DIVISION 110
THE SMALL SCALE LOCAL ENERGY LOAN PROGRAM
330-110-0005
Purpose, Statutory Authorization, Policy
(1) The purpose of these rules is to provide procedures for the Small Scale Local Energy Project Loan Program and standards and criteria for projects to be met by applicants. The Loan Program implements Chapter 672, Oregon Laws 1979. These rules are authorized by ORS 470.080, 470.140, 469.040, and Chapter 183.
(2) It is the policy of the Department and the Committee that these rules and the loan program:
(a) Encourage diversity in projects;
(b) Give all the preference that is practical to individual and small business applicants;
(c) Avoid lending so much to one project type that another type must be denied; and
(d) Fund conservation projects without regard to energy source.
Stat. Auth.: ORS 469 & 470.140
Stats. Implemented: ORS 470.050 - 470.310
Hist.: DOE 12-1980, f. & ef. 12-16-80; DOE 4-1984, f. & ef.
3-6-84; DOE 2-1986, f. & ef. 3-4-86; DOE 2-1998, f. & cert.
ef. 9-30-98; DOE 7-2004, f. & cert. ef. 12-20-04
330-110-0010
Definitions
As used in ORS Chapter 470 and in these rules, the following terms have the following definitions, unless the context clearly indicates otherwise:
(1) "Adequate security" means the pledge of real or personal property or a credit enhancement or other security of value authorized by ORS 470.170 to secure a loan against default.
(2) "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 ten percent denatured alcohol content, hydrogen, hythane, methane, methanol, natural gas, propane, biodiesel or any other fuel approved by the Director; 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.
(3) "Applicant" means a loan program applicant or borrower.
(4) "Biomass" means plant and animal matter, but not fossil fuels.
(5) "Cogeneration" means the sequential production of electrical or mechanical energy and useful thermal energy from a primary source such as oil, natural gas, or biomass. Cogeneration must qualify under the Small Scale Local Energy Loan Program Technical Requirements.
(6) "Committee" means the Small Scale Local Energy Project Advisory Committee.
(7) "Conservation Measure" means a system, component of a system, mechanism or series of mechanisms, support service, or combination thereof that:
(a) Reduces the use of energy at the project site;
(b) Directly avoids the loss of energy in the transmission of energy;
(c) Conserves energy used in transportation with the energy savings being substantially in Oregon;
(d) Is a cogeneration project; or
(e) Increases the production or efficiency of or extends operating life of a system or project otherwise described in OAR 330-110-0010(7), including but not limited to restarting a dormant project.
(8) "Conventional Fuels" means purchased electricity or fossil fuels.
(9) "Creditworthy" means an applicant has a satisfactory credit history and sufficient capacity to repay the loan.
(10) "Demonstration Project" means a project that showcases new or improved technologies or designs that promise cost-effective production or conservation of energy if adopted by the marketplace, including elements unrelated to energy production or conservation, but are practically inseparable from the project, and would not receive adequate financing unless these unrelated elements are also eligible for Department loan financing.
(11) "Department" means Department of Energy.
(12) "Director" means the Director of the Department of Energy or designee.
(13) "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 local 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 local energy project to generate electricity for sale.
(14) "Energy Need" means any of the energy demand forecasted by the Department under ORS 469.070 and the need to save energy to cut costs.
(15) "Feasible" means that a project saves or produces reasonable amounts of energy compared to the project's cost and type. "Feasible" does not mean that a project must return its owner's money or make a profit.
(16) "Financial Statement" means any report of a person's or entity's financial operations or status including but not limited to balance sheets, statements of financial condition, statements of financial position, income statements, statement of earnings, statements of revenues and expenses, statements of profit and loss, statements of operations, statements of retained income, statements of cash flows, statements of changes in financial position, pro forma statements, and any accounting reports, reviews, audits, tax returns, or other financial information submitted as, or as a part of, a financial statement.
(17) "Fleet" means three or more vehicles used for commercial or governmental purposes within Oregon.
(18) "Individual" means a natural person whose project serves his or her dwelling, not his or her business.
(19) "Interim Loan" means a disbursement of a Program loan for the purpose of paying for pre-construction costs.
(20) "Loan Contract" means, in addition to the meaning set forth in ORS 470.050(9), the loan agreement and all other documentation required by the Director to make a loan or change its terms and conditions.
(21) "Local Community or Region" means one or more energy users in Oregon.
(22) "Municipal Corporation" has the meaning assigned to that term by ORS 470.050.
(23) "Preference" means, in any choice between projects or applicants, preference under ORS 470.080 and these rules. It does not mean that any loan will be approved that does not conform to the law and these rules.
(24) "Program" means the Small Scale Local Energy Project Loan Program.
(25) "Qualified" means one is able and eligible under the law to apply for a loan and enter into a loan contract.
(26) "Recycling Project" means a facility or equipment that converts waste, as defined in ORS 459.005, into a new and usable product.
(27) "Renewable Resource" means solar, wind, geothermal, biomass, waste heat or water resource.
(28) "Responsible" means private and business history and circumstances indicating an applicant can be relied upon. For a business, it also means the owners of the business will, if asked, pledge to repay the loan.
(29) "Revolving Loan" means a loan made from funds moved to the loan fund from the sinking fund.
(30) "Security Value" means the value assigned by the Department to the project or other security.
(31) "Small Business" has the meaning given in ORS 470.050. The phrases "retail or service" and "industrial or manufacturing" as used therein include all types of businesses.
(32) "Small Scale Local Energy Project" or "Project" has the meaning given in ORS 470.050; including systems or devices that implement one or more conservation measures, use renewable resources to meet a local community or regional energy need in Oregon or are recycling or alternative fuel projects. The project may produce heat, electricity, mechanical action, or substitute fuels. A project may also be an improvement that increases the production or efficiency of or extends the operating life of a system or device otherwise described in this OAR 330-110-0005(30), including but not limited to restarting a dormant project. A project also:
(a) Must be primarily in Oregon but can have a minor contiguous component in a neighboring state. The components located in Oregon should exceed 70% of the project cost;
(b) Can indirectly conserve energy or enable the conservation of energy or indirectly use or enable the use of a renewable resource by the applicant or another person as for example: transmission, power conditioning, energy storage or smart metering;
(c) Can directly or indirectly reduce the amount of energy in construction and operation of a facility including the manufacture and transportation of construction materials providing the project or components meet acceptable sustainability practices established in the Small Scale Local Energy Loan Program Technical Requirements.
(33) "Small Scale Local Energy Loan Program Technical Requirements" means the specific technical requirements of the Department for certain projects. A loan application will be subject to the technical requirements in effect on the date the Department receives the loan application.
(34) "Subsidiary" means a business that is owned by another, economically controlled by another, or owned in common with another.
(35) "Substitute Fuel" means organic matter that can be used directly or converted in order to replace Conventional Fuel.
(36) "Usable Life" of a project means the number of years that a project can likely function without major repair or replacement.
(37) "Waste Heat" means produced but unused heat that can be applied to an energy need.
Stat. Auth.: ORS 469 & 470.140
Stats. Implemented: ORS 470.050 - 470.310
Hist.: DOE 12-1980, f. & ef. 12-16-80; DOE 2-1981(Temp), f. &
ef. 6-3-81; DOE 6-1982, f. & ef. 4-21-82; DOE 2-1983, f. &
ef. 5-16-83; DOE 3-1983(Temp), f. & ef. 9-20-83; DOE 4-1984, f.
& ef. 3-6-84; DOE 2-1986, f. & ef. 3-4-86; DOE 4-1988, f.
& cert. ef. 7-26-88; DOE 1-1991(Temp), f. & cert. ef.
6-10-91; DOE 3-1991, f. & cert. ef. 12-3-91; DOE 1-1993, f. &
cert. ef. 1-27-93; DOE 1-1994, f. & cert. ef. 4-1-94; DOE 2-1998,
f. & cert. ef. 9-30-98; DOE 7-2004, f. & cert. ef. 12-20-04;
DOE 1-2006, f. & cert. ef. 4-3-06
330-110-0015
Eligible Costs
Subject to these rules, a loan may be approved to pay:
(1) The costs of buying, building, and installing a project;
(2) Costs of obtaining the loan;
(3) Audit, study, commissioning, design, and license costs;
(4) Reserves, starting funds, interest, staff training, and site costs; and
(5) Grant matching funds and other costs or funds needed for the project.
Stat. Auth.: ORS 469 & 470.140
Stats. Implemented: ORS 470.080
Hist.: DOE 12-1980, f. & ef. 12-16-80; DOE 6-1982, f. & ef.
4-21-82; DOE 2-1983, f. & ef. 5-16-83; DOE 3-1983(Temp), f. &
ef. 9-20-83; DOE 4-1984, f. & ef. 3-6-84; DOE 2-1986, f. &
ef. 3-4-86; DOE 4-1988, f. & cert. ef. 7-26-88; DOE 1-1994, f.
& cert. ef. 4-1-94; DOE 2-1998, f. & cert. ef. 9-30-98;
DOE 7-2004, f. & cert. ef. 12-20-04
330-110-0016
Ineligible Costs
(1) Loans funded from proceeds of tax-exempt bonds may not pay capital costs incurred prior to bond issuance unless a document disclosing an intent to reimburse the costs has been completed.
(2) A loan may not pay for parts of a project that are not consistent with energy production or conservation or that do not qualify as an alternative fuel project or recycling project, or does not meet the sustainable building practices standard, unless the project is found by the Director to be a demonstration project.
(3) A loan may not pay for any project or component of a project the cost of which is equaled or exceeded by the projected value of its energy costs savings in its first year. "Component" means a part of a project that ordinarily saves energy by itself and that costs more than ten percent of total, estimated project costs.
Stat. Auth.: ORS 469 & 470.140
Stats. Implemented: ORS 470.080
Hist.: DOE 1-1994, f. & cert. ef. 4-1-94; DOE 2-1998, f. &
cert. ef. 9-30-98; DOE 7-2004, f. & cert. ef. 12-20-04; DOE
1-2006, f. & cert. ef. 4-3-06
330-110-0020
Preferences
(1) Preference to the extent practical will be given to projects of individuals and small businesses with the least preference given to projects proposed by an eligible federal agency.
(2) To obtain diversity, preference will be given to practical kinds of projects which are seldom financed by the Department or which are not common.
(3) The Director may deny a loan because other sources of funding are adequate. The Director may limit the size or number of loans to anyone to carry out these rules.
Stat. Auth.: ORS 469 & 470.140
Stats. Implemented: ORS 470.080 - 470.090
Hist.: DOE 12-1980, f. & ef. 12-16-80; DOE 6-1982, f. & ef.
4-21-82; DOE 2-1983, f. & ef. 5-16-83; DOE 4-1984, f. & ef.
3-6-84; DOE 2-1986, f. & ef. 3-4-86; DOE 2-1998, f. & cert.
ef. 9-30-98; DOE 7-2004, f. & cert. ef. 12-20-04
330-110-0025
Application
(1) If asked, the Department may give advice on a loan before an application is filed. The Department may advise whether the project appears to comply with these rules, whether funds are likely to be available, and which costs may be eligible. The Department's advice, however, does not constitute a loan approval or any other binding commitment.
(2) Application must be made on forms and in a manner set by the Department.
(3) For the purpose of OAR 330-110-0025 and ORS 470.060, "application" includes any documents submitted by an applicant to comply with conditions to a loan commitment.
(4) The Department may request an applicant's social security number in accordance with provisions of the Privacy Act of 1974.
Stat. Auth.: ORS 469 & 470.140
Stats. Implemented: ORS 470.060 & 470.080
Hist.: DOE 12-1980, f. & ef. 12-16-80; DOE 6-1982, f. & ef.
4-21-82; DOE 2-1983, f. & ef. 5-16-83; DOE 4-1984, f. & ef.
3-6-84; DOE 2-1986, f. & ef. 3-4-86; DOE 2-1998, f. & cert.
ef. 9-30-98; DOE 7-2004, f. & cert. ef. 12-20-04
330-110-0030
Application Review Process
(1) The Department will review all applications. It may require an applicant to submit further documentation to find whether a loan should be made. If the Department fails to receive any items asked for within fourteen days after making its request to the applicant in writing, the loan request may be denied. If the loan request is denied and the applicant still desires to make a loan request, the applicant will have to submit a new application and pay again any fees and charges applicable to loan applications.
(2) Application review and appeal must conform to ORS 470.080 to 470.100 and OAR 330-105.
Stat. Auth.: ORS 469 & 470.140
Stats. Implemented: ORS 470.080 - 470.100
Hist.: DOE 12-1980, f. & ef. 12-16-80; DOE 6-1982, f. & ef.
4-21-82; DOE 2-1983, f. & ef. 5-16-83; DOE 4-1984, f. & ef.
3-6-84; DOE 2-1986, f. & ef. 3-4-86; DOE 4-1988, f. & cert.
ef. 7-26-88; DOE 2-1998, f. & cert. ef. 9-30-98; DOE 7-2004, f.
& cert. ef. 12-20-04
330-110-0035
Findings by the Director
(1) To approve an application for a loan, the Director must make the following findings:
(a) The project is consistent with preservation and enhancement of the environment. Factors to evaluate may include whether the project saves conventional fuel, makes efficient use of a renewable resource, reduces greenhouse gas emissions or promotes sustainability. Applicants are expected to comply with all federal, state, and local environmental requirements
(b) The plan for the project assures its timely completion, quality, and adequate funding. "Funding" includes working capital and reserves.
(c) The loan will not preclude individuals and small businesses access to loan funds. Preclude does not mean a delay in funding waiting for good bond sale conditions.
(d) The project meets the goals of the Department.
(e) Any other finding required by ORS 470.090.
(2) The Director may deny a loan to any applicant that restricts membership, sales, or services on the basis of any of the protected classes listed in ORS 659A.003.
(3) Findings under OAR 330-110-0035 and ORS 470.090 are for the benefit of the Department for lending purposes only. They do not endorse the project, its design, or its parts. They offer no assurance of any kind to any other person or entity for any purpose.
Stat. Auth.: ORS 469 & 470.140
Stats. Implemented: ORS 470.090
Hist.: DOE 12-1980, f. & ef. 12-16-80; DOE 6-1982, f. & ef.
4-21-82; DOE 2-1983, f. & ef. 5-16-83; DOE 3-1983(Temp), f. &
ef. 9-20-83; DOE 4-1984, f. & ef. 3-6-84; DOE 1-1985, f. &
ef. 1-2-85; DOE 2-1986, f. & ef. 3-4-86; DOE 4-1988, f. &
cert. ef. 7-26-88; DOE 1-1994, f. & cert. ef. 4-1-94; DOE
2-1998, f. & cert. ef. 9-30-98; DOE 7-2004, f. & cert. ef.
12-20-04
330-110-0036
Public Health, Safety, and Environmental Issues
(1) The policy of the Department is:
(a) To accept the findings of local, state and federal agencies that license or permit projects to be built or run; and
(b) To avoid influencing any of those agencies to approve or deny a license or a permit.
(2) Each applicant must:
(a) Obtain each local, state, and federal permit and license that applies to a project.
(b) Comply with the express terms and conditions of each permit and license; and
(c) Comply with all state laws and regulations that apply to the project.
(3) The Department may issue a loan commitment based on the applicant's representation or promise that each license and permit has been or will be obtained. If the applicant fails to obtain any required license or permit, the Department may revoke the loan or commitment.
(4) The licensing or permitting agency must confirm in writing if any license or permit named in these rules is not required. Such confirmation is not needed for conservation measures of a kind already so confirmed.
(5) Waterpower developers must comply with at least the following:
(a) A project on a navigable stream or connecting to a utility must obtain a license or exemption from the Federal Energy Regulatory Commission;
(b) A license or permit to use water for power must be obtained from the Water Resources Commission;
(c) A land use permit or variance must be obtained from the city or county where the project will be built; and
(d) The Northwest Power and Conservation Council's Columbia Basin Fish and Wildlife Program.
(6) Geothermal developers must comply with at least the following:
(a) A geothermal well permit must be obtained from the Department of Geology and Mineral Industries, or a permit to use ground water must be obtained from the Water Resources Commission; and
(b) A land use permit or variance must be obtained from the city or county where the project will be built.
(7) Wind developers must obtain a land use permit or variance from the city or county where the project will be built.
(8) Biomass cogeneration developers must comply with at least the following:
(a) An air contaminant discharge permit, a waste discharge permit and a solid waste disposal permit must be obtained from the Department of Environmental Quality; and
(b) A land use permit or variance must be obtained from the city or county where the project will be built.
(9) An applicant that must obtain an energy facility site certificate under ORS 469.300 to 469.520 for a project is not eligible for a loan except if the project is exempted from the site certificate requirement by 469.320(2) or other exemptions granted by the Energy Facility Siting Council.
Stat. Auth.: ORS 469 & 470.140
Stats. Implemented: ORS 470.090 & 470.150
Hist.: DOE 1-1985, f. & ef. 1-2-85; DOE 2-1986, f. & ef.
3-4-86; DOE 4-1988, f. & cert. ef. 7-26-88; DOE 1-1994, f.
& cert. ef. 4-1-94; DOE 2-1998, f. & cert. ef. 9-30-98;
DOE 7-2004, f. & cert. ef. 12-20-04
330-110-0040
Loan Limits, Security, and Conditions
(1) The Director may limit the term and amount of any loan or loan commitment. The Director may deny any loan request or set such terms and conditions as needed to assure a sound loan or to protect the program funds.
(2) A loan secured by residential property must not exceed 80 percent of security value of such property if the Department has a first lien or 75 percent if the Department has a junior lien.
(3) A loan to a municipal corporation that will be repaid from project income may be secured by project income. The projected income, net of operating expenses and maintenance costs, must be at least 125% of debt service for each year of the loan. A loan to a municipal corporation for conservation measures, alternative fuel projects or recycling projects may be secured by the facility or equipment that make up the project. Total cost savings are expected to equal loan payments for municipal conservation projects.
(4) A loan to a state agency, an eligible federal agency or a public corporation may be secured by project income, by the facility or equipment that make up the project, by a lease purchase contract or by any other income or security deemed sufficient by the Director.
(5) The Director may include savings in operation and maintenance costs in estimating the annual Project cost savings. The Director may also, when calculating the estimated savings in fuel costs, include reasonably expected increases in the cost of fuel.
(6) A project that primarily produces energy for sale must have:
(a) Secure sources of supply and contracts for the sale of output;
(b) Projected income, net of operating expenses and maintenance costs, of at least 125% of debt service for each year of the loan; and
(c) A secure source of repayment apart from the project income when the project is not similar to one that has been proven successful.
(7) Unless the Director finds that financial factors warrant otherwise, a loan to a business for a project that saves or produces energy for use on site, is an alternative fuel project, or is a recycling project may be made only:
(a) Upon the pledge or delivery of adequate security;
(b) For less than 80 percent of the security value of real property on which the Department has a first lien or 75 percent if the Department has a junior lien;
(c) To a business that has made a profit after taxes for at least the two years immediately preceding the loan application; and
(d) To a business that has a ratio of current assets to current liabilities of at least 1.75 to 1 and a ratio of total debt to owner's equity of no more than 2 to 1.
The Director may exempt a business from the requirements of OAR 330-110-0040(7) if it demonstrates to the satisfaction of the Director that sound businesses of similar type and size do not normally meet these standards.
(8) Loan proceeds may be used for the following purposes and amounts:
(a) Cost of acquisition of the project site: Not to exceed ten percent of the project's budget;
(b) Capital for start-up: Not to exceed three percent of the project's budget;
(c) Reserves: Not to exceed fifteen percent of the loan amount;
(d) Pre-construction costs: Not to exceed five percent of the project's budget;
(e) Costs for starting construction: Not to exceed ten percent of the project's budget.
(9) Alternative fueling stations with underground fuel tanks do not qualify for funding as an Alternative Fuel project. The proceeds of an Alternative Fuel project loan may only be used for the following purposes:
(a) Incremental costs of the project that are the added costs beyond a reasonable minimum expected to construct or install a similar project without alternative fuel features. Incremental costs do not include equipment or devices that, in standard industry practice, are used to dispense gasoline or, in the case of vehicles, equipment or devices that use gasoline and that also allow use of an alternative fuel without modification.
(b) In the case of vehicles, products and installations approved by and meeting or exceeding the emission standards of the Department of Environmental Quality.
(10) No more than 50% of loan proceeds may be used to refinance existing debt authorized by ORS 470.050(16)(a)(F) unless such debt is with the Department. Security obtained through refinancing must add significant value to the loan security.
Stat. Auth.: ORS 469 & 470.140
Stats. Implemented: ORS 470.080, 470.120, 470.150-470.155, 470.170
& 470.210
Hist.: DOE 12-1980, f. & ef. 12-16-80; DOE 6-1982, f. & ef.
4-21-82; DOE 2-1983, f. & ef. 5-16-83; DOE 3-1983(Temp), f. &
ef. 9-20-83; DOE 4-1984, f. & ef. 3-6-84; DOE 2-1986, f. &
ef. 3-4-86; DOE 4-1988, f. & cert. ef. 7-26-88; DOE 1-1993, f.
& cert. ef. 1-27-93; DOE 1-1994, f. & cert. ef. 4-1-94;
DOE 2-1998, f. & cert. ef. 9-30-98; DOE 7-2004, f. & cert.
ef. 12-20-04
330-110-0042
Bond Refunding
(1)(a) The Department must pursue opportunities to refund bonds to reduce interest sums paid by the Department. When the Department refunds a bond with tax-exempt bonds, the Department must share, on an equitable basis, the savings from any refunding with the affected borrowers 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). Affected borrowers are those whose loans were made with the proceeds of the refunded bonds.
(b) For the purposes of OAR 330-110-0042(1), savings from a refunding are shared on an equitable basis if the Department receives half the savings, and the affected borrowers receive or split half the savings, net of costs, from a bond refunding. When the Internal Revenue Code or other law limits the amount of refunding savings the Department may retain or provide to the affected borrowers, the Department may receive less or more than half the savings, and the affected borrowers will receive the remainder. If multiple loans were funded from the proceeds of the refunded bonds, the affected borrowers will share the savings in proportion with their respective shares of the proceeds of the refunded bonds that were used to make their loans, adjusted for the remaining term to maturity of their loans.
(2) Savings from a bond refunding accrue over the remaining term of the refunded bonds. The Department will share these savings with affected borrowers by reducing the amount of their loan payments over the remaining term of the loans. If the accumulated savings over the remaining term of a loan is less than $15,000 or if the Director finds that it is in the interest of both the Department and the borrowers, the Department may reduce the principal amount of the loan by the net present value of the savings, calculated using a discount rate of the maximum arbitrage yield of the refunding bonds as defined in Section 148 of the Internal Revenue Code.
(3) The Department must 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.
(4) At least 120 days before the date on which the Department intends to issue refunding bonds, the Department must notify each borrower whose loan was made from the proceeds of the bonds being refunded and must offer the borrower the opportunity to prepay the borrower's loan. The Department will request that the borrower notify the Department of their intent to prepay their loan within 60 days of the date of the notification or risk losing the opportunity to prepay.
[Publications: Publications referenced are available from the agency.]
Stat. Auth.: ORS 469 & 470.140
Stats. Implemented: ORS 470.270
Hist.: DOE 2-1998, f. & cert. ef. 9-30-98; DOE 7-2004, f. &
cert. ef. 12-20-04; DOE 1-2006, f. & cert. ef. 4-3-06
330-110-0045
Waiver, Authority of Administrator
The Director:
(1) May, in writing, waive any of these rules. The waiver must serve the aims of, and not conflict with, ORS chapter 470.
(2) May contract with regulated financial institutions, state or federal agencies or others to provide services, subsidies, or grants to the program.
(3) May take such steps as are needed to recover loan funds and prevent their misuse, or to prevent a project from being diverted from its purposes.
(4) May delegate, in writing, authority to approve, deny, or amend loans and to execute bond and loan documents. A partial release of lien may be granted by the Director upon the written request of an applicant if the remaining security value is adequate to secure the loan and meet the security requirements of OAR 330-110-0040. The Director will consider the creditworthiness and repayment history of the applicant in considering such a request.
(5) May contract with a utility to operate a project in the event of any default that results in the Department taking and running the project.
(6) May settle, modify or release any loan debt so long as such action does not damage the loan program.
(7) May take any action allowed by law to comply with federal codes and rules on bonding or to assure the payment of program bonds.
Stat. Auth.: ORS 469 & 470.140
Stats. Implemented: ORS 470.080 & 470.150
Hist.: DOE 12-1980, f. & ef. 12-16-80; DOE 6-1982, f. & ef.
4-21-82; DOE 2-1983, f. & ef. 5-16-83; DOE 3-1983(Temp), f. &
ef. 9-20-83; DOE 4-1984, f. & ef. 3-6-84; DOE 2-1986, f. &
ef. 3-4-86; DOE 4-1988, f. & cert. ef. 7-26-88; DOE 2-1998, f.
& cert. ef. 9-30-98; DOE 7-2004, f. & cert. ef. 12-20-04
330-110-0050
Confidential Records
(1) Upon written request and within a reasonable time, the Director will provide non-exempt loan program records for inspection in accordance with the Oregon Public Records Law, ORS 192.410 to 192.505.
(2) The person asking to inspect the records may be charged in advance for the Department's cost to locate, compile, copy, and mail the records. Such costs include but are not limited to costs incurred in separating exempt and nonexempt records, having a custodian present during the inspection, preparing lists of data, and telefaxing materials. Such charges will be estimated or itemized for the person making the request before they are incurred.
(3) The following records are exempt from disclosure if the person providing these records so requests:
(a) Financial statements;
(b) Customer lists;
(c) 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. This exemption does not apply to litigation that has been concluded, and nothing in this subsection may limit any right or opportunity granted by discovery or deposition statutes to a party to litigation or potential litigation;
(d) Production, sales or cost data;
(e) 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
(f) 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.
Stat. Auth.: ORS 469 & 470.140
Stats. Implemented: ORS 470.065
Hist.: DOE 6-1982, f. & ef. 4-21-82; DOE 2-1983, f. & ef.
5-16-83; DOE 4-1984, f. & ef. 3-6-84; DOE 2-1986, f. & ef.
3-4-86; DOE 4-1988, f. & cert. ef. 7-26-88; DOE 1-1993, f. &
cert. ef. 1-27-93; DOE 1-1994, f. & cert. ef. 4-1-94; DOE 2-1998,
f. & cert. ef. 9-30-98; DOE 7-2004, f. & cert. ef. 12-20-04;
DOE 1-2006, f. & cert. ef. 4-3-06
330-110-0055
Fees and Charges
Pursuant to ORS 470.060, an applicant will pay the Department for costs to review, process, and service a request or loan. Applicants will pay the following charges:
(1) A non-refundable application fee as fixed by statute. "Application," as used here, includes requests to assume or transfer or increase existing loans but does not include interim loan requests made with a project loan request.
(2) A non-refundable underwriting fee of $500 or one-half of one percent of the loan request amount, whichever is greater, but not to exceed $5,000. All but $500 of the underwriting fee may be applied toward the loan fee upon closing of the loan.
(3) A loan fee of one percent of the loan amount required at loan closing.
(4) Charges for credit reports, expert advice, legal fees, construction inspections, disbursement fees, loan servicing fees and appraisals, unless charges incurred also benefit another application, in which case the charges will be divided equitably. Such charges will be estimated or itemized for the applicant before they are incurred.
(5) Charges for managing construction fund investments for an applicant are one-half of one percent of the initial investment cost.
(6) A fee of $500 for each request to release or modify security. Additional charges may be made for items listed in OAR 330-110-0055(4). Such charges will be estimated or itemized for the applicant before they are incurred.
(7) Department costs in excess of any fees and charges will be collected through interest and any other charges specified in the loan contract executed by the applicant and the Department.
(8) The interest rate on a loan will be the rate in effect for the type or size of loan on the date of the note or other evidence of indebtedness. However, the interest rate set in a binding loan commitment may not be increased without the applicant's consent. The interest rate for any project proposed by an eligible federal agency must be set in accordance with ORS 470.150(2). Loan contracts may provide for rates to be adjusted upon issuance of the bonds whose proceeds fund the loans.
(9) The Department may offer a fee that combines the fees and charges in OAR 330-110-0055(1) through (3) and that is equal to or less than the sum of the fees and charges in OAR 330-110-0055(1) through (3). If offered, a combined fee will apply to any applicant receiving similar loan terms.
Stat. Auth.: ORS 469 & 470.140
Stats. Implemented: ORS 470.060 & 470.150
Hist.: DOE 6-1982, f. & ef. 4-21-82; DOE 2-1983, f. & ef.
5-16-83; DOE 4-1984, f. & ef. 3-6-84; DOE 2-1986, f. & ef.
3-4-86; DOE 4-1988, f. & cert. ef. 7-26-88; DOE 1-1994, f. &
cert. ef. 4-1-94; DOE 2-1998, f. & cert. ef. 9-30-98; DOE 7-2004,
f. & cert. ef. 12-20-04; DOE 1-2006, f. & cert. ef.
4-3-06
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