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DEPARTMENT OF ENERGY

 

DIVISION 135

1.5 PERCENT FOR GREEN ENERGY TECHNOLOGY IN PUBLIC BUILDINGS

330-135-0010

Purpose

The purpose of these rules is to establish procedures to administer ORS 279C.527 through 279C.528 and Oregon Laws 2013 ch. 612 (HB 3169), which require a contracting agency to include an appropriate green energy technology in the construction, reconstruction, or major renovation of a public building by spending an amount equal to at least 1.5 percent of the total contract price associated with that building.

Stat. Auth.: ORS 469.040, 297C.528, OL 2013, Ch. 612 (HB 3169)
Stats. Implemented:ORS 279C.527, 279C.528, OL 2013, Ch. 612
Hist.: DOE 6-2007, f. 12-31-07, cert. ef. 1-2-08; DOE 15-2012, f. 12-27-12, cert. ef. 1-1-13; DOE 7-2013, f. & cert. ef. 12-23-13

330-135-0015

Definitions

For the purpose of this division, the following definitions apply:

(1) "Building" means any structure used or intended for supporting or sheltering any use or occupancy, as defined in Section 202 of the 2010 Oregon Structural Specialty Code.

(2) "Contracting agency" means a public body as defined in ORS 174.109 that plans to enter into a public improvement contract for the construction, reconstruction or major renovation of a public building.

(3) “Cost-effective” means an investment in green energy technology away from the site has a higher estimated economic benefit than an investment in corresponding green energy technology at the site. The comparison must include, but is not limited to, the cost of green energy technology, the cost of energy transmission infrastructure back to the public building, the value of electrical energy produced, saved or used over the life of the system, and the value of thermal energy produced, saved or used over the life of the system.

(4) "Department" means the Oregon Department of Energy.

(5) "Director" means the Director of the Oregon Department of Energy.

(6) “Direct use” of geothermal energy means using the geothermal resource directly for space or water heating in a building without the assistance of a heat pump. For the purpose of these rules, direct use applications employ resource temperatures of at least 140°F.

(7) “Geothermal energy” means the energy from a geothermal source including, but not limited to, indigenous steam, hot water, and hot brines.

(8) “Green energy technology” has the definition given in ORS 279C.527 as updated by Oregon Laws 2013, chapter 612 (HB 3169).

(9) “Green energy technology database” means a database of public building construction projects that are subject to these rules, and is administered by Oregon Department of Energy.

(10) “Site” means a land parcel or a group of contiguous land parcels, controlled by the contracting agency, on which a building either is or will be located.

(11) "Total contract price" means the estimated cost to construct a building including building systems, interior finishes, site infrastructure within five feet of the building perimeter, connections to existing utilities, landscaping, and sidewalks and parking lots built for the immediate use of the building. It does not include the cost of major new utility infrastructure that needs to be brought to the site or wetland mitigation requirements.

(12) "Total solar resource fraction" (TSRF) means the percent of energy produced by a fixed axis solar energy system when compared to the annual performance of the same system with optimal tilt and orientation and no external shading.

Stat. Auth.: ORS 469.040, 297C.528, OL 2013, Ch. 612 (HB 3169)
Stats. Implemented: ORS 279C.527, 279C.528, 2013 OL, Ch. 612
Hist.: DOE 6-2007, f. 12-31-07, cert. ef. 1-2-08; DOE 15-2012, f. 12-27-12, cert. ef. 1-1-13; DOE 7-2013, f. & cert. ef. 12-23-13

330-135-0018

Requirement for Inclusion of Green Energy Technology

(1) Except as provided in OAR 330-135-0040, contracting agencies must spend an amount equal to at least 1.5 percent of the total contract price of an eligible public building project, as defined in OAR 330-135-0020, for the inclusion of green energy technology in the eligible public building.

(2) Contracting agencies may install the green energy technology required under subsection (1) of this section at a site located away from the eligible public building in accordance with ORS 279C.527(2)(b) to (c).

(3) Contracting agencies may defer expenditure of these funds under the conditions of OAR 330-135-0045 and 330-135-0050.

Stat. Auth.: ORS 469.040, 279C.528, OL 2013, Ch. 612 (HB 3169)
Stats. Implemented: ORS 279C.527, 279C.528, OL 2013, Ch. 612 (HB 3169)
Hist.: DOE 15-2012, f. 12-27-12, cert. ef. 1-1-13; DOE 7-2013, f. & cert. ef. 12-23-13

330-135-0020

Eligible Building Projects

(1) These rules apply to any permanent building(s) which will be owned, partially owned or controlled by a contracting agency and which is either:

(a) Used for conducting public business; or

(b) Used or occupied by employees of the contracting agency on a regular basis for a significant part of their work.

(2) Eligible public building projects are new capital construction projects for which the total contract price is $1,000,000 or more for a single building or a group of buildings on the same site and major renovations for which the total contract price is $1,000,000 or more and at least 50 percent of the insured value of the building.

(3) These rules apply to projects advertised, but if not advertised then projects with building construction contracts entered into, on or after the effective date of these rules.

(4) Public improvement projects that are not buildings are not required to comply with these rules. Projects that are not subject to these rules include, but are not limited to:

(a) Group U occupancies as defined in Section 312 of the 2010 Oregon Structural Specialty Code.

(b) Motor pool lots, parking lots not associated with a building, highways, bridges, sewers, fishponds, fish ways, and similar non-architectural structures.

(c) Buildings that house public industrial processes where only a small portion of the square footage houses employees of the contracting agency, such as: maintenance sheds, and water and waste water facilities including reservoirs, dams, conduit, pipe, pumps, wells, collection basins, pump stations, controls and other buildings primarily used for the purpose of water or waste water treatment.

Stat. Auth.: ORS 469.040, 297C.528, OL 2013, Ch. 612 (HB 3169)
Stats. Implemented: ORS 279C.527, 279C.528, OL 2013, Ch. 612
Hist.: DOE 6-2007, f. 12-31-07, cert. ef. 1-2-08; DOE 15-2012, f. 12-27-12, cert. ef. 1-1-13; DOE 7-2013, f. & cert. ef. 12-23-13

330-135-0025

Eligible Contract Price

(1) The 1.5 percent to be spent on green energy technology must be based on the total contract price.

(2) The total contract price must not be reduced by federal, state, or other incentives that may be available for the green energy technology.

(3) Any constitutionally, statutorily or contractually dedicated government funds for the building that have been determined to be unavailable for the installation of green energy technology may be excluded when determining eligible costs under this section.

(4) For buildings with a joint public-private ownership, the total contract price must be pro-rated based on the contracting agency's share of the ownership.

(5) For buildings that are being constructed or renovated with private funding but which are intended for ultimate ownership by a contracting agency, the total contract price must include the privately-funded share of the construction contract.

(6) Dividing a single project into multiple smaller projects in order to avoid or reduce the level of compliance with ORS 279C.527 and 279C.528 and these rules is not permitted.

Stat. Auth.: ORS 469.040, 297C.528, OL 2013, Ch. 612 (HB 3169)
Stats. Implemented: ORS 279C.527, 279C.528, OL 2013, Ch. 612
Hist.: DOE 6-2007, f. 12-31-07, cert. ef. 1-2-08; DOE 15-2012, f. 12-27-12, cert. ef. 1-1-13; DOE 7-2013, f. & cert. ef. 12-23-13

330-135-0030

Green Energy Technology Performance Requirements

(1) Solar electric (photovoltaic), solar water heating, solar pool heating, and active solar space heating systems are to be installed in locations that have a total solar resource fraction (TSRF) of 75 percent or greater.

(2) Photovoltaic and geothermal electric systems must be separately metered to record electricity production.

(3) Geothermal systems that directly supply heat to the building system(s), passive solar thermal systems, daylighting systems or any combination thereof must jointly reduce the building’s baseline energy use by 20 percent or more, as demonstrated with whole building energy modeling prepared under the direction of a professional engineer.

(a) The baseline energy use includes space heating, space cooling, fan, pump, domestic hot water, and lighting loads. Other equipment and process loads are excluded.

(b) The baseline building model must follow the 2010 SEED Guidelines, Appendix L.

(A) For local or special government bodies, the baseline building must be modeled according to the requirements of the 2010 Oregon Energy Efficiency Specialty Code.

(B) For state government bodies, the baseline building must be modeled according to the requirements of the Proposed Building as defined in the 2010 SEED Guidelines, Appendix L.

(c) The system(s) must be commissioned by a third-party commissioning agent.

(4) Purchase of renewable energy certificates does not constitute compliance with the requirements of ORS 279C.527 through 279C.528 and Oregon Laws 2013, chapter 612.

Stat. Auth.: ORS 469.040, 297C.528, OL 2013, Ch. 612 (HB 3169)
Stats. Implemented: ORS 279C.527, 279C.528, OL 2013, Ch. 612
Hist.: DOE 6-2007, f. 12-31-07, cert. ef. 1-2-08; DOE 15-2012, f. 12-27-12, cert. ef. 1-1-13; DOE 7-2013, f. & cert. ef. 12-23-13

330-135-0035

Eligible Green Energy Technology Costs

(1) For photovoltaic systems, eligible costs include the photovoltaic modules, mounting structure and hardware, modifications to the building structure specifically to accommodate the solar energy system, associated electrical equipment, metering, labor and system commissioning. Costs for auxiliary distribution systems such as chargers in electric vehicle charging stations or energy storage system (batteries or other) do not qualify.

(2) For building integrated photovoltaic (BIPV) systems, eligible costs include the difference between the costs for the BIPV components and the costs of the conventional building components that are modified or replaced to accommodate the installation of the BIPV system components.

(3) For solar water heating and solar pool heating systems, eligible costs include the solar collectors, mounting structure and hardware, associated plumbing and controls, metering, labor, and system commissioning. Costs for backup systems that use conventional energy sources do not qualify.

(4) For active solar space heating systems, eligible costs include the solar collectors, mounting structure and hardware, associated plumbing and controls, metering, labor, and system commissioning. Costs for heat distribution systems, such as ductwork or radiant floors, or costs for backup systems that use conventional energy sources, do not qualify.

(5) For passive solar systems and daylighting systems, eligible costs include materials and labor costs that can be directly and exclusively attributed to the passive solar and daylighting system, the cost for modeling the building energy performance, and commissioning.

(a) For passive solar systems eligible costs may include, but not be limited to, added thermal mass and shading controls.

(b) For daylighting systems, eligible costs may include, but not be limited to, automatic controls, light shelves, overhangs, automated louvers and blinds and related controls, skylights in spaces where automatic controls are present, and the portion of windows higher than 7 feet above the floor.

(6) For geothermal electricity generation, eligible costs include the cost of supply and disposal pipelines, turbine generators, controls, transformers, metering, labor and balance of plant.

(7) For geothermal energy use in building systems, eligible costs include the cost of supply and disposal pipelines, pumps, heat exchangers, controls, the cost for modeling the building energy performance, metering and labor.

(8) Costs for permanent educational displays located in or on the building that explain the green energy technology incorporated in the project are allowed.

Stat. Auth.: ORS 469.040, 297C.528, OL 2013, Ch. 612 (HB 3169)
Stats. Implemented: ORS 279C.527, \279C.528, OL 2013, Ch. 612
Hist.: DOE 6-2007, f. 12-31-07, cert. ef. 1-2-08; DOE 15-2012, f. 12-27-12, cert. ef. 1-1-13; DOE 7-2013, f. & cert. ef. 12-23-13

330-135-0040

Alternative Financing

(1) Alternative financing arrangements to allow leveraging of federal, state, utility and other incentives, including but not limited to, lease-purchase agreements, power purchase agreements or energy savings performance contracts qualify under this program if the contracting agency documents that the costs of the green energy system meets or exceeds 1.5 percent of the total contract price.

(2) The minimum term of the agreement between the owner of the green energy system and the contracting agency must be at least ten years, unless ownership of the green energy system reverts to the contracting agency before that time.

(3) The agreement between the owner of the green energy system and the contracting agency must be exclusive to the green energy system required under the provisions of ORS 279C.527 through 279C.528 and Oregon Laws 2013, chapter 612. It may not include terms relating to operation and maintenance or capital equipment purchase of any other equipment or services. For power purchase agreements and energy savings performance contracts, the output of the green energy system must be separately metered.

Stat. Auth.: ORS 469.040, 297C.528, OL 2013, Ch. 612 (HB 3169)
Stats. Implemented: ORS 279C.527, 279C.528, OL 2013, Ch. 612
Hist.: DOE 6-2007, f. 12-31-07, cert. ef. 1-2-08; DOE 15-2012, f. 12-27-12, cert. ef. 1-1-13; DOE 7-2013, f. & cert. ef. 12-23-13

330-135-0045

Determination Whether Green Energy Technology is Appropriate

(1) The contracting agency must determine whether constructing green energy technology at the site of the public building is appropriate. In making its determination, the contracting agency may consider factors including but not limited to:

(a) Whether there is opportunity to use photovoltaic or geothermal electric, solar thermal, passive solar heating systems or the direct use of geothermal energy in building systems

(b) Whether green energy technology can be installed in a manner that meets the minimum performance requirements of OAR 330-135-0030;

(c) Whether the building is listed or eligible for listing on the National Register of Historic Places and the green energy technology installation would be disruptive to the historic character of the building;

(d) Whether the installation of green energy technology would create security risks for staff or inhabitants of the building.

(2)(a) The contracting agency must also determine whether constructing green energy technology away from the site is appropriate if the contracting agency:

(A) Determines that constructing green energy technology at the public building site is not appropriate; or

(B) Prefers to construct the green energy technology away from the public building site instead of at the public building site.

(b) In making its determination, the contracting agency must consider whether green energy technology installed away from the public building site meets the factors listed in subsection (1) of this section and the requirements of ORS 279C.527(2)(b) and (c).

(3) If a contracting agency intends to install green energy technology away from the site, the contracting agency must request from the department, in accordance with OAR 330-135-0052, a technical review of its determination that an away-from-the-site installation is appropriate.

(4) The contracting agency must report its determination to the department in accordance with the reporting requirements in OAR 330-135-0055.

Stat. Auth.: ORS 469.040, 279C.528, OL 2013, Ch. 612 (HB 3169)
Stats. Implemented: ORS 279C.527, 279C.528, OL 2013, Ch. 612
Hist.: DOE 6-2007, f. 12-31-07, cert. ef. 1-2-08; DOE 15-2012, f. 12-27-12, cert. ef. 1-1-13; DOE 7-2013, f. & cert. ef. 12-23-13

330-135-0048 [Renumbered to 330-135-0052]

330-135-0050

Requirements for Deferral of Expenditures

(1) If a contracting agency determines, in accordance with OAR 330-135-0045, that it is not appropriate to install green energy technology at the public building site or away from the public building site, the contracting agency must:

(a) Defer the expenditure of 1.5 percent of the total contract cost of the current public building project to the contracting agency’s next eligible public building project;

(b) Request from the department a technical review of its determination in accordance with OAR 330-135-0052; and

(c) Report, in accordance with OAR 330-135-0055, information about the deferred expenditure and the future project to which the deferred expenditure will be applied, if known.

(2) If the contracting agency defers the expenditure, the amount spent on green energy technology in the next building project must include the deferred expenditure from the current building project plus the 1.5 percent of total project cost for including green energy technology in the future building project, if required.

(3) Any amount spent on green energy technology in excess of 1.5 percent of the total contract price may not be credited to other current or future projects.

(4) Public improvement contracts for which state funds have not been appropriated for the construction or renovation of the public building are not required to defer funds.

Stat. Auth.: ORS 469.040, 297C.528, OL 2013, Ch. 612 (HB 3169)
Stats. Implemented: ORS 279C.527, 279C.528, OL 2013, Ch. 612
Hist.: DOE 6-2007, f. 12-31-07, cert. ef. 1-2-08; DOE 15-2012, f. 12-27-12, cert. ef. 1-1-13; DOE 7-2013, f. & cert. ef. 12-23-13

330-135-0052

Requirements for Technical Review

(1) The director will appoint a permanent technical panel with members serving terms of up to three years. The technical panel will include, but not be limited to, the following membership:

(a) A chair from the Oregon Department of Energy;

(b) A representative from a public body;

(c) A representative from green energy technology industry; and

(d) An engineer or architect.

(2) A contracting agency that intends to construct green energy technology away from the public building site must submit to the department a request for technical review of its determination that green energy technology constructed away from the site is appropriate and meets the requirements of ORS 279C.527(2)(b) and (c). The contracting agency must provide supporting documentation for review.

(3) A contracting agency that intends to defer expenditure of 1.5 percent of the total contract cost to a future building project must submit to the department a request for technical review of its determination that green energy technology is not appropriate either at the public building site or away from the public building site. The contracting agency must provide supporting documentation for review.

(4) Within two weeks of receiving the contracting agency’s request for technical review and supporting documentation, the department will forward the request along with the supporting documentation to the technical review panel. The department will request supplemental information from the contracting agency if needed by the technical review panel to make its recommendation.

(5) Within 60 days of receiving the department’s request for technical review, the technical review panel will provide its recommendation to the department, and the department will convey the recommendation to the contracting agency.

(6) After receiving the technical review panel’s recommendation, the contracting agency must make a final determination about whether installing green energy technology is appropriate either at the public building site or away from the public building site. The contracting agency must enter its final determination and the technical panel’s recommendation into the green energy technology database described in OAR 330-135-0055.

Stat. Auth.: ORS 469.040, 279C.528, OL 2013, Ch. 612 (HB 3169)
Stats. Implemented: ORS 279C.527, 279C.528, OL 2013, Ch. 612
Hist.: DOE 15-2012, f. 12-27-12, cert. ef. 1-1-13; Renumbered from 330-135-0048, DOE 7-2013, f. & cert. ef. 12-23-13

330-135-0055

Requirement to Report on Green Energy Technology

(1) A contracting agency must enter information about its public building project into the green energy technology database after it makes its final determination about whether green energy technology is appropriate and before the construction/renovation of the building(s) commences.

(2) The contracting agency will enter the information into the green energy technology database using an online form provided by the department and accessible from the department website.

(3) Information entered in the green energy technology database must include, but not be limited to:

(a) Project name;

(b) Address of public building;

(c) Name of contracting agency;

(d) Contact information for reporting person;

(e) Utility companies serving the building;

(f) Date the contracting agency first advertised or otherwise solicited a contract for the construction, reconstruction or major renovation of the public building;

(g) Total contract price;

(h) Total insured building value (renovation projects);

(i) Whether the project includes previously deferred funds, the name of the previous project and the amount of the deferred funds;

(j) Projected start of construction and occupation date of building;

(k) Description of the proposed green energy technology;

(l) Location details of the green energy technology installation;

(m) Disclosure of non-public funds used in financing the green energy technology;

(n) Estimated annual energy production or savings of the green energy system;

(o) Contracting agency determination of whether green energy technology is appropriate at the public building site or away from the public building site, or contracting agency decision to defer the expenditure;

(p) Technical review panel recommendation;

(q) Future project to which funds will be deferred and projected start of construction of the future building, if applicable and future project is known;

(r) The account or fund where the deferred funds are to be held, if applicable;

(s) Cost-effectiveness comparison between green energy technology away-from-the-site of the public building compared to green energy technology at the site of public building under construction or renovation, if applicable; and

(t) Evidence of additional new renewable energy generation from green energy technology installed at the away-from-the-site location, if applicable.

(4) Upon completion of construction of the new building or major renovation and at the request of the department, the contracting agency must provide to the department the actual amount spent for green energy technology and, if significant changes were made to the green energy technology system design, an updated project description and updated estimated annual energy generation or savings.

Stat. Auth.: Stat. Auth.: ORS 469.040, 297C.528, OL 2013, Ch. 612 (HB 3169)
Stats. Implemented: ORS 279C.527, 279C.528, OL 2013, Ch. 612
Hist.: DOE 6-2007, f. 12-31-07, cert. ef. 1-2-08; DOE 15-2012, f. 12-27-12, cert. ef. 1-1-13; DOE 7-2013, f. & cert. ef. 12-23-13

330-135-0060

Outreach to Public Bodies

The department will conduct outreach to public bodies at least once per year to help inform them of the requirement ORS 279C.527 through 279C.528 to spend at least 1.5 percent of the total contract price for eligible public buildings on green energy technology.

Stat. Auth.: ORS 469.040, 297C.528, OL 2013, Ch. 612 (HB 3169)
Stats. Implemented: ORS 279C.527, 279C.528, OL 2013, Ch. 612
Hist.: DOE 7-2013, f. & cert. ef. 12-23-13

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