Or. Admin. Code § 330-250-0130

Current through Register Vol. 64, No. 1, January 1, 2025

Section 330-250-0130 - Project Development Grant: Performance Agreement

(1) The department may offer a performance agreement for developing a community renewable energy project to an applicant only if it determines that the project in the application meets all requirements under Oregon Laws 2021, chapter 508, sections 29 through 32, these rules and the applicable opportunity announcement.

(2) The performance agreement shall include information provided by the applicant.

(3) The following are the maximum grant amounts under a performance agreement:

(a) For a community renewable energy project that qualifies as a community energy resilience project, a grant may cover up to 100 percent of the project cost not to exceed $1 million. The department shall reduce the grant amount, if the grant combined with other incentives and grants received by the applicant exceeds 100 percent of the project costs.

(b) For a community renewable energy project that does not qualify as a community energy resilience project, a grant may cover up to 50 percent of the project cost not to exceed $1 million. The department shall reduce the grant amount, if the grant combined with other incentives and grants received by the applicant exceeds 100 percent of the project costs.

(4) Applicants shall have 30 calendar days from the date on which the performance agreement is provided to the applicant to accept the performance agreement. An applicant's failure to accept the performance agreement by the deadline may cause rejection of the grant application.

(5) If an applicant fails to enter into a performance agreement within 30 calendar days of the date on which the department provided the performance agreement to the applicant, the department may select alternative applicants, in order of their ranking, that also meet all requirements under Oregon Laws 2021, chapter 508, sections 29 through 32, these rules and the applicable opportunity announcement.

(6) The performance agreement must include the following terms and may also include additional terms:

(a) The maximum amount of the grant and the entity to which funds will be disbursed.

(b) A listing of the documentation that the grantee must provide to the department prior to the disbursement of grant funds including, but not limited to, an account of renewable energy system costs.

(c) The amount by which the department may reduce the grant in response to changes in actual project cost.

(d) The maximum duration of the performance agreement.

(e) The requirement that the grantee install or construct the community renewable energy project substantially as described in the application.

(f) The requirement that installation or construction of the project begin within 12 months after the date that the performance agreement is signed by all parties. The performance agreement must include details of the work that must be completed within 12 months to meet this standard.

(g) The requirement that the grantee make periodic reports to the department on the status of the project during project development and during installation or construction of the project.

(h) The requirement that the applicant obtain all applicable licenses, permits or other authorizations that are required for the project and comply with applicable federal, state and local laws and regulations.

(i) The requirement that the grantee allow the department to inspect the project or its proposed location at any time during project development, installation or construction to verify compliance with the performance agreement. The department shall schedule inspections during normal working hours, following reasonable notice to the applicant.

(j) Reporting requirements during the first five years of project operation, including information on jobs, quantity of energy produced annually and other information outlined in the performance agreement.

(k) A provision allowing the performance agreement to be terminated for reasons stated in the agreement and subject to terms described in the agreement.

(l) A provision allowing the department to recover grant moneys if:

(A) The grantee fails to abide by the performance agreement;

(B) The project fails to begin construction within 12 months of execution of the performance agreement or a reasonable time frame if good cause to extend the deadline is demonstrated; or

(C) The project is not completed within 36 months of execution of the performance agreement or a reasonable time frame if good cause to extend the deadline is demonstrated.

(7) The department may release up to 30 percent of the grant moneys provided for in a performance agreement, not to exceed 30 percent of project cost, upon entering into a performance agreement with an applicant for developing a community renewable energy project, with the remaining grant moneys to be released upon project completion under the terms of the performance agreement, if upon entering the performance agreement the applicant demonstrates having:

(a) Taken meaningful steps to seek site control, including but not limited to an option to lease or purchase the site or an executed letter of intent or exclusivity agreement to negotiate an option to lease or purchase the site;

(b) Filed a request for interconnection with a host utility or appropriate transmission provider; and

(c) Met any other requirements provided by the department in the performance agreement.

(8) The department may require a legal sufficiency review of a performance agreement by the Oregon Department of Justice prior to execution.

(9) If a project fails, or expects to fail, to begin or complete construction within the time frame specified in the performance agreement, the grantee must notify the department in writing in a timely manner. The notification must describe the cause of the delay, measures taken by the grantee to resolve the delay, and a revised timeline for beginning or completing the project. If the director determines that the grantee has demonstrated good cause for the delay, the department and the grantee may agree to an extended deadline. If the director determines that the grantee has not demonstrated good cause for the delay, the department may terminate the performance agreement and recover the grant moneys.

(10) The department may recover grant moneys if the project fails to abide by the performance agreement.

Or. Admin. Code § 330-250-0130

DOE 1-2022, adopt filed 02/28/2022, effective 2/28/2022; DOE 6-2024, amend filed 08/23/2024, effective 9/16/2024

Statutory/Other Authority: ORS 469.040 & Oregon Laws 2021, chapter 508 (House Bill 2021)

Statutes/Other Implemented: Oregon Laws 2021, chapter 508 (House Bill 2021)