Current through Register Vol. 63, No. 9, September 1, 2024
(1) Applicability: The tiered priority system
applies to applications for facilities that use or produce renewable energy
resources, or are listed as renewable energy resources, as defined under ORS
469B.130.
(2) Process: The department will issue a BETC
Opportunity Announcement (OA) detailing the availability of potential tax
credits for renewable facilities, the criteria to be applied in selecting
facilities for allocation of available potential credits, and soliciting
applications within a set time period. Applications will be reviewed within
tiers, differentiated by facility cost. The process and level of review differ
between tiers as specified in these rules and the OA. The requirements for
issuance of preliminary and final certifications within these rules will apply
to all applications allocated potential tax credits through the tiered priority
system.
(a) Tier one application acceptance
and review will be completed on an ongoing basis subject to the tax credit
limitations published by the department. Complete applications will be
processed in the order they were received and may be rejected once the
department has received applications totaling all available credits for this
tier.
(b) Tier two application
review will consist of an OA and three review steps:
(A) OA: The department will issue an OA and
collect applications.
(B) Step one:
Applications will be reviewed against initial standards, which will include
criteria that will ensure those that advance are complete and that the facility
can be completed prior to the program sunset. The fee for step one is
non-refundable. Applications that do not proceed to step two or three may
reapply during a future OA.
(C)
Step two: Applications will be reviewed for priority against standards and
criteria detailed in the OA and initial allocations of available potential tax
credit will be made. Applications that proceed to step three will be required
to submit an additional non-refundable fee.
(D) Step three: Technical review of proposed
facilities will be completed, allocations of potential tax credits confirmed
and announced, and preliminary certifications issued.
(c) Tier three application review will
consist of an OA and three review steps:
(A)
OA: The department will issue an OA and collect applications.
(B) Step one: Applications will be reviewed
against initial standards specified within the OA to include ensuring those
that advance are complete, and that the facility can be completed prior to the
program sunset. The fee for step one is non-refundable. Applications that do
not proceed to step two or three may reapply during a future OA.
(C) Step two: Applications will be reviewed
for priority against standards and criteria detailed in the OA and initial
allocations of available potential tax credit will be made. Applications that
proceed to step three will be required to submit an additional fee.
(D) Step three: Technical review of proposed
facilities will be completed and allocations of potential tax credits confirmed
prior to the issuance of a preliminary certification. If the department
determines that it does not have the appropriate resources available to conduct
the review, the department may notify the applicant that the department intends
to use a third party to conduct the technical review. If a third party is used,
the applicant will be required to submit payment to the department approved
third party for the review.
(3) Tier Boundaries:
(a) Tier one shall consist of applications
with projected facility cost less than $500,000.
(b) Tier two shall consist of applications
with projected facility cost equal to or greater than $500,000 but less than
$6,000,000.
(c) Tier three shall
consist of applications with projected facility cost equal to or greater than
$6,000,000.
(d) For the purposes of
determining tier assignment, facility cost shall not be limited as defined in
ORS 469B.142.
(e) Applicants may apply for less than the
maximum eligible potential tax credit for their project, this shall not change
the tier within which the application is reviewed.
(4) Allocation of tax credits between tiers
and application periods
(a) The department
shall announce the allocation of potential tax credits. The OA will specify the
distribution of funding for the appropriate tiers and the amount allocated to
the current application period. The department will continually monitor the
rate of allocation of potential tax credits to ensure the total amount of
potential tax credits does not exceed the limits provided in Oregon Laws, 2010,
Chapter 76, Section 2.
(b) If no
applications are received within an application period for any tier, the
allocated potential tax credits for that period and tier will be reallocated by
the department. If the total request from all complete applications received
for a period and tier is less than the allocated potential tax credits, the
department will review all applications to determine that they meet any
applicable standards prior to allocating potential tax credits, and
reallocating remaining potential tax credits. If allocated potential tax
credits remain but are insufficient to satisfy the request of the next
applicant, the Director may offer a reduced tax credit amount or reallocate the
remaining potential tax credits.
(c) Potential tax credit amounts that are not
allocated to a facility at the end of a limitation period specified in Oregon
Laws, 2010, Chapter 76, Section 5 will expire.
(5) Application acceptance periods
(a) Tier one applications will be accepted at
any time prior to the sunset, while allocated funds are available.
(b) Tier two and three applications will only
be accepted during an application acceptance period specified in an OA.
Applications for tier two and three received outside of an application
acceptance period will not be accepted.
(6) Criteria. The department will announce
specific standards and criteria that will be considered in determining
eligibility in the OA. In addition to the criteria listed in Oregon Laws, 2010,
Chapter 76, Section 6, criteria for tiered two and three potential tax credits
may include:
(a) The completeness of the
application and whether it was received within the time period specified in the
OA;
(b) The appropriate application
payment;
(c) The time frame in
which actual construction will be started and completed and the ability to meet
all regulatory requirements including program deadlines;
(d) Criteria established in statute or rules
that apply to the BETC program;
(e)
The simple payback period;
(f) The
number of jobs created;
(g) Whether
the renewable activities were aligned with conservation activities;
(h) The financing structure of the
facility;
(i) The reliability of
power created;
(j) Whether the
facility is combined heat and power or co-gen system;
(k) If the applicant is a public body,
whether a competitive bidding process was utilized;
(l) Nationally recognized standards or
practices for the specified technology; and
(m) Any other factors listed in the
OA.
(7) Incomplete
applications
(a) The department will determine
if an application is complete. An application is incomplete if it does not
include information needed to demonstrate substantive compliance with the
provisions of ORS 469B.130 to 149B.169 and any
applicable rules, standards and criteria in the OA, rules or otherwise adopted
by the Director.
(b) For tier one
the department will provide a written notice to applicants that the application
is incomplete, specifying the information needed to make the application
complete. Applicants will be allowed 30 days from the time of notification by
the department to provide specified information. The application expires if the
applicant does not supply the information within 30 days.
(c) Incomplete applications for tier two or
three will not be accepted for the current OA. Applicants may reapply and
resubmit their application during the next OA.
(8) Prioritization within tiers
(a) Applications within tier one are not be
subject to prioritization, but will be required to meet listed standards and
other requirements of the BETC program. If the Director receives applications
for preliminary certification with a total amount of potential tax credits in
excess of the allocation for tier one, the Director will allocate potential tax
credits in the order in which complete applications are received.
(b) Applications within tiers two and three
will be ranked within each tier against required criteria specified within the
OA in effect at the time of application acceptance, and must meet the
requirements of the OA and the BETC program.
(9) Allocation of potential tax credits
within tiers:
(a) Potential tax credits
available within an application period will be allocated to applications in
order of the priority established under section (8) and as determined by the
procedure in the OA. Applicants may be offered less potential tax credit than
requested in their application.
(b)
For tiers two and three, applicants will have 10 business days to respond in
writing to the department's written notification of the offer of preliminary
certification. Applicants who do not respond during this period will be
considered to have rejected the offer of the preliminary certification. If an
applicant does not accept an allocation, the potential tax credits may be
issued to other applications within the period or to future periods or tiers.
Upon written acceptance from the applicant, the department will issue a
preliminary certification under ORS
469B.145.
(10) Applications allocated potential tax
credits: Applicants who are issued a preliminary certification under this
section must follow all department procedures and obtain final certification
prior to issuance of tax credits. Allocation of potential tax credits through
the issuance of a preliminary certification does not guarantee issuance of
final certification.
(11)
Applications not issued preliminary certification: Applications reviewed under
this section and not allocated potential tax credits will be notified by the
department. Applicants may make application for the same facility within a
future application period but will not be eligible to carry-forward
applications or fees.
Stat. Auth.: ORS
469.040 &
469.165
Stats. Implemented: ORS
469.185 -
469.225,
315.354,
315.356, HB 3680 2010.
