Oregon Incentives and Laws

Last Updated September 2009

Oregon is the home of the Columbia Willamette Clean Cities Coalition, Inc. (www.cwcleancities.org) and the Rogue Valley Clean Cities Coalition (www.roguevalleycleancities.org). Coordinator contact information is listed in the Points of Contact section.

State Incentives

Biofuels Use Tax Credit

A state resident who purchases gasoline blended with 85% ethanol (E85) or biodiesel blends of at least 99% (B99) for use in an alternative fuel vehicle (AFV) qualifies for an income tax credit of $0.50 per gallon, up to $200 for each AFV that is registered in Oregon and owned or leased by the resident. For the purpose of this tax credit, an AFV is a motor vehicle that can operate using E85 or B99. This incentive is applicable until January 1, 2013. (Reference Oregon Revised Statutes 315.465)

Alternative Fuel Production and Infrastructure Tax Credit

Business owners and others who invest in alternative fuel production and fueling infrastructure projects in Oregon may be eligible for a tax credit of up to 50% of eligible project costs through the Business Energy Tax Credit. Some projects (e.g., propane, compressed natural gas, liquefied natural gas) may only qualify for a tax credit of 35% of eligible costs. The tax credit is filed over five years. For projects with eligible costs of $20,000 or less, the tax credit may be taken in one year. Unused credits can be carried forward up to eight years.

An eligible applicant (a project owner) must meet the following requirements:
1) 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;
2) Own or be the contract buyer of the project; and
3) Use the equipment or lease it to another person or business in Oregon.

Non-profit organizations, schools, and other public entities that do not have an Oregon tax liability may receive the credit for an eligible project but must "pass-through" or transfer their project eligibility to a pass-through partner in exchange for a lump-sum cash payment. The Oregon Department of Energy determines the rate that is used to calculate the cash payment. The pass-through option is also available to a project owner with an Oregon tax liability who chooses to transfer his or her tax credit. For additional information on possible tax implications in using the pass-through option, please consult a tax professional.

(Reference Oregon Revised Statutes 316.116, 317.115, 469.160-469.180, and 469.185-469.225)

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Tax Credit

The Oregon Department of Energy offers two income tax credits for AFVs and HEVs, one for residents and one for business owners. Oregon residents are eligible for a Residential Energy Tax Credit, which provides credits of up to $1,500 toward the purchase of qualified AFVs and HEVs; currently, flexible fuel vehicles are not eligible. A credit of up to $750 is also available for the cost of converting vehicles to operate on an alternative fuel.

Oregon business owners who invest in new HEVs for business use are eligible for a Business Energy Tax Credit of up to 35% of the incremental cost of the HEV. Business owners without an Oregon tax liability, non-profit organizations, and public entities may choose to "pass-through" or transfer their tax credit eligibility to a business or individual with an Oregon tax liability in exchange for a cash payment equal to the pass-through rate at the time of application. Business owners with a tax liability may also choose to transfer their tax credit.

(Reference Oregon Revised Statutes 316.116, 469.160-469.180, and 801.375)

Point of Contact

Deby Davis
Program Analyst
Oregon Department of Energy
Phone (503) 378-4040 x291
Fax (503) 373-7806
deby.s.davis@state.or.us

Efficient Truck Technology Tax Credit

The Oregon Department of Energy offers a Business Energy Tax Credit to Oregon businesses, trades, and rental property owners that invest in efficient truck technology projects. Applicants may receive a tax credit of up to 35% of the project costs. The credit must be filed over a period of five years, 10% in the first and second years and 5% for each remaining year. A tax credit may be received in one year if total projects costs are $20,000 or less. Efficient truck technology projects may include the purchase of idle reduction equipment, aerodynamic packages, single-wide tires, and automatic tire inflation.

Non-profit organizations, schools, and other public entities without an Oregon tax liability may receive the tax credit for an eligible project, but must "pass-through" or transfer their project eligibility to a pass-through partner in exchange for a lump-sum cash payment. The Oregon Department of Energy determines the rate that is used to calculate the cash payment. The pass-through option is also available to a project owner with an Oregon tax liability who chooses to transfer his or her tax credit. For additional information on possible tax implications in using the pass-through option, please consult a tax professional.

Alternative Fuel Loans

The Oregon Department of Energy offers a loan program for energy efficiency, renewable resource, and alternative fuel projects. Eligible alternative fuel projects include fuel production facilities, dedicated feedstock production, fueling stations, and fleet vehicles. The program issues Oregon general obligation bonds to provide funds for the loans. Loan recipients must complete a loan application and pay a loan application fee. (Reference Oregon Revised Statutes 470.050)

Point of Contact

Rick Wallace
Biofuels Coordinator
Oregon Department of Energy
Phone (503) 378-4040 x366
Fax (503) 373-7806
rick.wallace@state.or.us
http://egov.oregon.gov/energy/loans

Biofuels Production Property Tax Exemption

Property used to produce biofuels may be eligible for a property tax exemption, provided that it is located in a designated Renewable Energy Development Zone. The Oregon Economic and Community Development Department must receive and approve an application from a qualified rural area to designate the area as a Rural Renewable Energy Development Zone. (Reference Oregon Revised Statutes 285C.350 and 285C.353)

State Laws and Regulations

Provision to Establish Low Carbon Transportation Fuel Standards

The Oregon Environmental Quality Commission (Commission) may adopt low carbon fuel standards for all transportation fuels, including a lifecycle greenhouse gas (GHG) emission standard for the production, storage, transportation and combustion of fuels. The Commission may adopt a schedule to implement standards that reduce average GHG emissions per unit of fuel energy by 10% below 2010 levels by 2020. (Reference House Bill 2186, 2009)

Medium- and Heavy-Duty Truck Retrofit Study

The Oregon Department of Environmental Quality (DEQ) must conduct a study on potential requirements for retrofitting medium- and heavy-duty trucks to reduce aerodynamic drag and to reduce greenhouse gas (GHG) emissions from the trucks. While conducting the study, DEQ must evaluate comparable federal and state requirements; financing opportunities for initial capital costs; differences among trucks; a schedule for implementation; the feasibility of requiring truck distributors to disclose applicable GHG reduction requirements; exemptions and deferrals; and potential restrictions of engine use by parked commercial vehicles. DEQ must submit the report, including recommendations, to the Oregon legislature by October 1, 2010. (Reference House Bill 2186, 2009)

Alternative Fuel Infrastructure Working Group

In order to reduce the state's dependency on gasoline and diesel fuels and to reduce carbon emissions, the Governor of Oregon has convened a Working Group to study and promote alternative fuel vehicles and infrastructure. The Working Group will:
1) Review and evaluate market and policy research on existing alternative fuel infrastructure policies and programs;
2) Identify and encourage opportunities to consistently design, standardize, and operate electric vehicle charging stations;
3) Develop a plan to work with the private sector to build and maintain state alternative fueling stations by October 1, 2010; and
4) Work with the public to ensure that alternative fuel technologies enhance communities and livability and to ensure that the public understands how to utilize investments in infrastructure.

The Working Group is required to provide recommendations to the Governor by December 31, 2009. (Reference Executive Order 08-24, 2008)

Renewable Fuels Mandate

All gasoline sold in the state must be blended with 10% ethanol. This requirement goes into effect within three months after retailers are notified by the Oregon Department of Agriculture (ODA) that Oregon ethanol production has reached 40 million gallons per year. Gasoline containing at least 9.2% agriculturally derived ethanol that meets the standards for ethanol adopted by the ODA, complies with the mandate. For the purpose of the mandate, the ethanol must meet ASTM specification D4806. The governor may suspend the renewable fuels mandate for ethanol if the Oregon Department of Energy finds that ethanol is not available. Beginning in January 2010, gasoline with an octane rating of 91 or above is exempt from this mandate.

All diesel fuel sold in the state must be blended with 2% biodiesel. The biodiesel blending requirement increases to 5% when the production of biodiesel from state sources reaches a level of at least 15 million gallons on an annualized basis. For the purpose of this mandate, biodiesel is defined as a motor vehicle fuel derived from vegetable oil, animal fat, or other non-petroleum resources, that is designated as B100 and complies with ASTM specification D6751. Beginning January 2, 2012, renewable diesel will qualify as a substitute for biodiesel in the blending requirement.

(Reference House Bill 3463 and 3497, 2009, and Oregon Revised Statutes 646.913 and 646.921-646.923)

Biodiesel Quality Testing Procedures

Each biodiesel or other renewable diesel producer, distributor, or importer must retain the certificate of analysis for each batch or production lot of B100 sold or delivered in the state for at least one year. The Oregon Department of Agriculture (ODA) or authorized agents are permitted to examine these records as necessary. The ODA or authorized agents may perform on-site testing or obtain samples of biodiesel or other renewable diesel from any producer, bulk facility, or retail location that sells, distributes, transports, hauls, delivers, or stores biodiesel or other renewable diesel. The related testing cost is the responsibility of the business from which the sample was obtained. (Reference Oregon Revised Statutes 646.923)

Biofuels Program Impact Studies

The Oregon Department of Energy must conduct periodic impact studies related to the biofuels industry in the state. These studies should evaluate such criteria as: jobs created; current and projected feedstock availability; amount of biofuels blends produced and consumed in the state; cost comparison of biofuels blends and petroleum fuel; environmental impacts; and the extent to which Oregon producers import biofuels or biofuels feedstocks from outside the state. The Department of Energy will conduct the first study in 2009, and every two years thereafter through January 1, 2025. (Reference Oregon Revised Statutes 318.031)

Idle Reduction Weight Exemption

The state's maximum weight limitations do not apply to a vehicle equipped with a fully functional idle reduction system designed to reduce fuel use and emissions from engine idling. The vehicle may exceed the weight limitations by up to 400 pounds. (Reference Oregon Revised Statutes 818.030)

Low Emission Vehicle (LEV) Standards

As required by the Oregon LEV program, beginning with Model Year 2009, no individual or company may lease, license, deliver for sale, or sell any new vehicle in the state unless the vehicle is certified to the California emission standards stated in Title 13 of the California Code of Regulations, Section 1962. Vehicles included in the program are passenger cars and light- and medium-duty passenger vehicles. Exemptions may apply. Under this program, all motor vehicle manufacturers must comply with the fleet average emission requirements and the warranty, recall, and other applicable requirements. (Reference Oregon Revised Statutes 468A.360 and Oregon Administrative Rules 340-257)

Vehicle Registration Requirement

Beginning with Model Year 2009, motor vehicle registration applicants must provide proof of compliance with Oregon's low emission motor vehicle standards. This requirement applies to new vehicles with no more than 7,500 miles on the odometer when the vehicle is initially registered. The Oregon Department of Transportation may adopt rules that exempt certain new motor vehicles from the requirement. (Reference Oregon Revised Statutes 803.350)

Hydrogen Promotion

The Oregon legislature supports hydrogen development and recommends that hydrogen be a top priority of current and future renewable energy research, policy, and programmatic initiatives by the state. (Reference House Resolution 1, 2007)

Regional Climate Change Initiative

Governors of Oregon, Washington, and California approved a series of recommendations for action to combat global warming, as detailed in the West Coast Governors' Global Warming Initiative. It was determined that the three states must act individually and regionally to reduce greenhouse gases (GHGs). The initiative includes adopting standards to reduce GHG emissions from vehicles by expanding markets for efficiency, renewable energy and alternative fuels, including creating a working group on developing hydrogen fuel. Building upon this commitment, Oregon joined other western states and several Canadian provinces and signed an agreement establishing the Western Climate Initiative, a joint effort to reduce GHG emissions and address climate change.

State Climate Change Commission

The Oregon Global Warming Commission (Commission) was created to develop long-term policy recommendations to reduce greenhouse gas (GHG) emissions in Oregon, pursuant to the following goals:

• By 2010, stop the increase of Oregon's GHG emissions and begin to reduce GHG emissions;
• By 2020, achieve GHG levels that are 10% below 1990 levels; and
• By 2050, achieve GHG levels that are at least 75% below 1990 levels.

The Commission follows the work of the Climate Change Integration Group to track and report on the state's progress on GHG emissions reductions and assess future economic and societal implications of climate change. The Commission submitted the 2009 Report for the Legislature (PDF 1.4 MB) in January 2009. Download Adobe Reader

(Reference Executive Order 06-02, 2006, and Oregon Revised Statutes 184.423)

Alternative Fuel Vehicle (AFV) Acquisition, Fuel Use, and Emissions Reductions Requirements

State law requires that all state agencies and transit districts purchase AFVs and use alternative fuels to operate these vehicles to the maximum extent possible, except when it is not economically or logistically possible to purchase or fuel an AFV. Additionally, each state agency is required to develop and report a greenhouse gas reduction baseline and determine annual reduction targets. Reports to the Oregon Department of Administrative Services must include the volume of ethanol and biodiesel used by state agency fleets, as well as any cost savings attributable to driving more fuel-efficient vehicles and using alternative fuels. (Reference Oregon Revised Statutes 283.327 and 267.030, and Executive Order 06-02, 2006)

Pollution Control Equipment Exemption

Dedicated original equipment manufactured natural gas vehicles and electric vehicles are not required to be equipped with a certified pollution control system. (Reference Oregon Revised Statutes 815.300)

Electric Vehicle (EV) and Hybrid Electric Vehicle (HEV) Registration Fees

EVs and HEVs are registered biennially, with the exception of new vehicles for which new registration plates are issued. Certain vehicles, including school vehicles and commercial buses that are EVs or HEVs follow an annual registration period. The registration fee is $43 per vehicle for each year of the registration period. There is an additional fee for EVs or HEVs in certain weight categories. (Reference House Bill 2001, 2009, and Oregon Revised Statutes 803.415 and 803.420)

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four wheeled motor vehicle capable of reaching speeds of up to 20 miles per hour (mph) but not more than 25 mph, and may not be operated on a highway that has a posted speed limit of more than 35 mph. However, a city or county may adopt an ordinance allowing operation of low-speed vehicles on city streets or country roads that have posted speed limits of more than 35 mph. The Oregon Department of Transportation must adopt minimum safety standards for low-speed vehicles, and may deny a vehicle registration if the vehicle does not meet the safety standards. (Reference House Bill 2001, 2009, and Oregon Revised Statutes 801.331 and 811.512)

Medium-Speed Electric Vehicle Access to Roadways

A medium-speed electric vehicle is defined as a four wheeled motor vehicle that is equipped with a roll cage or a crushproof body design and is capable of reaching speeds of up to 35 miles per hour (mph). A medium-speed electric vehicle may not be operated on a highway that has a posted speed limit of more than 45 mph. A city or county may adopt ordinances that allow the operation of medium-speed electric vehicles on city streets or county roads that have posted speed limits of more than 45 mph. The Oregon Department of Transportation must adopt minimum safety standards for medium-speed electric vehicles, and may deny a vehicle registration if the vehicle does not meet the safety standards. (Reference House Bill 2001, 2009)

Renewable Fuels Mandate - Portland

All gasoline sold within the Portland city limits must contain a minimum of 10% ethanol (E10), and diesel fuel must contain a minimum of 5% biodiesel (B5) and must meet ASTM D6751 standards. The diesel blend requirement will increase to 10% biodiesel on July 1, 2010. Fuel vendors must place signage denoting the type of biofuels mixture available for sale. A retailer who offers a biodiesel blend of 20% (B20) or greater is exempt from the requirement and is allowed to provide for sale, on the same site or a contiguous site, diesel fuel that does not contain biodiesel. (Reference Portland Policy Documents ENN-6.02)

Biofuels Use Requirement - Portland

All Portland city-owned diesel vehicles must use a minimum B20 biodiesel blend, all city-owned gasoline vehicles must use a minimum of E10 ethanol blended gasoline, and all city-owned flexible fuel vehicles must use E85. (Reference Portland Policy Documents ADM-1.12 and Portland Code and Charter 16.60)

Utilities/Private Incentives

Idle Reduction Incentives

Cascade Sierra Solutions (CSS), an Oregon based non-profit organization, provides comprehensive idle reduction solutions for commercial trucks and trailers nation-wide. Programs support all verifiable technologies that save fuel and reduce diesel emissions including alternative fuel and hybrid vehicle technologies. Any fuel saving technology qualified as a U.S. Environmental Protection Agency's SmartWay Transport Carrier Strategy and approved by the CSS Technical Advisory Team is eligible for financing. Options for upgrades or vehicle replacement are available to registered truck owners. CSS combines available grants and tax incentives with a revolving loan fund to provide affordable leasing arrangements. Small Business Administration working capital loans and group insurance for truckers are also available.

Point of Contact

Sharon Banks
Founder, CEO
Cascade Sierra Solutions
Phone (541) 302-0900
Fax (541) 345-8727
sharon@cascadesierrasolutions.org
https://secure.cascadesierrasolutions.org

Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Matt Hale Clean Cities Coordinator	Columbia Willamette Clean Cities Coalition, Inc.	Phone:(503) 373-7560 Fax:(503) 373-7806
Sue Kupillas Clean Cities Coordinator	Rogue Valley Clean Cities Coalition	Phone:(541) 245-0770 Fax:(541) 245-0880
Kay Kelly Project Manager	U.S. Department of Energy, Golden Office	Phone:(303) 275-6037 Fax:
Rick Wallace Biofuels Coordinator	Oregon Department of Energy	Phone:(503) 378-4040 x366 Fax:(503) 373-7806
Deby Davis Program Analyst	Oregon Department of Energy	Phone:(503) 378-4040 x291 Fax:(503) 373-7806
Sharon Banks Founder, CEO	Cascade Sierra Solutions	Phone:(541) 302-0900 Fax:(541) 345-8727
Chris Galati Director, Conservation and Technology	NW Natural Gas	Phone:(503) 721-2472 Fax:(503) 721-2539
Brian Boothe Fleet Service Representative (Western Oregon)	U.S. General Services Administration	Phone:(360) 696-7541 Fax:(360) 696-7502
Julie Shain Fleet Manager (Central/Eastern Oregon)	U.S. General Services Administration	Phone:(208) 321-9150 Fax:(208) 321-9518