How to Use this Guide State Resources Federal Resources State Renewable Portfolio Standards (RPS)

Any person, organization, or local or tribal government wishing to develop a renewable energy project in Idaho, Montana, Oregon, or Washington can submit a proposal to BEF for funding through grants, loans, convertible loans, guarantees, and direct investments.

Oregon

• Bonneville Environmental Foundation
• Business Energy Tax Credit
• Renewable Energy Feasibility Fund
• Small-Scale Energy Loan Program
• Energy Trust of Oregon
• Renewable Energy Systems Property Tax Exemption

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Bonneville Environmental Foundation

Founded in 1998, the Bonneville Environmental Foundation (BEF) supports watershed restoration programs and the development of new sources of renewable energy. BEF markets green power and funds renewable energy projects. BEF regularly purchases renewable energy certificates (also known as Green Tags) from renewable energy project owners and utilities. Please contact BEF’s procurement director in the BEF Portland office to discuss whether sales of GreenTags to BEF makes sense for your project.

In addition, any person, organization, or local or tribal government wishing to develop a renewable energy project in Idaho, Montana, Oregon, or Washington can submit a proposal to BEF, which provides funding through grants, loans, convertible loans, guarantees, and direct investments.

BEF invests in new renewable energy projects such as solar, wind, geothermal, and biomass projects. Grants range from a few thousand dollars for small installations to significant investments in central station grid-connected renewable energy projects. BEF’s share of costs cannot exceed 33 percent of total capital costs and zero percent of operating costs for a generating project. BEF funding cannot go to costs that can be met at prevailing market prices.

Applicants begin the proposal process by submitting a one-to-three page Letter of Enquiry that describes a proposed renewable energy project. Letters of Enquiry may be submitted at any time using the form available at http://www.b-e-f.org/grants/renew_intro.shtm. BEF reviews renewable energy project Letters of Inquiry on a continual basis and invites full project proposals based on demonstrated consistency within the Foundation’s Renewable Energy Program Grant Criteria. Grants or investments may be made year-round in accordance with project merit, needs, and schedules. While most grants will be made on a one-time, one-year basis, BEF will consider multi-year funding where such support is warranted.

Business Energy Tax Credit

Oregon’s Business Energy Tax Credit encourages businesses to invest in energy efficiency. Business Energy Tax Credits are available for solar, wind, geothermal, hydro, and biomass projects that produce, displace, or reclaim energy from waste (e.g., landfill gas projects). To qualify for funding, renewable energy projects must replace at least 10 percent of the electricity, gas, or oil used at a given facility. The energy can be used on site or sold. For example, the St. John’s landfill direct use project—where recovered landfill gas is used to heat kilns at the Ash Grove Cement Company—has qualified for the Business Energy Tax Credit.

The tax credit can cover costs directly associated with the project, including equipment cost, engineering and design fees, materials, supplies, and installation costs. Loan fees and permit costs may also be claimed. However, costs for replacing equipment at the end of its useful life or equipment required to meet codes or other government regulations are not eligible.

The tax credit is for 50 percent of eligible project costs, taken over five years at 10 percent each year. Projects with eligible costs of $20,000 or less may take the credit in one year. Any unused credit may be carried forward up to eight years.

Trade, business, or rental property owners in Oregon are eligible for the tax credit. A “pass-through option” allows a third party with a tax liability to accept the project’s tax credit eligibility and give the project owner a cash payment of approximately 50 percent of the project cost. Non-profits, tribes, schools, and others without tax liability are also eligible under the pass-through option.

You must submit a tax credit application before starting the project. Once the project is approved, the Department of Energy will issue a Preliminary Certificate and you may begin work.

Renewable Energy Feasibility Fund

Oregon’s Renewable Energy Feasibility (REF) Fund was established to encourage the widespread adoption of renewable energy projects that reduce the state’s dependence on fossil-based energy sources and promote sustainable economic development for communities throughout the state. Funds through this program are available to municipalities, including cities, counties, county service districts, Tribal Councils, ports, and other organizations. Entities such as individuals, private businesses, non-profit organizations, schools and universities, and public agencies are not eligible.

Applications should be for feasibility studies that incorporate renewable energy sources for the purpose of generating electricity, heat, and/or fuel and may qualify as a Renewable Resource Project under Oregon's Business Energy Tax Credit (BETC) program. Landfill gas is included as a renewable energy resource under the BETC program. For electricity production, studies are limited to projects that aim for a capacity between 25 kW and 10 MW. For heat and/or fuel generation, eligibility will be determined on a case-by-case basis with an emphasis on small-scale production.

The maximum grant award per study is $50,000. A total of $150,000 was available in the latest round of funding. The applicant is required to provide a minimum of 25 percent of the total feasibility study costs.

Calls for Pre-Proposals are issued twice annually (typically in March/April and September/October). Applicants submit a completed “Intake Form”, and those that meet eligibility requirements are invited to submit a full proposal. Limited funds will be made available during each cycle, as this is a competitive process.

Small-Scale Energy Loan Program

Oregon’s Energy Loan Program promotes energy conservation and renewable energy resource development by providing low-interest, fixed-rate, long-term loans for projects that:

• Conserve natural gas, electricity, and oil.
• Produce energy from renewable resources, such as water, wind, geothermal, solar, biomass (including landfill gas), waste materials, or waste heat.
• Use recycled materials to create products.

The Oregon Department of Energy, which administers the Energy Loan Program, sells bonds to fund the program. A unique provision in the Federal Tax Code can exempt the bonds from both federal and state tax.

Most energy efficiency, renewable energy (including landfill gas energy), and waste heat projects are eligible. Loans can be used to offset costs related to engineering and design, permits, loan fees, and project management. The program accepts applications from individual and commercial customers, schools, special districts, cooperatives, tribes, non-profits, and local, state, and federal agencies. Also eligible are projects proposed by intergovernmental entities and projects located outside of Oregon, provided that they present substantial benefits within Oregon.

Loan terms usually range from 5 to 15 years, depending on available funds and project type. Longer terms may be available. The loan term must be within the expected life of the project. Renewable generation projects, such as landfill gas energy projects, should produce revenue of at least 125 percent of the amount needed to operate the facility and service the loan, or have the backing of an entity to guarantee the loan.

Loan amounts generally range from $20,000 to $20,000,000, though there is no legal maximum loan. The review and approval process for project owners applying for loans of $100,000 or less typically takes two weeks. An advisory committee reviews loans for amounts greater than $100,000. Process time will vary depending upon the complexity of the project.

The Emerald People’s Utility District (EPUD) in Goshen, Oregon, funded the expansion of its landfill gas electricity plant at the Short Mountain Landfill with a $1.5 million loan from the Energy Loan Program. EPUD installed two new gas engine and generator units alongside its two existing units.

Energy Trust of Oregon

The Energy Trust of Oregon is a non-profit organization dedicated to promoting energy efficiency and renewable energy generation. The purpose of the Trust is to help Oregon residents and businesses save energy, increase the comfort of their homes and business, and move toward energy self-reliance. The Trust offers financial assistance for biopower, including landfill gas energy, as well as wind and solar power development, and also works with a network of trade allies, energy experts, and building specialists to help customers.

The Energy Trust's Biopower program accepts proposals for biomass-to-electricity projects on an ongoing basis. There is no funding cap for individual projects. The Trust may fund all or a portion of the above-market costs of a project, defined as the difference between wholesale or retail electricity prices and the cost of electricity generated by the project. There is no fixed percentage for the amount of the above-market costs the Energy Trust will pay. Each project award is unique, and incentives are based on many factors. In most cases, Energy Trust will disburse its awards over time, contingent on the project's actual delivery of electric power to the grid.

Applicants must complete a two-part application process. Applications are posted at www.energytrust.org/RR/index.html.

Renewable Energy Systems Property Tax Exemption

Under Oregon’s property tax exemption, any value added to a property as a result of the installation of a qualifying renewable energy system is not incorporated into the value assessment of the property for property tax purposes. Eligible renewable resources include methane gas systems (including landfill gas), wind, solar, geothermal, water, or fuel cell for heating, cooling, or electricity production. Property owned by those directly or indirectly involved in the energy industry are ineligible. This exemption expires July 1, 2012.