HB 3680 represents compromise legislation following the Governor's veto last session & follows direction from Energy and Business Development Departments for reforms
Today the House Revenue Committee passed House Bill 3680, compromise legislation that modifies the Business Energy Tax Credit (BETC) program by strengthening accountability and oversight, setting a cap on program costs, and targeting credits for emerging renewable energy technologies by limiting credits for large scale-wind facilities.
"The BETC has helped create thousands of jobs and leverage hundreds of millions of dollars in private investment across the state -- but every tax credit has a shelf life and should be routinely reviewed to ensure it is still necessary to achieve its primary objective," Governor Ted Kulongoski said. "This bill is a solid framework that creates certainty for taxpayers and industry and continues to be a strong economic development tool for communities across Oregon, creating jobs and advancing clean, renewable energy."
Key components of House Bill 3680 are consistent with recommendations the Governor requested last year from the Oregon Department of Energy and Oregon Department of Business Development to improve and strengthen the BETC program. Those components include:
* Strengthening accountability, including establishing performance standards for all projects, claw-back provisions, and eliminating the practice of multiple applications for one project.
* Establishing an alternative credit system for wind that limits the credit to $3.5 million for projects over 10MW in 2010, $2.5 million in 2011 and $1.5 million in 2012 to begin phasing out the credit for large-scale wind.
* Capping total renewable program pre-certification costs at $300 million for the 09-11 biennium.
* Extending the manufacturing BETC sunset date to January 1, 2014 to provide certainty for renewable energy manufacturing industry, and extending the renewable energy and conservation BETC sunset date to July 1, 2012.
* Saving the state General Fund $55 million for the 09-11 biennium and $98 million for the 11-13 biennium.
The Business Energy Tax Credit Program was created by the Oregon Legislature in 1979 to provide an incentive for businesses to invest in energy conservation, renewable energy resources, recycling, and less polluting transportation fuels. The Oregon Department of Energy administers the tax credit program.
The Governor added, "I appreciate the leadership of Chair Burdick and Chair Barnhart and their continued commitment to work with me on a bill that both advances our economic development efforts and clean energy resources, while strengthening accountability and fiscal responsibility."
House Bill 3680 will move to the House floor next week for a vote.