2007 Oregon Code - Chapter 470 :: Chapter 470 - Small Scale Local Energy Projects
Chapter 470 —
Small Scale Local Energy Projects
2007 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
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
     (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 applicantÂ’s plan to address specific markets or the applicantÂ’s
strategy regarding specific competitors, or both; and
     (g) Technical information or data related
to an applicantÂ’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; 2007 c.71 §152]
     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
     (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 departmentÂ’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 applicantÂ’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 directorÂ’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 directorÂ’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 directorÂ’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 borrowerÂ’s loan agreement, the department shall provide a
borrower the opportunity to prepay the borrowerÂ’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 directorÂ’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 stateÂ’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 directorÂ’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 corporationÂ’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.
The State Treasurer shall issue bonds described in ORS 470.220 to 470.290 in
accordance with the applicable provisions of ORS chapter 286A. [2005 c.201 §2;
2007 c.783 §207]
     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
     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 borrowerÂ’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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