As used in this chapter, unless the context requires otherwise:

(1) ‘Alternative fuel project’ means:

(a) Equipment, including vehicles that are not used primarily for personal, family or household purposes, that is modified or acquired directly from a factory and that:

(A) Uses 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; and

(B) Produces lower exhaust emissions or is more energy efficient than equivalent equipment fueled by gasoline or diesel; and

(b) A facility, including a fueling station, or equipment necessary to produce alternative fuel or operate equipment that uses an alternative fuel.

(2) ‘Applicant’ means an applicant for a loan to construct a small scale local energy project.

(3) ‘Base efficiency package’ means the package of energy efficiency upgrades or renewable energy projects for a property that, when energy savings, project repayment costs, tax or other incentives, loan offset grants and other relevant economic factors are considered, is estimated to not increase the utility bill of the customer over the loan repayment term.

(4) ‘Committee’ means the Small Scale Local Energy Project Advisory Committee created under ORS § 470.070.

(5) ‘Cooperative’ means a cooperative corporation organized under ORS Chapter 62.

(6) ‘Director’ means the Director of the State Department of Energy appointed under ORS § 469.040.

(7) ‘Eligible federal agency’ means a federal agency or public corporation created by the federal government that proposes to use a loan for a small scale local energy project. ‘Eligible federal agency’ does not include a federal agency or public corporation created by the federal government that proposes to use a loan for a small scale local energy project to generate electricity for sale.

(8) ‘Eligible state agency’ means a state officer, board, commission, department, institution, branch or agency of the state whose costs are paid wholly or in part from funds held in the State Treasury.

(9) ‘Energy efficiency and sustainable technology loan’ means a loan for a small scale local energy project that is repayable by means of:

(a) A charge included with the participant’s utility customer account billing; or

(b) An alternative repayment method identified by the department and the borrower and specified in the loan agreement.

(10) ‘Energy Project Bond Loan Fund’ means the fund established under ORS § 470.580.

(11) ‘Energy Project Supplemental Fund’ means the fund established under ORS § 470.570.

(12) ‘Energy Revenue Bond Repayment Fund’ means the fund established under ORS § 470.585.

(13) ‘Energy savings projection’ means an examination of the energy performance and site characteristics of a property that, at a minimum, identifies:

(a) A base efficiency package; and

(b) Any additional optional measures that a customer is able to repay and that the sustainable energy project manager believes to be feasible for the site.

(14) ‘Jobs, Energy and Schools Fund’ means the fund established under ORS § 470.575.

(15) ‘Loan’ includes the purchase or other acquisition of evidence of indebtedness and money used for the purchase or other acquisition of evidence of indebtedness.

(16) ‘Loan contract‘ means the evidence of indebtedness and all instruments used in the purchase or acquisition of the evidence of indebtedness. For eligible federal or state agencies or municipal corporations that are tax exempt entities, a loan contract may include a lease purchase agreement with respect to personal property.

(17) ‘Loan offset grant’ means moneys from the Jobs, Energy and Schools Fund that are used to help offset the initial project costs or loan payments for energy efficiency, renewable energy and energy conservation projects.

(18) ‘Loan repayment charge’ means an amount charged to a utility customer account through on-bill financing as a mechanism for the repayment of an energy efficiency and sustainable technology loan.

(19) ‘Municipal corporation’ has the meaning given in ORS § 297.405 and also includes any Indian tribe or authorized Indian tribal organization or any combination of two or more of these tribes or organizations acting jointly in connection with a small scale local energy project.

(20) ‘On-bill financing’ means a mechanism for collecting the repayment of an energy efficiency and sustainable technology loan through a utility customer account billing system.

(21) ‘Optional package’ means measures for promoting energy efficiency or the use of renewable energy:

(a) That are in addition to the measures described in the customer’s base efficiency package;

(b) For which a customer has the ability to repay; and

(c) That the sustainable energy project manager believes to be feasible for the site.

(22) ‘Oregon business’ means a sole proprietorship, partnership, company, cooperative, corporation or other form of business entity that is organized or authorized to do business under Oregon law for profit.

(23) ‘Primary contractor’ means a contractor that:

(a) Has entered into a contract with an owner of property for which a proposed small scale local energy project will be located;

(b) Is responsible for the completion of the small scale local energy project;

(c) Undertakes to complete the small scale local energy project; and

(d) Is responsible for any subcontractors performing work on the small scale local energy project.

(24) ‘Public Purpose Fund Administrator’ means the entity designated by the Public Utility Commission to administer moneys collected by a company through the public purpose charge described under ORS § 757.612.

(25) ‘Recycling project’ means a facility or equipment that converts waste into a new and usable product.

(26) ‘Small business’ means:

(a) An Oregon business that is:

(A) A retail or service business employing 50 or fewer persons at the time the loan is made; or

(B) An industrial or manufacturing business employing 200 or fewer persons at the time the loan is made; or

(b) An Oregon subsidiary of a sole proprietorship, partnership, company, cooperative, corporation or other form of business entity for which the total number of employees for both the subsidiary and the parent sole proprietorship, partnership, company, cooperative, corporation or other form of business entity at the time the loan is made is:

(A) Fifty or fewer persons if the subsidiary is a retail or service business; and

(B) Two hundred or fewer if the subsidiary is an industrial or manufacturing business.

(27) ‘Small scale local energy program loan’ means a loan for a small scale local energy project other than an energy efficiency and sustainable technology loan.

(28) ‘Small scale local energy project’ means any of the following:

(a) A system, mechanism or series of mechanisms located primarily in Oregon that directly or indirectly uses or enables the use of, by the applicant or another person, renewable resources including, but not limited to, solar, wind, geothermal, biomass, waste heat or water resources to produce energy, including heat, electricity and substitute fuels, to meet a local community or regional energy need in this state.

(b) A system, mechanism or series of mechanisms located primarily in Oregon or providing substantial benefits to Oregon that directly or indirectly conserves energy or enables the conservation of energy by the applicant or another person, including energy used in transportation.

(c) A recycling project.

(d) An alternative fuel project.

(e) An improvement that increases the production or efficiency, or extends the operating life, of a system, mechanism, series of mechanisms or project otherwise described in this subsection, including but not limited to restarting a dormant project.

(f) A system, mechanism or series of mechanisms installed in a facility or portions of a facility that directly or indirectly reduces the amount of energy needed for the construction and operation of the facility and that meets the sustainable building practices standard established by the State Department of Energy by rule. For purposes of this paragraph, ‘system, mechanism or series of mechanisms’ includes related and integrated upgrades to attain compliance with standards set in the State of Oregon Structural Specialty Code and Fire and Life Safety Code, and seismic safety upgrades.

(g) A project described in paragraphs (a) to (f) of this subsection, whether or not the existing project was originally financed under this chapter, together with any refinancing necessary to remove prior liens or encumbrances against the existing project.

(h) A project described in paragraphs (a) to (g) of this subsection that conserves energy or produces energy by generation or by processing or collection of a renewable resource.

(29) ‘Small Scale Local Energy Project Administration and Bond Sinking Fund’ means the fund created under ORS § 470.300.

(30) ‘Small Scale Local Energy Project Loan Fund’ means the loan fund created by Article XI-J of the Oregon Constitution and appropriated to the State Department of Energy under ORS § 470.130.

(31) ‘Sustainable energy project manager’ means the organization responsible for promoting the energy efficiency and sustainable technology loan program or the clean energy deployment program and related incentives for energy efficiency and renewable energy at the neighborhood and community level.

(32) ‘Utility service territory’ means the allocated territory in which a utility subject to this chapter provides a utility service. For the purposes of this subsection, ‘allocated territory’ and ‘utility service’ have the meanings given those terms in ORS § 758.400. [1979 c.672 § 1; 1981 c.50 § 1; 1983 c.188 § 1; 1985 c.593 § 2; 1993 c.496 § 4; 1995 c.551 § 8; 1997 c.29 § 1; 1999 c.365 § 7; 2003 c.186 § 55; 2005 c.201 § 3; 2009 c.753 § 54; 2009 c.760 § 1; 2011 c.467 § 11; 2013 c.8 § 1]

SMALL SCALE LOCAL ENERGY LOAN PROGRAM

(General Provisions)