Vetoed by Governor Ted Kulongoski

Full Bill Text
Veto Letter

Vote Smart's Synopsis:

Vote to adopt a conference report that modifies existing law regarding renewable energy facilities and renewable energy tax credits.

Highlights:

-Modifies existing law regarding tax credits for energy conservation facilities in the following manner (Sec. 7):

-Existing law: for a facility that uses or produces renewable energy resources or is a renewable energy resource equipment manufacturing facility, the credit allowed in each of five succeeding tax years shall be 10 percent of the certified cost of the facility, but may not exceed the tax liability of the taxpayer; -New law:
-For a facility that uses or produces renewable energy resources and has an installed capacity of more than 10 megawatts, the credit allowed in each of five succeeding tax years shall be 7 percent of the certified cost of the facility, but may not exceed the tax liability of the taxpayer; and -For (1) a renewable energy resource equipment manufacturing facility or (2) a facility with an installed capacity of 10 megawatts or less that uses or produces renewable energy resources or a high-efficiency combined heat and power facility with an installed capacity of 10 megawatts or less, the credit allowed in each of five succeeding tax years shall be shall be 10 percent of the certified cost of the facility, but may not exceed the tax liability of the taxpayer.

-Includes facilities used primarily to manufacture electric vehicles and their component parts (not including such components that may also be used in conventional vehicles) in the definition of "renewable energy resource equipment manufacturing facility," thus making such electric vehicle facilities eligible for renewable energy tax credits (Sec. 3). -Prohibits the State Department of Energy from issuing a preliminary certification for the erection, construction, installation, or acquisition of a large facility (a facility with a projected cost of $5 million or more), which includes energy facilities, recycling facilities, transportation facilities, car sharing facilities, sustainable building practices facilities, and alternative fuel vehicle facilities, unless the applicant for preliminary certification establishes the following (Sec. 2):

-That the applicant has applied for all licenses and permits required by state or local law; -That the applicant is not in arrears on any tax owed to the state or to a local government; and -That, to the satisfaction of the department, the facility will be in continuous operation for at least five years after it is placed in operation.

-Prohibits the State Department of Energy from issuing a final certification for a large facility (a facility with a projected cost of $5 million or more), which includes energy facilities, recycling facilities, transportation facilities, car sharing facilities, sustainable building practices facilities, and alternative fuel vehicle facilities, unless the applicant for final certification establishes the following (Sec. 2):

-That the applicant has applied for all licenses and permits required by state or local law; -If the Department chooses to make this a condition, that the applicant is not in arrears on any tax owed to the state or to a local government during the period that the certificate is valid; and -If the Department chooses to make this a condition, that, to the satisfaction of the department, the facility will be in continuous operation for at least five years after it is placed in operation.

-Allows the Director of the State Department of Energy to revoke the certification of a large facility for which the certificate holder has failed to do any of the following (Sec. 6):

-Apply for all licenses and permits required by state or local law; -Not be in arrears on any tax owed to the state or to a local government; and -To the satisfaction of the department, show that it will remain in continuous operation for at least five years after it is placed in operation.

-Limits the installed capacity to a maximum of 10 megawatts for facilities that are eligible for up to $20 million in renewable energy tax credits each year, which include high-efficiency combined heat and power facilities and facilities that use or produce renewable energy resources (Sec. 4).

Full Bill Text

Vote Smart's Synopsis:

Vote to adopt a conference report that modifies existing law regarding renewable energy facilities and renewable energy tax credits.

Highlights:

-Modifies existing law regarding tax credits for energy conservation facilities in the following manner (Sec. 7):

-Existing law: for a facility that uses or produces renewable energy resources or is a renewable energy resource equipment manufacturing facility, the credit allowed in each of five succeeding tax years shall be 10 percent of the certified cost of the facility, but may not exceed the tax liability of the taxpayer; -New law:
-For a facility that uses or produces renewable energy resources and has an installed capacity of more than 10 megawatts, the credit allowed in each of five succeeding tax years shall be 7 percent of the certified cost of the facility, but may not exceed the tax liability of the taxpayer; and -For (1) a renewable energy resource equipment manufacturing facility or (2) a facility with an installed capacity of 10 megawatts or less that uses or produces renewable energy resources or a high-efficiency combined heat and power facility with an installed capacity of 10 megawatts or less, the credit allowed in each of five succeeding tax years shall be shall be 10 percent of the certified cost of the facility, but may not exceed the tax liability of the taxpayer.

-Includes facilities used primarily to manufacture electric vehicles and their component parts (not including such components that may also be used in conventional vehicles) in the definition of "renewable energy resource equipment manufacturing facility," thus making such electric vehicle facilities eligible for renewable energy tax credits (Sec. 3). -Prohibits the State Department of Energy from issuing a preliminary certification for the erection, construction, installation, or acquisition of a large facility (a facility with a projected cost of $5 million or more), which includes energy facilities, recycling facilities, transportation facilities, car sharing facilities, sustainable building practices facilities, and alternative fuel vehicle facilities, unless the applicant for preliminary certification establishes the following (Sec. 2):

-That the applicant has applied for all licenses and permits required by state or local law; -That the applicant is not in arrears on any tax owed to the state or to a local government; and -That, to the satisfaction of the department, the facility will be in continuous operation for at least five years after it is placed in operation.

-Prohibits the State Department of Energy from issuing a final certification for a large facility (a facility with a projected cost of $5 million or more), which includes energy facilities, recycling facilities, transportation facilities, car sharing facilities, sustainable building practices facilities, and alternative fuel vehicle facilities, unless the applicant for final certification establishes the following (Sec. 2):

-That the applicant has applied for all licenses and permits required by state or local law; -If the Department chooses to make this a condition, that the applicant is not in arrears on any tax owed to the state or to a local government during the period that the certificate is valid; and -If the Department chooses to make this a condition, that, to the satisfaction of the department, the facility will be in continuous operation for at least five years after it is placed in operation.

-Allows the Director of the State Department of Energy to revoke the certification of a large facility for which the certificate holder has failed to do any of the following (Sec. 6):

-Apply for all licenses and permits required by state or local law; -Not be in arrears on any tax owed to the state or to a local government; and -To the satisfaction of the department, show that it will remain in continuous operation for at least five years after it is placed in operation.

-Limits the installed capacity to a maximum of 10 megawatts for facilities that are eligible for up to $20 million in renewable energy tax credits each year, which include high-efficiency combined heat and power facilities and facilities that use or produce renewable energy resources (Sec. 4).

Full Bill Text