Questions & Answers Posted
February 18, 2011
Applications Due
February 28, 2011 by 5 PMPST
Program Priority Review
March & April 2011
Technical Review (approx.)
starting late April 2011
Third Party Review (approx.)
starting May 2011
BETC Preliminary Certificate Notification (approx.)
prior to June 30, 2011
 
QUESTIONS & ANSWERS
 
Questions, including requests for explanations of the meaning or interpretation of provisions of the opportunity announcement, must be submitted via e-mail, arrive by the date and time specified in the schedule above, and be addressed to the attention of only the SPC (betcoa@odoe.state.or.us). To help ensure questions are answered and responses are posted appropriately, please identify Tier Three in your subject line.
 
Answers to questions submitted will be posted every few days up to the final due date 
 
Archived Questions and Answers from Prior Funding Periods