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Energy Incentives Program Rulemaking

Permanent rules filed for the EIP Energy Conservation Tax Credit

Rule Caption: Amending EIP Conservation tax credit rules including amendment and program sunset provisions.

The Oregon Department of Energy (ODOE) filed permanent rules for the Energy Incentives Program (EIP) energy conservation tax credit on November 14, 2016.

These permanent rule amendments update program procedures, expand amendment requests and include provisions for the program’s sunset.

The conservation tax credit sunsets at the end of tax year 2017. To align with statute and Oregon Law, the rules provide that ODOE must receive an application for final certification prior to the end of the 2017 tax year of the applicant. For applicants choosing to sell the credit, the entity purchasing the credit must pay for it prior to the end of its 2017 tax year. For amendments, the rules allow an applicant to submit an amendment request up until issuance of the final certificate rather than by the time the final application is submitted to the department.

These permanent rule amendments also:

  • Update cost term to better explain program practice for competitive and small premium projects,
  • Add requirements for combined heat and power, and cogeneration projects,
  • Add a process for applicants to accept conditions on a preliminary certificate,
  • Require at final certification that applicants provide itemized documentation of total project costs, and
  • Allow reconsideration of a denial during the technical review phase or request for an amendment.

Documents

The Conservation Tax Credits sunset at the end of tax year 2017. To align with statute and Oregon laws, the draft rules propose that ODOE must receive an application for final certification prior to the end of the 2017 tax year of the applicant. For applicants choosing to sell the credit, the entity purchasing the credit must pay for it prior to the end of its 2017 tax year. For amendments, the draft rules propose allowing an applicant to submit an amendment request up until issuance of the final certificate, rather than by the time the final application is submitted to ODOE. Additionally, through this rulemaking ODOE proposes:
  • Updating cost terms to better explain program practice for competitive and small premium projects;
  • Adding requirements for combined heat and power and cogeneration projects;
  • Adding a process for applicants to accept conditions on a preliminary certificate;
  • Require at final certification that applicants provide itemized documentation of total project costs; and
  • Allow reconsideration of a denial during the technical review phase or request for an amendment.

Public Hearing

Date:
Monday, October 24, 2016
 
Time:
10:00 a.m..
 
Location:
Oregon Department of Energy
625 Marion Street
Salem Oregon 97301
Westerberg Room
 
Call-in Number:
1-888-273-3658 Access code: 3125235
 
 
Meeting Materials:
 

ODOE will accept oral testimony on the rules at the public hearing. Participants unable to attend may call-in using the number listed above.

Written comments on the rulemaking are due by 5 p.m. on Wednesday, October 26, 2016, and sent via email to: elizabeth.ross@oregon.gov.

The public hearing will be the final opportunity for comment before the department files permanent rules. ODOE plans for the proposed rules to be filed and effective in November, 2016..

:To request an interpreter for the hearing impaired or accommodations for persons with disabilities, please contact ODOE at least 72 hours before the meeting at 1-800-221-8035 or fax 503-373-7806. TTY users should call the Oregon Relay Service at 711. Reasonable accommodations will be made upon request.

 

EIP Energy Conservation Rulemaking Advisory Committee Meetings

The Energy Incentives Program (EIP) Energy Conservation Tax Credits sunset at the end of tax year 2017. To prepare for the sunset and ensure the agency meets its obligations to applicants, the Oregon Department of Energy will discuss with stakeholders possible changes to program rules. This meeting will also provide an opportunity for stakeholders to provide feedback on program operation. ODOE will post materials on its rulemaking website prior to the meeting. At the meeting, program staff will review:

  • Program sunset timelines
  • Cost definitions
  • Small Premium Projects: costs and tax credits
  • Process to acknowledge conditions on a preliminary certificate
  • Process to streamline and simplify amendments

Advisory Committee Meetings

September 12, 2016

On September 12, ODOE will hold its final public meeting to discuss the draft rules for Conservation Tax Credits prior to a public hearing in October. The meeting will build on comments received at the August 9th and August 24th public meetings.
Date:
Monday, September 12, 2016
 
Time:
10:00 a.m.
 
Location:
Oregon Department of Energy
625 Marion Street
Salem Oregon 97301
Westerberg Room
 
Call-in Number:
1-888-273-3658 Access code: 3125235
 
Webinar:
www.connectmeeting.att.com, Meeting # 213‐​270‐2124, Access Code: 3125235

 
 

MEETING PURPOSE
The Energy Incentives Program (EIP) Conservation Tax Credit program will sunset at the end of tax year 2017. To prepare for the sunset and ensure the agency meets its obligations to applicants, the Oregon Department of Energy is proposing rule changes for conservation tax credits. Proposed rule additions and changes include:

  • Requirements for the program's sunset
  • Cost definitions clarification
  • Small Premium Projects: costs and tax credit
  • Process to acknowledge conditions on a preliminary certificate
  • Process to streamline and simplify amendments

BACKGROUND
HB 3672 (2011) created the EIP Energy Conservation Tax Credit program in 2011. The program is set to sunset at the end of the 2017 tax year. Since the initial filings of the program’s rules, ODOE has made minor rule changes to increase program fees and to implement HB 2448 (2015). ODOE has identified several areas of the rules that need updates or clarification in preparation for the program’s sunset.

FUTURE OPPORTUNITIES TO PARTICIPATE

Following this public meeting, ODOE will review comments, post an updated version of draft rules on its website, and hold a public hearing planned for October 24, 2016.

For more information or to provide comments, contact:

Michael Williams
Incentives Program Manager
503-378-6508
Elizabeth Ross
Rulemaking Coordinator
503-378-8534

NOTE: To request an interpreter for the hearing impaired or accommodations for persons with disabilities, please contact the Oregon Department of Energy at least 72 hours before meeting at 1-800-221-8035 or fax 503-373-7806. TTY users should call the Oregon Relay Service at 711.

 

August 24, 2016

Date:
Tuesday, August 24, 2016
 
Time:
2:00 p.m.
 
Location:
Oregon Department of Energy
625 Marion Street
Salem Oregon 97301
Westerberg Room
 
Call-in Number:
1-888-273-3658 Access code: 3125235
 
Webinar:
www.connectmeeting.att.com, Meeting # 213‐​270‐2124, Access Code: 3125235

 
 

BACKGROUND
HB 3672 (2011) created the EIP energy conservation tax credit program in 2011. The program is set to expire at the end of the 2017 tax year. Since the initial filings of the program’s rules, ODOE has made minor rule changes to increase program fees and implement HB 2448 (2015). After more than four years operating the program, program staff have identified several areas of the rules that need updates and clarification in preparation for the program’s sunset at the end of tax year 2017.

FUTURE OPPORTUNITIES TO PARTICIPATE

Following this public meeting, ODOE will review comments and host further discussions with stakeholders to review draft rules. The next meeting is planned for Aug. 24 at ODOE’s office in Salem, with a call-in number available. After all the public meetings, ODOE will review comments, post an updated version of draft rules on its website, and schedule a public hearing.

For more information or to provide comments, contact:

Michael Williams
Incentives Program Manager
503-378-6508
Elizabeth Ross
Rulemaking Coordinator
503-378-8534

NOTE: To request an interpreter for the hearing impaired or accommodations for persons with disabilities, please contact the Oregon Department of Energy at least 72 hours before meeting at 1-800-221-8035 or fax 503-373-7806. TTY users should call the Oregon Relay Service at 711.

 

Permanent rules filed for the EIP Energy Conservation Tax Credit to Implement HB 2448 (2015)

The Oregon Department of Energy filed permanent rules for the Energy Incentives Program (EIP) energy conservation tax credit to implement HB 2448 (2015).

These permanent rule amendments allow ODOE to require performance agreements as part of the final tax credit certification process, and to require energy conservation projects with $1 million or more in certified total project costs to annually recertify the tax credit.

The permanent rules provide that the performance agreements may include project requirements for operations, energy savings, timeframes, and performance. The rules also provide the criteria that ODOE will use to evaluate EIP conservation projects below the $1 million threshold for possible performance agreements when project owners apply for final certification.

For energy conservation projects with $1 million or more in certified total project costs, the rules provide the timeline, requirements, application process, and review process for recertifying the tax credit. This process will provide project owners with a five-year tax credit in portions over the five year period. The total amount of the tax credit remains the same, provided the project owner successfully completes each recertification. The rule also creates a $750 fee to cover costs associated with tax credit recertification; this fee is collected at each recertification.

The amended permanent rules are effective upon filing. March 15, 2016. HB 2448 applies to applications for final certification under ORS 469B.291 submitted on or after Sept ember 1, 2015, and to tax years beginning on or after January 1, 2015.

Public Hearing

Date:
Monday, February 22, 2016
 
Time:
2:00 p.m.
 
Location:
Oregon Department of Energy
625 Marion Street
Salem Oregon 97301
Westerberg Room
 
Call-in Number:
1-888-273-3658 Access code: 3125235
 
 

ODOE will accept oral testimony on the rules at the public hearing. Participants unable to attend may call-in using the number listed above.

Written comments on the rulemaking are due by 5 p.m. (close of business) on Tuesday, Feb. 23, 2016, and sent via email to: elizabeth.ross@state.or.us

The public hearing will be the final opportunity for comment before the department files permanent rules. ODOE plans for the proposed rules to be filed and effective in March, 2016.

To request an interpreter for the hearing impaired, or accommodations for persons with disabilities, at least 72 hours before the meeting please contact 1-800-221-8035 or fax 503-373-7806. TTY users should call the Oregon Relay Service at 711. Reasonable accommodations will be made upon request.

 

EIP Energy Conservation HB 2448 Rulemaking Advisory Committee Meetings

The Oregon Department of Energy invites stakeholders to participate in discussions about implementing HB 2448 (2015) for the Energy Incentives Program (EIP) energy conservation tax credit. At the meetings, ODOE will review with stakeholders HB 2448, proposed program processes and draft rules. HB 2448 makes two modifications that may affect energy conservation projects.

First, under the new law, ODOE will enter into performance agreements for all Energy Incentives Program conservation projects with $1 million or more in certified total project costs as part of the final certification process. These performance agreements may include project requirements for operations, energy savings, timeframes, and performance. ODOE will also evaluate EIP conservation projects below the $1 million threshold for possible performance agreements when project owners apply for final certification.

The second change in law requires energy conservation projects with $1 million or more in certified total project costs to annually recertify the tax credit. The performance agreement will outline the requirements for the annual recertification. To receive the full value of a five-year tax credit, affected project owners must complete recertification each year for three years following final certification of the project. This process will provide project owners with a five-year tax credit in portions over the five year period. The amount of the tax credit remains the same, provided that the project owner successfully completes each recertification. The change in law also creates a fee to cover costs associated with tax credit recertification; this fee is collected at each recertification.

HB 2448 became effective October 5, 2015, and applies to all energy conservation applications for final certification submitted on or after September 1, 2015.

Advisory Committee Meetings

February 17, 2016 Work group

Date:
Wednesday, February 17, 2016
 
Time:
2:00 p.m.
 
Location:
Oregon Department of Energy
625 Marion Street
Salem Oregon 97301
Westerberg Room
 
Call-in Number:
1-888-273-3658 Access code: 3125235
 
 

The Oregon Department of Energy invites stakeholders to review a draft performance agreement as a follow-up discussion from the HB 2448 (2015) rulemaking. HB 2448 modified ODOE’s Energy Incentives Program energy conservation tax credit. One of the changes allows ODOE to enter into performance agreements with project owners as part of the final certification process.

This work group will give stakeholders an opportunity to review and provide input for the performance agreement template that may be used as part of the final certification process for an energy conservation tax credit project.

The scope of this work group is only to review and provide input for a performance agreement template. Comments on the draft rules must be provided at the public hearing on Feb. 22 or emailed to elizabeth.ross@state.or.us by the close of business Feb. 23, 2016.

 

January 26, 2016

Date:
Tuesday, January 26, 2016
 
Time:
10:30 p.m
 
Location:
Oregon Department of Energy
625 Marion Street
Salem Oregon 97301
Westerberg Room
 
Call-in Number:
1-888-273-3658 Access code: 3125235
 
 
Following the advisory committee meeting, ODOE will review comments, post an updated draft of proposed rules and a public hearing is scheduled for Feb. 22, 2016. For more information or to provide comments, please contact Elizabeth Ross at elizabeth.ross@state.or.us.

NOTE: To request an interpreter for the hearing impaired, or accommodations for persons with disabilities, please contact ODOE at least 72 hours before the meeting at 1-800-221-8035 or fax 503-373-7806. TTY users should call the Oregon Relay Service at 711.

 

January 12, 2016

Date:
Tuesday, January 12, 2016
 
Time:
2:00 p.m
 
Location:
Oregon Department of Energy
625 Marion Street
Salem Oregon 97301
Westerberg Room
 
Call-in Number:
1-888-273-3658 Access code: 3125235
 
 
Following the advisory committee meeting, ODOE will review comments, post an updated draft of proposed rules and schedule a public hearing. For more information or to provide comments, please contact Elizabeth Ross at elizabeth.ross@state.or.us.

NOTE: To request an interpreter for the hearing impaired, or accommodations for persons with disabilities, please contact ODOE at least 72 hours before the meeting at 1-800-221-8035 or fax 503-373-7806. TTY users should call the Oregon Relay Service at 711.

 

Energy Incentives Program fee increase rules were filed October 2, 2013

Materials:

Public Hearing - Fee Increase

Date:
September 23, 2013
 
Time:
9:00 a.m.
 
Location:
Oregon Department of Energy
625 Marion Street
Salem Oregon 97301
Westerberg Room
 
Call-in Number:
1-888-273-3658 Access code: 3125235
 
Rulemaking Materials:
 
The Oregon Department of Energy will accept written comments until 5 p.m. Monday, Sept. 23, 2013 , email comments to: kathy.d.stuttaford@state.or.us

Permanent rule filed for EIP Fees

The Oregon Department of Energy filed a permanent rule for the Energy Incentives Program Fee changes. The rule amendment goes into effect Sept. 1, 2015.

Public Hearing - Fee Changes

Amending EIP rules to update application, technical review, pass-through and transfer fees.

Date:
July 23, 2015
 
Time:
2:30 p.m.
 
Location:
Oregon Department of Energy
625 Marion Street
Salem Oregon 97301
Westerberg Room
 
Call-in Number:
1-888-273-3658 Access code: 3125235
 
Rulemaking Materials:
 

Under state law, ODOE may charge application and review fees to recover the anticipated cost of administering and enforcing the program. The proposed fee changes were reviewed with stakeholders during two public meetings. The planned effective date for the proposed rules and change in fees is Sept. 1, 2015.

ODOE will accept oral testimony on the rules at the public hearing. Participants unable to attend may call-in using the number listed above.

Written comments on the rulemaking are due by close of business (5 p.m.) on Thursday, July 23, 2015, and sent via email to: elizabeth.ross@state.or.us

The public hearing will be the final opportunity for comment before the department files permanent rules. ODOE plans to file permanent rules by Sept. 1, 2015.

Energy Incentives Program Fee Discussion Advisory Committee Meeting

The Oregon Department of Energy invites stakeholders to continue the discussion on Energy Incentives Program fees for submitting an application, technical review, amendments, pass-through and transfer. This advisory committee meeting is a follow-up from a meeting in February. At this meeting, department staff will review an updated proposal for fee changes based on prior stakeholder feedback.

Date:
June 4, 2015
 
Time:
10:00 a.m.
 
Location:
Oregon Department of Energy
625 Marion Street
Salem Oregon 97301
Westerberg Room
 
Call-in Number:
1-888-273-3658 Access code: 3125235
 
Rulemaking Materials:
 

Following the advisory committee meeting, the department will review comments, post a draft of proposed fees on its website and schedule a public hearing planned for July 2015. For more information or to provide comments, please contact Elizabeth Ross at elizabeth.ross@state.or.us.

Energy Incentives Program Fee Discussion Public Meeting

The Oregon Department of Energy invites stakeholders to discuss Energy Incentives Program fees for submitting an application, technical review, amendments, pass-through and transfer. At the meeting, department staff will review the current fees, program operations and possible fee increases. Under state law, ODOE may charge application and review fees to recover the anticipated cost of administering and enforcing the program.
Date:
February 13, 2015
 
Time:
1:00 p.m.
 
Location:
Oregon Department of Energy
625 Marion Street
Salem Oregon 97301
Westerberg Room
 
Call-in Number:
1-888-273-3658 Access code: 3125235
 
Rulemaking Materials:
 

For more information or to provide comments, please contact Elizabeth Ross at elizabeth.ross@state.or.us.

NOTE: To request an interpreter for the hearing impaired, or accommodations for persons with disabilities, please contact ODOE at least 72 hours before the meeting at 1-800-221-8035 or fax 503-373-7806. TTY users should call the Oregon Relay Service at 711.

Rulemaking Update:

In September 2015, after reviewing public input, ODOE decided to not move forward with this rulemaking. Existing rules OAR 330-230-0150 and OAR 330-090-0160 remain in place. This means EIP tax credit transfers must adhere to a sale price determined by the “present value rate” in effect when a preliminary certification application or informational filing was received by the Oregon Department of Energy. Letters with each project’s applicable present value rate were sent to all active Energy Incentives Program projects explaining the change. ODOE will be working with the Legislature and other stakeholders on moving forward in ways that benefit Oregonians and support investment in energy projects across the state.

We welcome any comments or feedback. Future steps will be communicated through the EIP rulemaking email list.

Public Hearing – Transfer Process

Amend transfer rules for Energy Incentives Program and Business Energy Tax Credit.

Date:
August 25, 2015
 
Time:
2:00 p.m.
 
Location:
Oregon Department of Energy
625 Marion Street
Salem Oregon 97301
Westerberg Room
 
Call-in Number:
1-888-273-3658 Access code: 3125235
 
Rulemaking Materials:
 

ODOE will accept oral testimony on the rules at the public hearing. Participants unable to attend may call-in using the number listed above.

Written comments on the rulemaking are due by close of business (5 p.m.) on Wednesday, August 26, 2015, and sent via email to: elizabeth.ross@state.or.us

The public hearing will be the final opportunity for comment before the department files permanent rules. ODOE plans to file permanent rules before the temporary rule expires on Sept. 18, 2015.

EIP & BETC Transfer Process Advisory Committee Meeting

The Oregon Department of Energy invites stakeholders to discuss Energy Incentives Program fees for submitting an application, technical review, amendments, pass-through and transfer. At the meeting, department staff will review the current fees, program operations and possible fee increases. Under state law, ODOE may charge application and review fees to recover the anticipated cost of administering and enforcing the program.
Date:
Tuesday June 30, 2015
 
Time:
10:30 a.m.
 
Location:
Oregon Department of Energy
625 Marion Street
Salem Oregon 97301
Westerberg Room
 
Call-in Number:
1-888-273-3658 Access code: 3125235
 
Rulemaking Materials:
 

ODOE adopted temporary rules on March 23, 2015, amending the transfer process for the EIP program and for the BETC program, which sunset July 2014. The change was retroactive to transfers that occurred on or after Dec. 22, 2014, for EIP projects and on or after July 10, 2012, for BETC projects. This rulemaking intends to make the temporary rules permanent.

By rule, ODOE provides two processes for BETC or EIP project owners to sell a tax credit: the pass-through process and the transfer process. The statute authorizing the sale of tax credits, ORS 469B.148, 469B.276 and 469B.323, is broad. It states that the cash payment for the tax credit must equal the present value of the credit, and that ODOE must establish a formula to be used in the determination of the prices of credits. For tax credits sold through the transfer process, the statute does not require the present value at which the credit is transferred to equal the formula.

This rule change does not affect tax credits sold through the pass-through process. For the pass-through process, the department holds the credit’s certificate until a partner is located and may provide assistance finding a partner. Using the formula created by rule, ODOE will continue to set the rate for the present value of the tax credit.

For the transfer process, credits will be issued to the project owner. The department will not help identify a buyer for the credit, nor will it enforce a specific rate for the present value of the tax credit. Parties may use the formula in the department’s rules as a guide for the transaction, but they can also set a present value rate independent of that formula. Once the parties have negotiated a transfer price, they must report the transfer to ODOE, and ODOE will report to the Oregon Department of Revenue.

Project owners who use the pass-through or transfer process must meet all statute and rule requirements for selling a tax credit to a new owner. This includes the requirement in ORS 315.052 that states that no portion of the tax credit be used prior to the transfer.

Following the advisory committee meeting, the department will review comments, post draft rules, and provide notice on its website and schedule a public hearing planned for August 25, 2015.

For more information or to provide comments, please contact Elizabeth Ross at elizabeth.ross@state.or.us.

NOTE: To request an interpreter for the hearing impaired, or accommodations for persons with disabilities, please contact ODOE at least 72 hours before the meeting at 1-800-221-8035 or fax 503-373-7806. TTY users should call the Oregon Relay Service at 711.

EIP and BETC Temporary Transfer Process Rule Filed

The Oregon Department of Energy adopted temporary rules on March 23, 2015, amending the transfer process for the Energy Incentives Program and the Business Energy Tax Credit. The change is retroactive to transfers that occurred on or after Dec. 22, 2014, for EIP projects and on or after July 10, 2012, for BETC projects.

The statute authorizing the sale of tax credits for these programs, ORS 469B.103 and 469B.112, is broad. It states that the cash payment must equal the present value and ODOE must establish a formula to be used in determining the prices of credits. The statute does not require the present value at which the credit is transferred to equal the formula, but requires ODOE to provide, by rule, a formula to be used in determining the price of credits.

By Oregon Administrative Rule, the Oregon Department of Energy provides two processes for BETC or EIP project owners to sell a tax credit: the pass-through or transfer process.

  • For the pass-through process, the department holds the credit’s certificate until a partner is located and may provide assistance and prescribe by rule a set rate for the present value of the tax credit.
  • For the transfer process, the credit is issued to the project owner. The department does not provide assistance nor does it enforce a specific rate for the present value of the tax credit. However, the parties may use the present value rate in the department’s rules as a guide for the transaction.

Project owners who use the pass-through or transfer process must meet all statute and rule requirements for the transfer. This includes the requirement in ORS 315.052 that states that no portion of the tax credit be used prior to the transfer.

The Oregon Department of Energy plans to begin permanent rulemaking to address these rule sections during the summer of 2015.

If you have any questions or need further information, please contact:

Elizabeth Ross
Oregon Department of Energy
503-378-8534
elizabeth.ross@state.or.us

Conservation Energy Incentive Program

Permanent Rules for the Conservation Energy Incentive (2016)
 

Alternative Fuel Vehicles

Permanent Rules for the Alternative Fuel Vehicle Incentive (2015)

Transit Services

Permanent Rules for Transit Services (2015)

Pass Through & Compliance

Permanent Rules for Pass Through & Compliance (2015)

Renewable Energy Development Grants

Permanent Rules for Renewable Energy Development Grants (2015)

Business Energy Tax Credits

Permanent Rules for the Business Energy Tax Credit Program (2015)
 
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