2005 Oregon Code - Chapter 470 :: Chapter 470 - Small Scale Local Energy Projects
Chapter 470 — Small Scale Local Energy Projects
2005 EDITION
SMALL SCALE LOCAL ENERGY PROJECTS
PUBLIC HEALTH AND SAFETY
GENERAL PROVISIONS
470.050Â Â Â Â Definitions
470.060Â Â Â Â Application for loan funds; content; fee
470.065Â Â Â Â Confidentiality of information provided by or on behalf of applicant
470.070Â Â Â Â Small Scale Local Energy Project Advisory Committee
470.080Â Â Â Â Standards for small scale local energy projects; review of applications; referral to committee; committee criteria
470.090Â Â Â Â Approval or rejection of project financing by director; certification of amount of loan; findings; notice
470.100Â Â Â Â Committee review of rejection or approval in different amount; committee appeal to Governor; finality of GovernorÂ’s action
470.110Â Â Â Â Gifts credited to loan fund
470.120Â Â Â Â Limit on loan to amount not funded by other sources
470.130Â Â Â Â Appropriation of loan fund
470.135Â Â Â Â Administration of small scale local energy project loan program funds and accounts
470.140Â Â Â Â Rulemaking authority; biennial report
470.145Â Â Â Â State Department of Energy to develop marketing plan
LOANS AND REPAYMENT
470.150Â Â Â Â Loan contract; security; content
470.155Â Â Â Â Loan contract in form of intergovernmental agreement; provisions
470.160Â Â Â Â Payment from loan fund
470.170Â Â Â Â Security for loan
470.180Â Â Â Â Withholding of state funds due to municipal corporation that defaults on loan
470.190Â Â Â Â Remedies
470.200Â Â Â Â Refinancing of project; use of funds
470.210Â Â Â Â Municipal corporation may enter into loan contract; purchase of municipal corporationÂ’s general or revenue obligation
BONDS
470.220Â Â Â Â Issuance of bonds
470.225Â Â Â Â Procedure for bond issuance and sale
470.230Â Â Â Â Bond proceeds credited to loan fund; use of funds
470.240Â Â Â Â Bonds as general obligation bonds
470.270Â Â Â Â Refunding bonds
470.280Â Â Â Â Bond repayment from sinking fund
470.290Â Â Â Â Bond indebtedness limited to constitutional limit
470.300Â Â Â Â Small Scale Local Energy Project Administration and Bond Sinking Fund; uses; sources
470.310Â Â Â Â Procedure if sinking fund inadequate
GENERAL PROVISIONS
     470.050
Definitions. As used in this chapter, unless the context requires
otherwise:
     (1) “Alternative fuel project” means:
     (a) A fleet of vehicles that are modified or acquired directly from a factory and that:
     (A) Use an alternative fuel including electricity, ethanol, gasohol with at least 10 percent denatured alcohol content, hydrogen, hythane, methane, methanol, natural gas, propane or any other fuel approved by the Director of the State Department of Energy; and
     (B) Produce lower or equivalent exhaust emissions or are more energy efficient than vehicles fueled by gasoline; and
     (b) A facility, including a fueling station, necessary to operate an alternative fuel vehicle fleet.
     (2) “Applicant” means an applicant for a small scale local energy project loan.
     (3) “Committee” means the Small Scale Local Energy Project Advisory Committee created under ORS 470.070.
     (4) “Cooperative” means a cooperative corporation organized under ORS chapter 62.
     (5) “Director” means the Director of the State Department of Energy appointed under ORS 469.040.
     (6) “Eligible federal agency” means a federal agency or public corporation created by the federal government that proposes to use a loan for a small scale energy project. “Eligible federal agency” does not include a federal agency or public corporation created by the federal government that proposes to use a loan for a small scale energy project to generate electricity for sale.
     (7) “Eligible state agency” means a state officer, board, commission, department, institution, branch or agency of the state whose costs are paid wholly or in part from funds held in the State Treasury.
     (8) “Loan” includes the purchase or other acquisition of evidence of indebtedness and money used for the purchase or other acquisition of evidence of indebtedness.
     (9) “Loan contract” means the evidence of indebtedness and all instruments used in the purchase or acquisition of the evidence of indebtedness. For eligible federal or state agencies or municipal corporations that are tax exempt entities, a loan contract may include a lease purchase agreement with respect to personal property.
     (10) “Loan fund” means the Small Scale Local Energy Project Loan Fund created by Article XI-J of the Oregon Constitution.
     (11) “Municipal corporation” has the meaning given in ORS 297.405 and also includes any Indian tribe or authorized Indian tribal organization or any combination of two or more of these tribes or organizations acting jointly in connection with a small scale local energy project.
     (12) “Oregon business” means a sole proprietorship, partnership, company, cooperative, corporation or other form of business entity that is organized or authorized to do business under Oregon law for profit.
     (13) “Recycling project” means a facility or equipment that converts waste into a new and usable product.
     (14) “Small business” means:
     (a) An Oregon business that is:
     (A) A retail or service business employing 50 or fewer persons at the time the loan is made; or
     (B) An industrial or manufacturing business employing 200 or fewer persons at the time the loan is made; or
     (b) An Oregon subsidiary of a sole proprietorship, partnership, company, cooperative, corporation or other form of business entity for which the total number of employees for both the subsidiary and the parent sole proprietorship, partnership, company, cooperative, corporation or other form of business entity at the time the loan is made is:
     (A) Fifty or fewer persons if the subsidiary is a retail or service business; and
     (B) Two hundred or fewer if the subsidiary is an industrial or manufacturing business.
     (15) “Sinking fund” means the Small Scale Local Energy Project Administration and Bond Sinking Fund created in ORS 470.300.
     (16) “Small scale local energy project” means:
     (a) A system, mechanism or series of mechanisms located primarily in Oregon that directly or indirectly uses or enables the use of, by the applicant or another person, renewable resources including, but not limited to, solar, wind, geothermal, biomass, waste heat or water resources to produce energy, including heat, electricity and substitute fuels, to meet a local community or regional energy need in this state;
     (b) A system, mechanism or series of mechanisms located primarily in Oregon or providing substantial benefits to Oregon that directly or indirectly conserves energy or enables the conservation of energy by the applicant or another person, including energy used in transportation;
     (c) A recycling project;
     (d) An alternative fuel project;
     (e) An improvement that increases the production or efficiency, or extends the operating life, of a system, mechanism, series of mechanisms or project otherwise described in this subsection, including but not limited to restarting a dormant project;
     (f) A system, mechanism or series of mechanisms installed in a facility or portions of a facility that directly or indirectly reduces the amount of energy needed for the construction and operation of the facility and that meets the sustainable building practices standard established by the State Department of Energy by rule; or
     (g) A project described in paragraphs (a) to (f) of this subsection, whether or not the existing project was originally financed under this chapter, together with any refinancing necessary to remove prior liens or encumbrances against the existing project.
     (h) A project described in paragraphs (a) to (g) of this subsection that conserves energy or produces energy by generation or by processing or collection of a renewable resource. [1979 c.672 §1; 1981 c.50 §1; 1983 c.188 §1; 1985 c.593 §2; 1993 c.496 §4; 1995 c.551 §8; 1997 c.29 §1; 1999 c.365 §7; 2003 c.186 §55; 2005 c.201 §3]
     470.060
Application for loan funds; content; fee. (1) Any individual who is a
resident of Oregon, an Oregon business, a nonprofit or public cooperative, a
nonprofit corporation, an eligible federal agency, an eligible state agency, a
public corporation created by the state, an intergovernmental entity created
pursuant to an intergovernmental agreement under ORS 190.003 to 190.130, or a
municipal corporation may file with the State Department of Energy an
application to obtain loan funds for a small scale local energy project as
provided in this chapter.
     (2) Applications to obtain funds for a small scale local energy project shall be made in writing on a form prescribed by the State Department of Energy. Applications submitted to the State Department of Energy shall:
     (a) Describe the nature and purpose of the proposed small scale local energy project.
     (b) State whether any purposes other than energy production, but consistent with energy production, will be served by the proposed small scale local energy project, and the nature of the other purposes, if any.
     (c) Include an evaluation of the potential of the small scale local energy project to meet local community energy needs.
     (d) Include an evaluation of the potential environmental impacts of the small scale local energy project.
     (e) State whether any moneys other than those in the loan fund are proposed to be used for the development of the proposed small scale local energy project, and whether any other moneys are available or have been sought for the project.
     (f) Describe the source of funds for repayment of the loan applied for.
     (3) A fee of one-tenth of one percent of the amount of the loan applied for or $2,500, whichever is less, shall be submitted with each application. In addition, the applicant may be required to pay for costs incurred in connection with the application that exceed the application fee and which the Director of the State Department of Energy determines are incurred solely in connection with processing the application. The applicant shall be advised of any additional costs the applicant must pay before the costs are incurred. [1979 c.672 §2; 1981 c.50 §2; 1983 c.188 §2; 1985 c.593 §3; 1997 c.29 §2; 2005 c.201 §4]
     470.065
Confidentiality of information provided by or on behalf of applicant. (1)
The following records, communications and information furnished by or on behalf
of the applicant under this chapter shall be confidential and maintained as
such, if so requested in writing by the person providing the information:
     (a) Personal financial statements;
     (b) Financial statements of applicants;
     (c) Customer lists;
     (d) Information of an applicant pertaining to litigation to which the applicant is a party if the complaint has been filed, or if the complaint has not been filed, if the applicant shows that such litigation is reasonably likely to occur;
     (e) Production, sales and cost data;
     (f) Marketing strategy information that relates to an applicant’s plan to address specific markets or the applicant’s strategy regarding specific competitors, or both; and
     (g) Technical information or data related to an applicant’s proposed small scale local energy project, including but not limited to, any description, analysis, evaluation or projection regarding the project or a component of the project.
     (2) The confidentiality provided by subsection (1)(d) of this section does not apply to concluded litigation. Nothing in subsection (1)(d) of this section limits any right granted by discovery statutes to a party to litigation or potential litigation. [1991 c.118 §2; 2005 c.201 §5]
     Note:
470.065 was added to and made a part of ORS chapter 470 by legislative action
but was not added to any smaller series therein. See Preface to Oregon Revised
Statutes for further explanation.
     470.070
Small Scale Local Energy Project Advisory Committee. (1) The Director of
the State Department of Energy shall appoint a Small Scale Local Energy Project
Advisory Committee to review applications made under ORS 470.060 and rules
adopted under ORS 470.080, and make recommendations thereon to the director.
     (2) Seven members shall be appointed to the Small Scale Local Energy Project Advisory Committee. Each member shall be appointed to serve a two-year term, commencing on the date of appointment, and until a successor is appointed and qualified. The members shall represent the interest of the citizens of this state and shall be knowledgeable in the areas of small scale energy technology, natural resource development, environmental protection, finance, agriculture, local government operations and utility operations. At least three members shall reside outside the Willamette Valley.
     (3) The committee shall elect its own presiding officer, adopt rules for its procedure and meet on call of the presiding officer or a majority of the members. A majority of the members shall constitute a quorum to do business. The director shall provide administrative facilities and services for the committee.
     (4) Members of the Small Scale Local Energy Project Advisory Committee shall be entitled to expenses as provided by ORS 292.495. [1979 c.672 §3; 1987 c.365 §1; 2003 c.186 §56]
     470.080
Standards for small scale local energy projects; review of applications; referral
to committee; committee criteria. (1) After consultation with the Small
Scale Local Energy Project Advisory Committee, the Director of the State
Department of Energy shall establish by rule standards and criteria for small
scale local energy projects to be funded under the provisions of ORS 470.060 to
470.080 and 470.090. The standards and criteria shall operate to encourage
diversity in projects funded, give preference to the maximum extent practical
to projects proposed by individuals and small businesses, ensure acceptability
of environmental impacts and shall require consideration of the potential
contribution of a project if developed at other suitable locations to meeting
the energy needs of this state. The standards and criteria shall give the least
preference to projects proposed by an eligible federal agency.
     (2) All applications submitted under ORS 470.060 shall be reviewed by the State Department of Energy. The department may request that the applicant submit additional information or revise the application. The department shall:
     (a) Determine whether the application meets the standards and criteria adopted under subsection (1) of this section; and
     (b) Recommend approval or denial of the loan application, and if approval is recommended in what amount the loan should be made.
     (3) After concluding its review, unless the application meets the criteria established by the committee under subsection (4) of this section, the department shall refer the application and its findings and recommendation to the committee for its review. The department shall notify the applicant of the date, time and place of any oral presentation to the committee on the application. The committee shall review the application and the department’s findings and recommendations and advise the director whether the proposed small scale local energy project meets the criteria established by the director under subsection (1) of this section, whether the project should be financed with moneys from the loan fund and in what amount the loan should be made if approved.
     (4) The committee may provide for direct referral of an application by the department to the director if the application meets criteria established by the committee. [1979 c.672 §4; 1981 c.50 §3; 1997 c.29 §3; 2003 c.186 §57]
     470.085
[1985 c.593 §8; repealed by 1991 c.118 §4]
     470.090
Approval or rejection of project financing by director; certification of amount
of loan; findings; notice. (1) After consideration of the recommendation of
the Small Scale Local Energy Project Advisory Committee or the State Department
of Energy as provided by ORS 470.080, the Director of the State Department of
Energy may approve or reject the financing of a small scale local energy
project described in an application filed as provided in ORS 470.060, using
moneys in the Small Scale Local Energy Project Loan Fund. Approval of a loan by
the director shall include a certification of the amount of the loan.
     (2) The director’s approval of a loan for a small scale local energy project shall be based on a finding that:
     (a) The proposed small scale local energy project meets established standards and criteria under ORS 470.080;
     (b) The proposed project is consistent with the preservation and enhancement of environmental quality;
     (c) The proposed project is feasible and a reasonable risk from practical and economic standpoints;
     (d) The plan for development of the project is satisfactory;
     (e) The applicant is qualified, creditworthy and responsible and is willing and able to enter into a contract with the director for development and repayment as provided in ORS 470.150;
     (f) There is a need for the proposed small scale local energy project and the applicant’s financial resources are adequate to provide the working capital to maintain the project after completion;
     (g) Moneys in the loan fund are or will be available for the development of the proposed small scale local energy project;
     (h) A dwelling constructed before January 1, 1979, that will be served by a proposed space heating project is weatherized according to the standards established under ORS 469.155;
     (i) Except for a proposed space heating project for a dwelling under paragraph (h) of this subsection, the loan does not finance any project for which the projected economic value of the energy savings of the project during the first year the project is implemented is equal to or greater than the cost of the project; and
     (j) The loan will not preclude individuals and small businesses from access to loan funds.
     (3) The director shall notify the applicant and the presiding officer of the committee of the director’s action and of the reasons for that action. The director shall inform the applicant of the review procedure established in ORS 470.100. [1979 c.672 §5; 1981 c.50 §4; 1981 c.565 §4; 1983 c.188 §3; 2003 c.186 §58; 2005 c.201 §6]
     470.100
Committee review of rejection or approval in different amount; committee appeal
to Governor; finality of GovernorÂ’s action. (1) If the Director of the
State Department of Energy rejects a loan application or approves a loan amount
different than that requested by the applicant, the applicant may request that
the Small Scale Local Energy Project Advisory Committee review the directorÂ’s
action.
     (2) The committee may review the director’s action on its own motion or at the request of the applicant. A majority of the members of the committee may authorize the presiding officer of the committee to appeal the director’s action to the Governor.
     (3) An appeal of the director’s action may be initiated by the presiding officer of the committee no later than 45 days after the date the applicant receives notice of the director’s action under ORS 470.090.
     (4) The decision of the Governor is final. If the Governor fails to act within 30 days after receiving the appeal, the appeal shall be considered to be denied.
     (5) Notwithstanding ORS chapter 183, a decision of the director or the Governor on an application for loan funds under ORS 470.090 or this section is not subject to judicial review. [1979 c.672 §6; 2003 c.186 §59]
     470.110
Gifts credited to loan fund. The Director of the State Department of Energy
may accept gifts of money or other property from any source, given for the
purposes of ORS 470.050 to 470.120, 470.140 (1) and 470.150 to 470.210. Money
so received shall be paid into the loan fund. Money or other property so
received shall be used for the purposes for which received. [1979 c.672 §12;
2003 c.186 §60]
     470.120
Limit on loan to amount not funded by other sources. If the applicant
receives from any source other than the loan fund any funds to assist in the
development of the project, the amount of the loan to the applicant from the
loan fund shall be limited to that amount necessary for the development of
those portions of the project not funded by other sources. [1979 c.672 §15]
     470.130
Appropriation of loan fund. All moneys in the loan fund created by Article
XI-J of the Oregon Constitution are appropriated continuously to the State
Department of Energy and shall be used for the purposes provided in this
chapter. [1979 c.672 §16; 2003 c.186 §61]
     470.135
Administration of small scale local energy project loan program funds and
accounts. The duties of the Director of the Oregon Department of
Administrative Services to establish, maintain and keep accounts of, and make
disbursements or transfers out of, the funds and accounts established or
identified in the two bond indentures, as supplemented, dated June 1, 1981, and
September 1, 1985, that relate to the Small Scale Local Energy Project Loan Program
established by Article XI-J of the Oregon Constitution and this chapter are
transferred to the State Department of Energy. Notwithstanding the transfer of
these fiscal functions to the State Department of Energy, in accordance with
ORS 291.015 (2), the State Department of EnergyÂ’s performance of these fiscal
functions shall remain subject to the control of the Oregon Department of
Administrative Services. [1993 c.496 §2; 2003 c.186 §62]
     470.140
Rulemaking authority; biennial report. (1) In accordance with the
applicable provisions of ORS chapter 183, the Director of the State Department
of Energy may adopt rules considered necessary to carry out the purposes of
this chapter.
     (2) The director shall submit to the Legislative Assembly and the Governor a biennial report of the transactions of the loan fund and the sinking fund in such detail as will accurately indicate the condition of the funds. [1979 c.762 §§13,27; 2003 c.186 §63]
     470.145
State Department of Energy to develop marketing plan. The State Department
of Energy shall develop, implement and periodically update a marketing plan to
inform potential applicants of the availability of small scale local energy
project loans. The first priority of the marketing plan shall be to inform
individuals and small businesses that small scale local energy project loans
are available. [1983 c.188 §9]
LOANS AND REPAYMENT
     470.150
Loan contract; security; content. Except as provided in ORS 470.155, if the
Director of the State Department of Energy approves the financing of a small
scale local energy project, the director, on behalf of the state, and the
applicant may enter into a loan contract, secured by a first lien or by other
good and sufficient collateral in the manner provided in ORS 470.155 to
470.210. For purposes of this section, the interest of the State Department of
Energy under a lease purchase contract entered into with an eligible federal or
state agency or a municipal corporation may constitute good and sufficient
collateral. The contract:
     (1) May provide that the director, on behalf of the state, must approve the arrangements made by the applicant for the development, operation and maintenance of the small scale local energy project, using moneys in the loan fund for the project development.
     (2) Shall provide a plan for repayment by the applicant to the sinking fund of moneys borrowed from the loan fund used for the development of the small scale local energy project and interest on those moneys used at a rate of interest the director determines is necessary to provide adequate funds to recover the administrative expenses incurred under this chapter. The director shall set the interest rate at an incremental rate above the interest rate on the underlying bonds. The incremental rate for projects proposed by an eligible federal agency shall be greater than the incremental rate charged to any other governmental borrower. The repayment plan, among other matters:
     (a) Shall provide for commencement of repayment by the applicant of moneys used for project development and interest thereon not later than two years after the date of the loan contract or at any other time as the director may provide. In addition to any other prepayment option provided in a borrower’s loan agreement, the department shall provide a borrower the opportunity to prepay the borrower’s loan, without any additional premium, by defeasing such loan to the call date of the bond or bonds funding the applicable loan, or any refunding bonds linked to the loan, but such defeasance shall occur only if the director finds that after the defeasance, the sinking fund will have sufficient funds to make payments required under ORS 470.300 (1).
     (b) May provide for reasonable extension of the time for making any repayment in emergency or hardship circumstances, if approved by the director.
     (c) Shall provide for evidence of debt assurance of and security for repayment by the applicant considered necessary or proper by the director.
     (d) Shall set forth the period of loan which shall not exceed the usable life of the completed project, or 30 years from the date of the loan contract, whichever is less.
     (e) May set forth a procedure for formal declaration of default of payment by the director, including formal notification of all relevant federal, state and local agencies; and further, a procedure for notification of all relevant federal, state and local agencies that declaration of default has been rescinded when appropriate.
     (3) May include provisions satisfactory to the director for field inspection, the director to be the final judge of completion of the project.
     (4) May provide that the liability of the state under the contract is contingent upon the availability of moneys in the loan fund for use in the planning and development of the project.
     (5) May include further provisions the director considers necessary to ensure expenditure of the funds for the purposes set forth in the approved application.
     (6) May provide that the director may institute an appropriate action or suit to prevent use of the project financed by the loan fund by any person who is delinquent in the repayment of any moneys due the sinking fund. [1979 c.672 §7; 1985 c.593 §4; 1987 c.365 §2; 1997 c.29 §4; 1997 c.482 §1; 1999 c.365 §8; 2003 c.186 §64]
     470.155
Loan contract in form of intergovernmental agreement; provisions. A loan
contract with an eligible state agency for a small scale local energy project
may be made in the form of an intergovernmental agreement under ORS chapter
190. The agreement shall set forth, among other matters, that:
     (1) The small scale local energy project shall be security for the loan.
     (2) The applicant pledges to request each biennium during the term of the loan, spending authorization or appropriation of funds from the Legislative Assembly or pledges to otherwise provide funds sufficient to pay the loan payments due that biennium.
     (3) If applicable, the pledge of the applicant to repay the loan shall be contingent upon the continued spending authorization or appropriation by the Legislative Assembly of funds sufficient to pay the loan. [1985 c.593 §6; 1991 c.118 §3; 1997 c.29 §5]
     470.160
Payment from loan fund. If the Director of the State Department of Energy
approves a loan for a small scale local energy project, the State Treasurer
shall pay moneys for such project from the loan fund in accordance with the
terms of the loan contract, as prescribed by the director. [1979 c.672 §8; 2003
c.186 §65]
     470.170
Security for loan. (1) When a loan is made under this chapter to an
applicant other than a municipal corporation, the loan shall be secured
pursuant to a mortgage, trust deed, security agreement, pledge, assignment or
similar instrument, by a security interest or lien on real or personal property
in the full amount of the loan or as the Director of the State Department of
Energy shall require for adequate security, including but not limited to
long-term leasehold interests or equitable interests in real property or
personal property. In lieu of, or in addition to, any of the collateral otherwise
described in this subsection, the applicant may secure the loan by providing
credit enhancement, including but not limited to a letter of credit or payment
bond, or a guaranty acceptable to the director.
     (2) When a loan is made to a municipal corporation for the development of a small scale local energy project under this chapter, the loan shall be secured as the director shall require for adequate security. The security may be in the form of a lien, mortgage, interest under a lease-purchase contract or other form of security acceptable to the director and the municipal corporation.
     (3) When a loan made under this chapter is secured by a lien on the real property of the applicant, the director shall perfect the lien by recording as provided by law.
     (4) Upon payment of all amounts loaned to an applicant pursuant to this chapter, the director shall file a satisfaction or release notice that indicates repayment of the loan.
     (5) The director may cause to be instituted appropriate proceedings to foreclose liens for delinquent loan payments, and shall pay the proceeds of any such foreclosure, less the director’s expenses incurred in foreclosing, into the sinking fund. In a foreclosure proceeding the director may bid on property offered for sale in the proceedings and may acquire title to the property on behalf of the state.
     (6) The director may take any action, make any disbursement, hold any funds or institute any action or proceeding necessary to protect the state’s interest.
     (7) The director may settle, compromise or release, for reasons other than uncollectibility as provided in ORS 293.240, all or part of any loan obligation so long as the director’s action is consistent with the purposes of this chapter and does not impair the ability to pay the administrative expenses of the State Department of Energy or the obligations of any bonds then outstanding. [1979 c.672 §9; 1981 c.50 §5; 1983 c.188 §4; 1987 c.365 §3; 1999 c.365 §9; 2001 c.584 §10; 2003 c.186 §66]
     470.180
Withholding of state funds due to municipal corporation that defaults on loan.
In addition to any other remedy available to the State Department of Energy, if
a municipal corporation entitled by law to share in the apportionment of any
state revenues or funds defaults on any payments due to the State of Oregon
under a loan contract entered into under ORS 470.150, the State Department of
Energy may certify that fact to the Oregon Department of Administrative
Services and the Oregon Department of Administrative Services shall withhold
payment of any revenues or funds in the State Treasury to which the municipal
corporation is entitled, in an amount not to exceed the balance owing on the
loan, until the State Department of Energy certifies that the default has been
remedied. [1979 c.672 §10; 1987 c.365 §4]
     470.190
Remedies. If an applicant fails to comply with a contract entered into with
the Director of the State Department of Energy for development and repayment as
provided in ORS 470.150, the director, in addition to remedies provided in ORS
470.170 and 470.180, may seek other appropriate legal remedies to secure the
loan and may contract as provided in ORS 470.150 with any other person for
continuance of development and for repayment of moneys from the loan fund used
therefor and interest thereon. [1979 c.672 §11; 2003 c.186 §67]
     470.200
Refinancing of project; use of funds. If any small scale local energy
project is refinanced or an additional grant or loan intended to finance the
project development is obtained from other sources after the execution of the
loan from the state, all such funds shall be used to repay the state unless the
Director of the State Department of Energy finds that repayment of the state
from the additional grant or loan would be contrary to public interest. [1979
c.672 §14; 1983 c.188 §5]
     470.210
Municipal corporation may enter into loan contract; purchase of municipal
corporationÂ’s general or revenue obligation. (1) Notwithstanding any other
provision of law, a municipal corporation may enter into a loan contract with the
State Department of Energy to finance a small scale local energy project.
     (2) In order to finance a small scale local energy project, the Director of the State Department of Energy, on behalf of the state and in lieu of entering into a loan contract under subsection (1) of this section, may purchase or otherwise acquire a municipal corporation’s general obligations or revenue obligations, including but not limited to bonds, notes, certificates of participation, warrants or lease purchase agreements. [1983 c.188 §8; 2003 c.186 §68; 2005 c.201 §7]
BONDS
     470.220
Issuance of bonds. In order to provide funds for the purposes specified in
Article XI-J of the Oregon Constitution, bonds may be issued as provided in ORS
470.220 to 470.290. [1979 c.672 §17; 1981 c.660 §23; 2005 c.201 §8]
     470.225
Procedure for bond issuance and sale. Bonds described in ORS 470.220 to
470.290 shall be issued in accordance with the applicable provisions of ORS
chapters 286 and 288. The bonds may be sold at a public sale or at a private,
negotiated sale in accordance with ORS 286.710. [2005 c.201 §2]
     470.230
Bond proceeds credited to loan fund; use of funds. Except as provided in
ORS 470.270, all moneys obtained from the sale of bonds under ORS 470.220 to
470.290 shall be credited by the State Treasurer to the loan fund. Those moneys
shall be used only for the purposes stated in Article XI-J of the Oregon Constitution
and ORS 470.050 to 470.120, 470.140 (1) and 470.150 to 470.210, including
payment of the costs of issuing the bonds and of obtaining credit enhancement
for the bonds, and making payments of interest on bonds issued pursuant to the
provisions of ORS 470.220 to 470.290 if there are insufficient funds in the
sinking fund to make the payments referred to in ORS 470.300 (1). Moneys loaned
to municipal corporations but withheld by the State Department of Energy for
security or to pay for future project costs may remain in the loan fund.
Pending the use of the moneys in the loan fund for the proper purposes, the
moneys may be invested in the manner provided by law. [1979 c.672 §18; 1987
c.365 §5; 2003 c.186 §69; 2005 c.201 §9]
     470.240
Bonds as general obligation bonds. All bonds issued under ORS 470.220 to
470.290 shall contain a direct promise of the State of Oregon to pay the
principal amount of the bonds, plus any accrued interest and any redemption
premium. The principal of and the interest and redemption premium, if any, upon
the bonds, when due, shall be paid at the fiscal agency of the State of Oregon.
The charges imposed by that agency for its services shall be paid, upon
approval by the State Treasurer, from the sinking fund. [1979 c.672 §19; 1993
c.496 §5; 2005 c.201 §10]
     470.250
[1979 c.672 §20; 1981 c.50 §6; 1987 c.158 §102; 2003 c.186 §70; repealed by
2005 c.201 §14]
     470.260
[1979 c.672 §23; 1981 c.50 §7; 2003 c.186 §71; repealed by 2005 c.201 §14]
     470.270
Refunding bonds. (1) After consultation with the State Treasurer, the
Director of the State Department of Energy may issue refunding bonds for the
purpose of refunding outstanding bonds issued under ORS 470.220 to 470.290. The
refunding bonds may be sold in the same manner as other bonds are sold under
ORS 470.220 to 470.290. All moneys obtained from the sale of refunding bonds
shall be credited by the State Treasurer to the sinking fund. The issuance of
the refunding bonds, the maturity date, and other details thereof, the rights
of the holders thereof, and the duties of the Governor, Secretary of State and
State Treasurer with respect thereto, shall be governed by the provisions of
ORS 470.220 to 470.290. The refunding bonds may be issued to refund bonds
previously issued for refunding purposes. Pending the use of moneys obtained
from the sale of refunding bonds for proper purposes, such moneys may be invested
in the manner provided by law.
     (2) Notwithstanding any provision of ORS 470.150, if the State Department of Energy issues taxable refunding bonds at a lower interest rate to refund outstanding general obligation bonds, and is unable to allow loan recipients to receive a portion of the interest savings, the director shall allow the loan recipient to prepay the outstanding loan balance upon the request of the recipient. The director shall respond to such a request within 30 days after receiving the request by specifying the outstanding principal balance after applying reserves held by the state for the borrower and the prepayment premium as listed in the bond document, loan document or bond purchase agreement.
     (3) The department shall pursue opportunities for refunding bonds to reduce interest sums payable by the department. When the department refunds a bond with tax-exempt bonds, the department shall share, on an equitable basis, the savings from any refunding with the borrowers whose loans were made with the proceeds of the refunded bonds in an amount consistent with a finding by the director that the sinking fund has, and will continue to have, sufficient funds to make payments required under ORS 470.300 (1). The department may not refund tax-exempt bonds with taxable bonds, unless the department is able to share the savings associated with such a refunding with the borrowers whose loans are linked to such bonds. At least 120 days before the date on which the department intends to issue refunding bonds, the director shall notify each borrower whose loan was made from the proceeds of the bonds being refunded and shall offer the borrower the opportunity to prepay the borrower’s loan. A borrower shall respond within 60 days of the date of the notice described in this subsection if the borrower intends to prepay the borrower’s loan. [1979 c.672 §22; 1995 c.282 §1; 1997 c.482 §2; 2003 c.186 §72; 2005 c.201 §11]
     470.280
Bond repayment from sinking fund. (1) The State Treasurer shall make
payment of the principal of and the interest and redemption premium, if any, on
any bond issued under ORS 470.220 to 470.290 from the sinking fund.
     (2) The State Treasurer shall compute and determine in January of each year, after the sale of bonds under ORS 470.220 to 470.290, the amount of principal, interest and redemption premiums that will fall due during the year on bonds then outstanding and unpaid and shall maintain or hold in the sinking fund sufficient moneys to pay such maturing obligations. [1979 c.672 §§21,24; 2005 c.201 §12]
     470.290
Bond indebtedness limited to constitutional limit. No bonds shall be issued
or sold under ORS 470.220 to 470.290 nor indebtedness incurred thereunder,
which singly, or in the aggregate with previous debts or liabilities incurred
for small scale local energy projects, shall exceed any limitation provided in
the Oregon Constitution at the date of the issuance and sale of such bonds. If
the maximum aggregate principal sum of bonds authorized to be issued under ORS
470.220 to 470.290 exceeds any limitation provided in the Oregon Constitution,
bonds shall be issued under ORS 470.220 to 470.290 in the aggregate principal
sum of not to exceed that authorized under the limitation provided in the
Oregon Constitution. [1979 c.672 §25]
     470.300
Small Scale Local Energy Project Administration and Bond Sinking Fund; uses;
sources. (1) There hereby is created the Small Scale Local Energy Project
Administration and Bond Sinking Fund, separate and distinct from the General
Fund, to provide for payment of:
     (a) Administrative expenses of the State Department of Energy and the Director of the State Department of Energy in processing applications, investigating potential small scale local energy projects and proposed loans and servicing and collecting outstanding loans made under this chapter, if the expense is not paid directly by the applicant.
     (b) Administrative expenses of the State Treasurer in carrying out the duties, functions and powers imposed upon the State Treasurer by this chapter.
     (c) Principal, interest and redemption premium, if any, of all bonds issued pursuant to the provisions of ORS 470.220 to 470.290.
     (d) Net investment earnings on any funds loaned to municipal corporations but withheld as provided in ORS 470.230.
     (e) Costs of issuing the bonds and of obtaining credit enhancement for the bonds.
     (2) The fund created by subsection (1) of this section shall consist of:
     (a) Application fees required by ORS 470.060, unless the department requires the applicant to pay the fee directly for a cost incurred in connection with the application.
     (b) Repayment of moneys loaned to applicants from the loan fund, including interest on such moneys.
     (c) Such moneys as may be appropriated to the fund by the Legislative Assembly.
     (d) Moneys obtained from the sale of refunding bonds and any accrued interest on such bonds.
     (e) Moneys received from ad valorem taxes levied pursuant to Article XI-J of the Oregon Constitution, and all moneys that the Legislative Assembly may provide in lieu of such taxes.
     (f) Interest earned on cash balances invested by the State Treasurer.
     (g) Moneys transferred from the Small Scale Local Energy Project Loan Fund.
     (3) The director, with the approval of the State Treasurer, may transfer moneys from the sinking fund to the loan fund if:
     (a) A cash flow projection shows that, for the term of the bonds outstanding at the time the director transfers the moneys, remaining moneys in the sinking fund, together with expected loan contract payments and fund earnings, will improve the financial basis of the program and will continue to be adequate to pay bond principal, interest, redemption premiums, if any, and administration costs; and
     (b) The transfer will not create the need for issuance of any bonds.
     (4) The director, with the approval of the State Treasurer, may establish separate and distinct accounts within the sinking fund to accomplish the purpose of this section. [1979 c.672 §26; 1981 c.50 §8; 1983 c.188 §6; 1985 c.805 §4; 1987 c.365 §6; 1993 c.496 §6; 2003 c.186 §73; 2005 c.201 §13]
     470.310
Procedure if sinking fund inadequate. (1) If there are insufficient funds
in the sinking fund to make the payments referred to in ORS 470.300 (1), the
Director of the State Department of Energy may request the funds necessary for
such payments from the Legislative Assembly or the Emergency Board.
     (2) When the director determines that moneys in sufficient amount are available in the sinking fund, the State Treasurer shall reimburse the General Fund without interest, in an amount equal to the amount allocated by the Legislative Assembly or the Emergency Board pursuant to subsection (1) of this section. The moneys used to reimburse the General Fund under this subsection shall not be considered a budget item on which a limitation is otherwise fixed by law, but shall be in addition to any specific appropriations or amounts authorized to be expended from continually appropriated moneys. [1979 c.672 §28; 2003 c.186 §74]
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