Oregon Incentives and Laws

Last Updated December 2006

State Incentives

Alternative Fuel Vehicle (AFV), Hybrid Electric Vehicle (HEV) & Refueling Infrastructure Tax Credit

A Business Energy Tax Credit is available to business owners who invest in AFVs or HEVs for business use. The tax credit is for the incremental cost of purchasing HEVs and AFVs, the cost of converting vehicles to operate on an alternative fuel, and the cost of constructing alternative fuel refueling stations. The tax credit is for 35% of eligible AFV, HEV or alternative fuel infrastructure costs. There is also a pass-through option which allows a project owner to transfer the 35% Business Energy Tax Credit project eligibility to a pass-through partner for a lump-sum cash payment. A project owner may be a public entity or non-profit organization with no tax liability or a business with tax liability that chooses to use the pass-through option. The pass-through option rate for five-year Business Energy Tax Credits effective October 1, 2003 is 25.5%. The pass-through option rate for one-year Business Energy Tax Credits (those with eligible costs of $20,000 or less) effective October 1, 2003 is 30.5%. (Reference Oregon Revised Statutes 317.115 and 469.160 to 469.180)

Point of Contact

Justin Klure
Senior Policy Analyst
Oregon State Energy Office
Phone (503) 373-1581
Fax (503) 373-7806
justin.klure@state.or.us
http://oregon.gov/ENERGY/CONS/BUS/BETC.shtml
 

Point of Contact

Rick Wallace
Clean Cities Coordinator
Columbia Willamette Clean Cities Coalition, Inc.
Phone (503) 378-3265
Fax (503) 373-7806
rick.wallace@state.or.us
 

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Tax Credit

The Residential Energy Tax Credit provides tax credit incentives of up to $1,500 to encourage the purchase of qualifying AFVs. The tax credits are dollar-for-dollar credit against state of Oregon income taxes owed. The HEVs must qualify in order for residents to apply for a total tax credit of up to $1,500. A credit is also available for the cost of converting vehicles to operate on an alternative fuel. (Reference Oregon Revised Statutes 316.116, 469.160 to 469.180, and 801.375)

Point of Contact

Deby Davis
RETC Program Specialist
Oregon State Energy Office
Phone (503) 378-4040 x291
Fax (503) 373-7806
deby.s.davis@state.or.us
http://www.oregon.gov/ENERGY/TRANS/hybridcr.shtml
 

Alternative Fuel Vehicle (AFV) and Refueling Infrastructure Loans

The Oregon Department of Energy offers a loan program for energy efficiency, renewable resource, and alternative fuel projects. Alternative fuel projects can include fuel production facilities, dedicated feedstock production, fueling stations and fleet vehicles. The program issues Oregon general obligation bonds to provide funds for the loans. Loan recipients must complete a loan application and pay a loan application fee. (Reference Oregon Revised Statutes 470.050)

Point of Contact

Jeff Keto
Loan Manager
Oregon Department of Energy
Phone (503) 373-7981
Fax (503) 373-7806
jeff.s.keto@state.or.us
http://egov.oregon.gov/energy/loans
 

Idle Reduction Incentives

The “Everybody Wins” program was initiated in 2004 by the Lane Regional Air Protection Agency to implement a low cost leasing program for idle reduction equipment on Oregon’s I-5 corridor. Cascade Sierra Solutions (CSS) was formed in 2006 to expand the program to offer a complete corridor approach and to expand the program to include all known technologies that save fuel and reduce diesel emissions. CSS offers two financing options for upgrading trucks with fuel saving technology. Any fuel saving technology that falls within EPA’s SmartWay Transport Carrier Strategies and is approved by Cascade Sierra Solution’s Technical Advisory Team is eligible for financing. Oregon base-plated trucks may be qualified for the Everybody Wins lease program, which provides below-market interest rates with 60-month repayment terms.

Point of Contact

Sharon Banks
Founder, CEO
Cascade Sierra Solutions
Phone (541) 302-0900
Fax (541) 302-0937
sharon@cascadesierrasolutions.org
http://www.cascadesierrasolutions.org
 

Portland Biofuels Incentives

Through the Office of Sustainable Development, the City of Portland is offering two separate grant programs, the Biofuels Investment Fund and the Retail & Fleet Biofuels Infrastructure Grant. The Biofuels Investment Fund will support the development of production, storage, blending and distribution infrastructure for B20 or higher biodiesel blends, and E85 ethanol blends. The Fund will also support non-infrastructure related projects that strongly support Portland 's biofuels priorities, including proposals that further the development of Oregon-grown feedstock supply chains. A total of $450,000 is available in the Biofuels Investment Fund with a maximum grant amount for any project of $225,000. Proposals are due by February 7, 2007.

The Retail & Fleet Biofuels Infrastructure Grant provides incentives of up to $10,000 to install or convert refueling equipment at retail gasoline stations and fleet refueling sites to B20 or higher biodiesel blends, and E85 ethanol blends. Incentives are available on a first-come, first-served basis to projects that meet the grant's eligibility guidelines. The City anticipates awarding a total of approximately $120,000 to help fund 12 to 15 projects.

Point of Contact

City of Portland Office of Sustainable Development
Phone (503) 823-7222
http://www.portlandonline.com/OSD
 

State Laws and Regulations

Global Warming Mitigation Initiative

Governors of Washington, Oregon and California approved a series of recommendations for action to combat global warming, as detailed in the West Coast Governors' Global Warming Initiative. The conclusion was that Oregon, California and Washington must act individually and regionally to reduce greenhouse gas.

Oregon’s strategy includes the reduction of greenhouse gases within the state’s vehicle fleet, in part through the use of alternative and renewable fuels and hybrid electric vehicles. Each Oregon state agency is required to develop and report a greenhouse gas reduction baseline and determine annual reduction targets. Reports to the state Department of Administrative Services must include the volume of ethanol and biodiesel used by agency fleets, as well as any cost savings attributable to driving more fuel efficient vehicles and using alternative fuels. The Oregon Sustainability Board continues to support these efforts and is assisted by a Sustainability Leadership Team as well as an Interagency Sustainability Network. The governor also appointed a Climate Change Integration Group (CCIG) to continue efforts to address global warming. The CCIG is responsible for tracking the State’s progress on greenhouse gas emission reductions and looking at future economic and societal implications of climate change. (Reference Executive Order 06-02, 2006, and Oregon Revised Statutes 184.423)

Alternative Fuel Vehicle (AFV) Acquisition Requirements

State law requires that the state agencies and transit districts purchase AFVs and use alternative fuels in state motor vehicles to the maximum extent possible, except when it is not economically or logistically possible to purchase or refuel an AFV. (Reference Oregon Revised Statutes 283.327 and 267.030)

Low Emission Vehicle Exemption

Dedicated Original Equipment Manufactured natural gas vehicles and electric vehicles are not required to be equipped with a certified pollution control system. (Reference Oregon Revised Statutes 815.300)

Electric and Hybrid Electric Vehicle (HEV) Registration Fees

The registration period for electric and hybrid electric vehicles is a biennial period, except for new vehicles for which new registration plates will be issued. Certain vehicles, including school vehicles and commercial buses that are electric or hybrid electric follow an annual registration period. The registration fee is $27 per vehicle for each year of the registration period. There is an additional fee for electric or hybrid electric vehicles in certain weight categories. (Reference Oregon Revised Statutes 803.415 and 803.420).

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four wheeled motor vehicle with a top speed of at least 20 miles per hour (mph) but not more than 25 mph, and may not be operated on a highway that has a speed limit or posted speed of more than 35 mph. However, a city or county may adopt an ordinance allowing operation of low-speed vehicles on city streets or country roads that have speed limits or posted speeds of more than 35 mph. (Reference Oregon Revised Statutes 801.331 and 811.512).

Portland Biofuels Use Requirement

All Portland city-owned diesel vehicles must use a minimum B20 biodiesel blend, all city-owned gasoline vehicles must use a minimum of E10 ethanol blended gasoline, and all city-owned flexible fuel vehicles must use E85. Furthermore, effective March 2007, businesses awarded franchises by the city for the collection of solid waste must use B20 biodiesel blends. (Reference Portland Policy Documents ADM-1.12)

Portland Renewable Fuels Standard

Effective July 1, 2007, all gasoline sold in the city limits must contain a minimum of 10% ethanol, and diesel fuel must contain a minimum of 5% biodiesel that meets ASTM D 6751 standards. The diesel blend requirement will increase to 10% biodiesel on July 1, 2010. Fuel vendors must conspicuously place signage denoting the type of biofuel mixture available for sale by the fuel vendor. (Reference Portland Code and Charter 16.60.020)

Utilities/Private Incentives

There are currently no known utility or private incentives offered in Oregon

Oregon Points of Contact: