(1) The Department of Environmental Quality shall use the moneys in the Clean Diesel Engine Fund to award:
(a) Grants and loans to the owners and operators of Oregon diesel engines for up to 100 percent of the certified costs of qualifying retrofits as described in ORS 468A.797 and 468A.799;
(b) Grants and loans to the owners and operators of nonroad Oregon diesel engines for up to 25 percent of the certified costs of qualifying repowers as described in ORS 468A.797 and 468A.799; and
(c) Grants to the owners of Oregon diesel truck engines to scrap those engines.
(2) In determining the amount of a grant or loan under this section, the department must reduce the incremental cost of a qualifying repower or retrofit by the value of any existing financial incentive that directly reduces the cost of the qualifying repower or retrofit, including tax credits, other grants or loans, or any other public financial assistance.
(3) The department may certify third parties to perform qualifying repowers and retrofits and may contract with third parties to perform such services for the certified costs of qualifying repowers and retrofits. The department may also contract with institutions of higher education or other public bodies as defined by ORS 174.109 to train and certify third parties to perform qualifying repowers and retrofits.
(4) The department may not award a grant to scrap an Oregon diesel truck engine under subsection (1)(c) of this section unless the engine was manufactured prior to 1994 and the engine is in operating condition at the time of the grant application or, if repairs are needed, the owner demonstrates to the department’s satisfaction that the engine can be repaired to an operating condition for less than its commercial scrap value. The Environmental Quality Commission shall adopt rules for a maximum grant awarded under subsection (1)(c) of this section for an engine in a heavy-duty truck and for an engine in a medium-duty truck. A grant awarded under subsection (1)(c) of this section may not be combined with any other tax credits, grants or loans, or any other public financial assistance, to scrap an Oregon diesel truck engine.
(5) The department may use the moneys in the Clean Diesel Engine Fund to pay expenses of the department in administering the program described in this section.
(6) The commission shall adopt rules to implement this section and ORS 468A.801, including but not limited to establishing preferences for grant and loan awards based upon percentage of engine use in Oregon, whether a grant or loan applicant will provide matching funds, whether scrapping, repowering or retrofitting an engine will benefit sensitive populations or areas with elevated concentrations of diesel particulate matter, or such other criteria as the commission may establish. The rules adopted by the commission shall reserve a portion of the financial assistance available each year for applicants that own or operate a small number of Oregon diesel engines or Oregon diesel truck engines and shall provide for simplified access to financial assistance for those applicants.
(7) The department may perform activities necessary to ensure that recipients of grants and loans from the Clean Diesel Engine Fund comply with applicable requirements. If the department determines that a recipient has not complied with applicable requirements, it may order the recipient to refund all grant or loan moneys and may impose penalties pursuant to ORS 468.140. [2007 c.855 §10]
Note: Section 11, chapter 855, Oregon Laws 2007, provides:
Sec. 11. The rules adopted by the Environmental Quality Commission pursuant to section 10 (6) of this 2007 Act [468A.803 (6)], beginning on the effective date of this 2007 Act [September 27, 2007] and ending on June 30, 2010, shall reserve 75 percent of the funds available for grants and loans under section 10 of this 2007 Act [468A.803] for Oregon diesel engines that:
(1) Will be used in Oregon for at least 75 percent of the total number of miles that the vehicle is driven during the three years following the repowering or retrofitting of the engine; or
(2) Will be used in Oregon for at least 75 percent of the total number of hours the engine is operated during the three years following the repowering or retrofitting of the engine. [2007 c.855 §11]
Note: Sections 15, 16 and 16a, chapter 855, Oregon Laws 2007, provide:
Sec. 15. (1) The Environmental Quality Commission shall adopt rules to implement this section and sections 12, 13 [sections 12 and 13 are compiled as notes under 315.356] and 16 of this 2007 Act, including rules:
(a) Imposing a nonrefundable application fee of $50 for applications for cost certification of repowers or retrofits that qualify for the tax credit allowed under section 12 of this 2007 Act.
(b) Imposing a nonrefundable application processing fee. The amount of the fee shall be the amount that in the judgment of the commission is needed for the Department of Environmental Quality to recoup its expenses in administering the tax credit cost certification under section 16 of this 2007 Act.
(2) The Environmental Quality Commission shall consult with the Department of Revenue prior to adopting or amending rules under this section. [2007 c.855 §15]
Sec. 16. (1) A person seeking a tax credit under section 12 of this 2007 Act or a person seeking to transfer a tax credit cost certification under section 13 of this 2007 Act shall first apply to the Department of Environmental Quality for certification of the cost of a repower or retrofit of an engine that qualifies for the tax credit under section 12 of this 2007 Act.
(2) The application must contain the following information:
(a) The name, address and taxpayer identification number of the taxpayer;
(b) A statement that the engine on which the repower or retrofit was performed is owned by the applicant and is intended to be an Oregon diesel engine;
(c) A description of the technologies used in the repower or retrofit that are sufficient for the department to determine if the repower or retrofit qualifies for the tax credit;
(d) Invoices or other documentation of the cost and payment of the repower or retrofit; and
(e) Any other information required by the department or required under rules adopted by the Environmental Quality Commission.
(3) The taxpayer shall file the application within one year following the date of the invoice for the qualifying repower or retrofit. The application may not be accepted unless the application includes payment of the nonrefundable fees imposed under rules adopted under section 15 of this 2007 Act.
(4) The department shall consider completed applications and determine if the application describes a repower or retrofit that qualifies for a tax credit under section 12 of this 2007 Act and, if qualified, the certified cost of the repower or retrofit. In determining the amount of a tax credit under this section, the department shall reduce the incremental cost of a qualifying repower or retrofit by the value of any existing financial incentive that directly reduces the cost of the qualifying repower or retrofit, including tax credits, grants, loans or any other public financial assistance. The department shall send written notice of the certified cost to the taxpayer. The department may not certify more than $3 million of tax credits under this section during each calendar year.
(5) If the department determines that a repower or retrofit does not qualify for a tax credit under section 12 of this 2007 Act or certifies a lesser amount than was sought in the application, the taxpayer may appeal the determination as a contested case under ORS chapter 183.
(6) The department shall deposit fees collected under this section in a miscellaneous receipts account established in the State Treasury for the benefit of the department. Amounts in the account are continuously appropriated to the department for the purpose of reimbursing the department for expenses incurred in administering this section. [2007 c.855 §16]
Sec. 16a. Sections 12 to 16 of this 2007 Act are repealed on January 2, 2018. [2007 c.855 §16a]
Note: Sections 38, 41, 44, 50, 51 and 52, chapter 843, Oregon Laws 2007, are substantially the same as ORS 468A.795, 468A.797 and 468A.799 and sections 15, 16 and 16a, chapter 855, Oregon Laws 2007. Sections 38, 41, 44, 50, 51 and 52, chapter 843, Oregon Laws 2007, provide:
Sec. 38. As used in this section and sections 41, 44, 47, 48 [sections 47 and 48 are compiled as notes under 315.356], 50 and 51 of this 2007 Act:
(1) “Combined weight” has the meaning given that term in ORS 825.005.
(2) “Cost-effectiveness threshold” means the cost, in dollars, per ton of diesel particulate matter reduced, as established by rule of the Environmental Quality Commission.
(3) “Heavy-duty truck” means a motor vehicle or combination of vehicles operated as a unit that has a combined weight that is greater than 26,000 pounds.
(4) “Incremental cost” means the cost of a qualifying repower or retrofit less a baseline cost that would otherwise be incurred in the normal course of business.
(5) “Medium-duty truck” means a motor vehicle or combination of vehicles operated as a unit that has a combined weight that is greater than 14,000 pounds but less than or equal to 26,000 pounds.
(6) “Motor vehicle” has the meaning given that term in ORS 825.005.
(7) “Nonroad Oregon diesel engine” means any Oregon diesel engine that was not designed primarily to propel a motor vehicle on public highways of this state.
(8) “Oregon diesel engine” means an engine at least 50 percent of the use of which, as measured by miles driven or hours operated, will occur in Oregon for the three years following the repowering or retrofitting of the engine.
(9) “Oregon diesel truck engine” means a diesel engine in a truck at least 50 percent of the use of which, as measured by miles driven or hours operated, has occurred in Oregon for the two years preceding the scrapping of the engine.
(10) “Public highway” has the meaning given that term in ORS 825.005.
(11) “Repower” means to scrap an old diesel engine and replace it with a new engine, a used engine or a remanufactured engine, or with electric motors, drives or fuel cells, with a minimum useful life of seven years.
(12) “Retrofit” means to equip a diesel engine with new emissions-reducing parts or technology after the manufacture of the original engine. A retrofit must use the greatest degree of emissions reduction available for the particular application of the equipment retrofitted that meets the cost-effectiveness threshold.
(13) “Scrap” means to destroy and render inoperable.
(14) “Truck” means a motor vehicle or combination of vehicles operated as a unit that has a combined weight that is greater than 14,000 pounds. [2007 c.843 §38]
Note: The amendments to section 38, chapter 843, Oregon Laws 2007, by section 39, chapter 843, Oregon Laws 2007, become operative January 2, 2018. See section 40, chapter 843, Oregon Laws 2007. The text that is operative on and after January 2, 2018, is set forth for the user’s convenience.
Sec. 38. As used in this section and sections 41 and 44 of this 2007 Act:
(1) “Combined weight” has the meaning given that term in ORS 825.005.
(2) “Cost-effectiveness threshold” means the cost, in dollars, per ton of diesel particulate matter reduced, as established by rule of the Environmental Quality Commission.
(3) “Heavy-duty truck” means a motor vehicle or combination of vehicles operated as a unit that has a combined weight that is greater than 26,000 pounds.
(4) “Incremental cost” means the cost of a qualifying repower or retrofit less a baseline cost that would otherwise be incurred in the normal course of business.
(5) “Medium-duty truck” means a motor vehicle or combination of vehicles operated as a unit that has a combined weight that is greater than 14,000 pounds but less than or equal to 26,000 pounds.
(6) “Motor vehicle” has the meaning given that term in ORS 825.005.
(7) “Nonroad Oregon diesel engine” means any Oregon diesel engine that was not designed primarily to propel a motor vehicle on public highways of this state.
(8) “Oregon diesel engine” means an engine at least 50 percent of the use of which, as measured by miles driven or hours operated, will occur in Oregon for the three years following the repowering or retrofitting of the engine.
(9) “Oregon diesel truck engine” means a diesel engine in a truck at least 50 percent of the use of which, as measured by miles driven or hours operated, has occurred in Oregon for the two years preceding the scrapping of the engine.
(10) “Public highway” has the meaning given that term in ORS 825.005.
(11) “Repower” means to scrap an old diesel engine and replace it with a new engine, a used engine or a remanufactured engine, or with electric motors, drives or fuel cells, with a minimum useful life of seven years.
(12) “Retrofit” means to equip a diesel engine with new emissions-reducing parts or technology after the manufacture of the original engine. A retrofit must use the greatest degree of emissions reduction available for the particular application of the equipment retrofitted that meets the cost-effectiveness threshold.
(13) “Scrap” means to destroy and render inoperable.
(14) “Truck” means a motor vehicle or combination of vehicles operated as a unit that has a combined weight that is greater than 14,000 pounds.
Sec. 41. (1) The Environmental Quality Commission by rule shall establish standards related to the certified cost necessary to perform a qualifying repower or retrofit, including but not limited to rules establishing the certified cost for purposes of the tax credit established in section 47 of this 2007 Act.
(2) For the purposes of subsection (1) of this section, certified cost:
(a) May not exceed the incremental cost of labor and hardware that the Department of Environmental Quality finds necessary to perform a qualifying repower or retrofit;
(b) Does not include the cost of any portion of a repower or retrofit undertaken to comply with any applicable local, state or federal pollution or emissions law or for ordinary maintenance, repair or replacement of a diesel engine; and
(c) May not exceed the cost-effectiveness threshold. [2007 c.843 §41]
Note: The amendments to section 41, chapter 843, Oregon Laws 2007, by section 42, chapter 843, Oregon Laws 2007, become operative January 2, 2018. See section 43, chapter 843, Oregon Laws 2007. The text that is operative on and after January 2, 2018, is set forth for the user’s convenience.
Sec. 41. (1) The Environmental Quality Commission by rule shall establish standards related to the certified cost necessary to perform a qualifying repower or retrofit.
(2) For the purposes of subsection (1) of this section, certified cost:
(a) May not exceed the incremental cost of labor and hardware that the Department of Environmental Quality finds necessary to perform a qualifying repower or retrofit;
(b) Does not include the cost of any portion of a repower or retrofit undertaken to comply with any applicable local, state or federal pollution or emissions law or for ordinary maintenance, repair or replacement of a diesel engine; and
(c) May not exceed the cost-effectiveness threshold.
Sec. 44. (1) The Environmental Quality Commission by rule shall establish standards for the qualifying repower of a nonroad Oregon diesel engine or retrofit of an Oregon diesel engine, including but not limited to rules establishing repower or retrofit qualifications for purposes of the tax credit established in section 47 of this 2007 Act.
(2) The standards adopted by the commission under this section must include:
(a) A requirement for the reduction of diesel particulate matter emissions by at least 25 percent compared with the baseline emissions for the relevant engine year and application;
(b) A list of technologies approved as qualifying repowers or retrofits that have been verified by the United States Environmental Protection Agency or the California Air Resources Board; and
(c) A requirement that a qualifying repower or retrofit does not include the repower or retrofit of a vehicle or engine for which a tax credit under section 47 of this 2007 Act has been allowed, unless the repower or retrofit will reduce emissions further than the repower or retrofit funded by the tax credit. [2007 c.843 §44]
Note: The amendments to section 44, chapter 843, Oregon Laws 2007, by section 45, chapter 843, Oregon Laws 2007, become operative January 2, 2018. See section 46, chapter 843, Oregon Laws 2007. The text that is operative on and after January 2, 2018, is set forth for the user’s convenience.
Sec. 44. (1) The Environmental Quality Commission by rule shall establish standards for the qualifying repower of a nonroad Oregon diesel engine or retrofit of an Oregon diesel engine.
(2) The standards adopted by the commission under this section must include:
(a) A requirement for the reduction of diesel particulate matter emissions by at least 25 percent compared with the baseline emissions for the relevant engine year and application; and
(b) A list of technologies approved as qualifying repowers or retrofits that have been verified by the United States Environmental Protection Agency or the California Air Resources Board.
Sec. 50. (1) The Environmental Quality Commission shall adopt rules to implement this section and sections 47, 48 and 51 of this 2007 Act, including rules:
(a) Imposing a nonrefundable application fee of $50 for applications for cost certification of repowers or retrofits that qualify for the tax credit allowed under section 47 of this 2007 Act.
(b) Imposing a nonrefundable application processing fee. The amount of the fee shall be the amount that in the judgment of the commission is needed for the Department of Environmental Quality to recoup its expenses in administering the tax credit cost certification under section 51 of this 2007 Act.
(2) The Environmental Quality Commission shall consult with the Department of Revenue prior to adopting or amending rules under this section. [2007 c.843 §50]
Sec. 51. (1) A person seeking a tax credit under section 47 of this 2007 Act or a person seeking to transfer a tax credit cost certification under section 48 of this 2007 Act shall first apply to the Department of Environmental Quality for certification of the cost of a repower or retrofit of an engine that qualifies for the tax credit under section 47 of this 2007 Act.
(2) The application must contain the following information:
(a) The name, address and taxpayer identification number of the taxpayer;
(b) A statement that the engine on which the repower or retrofit was performed is owned by the applicant and is intended to be an Oregon diesel engine;
(c) A description of the technologies used in the repower or retrofit that are sufficient for the department to determine if the repower or retrofit qualifies for the tax credit;
(d) Invoices or other documentation of the cost and payment of the repower or retrofit; and
(e) Any other information required by the department or required under rules adopted by the Environmental Quality Commission.
(3) The taxpayer shall file the application within one year following the date of the invoice for the qualifying repower or retrofit. The application may not be accepted unless the application includes payment of the nonrefundable fees imposed under rules adopted under section 50 of this 2007 Act.
(4) The department shall consider completed applications and determine if the application describes a repower or retrofit that qualifies for a tax credit under section 47 of this 2007 Act and, if qualified, the certified cost of the repower or retrofit. In determining the amount of a tax credit under this section, the department shall reduce the incremental cost of a qualifying repower or retrofit by the value of any existing financial incentive that directly reduces the cost of the qualifying repower or retrofit, including tax credits, grants, loans or any other public financial assistance. The department shall send written notice of the certified cost to the taxpayer. The department may not certify more than $3 million of tax credits under this section during each calendar year.
(5) If the department determines that a repower or retrofit does not qualify for a tax credit under section 47 of this 2007 Act or certifies a lesser amount than was sought in the application, the taxpayer may appeal the determination as a contested case under ORS chapter 183.
(6) The department shall deposit fees collected under this section in a miscellaneous receipts account established in the State Treasury for the benefit of the department. Amounts in the account are continuously appropriated to the department for the purpose of reimbursing the department for expenses incurred in administering this section. [2007 c.843 §51]
Sec. 52. Sections 47, 48, 50 and 51 of this 2007 Act are repealed on January 2, 2018. [2007 c.843 §52]
Section: Previous 468A.755 468A.760 468A.775 468A.780 468A.785 468A.790 468A.793 468A.795 468A.797 468A.799 468A.801 468A.803 468A.820 468A.990 468A.992 NextLast modified: August 7, 2008