OAR 340-259-0020
Determining the Certified Cost of a Qualifying Repower or Retrofit


(1)

The Department must determine the certified cost of a qualifying repower or retrofit pursuant to this rule.

(2)

The certified cost of a qualifying repower or retrofit may not exceed:

(a)

The incremental cost of labor and equipment that the Department finds necessary to perform a qualifying repower or retrofit; or

(b)

The cost effectiveness threshold.

(3)

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.

(4)

The certified cost of a qualifying retrofit of an Oregon diesel engine may include part or all of the reasonable costs of:

(a)

The retrofit equipment, including delivery charges;

(b)

Supplies directly related to the installation of the retrofit;

(c)

Labor, including any re-engineering of the vehicle or retrofit equipment needed to install the retrofit equipment if performed by:

(A)

A Clean Diesel Service Provider; or

(B)

A Qualified Installer employed by the applicant, and the applicant provides documentation of the employee’s work as to specific tasks, hours worked, compensation, and other information requested by the Department; and

(d)

Other costs directly related to the retrofit, subject to Department approval.

(5)

The certified cost of a qualifying repower of a non-road Oregon diesel engine may include part or all of the reasonable costs of:

(a)

The new engine, used engine, remanufactured engine, electric motors, drives or fuel cells, including delivery charges;

(b)

Additional equipment that must be installed with the new engine, used engine, remanufactured engine, electric motors, drives or fuel cells;

(c)

Supplies directly related to the installation of the new engine, used engine, remanufactured engine, electric motors, drives or fuel cells;

(d)

Removing and scrapping the old engine;

(e)

Labor, including any re-engineering of the vehicle or repower equipment needed to install the new engine, used engine, remanufactured engine, electric motors, drives or fuel cells if performed by:

(A)

A Clean Diesel Service Provider; or

(B)

A Qualified Installer employed by the applicant, and the applicant provides documentation of the employee’s work as to specific tasks, hours worked, compensation, and other information requested by the Department; and

(f)

Other costs directly related to the repower, subject to Department approval.

(6)

Ineligible Costs. The Department may not include the following in the certified cost:

(a)

Expenses for travel;

(b)

Interest and warranty charges;

(c)

Costs of ordinary maintenance, operation, repair or replacement, including spare parts;

(d)

Legal fees and associated costs;

(e)

Fees to finance the project;

(f)

Tax credit application and associated fees;

(g)

Any labor of the owner or operator’s employees not listed in subsections (4)(c) and (5)(e);

(h)

The cost of any portion of a repower or retrofit undertaken to comply with any applicable local, state, or federal pollution or emissions law.

(i)

Costs incurred after the expiration date of the grant or loan agreement;

(j)

Ordinary operating expenses that are not directly related to the project; or

(k)

Other costs the Department excludes.

(7)

The Department may require documentation of any costs claimed by the applicant and may reduce the certified cost of a qualifying repower or retrofit.

Source: Rule 340-259-0020 — Determining the Certified Cost of a Qualifying Repower or Retrofit, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=340-259-0020.

Last Updated

Jun. 8, 2021

Rule 340-259-0020’s source at or​.us