(1)“Applicant”: An applicant means:
(e)A person who applies for a preliminary certification of a Manufacturing BETC under this section includes:
(A)Individuals, corporations, associations, firms, partnerships, limited liability companies and joint stock companies.
(B)Any cooperative, non-profit corporation, or federal, state or local governments including school districts, water districts, or any other special districts. These entities are qualified applicants when they have a qualified pass-through partner, or commit to select such a partner prior to final certification. These entities must follow all procurement processes, including competitive bid, where applicable.
(f)A person who applies for a final certification of a Manufacturing BETC under this section must be the facility owner listed on the preliminary certification.
(g)The tax credit certificate will be issued to a facility owner or a qualified pass-through partner, but the tax credit may only be claimed pursuant to ORS 315.354 (Energy conservation facilities).
(h)An applicant for preliminary certification or final certification or a tax credit recipient may not include any business or non-profit corporation or cooperative that restricts membership, sales or service on the basis of race, color, creed, religion, national origin, sexual preference or gender.
(2)“Certified cost”: The cost certified in the final certification issued pursuant to ORS 469.215.
(3)“Completed Application”: Contains all of the information required in these rules and payments under OAR 330-091-0150 (Budget Limits and Payments). All questions on the application must be answered. A completed application for final certification must also include a completed, signed pass-through partner(s) agreement form, where the facility owner chooses to transfer the tax credit. No application for a final certification in which the facility owner has indicated a choice to transfer the tax credit under ORS 469.206 is considered complete until the Department receives both the completed final certification application form from the facility owner and the completed pass-through partner agreement form for the tax credit, or portion of the tax credit, being transferred to the pass-through partner.
(4)“Completed Facility”: A facility for which all costs have been paid or committed by a binding contract or agreement and that is installed and operating or, in the case of a Research, Development and Demonstration facility, which the Director determines the applicant has made all reasonable efforts to operate, including making changes required by the Department.
(5)“Component Parts of Electric Vehicles”: means component parts for use solely in Electric Vehicles and not in conventional vehicles. Component parts shall be distinguished by their absence from conventional vehicles and shall not include components that can be used interchangeably in both electric and conventional vehicles. For the purpose of this definition, “conventional vehicle” is a production vehicle that is powered with an internal combustion engine, excluding hybrids.
(6)“Cost”: The actual capital costs and expenses needed to acquire, erect, design, build, modify, or install a facility that is eligible to receive a Manufacturing BETC. Costs financed with federal funds, subject to specific restrictions, terms and conditions may be eligible expenses, including but not limited to costs incurred by federal agencies directly for capital, operating, or other expenses.
(a)Cost can include payments for:
(A)Fees to finance, design or engineer the facility, including but not limited to debt fees and equity fees;
(B)Title searches, escrow fees, government fees, excluding fees required by OAR 330-091-0150 (Budget Limits and Payments), and shipping;
(C)All materials and supplies needed for the erection, construction, installation or acquisition of the proposed facility; and
(D)Work performed by employees or independent contractors of the applicant based on the following conditions:
(i)Employees or contractors must be certified, accredited, licensed, or otherwise qualified to do the work;
(ii)The work must be associated with the erection, construction, installation or acquisition of the proposed facility or in the case of a research development and demonstration facility, the work shall be directly related to the research, development, demonstration, facility design, monitoring, assessment, evaluation and reporting related to the product or technology;
(iii)Project management and other similar costs may only account for up to 15 percent of the total eligible costs; and
(iv)Costs for employee’s or contractor’s work on the energy facility must be detailed and documented as to specific tasks, hours worked, and compensation costs. Donated, in-kind or volunteer labor is not eligible; and
(E)Costs for legal counsel that is directly related to the development of a qualifying facility (non-litigation related) or directly linked to the research, development or demonstration facility (excluding patents, copyrights, etc.).
(b)Cost may not include:
(A)Interest and warranty charges;
(B)Litigation or other operational-related legal fees and court costs;
(C)Patent searches, application and filing payments;
(D)Costs to maintain, operate, or repair a facility;
(E)Administrative costs to apply for grants, loans, tax credits or other similar funding for a facility including, but not limited to, the BETC charge, costs associated with the creation and development of the CPA verification letter and costs associated with securing a pass-through partner for the facility;
(F)Routine operational or maintenance costs associated with the facility, including services, supplies and labor;
(G)Expenses related to training, education or other related expenses;
(H)Expenses that are directly or indirectly offset with federal fee waivers; or
(I)Other costs the Director excludes.
(c)If a facility is built under a lease, lease-option or lease-purchase contract, the lessee’s cost to acquire the facility is the value paid for the facility. If that amount is not known, the cost is the sum of:
(A)Tax credits passed-through by the lessor to the lessee;
(B)The amount paid when the facility is transferred; and
(C)The lease payments not including taxes, insurance, interest, and operating costs.
(D)Payments to be made in the future must be discounted to present value.
(d)The Department may conduct inspections to verify eligible costs.
(e)Eligible facility costs are limited by costs for a facility, or portion thereof, that has previously received a Business Energy Tax Credit.
(f)The sum of any payments from federal grants or credits and the Manufacturing BETC may not exceed total costs.
(7)“Director”: The Director of the Oregon Department of Energy or designees.
(8)“The Department”: The Department of Energy.
(9)“Facility Operator”: The person or people to whom the applicant gives authority to manage a facility. Such person or people will be the applicant’s agent for all reasons related to the facility once its development begins.
(10)“Facility Owner”: An applicant who purchases and owns a qualified facility.
(11)“Facility Start” prior to erection, construction, installation or acquisition: The earliest date on or after the date of the application that meets one of the following criteria:
(a)A non-refundable deposit will be placed on the facility equipment;
(b)A purchase order will be placed for the equipment;
(c)A contract for the design of the facility will be executed;
(d)A document that obligates the applicant to proceed with a facility will be executed; or
(e)Any other type of financial commitment towards the erection, construction, installation or acquisition of the facility
(12)“Federal Grant”: Any grant received from the federal government in connection with a facility.
(13)“Final Certification”: Final certificate issued after completion of an approved BETC facility.
(14)“Lease Contract”: A contract between a lessor and a lessee of a facility.
(a)In a lease-purchase contract the lessee owns the facility at the end of the lease and is eligible for the Manufacturing BETC.
(b)In a lease or lease-option contract the lessor owns the facility through the life of the contract and is eligible for the Manufacturing BETC.
(15)“Net Present Value”: A cash payment equivalent to the net present value of the Manufacturing BETC as determined under OAR 330-091-0140 (Pass-through Option Facilities). This is also referred to as the “pass-through rate.”
(16)“Pass-through Option”: An option that allows a facility owner to transfer all or a portion of the facility’s tax credit eligibility to certain persons or businesses in return for a cash payment equivalent to the net present value. A tax credit may be transferred one time only, from the facility owner to an eligible pass-through partner or partners.
(17)“Pass-through Partner”: A personal income tax payer, individual, C corporation or S corporation that is transferred a tax credit certificate in return for a cash payment equivalent to the net present value of all or a portion of the Manufacturing BETC.
(18)“Preliminary Certification”: Preliminary certificate issued upon successful completion of the first stage in obtaining a Manufacturing BETC.
(19)“Renewable Energy Resource Equipment Manufacturing Facility”: means a facility as defined in ORS 469.185 (13) and subject to standards adopted by the Department in these rules.
(20)“Research, Development, and Demonstration Facility (RD&D)”: A facility that complies with (a) through (f):
(a)A facility that is not standard practice and that is likely to produce or produces qualified renewable energy resource equipment products or technologies that are likely to be manufactured in Oregon when commercialized. RD&D Manufacturing BETC applicants’ total lifetime project costs will be determined for a defined period established at the time of the initial application and will be capped at $20,000,000. Additionally, eligible RD&D facilities must comply with one or more of the following criteria:
(A)Research facilities that include a test bench research, prototype or pilot scale construction of a theoretically proved or primary researched technology;
(B)Development facilities that include the new manufacture or initiation of the capability to produce new manufacturing or production capacity in Oregon, excluding development facilities that increase established manufacturing or production capacity in Oregon;
(C)Demonstration facilities that are likely to resolve questions on how to apply new or improve technology though pilot or production scale applications of technology;
(D)Facilities in the Director’s determination are likely to achieve Department goals.
(b)A facility that demonstrates a reasonable potential to result in energy or conservation benefits in Oregon for which the value is likely to exceed the value of the tax credit, based on information filed with the application for preliminary certification.
(c)A qualifying RD&D facility that exclusively supports renewable energy resource equipment manufacturing will be eligible for a 50 percent tax credit.
(d)Eligible costs for a Research, Development or Demonstration facility may include:
(A)Engineering, design and administrative costs
(B)Costs inherent in a research, development and demonstration facility that may not result directly in saved or produced energy. Such costs may include:
(i)Facility design, monitoring, assessment, evaluation and reporting. This includes but is not limited to: the development of standards, specifications, policies and procedures facilitating technology transfer; instruments, and controls.
(ii)Other equipment needed to monitor, assess or evaluate the facility and the impacts of the facility.
(C)The following costs related to demonstration model(s) may be considered eligible:
(i)Materials for the demonstration model(s).
(ii)The manufacturing, construction, assembly, and/or installation of the demonstration model(s).
(iii)Testing and monitoring the demonstration model(s).
(E)Other eligible costs defined by Oregon Administrative Rule.
(e)Ineligible costs for a Research, Development or Demonstration facility may include:
(A)The lease or purchase of land or building(s) unless the applicant can clearly demonstrate to the Director that the cost is necessary and exclusive to the facility.
(B)Other ineligible costs defined by Oregon Administrative Rule.
(f)A Research, Development or Demonstration facility is not eligible to receive a tax credit when the facility’s activities are a refinement of an existing technology and do not represent a strategic, new or potentially large benefit to Oregon.
(21)“Total Cost”: The eligible cost of a facility not limited by ORS 469.200.
(22)“Year”: Calendar year.
Rule 330-091-0110 — Definitions,