74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 565
House Bill 2210
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for State Department of Energy)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Creates or expands property tax exemptions for facilities
producing ethanol, biofuel or certain fuel additives. Allows
taxing district to opt out of exemptions. Limits period for which
new facilities may claim exemption.
Creates income tax credit for production or collection of
biomass used to produce biofuel. Creates income tax credit for
consumer use of biofuel fuel blends or solid biofuel.
Establishes renewable fuel use standards. Prohibits sale of
gasoline that contains certain additives. Modifies energy
facility siting requirement exemptions.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to fuel; creating new provisions; amending ORS 215.203,
215.283, 283.327, 307.701, 308A.056, 314.752, 318.031, 469.320,
646.905 and 646.910 and section 4, chapter 475, Oregon Laws
1993; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
{ +
BIOFUEL, ETHANOL AND VERIFIED FUEL ADDITIVE FACILITIES + }
SECTION 1. ORS 307.701 is amended to read:
307.701. (1) As used in this section { + :
(a) 'Biodiesel' means a diesel fuel substitute produced from
vegetable oils, animal fats, biomass or other nonpetroleum
renewable resources that meet the registration requirements for
fuels and fuel additives established by the United States
Environmental Protection Agency and any blending components
derived from renewable fuel.
(b) 'Biofuel' means biodiesel or liquid, gaseous or solid fuel
produced from an organic source, including but not limited to
waste and residue from agriculture, forestry or related
industries or other industrial or municipal waste in any form.
(c) 'Biomass':
(A) Means any organic matter that is available on a renewable
or recurring basis and that is derived from wood, forest or field
residues, wastewater biosolids, or crops grown solely to be used
for energy; and
(B) Does not include wood that has been treated with creosote,
pentachlorophenol, inorganic arsenic or other chemical compounds.
(d) + } 'Ethanol' has the meaning given { - the term
under - } { + that term in + } ORS 646.905.
{ + (e) 'Production facility' means a facility that is used
to produce ethanol, biofuel or verified fuel additives.
(f) 'Verified fuel additive' means a fuel additive that:
(A) Has been verified under the United States Environmental
Protection Agency's Environmental Technology Verification
Protocol or the California Air Resources Board verification
programs; and
(B) Is composed of at least 90 percent renewable materials. + }
(2) Upon compliance with subsection (4) of this section, the
real and personal property of { - an ethanol - } { + a + }
production facility that meets the requirements of subsection (3)
of this section is exempt from taxation. The exemption shall be
50 percent of the assessed value of the property determined under
ORS 308.146. The exemption under this section may be claimed for
five assessment years.
(3) { - An ethanol - } { + A + } production facility may
qualify for exemption from taxation under this section if the
facility:
(a) Is { - first - } in the process of construction,
erection or installation as a new facility after July 1, 1993;
(b) Is or will be placed in service to produce ethanol { + ,
biofuel or verified fuel additives + } within { - four - }
{ + five + } years after January 1 of the first assessment year
for which { - the - } { + an + } exemption { - under this
section - } is claimed { + under this section or ORS 285C.170
or 285C.175 + }; { - and - }
{ + (c) Consists of newly constructed, installed or acquired
property, including property that was previously owned by a
different owner and used at a different location, that is first
placed in service during the calendar year preceding the
assessment year for which an exemption listed in paragraph (b) of
this subsection is claimed; and + }
{ - (c) - } { + (d) + } Within { - four - } { +
five + } years after January 1 of the first assessment year for
which { - the - } { + an + } exemption { - under this
section - } { + listed in paragraph (b) of this subsection + }
is claimed, is or will be certified by the State Department of
Agriculture as a facility that produces { + :
(A) + } Ethanol capable of blending or mixing with gasoline.
The blend or mixture shall meet the specifications or
registration requirements established by the United States
Environmental Protection Agency pursuant to section 211 of the
Clean Air Act, 42 U.S.C. 7545 and 40 C.F.R. Part 79 { - . - }
{ + ;
(B) Biofuel; or
(C) Verified fuel additives. + }
(4)(a) { + (A) + } In order to claim an exemption from taxation
under this section for any assessment year, the owner of { - an
ethanol - } { + a + } production facility shall file with the
county assessor, on or before April 1 of the year for which
exemption is claimed, a statement verified by the oath or
affirmation of the owner listing all real and personal property
claimed to be exempt and showing the purpose for which the
property will be or is used.
{ + (B) In the case of a biofuel production facility or a
verified fuel additive production facility, in addition to the
requirements of subparagraph (A) of this paragraph, the owner
claiming exemption shall do all of the following:
(i) Prepare a list of the taxing districts in which the
property is located.
(ii) Send a written notice to each taxing district. The notice
must:
(I) State that the claimant is seeking a property tax exemption
under this section;
(II) State that a taxing district may elect not to participate
in the exemption, in which case taxes of the district will
continue to be imposed on the property of the claimant; and
(III) Comply with any other requirements established by the
Department of Revenue.
(iii) Include a copy of the list of taxing districts and notice
prepared under this subparagraph with the claim for
exemption. + }
(b) If the ownership and use of the { + production
facility + } property included in the statement { + described in
paragraph (a)(A) of this subsection and + } filed for a prior
year remain the same, a new statement { - shall not be - }
{ + is not + } required. However, if the ownership or use
changes, or if the facility property is added to or retired, a
new statement is required and the property { - shall - }
{ + may + } not be exempt under this section if the statement is
not filed. The new statement shall be filed no later than
December 31 of the year to which the statement pertains.
(5) If the { + production + } facility property is not placed
in service within the time required under subsection (3) of this
section, or if the certification required under subsection (3) of
this section is not obtained within the required time, then the
{ - facility - } property shall not be exempt for any year
under this section. For any year for which the property has been
granted exemption under this section, the county assessor shall
add the property to the assessment and tax roll as omitted
property in the manner provided under ORS 311.216 to 311.232.
SECTION 2. { + (1) A city, county or other local taxing
district with property tax authority may elect not to participate
in the exemptions for a biofuel production facility or a verified
fuel additive production facility granted under ORS 307.701.
(2) A taxing district may make the election by filing written
notification of the election with the county assessor of the
county in which the taxing district is located before July 1 of
the first tax year for which the election is to be effective.
(3) An election made under this section shall be valid for all
tax years following the year for which the election is first
made, until the election is revoked by the taxing district.
(4) A taxing district may revoke an election made under this
section by filing written notification of the revocation with the
county assessor of the county in which the taxing district is
located before July 1 of the first tax year for which the
revocation is to be effective.
(5) The written notifications of election and revocation
described in this section shall contain the information and be in
the form prescribed by the Department of Revenue.
(6) An election or revocation made under this section applies
to all biofuel production facility property or verified fuel
additive production facility property within the taxing district:
(a) For which a claim has been filed under ORS 307.701; and
(b) That qualifies for exemption under ORS 307.701. + }
SECTION 3. { + The amendments to ORS 307.701 by section 1 of
this 2007 Act apply to production facilities for which a claim
for exemption under ORS 307.701 is first filed on or after
January 1, 2008, for tax years beginning on or after July 1,
2008. + }
SECTION 4. Section 4, chapter 475, Oregon Laws 1993, is amended
to read:
{ + Sec. 4. + } { - (1) An ad valorem property tax
exemption provided by section 2 of this Act is first applicable
to the tax year beginning July 1, 1994. - }
{ - (2) Section 2 of this Act is repealed on July 1, 2008.
The repeal applies to tax years beginning on or after July 1,
2008. Notwithstanding that an ethanol production facility has
not received five years of exemption under section 2 of this Act,
no exemption for the facility shall be granted under section 2 of
this Act for a tax year beginning on or after July 1, 2008. - }
{ + An exemption for a production facility may not be granted
under ORS 307.701 for any production facility that has not
qualified for at least one year of exemption as of July 1,
2014. + }
{ +
PRODUCERS OF BIOFUEL RAW MATERIALS + }
SECTION 5. { + Sections 6 and 7 of this 2007 Act are added to
and made a part of ORS chapter 315. + }
SECTION 6. { + (1) As used in this section and section 9 of
this 2007 Act:
(a) 'Agricultural producer' means a person that produces plant
or animal matter that is used in Oregon as biofuel or to produce
biofuel.
(b) 'Biofuel' has the meaning given that term in ORS 307.701.
(c) 'Biomass' means any of the following that are transferred
to a biofuel producer by an agricultural producer or a biomass
collector:
(A) Plant or animal matter;
(B) Forest products;
(C) Wood waste;
(D) Forest, farmland or rangeland vegetative matter;
(E) Wastewater biosolids; or
(F) Waste grease.
(d) 'Biomass collector' means a person that collects forest
products, wood waste, wastewater biosolids, waste grease or
forest, farmland or rangeland vegetative matter that is used in
Oregon as biofuel or to produce biofuel.
(2)(a) An agricultural producer or biomass collector shall be
allowed a credit against the taxes that would otherwise be due
under ORS chapter 316 or, if the taxpayer is a corporation, under
ORS chapter 317 or 318 for:
(A) The production of biomass that is used to produce biofuel
in this state; or
(B) The collection of biomass that is used to produce biofuel
in this state.
(b) A credit under this section shall be allowed only:
(A) For the tax year in which the agricultural producer or
biomass collector transfers biomass to a biofuel producer; and
(B) If the taxpayer has obtained tax credit certification from
the State Department of Energy under section 9 of this 2007 Act.
(3) The amount of the credit shall be calculated as follows:
(a) Determine the quantity of biomass transferred to a biofuel
producer during the tax year;
(b) Categorize the biomass into appropriate categories as
prescribed in rules adopted under section 9 of this 2007 Act; and
(c) Multiply the quantity of biomass in a particular category
by the appropriate credit rate for that category, expressed in
dollars and cents, that is prescribed in rules adopted under
section 9 of this 2007 Act.
(4) Notwithstanding subsection (3) of this section, the credit
may not exceed:
(a) One dollar per million Btu of biofuel;
(b) The amount stated on the tax credit certification issued
under section 9 of this 2007 Act; and
(c) Except as provided in subsection (7) of this section, the
tax liability of the taxpayer.
(5)(a) A biofuel producer shall provide a written receipt to an
agricultural producer or biomass collector at the time biomass is
transferred from the agricultural producer or biomass collector
to the biofuel producer. The receipt must state the quantity and
type of biomass being transferred and that the biomass is to be
used to produce biofuel.
(b) Each agricultural producer or biomass collector shall
maintain the receipts described in this subsection in their
records for a period of at least five years after the tax year in
which the credit is claimed or for a longer period of time
prescribed by the Department of Revenue.
(6) The credit shall be claimed on a form prescribed by the
Department of Revenue that contains the information required by
the department.
(7) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a particular tax year may be
carried forward and offset against the taxpayer's tax liability
for the next succeeding tax year. Any credit remaining unused in
the next succeeding tax year may be carried forward and used in
the second succeeding tax year, and likewise any credit not used
in that second succeeding tax year may be carried forward and
used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in
the fourth succeeding tax year, but may not be carried forward
for any tax year thereafter.
(8) In the case of a credit allowed under this section:
(a) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
(b) If a change in the status of the taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
(c) If a change in the taxable year of the taxpayer occurs as
described in ORS 314.085, or if the department terminates the
taxpayer's taxable year under ORS 314.440, the credit allowed
under this section shall be prorated or computed in a manner
consistent with ORS 314.085. + }
SECTION 7. { + (1) A person that has obtained a tax credit
certification under section 9 of this 2007 Act may transfer the
certification for consideration to a taxpayer subject to tax
under ORS chapter 316, 317 or 318.
(2) In order to transfer the certification, the person that
obtained the certification and the taxpayer that will claim the
credit under section 6 of this 2007 Act shall jointly file a
notice of tax credit certification transfer with the Department
of Revenue. The notice shall be given on a form prescribed by the
department that contains all of the following:
(a) The name, address and taxpayer identification number of the
transferor and transferee of the certification;
(b) The amount certified as eligible for a tax credit under
section 6 of this 2007 Act; and
(c) Any other information required by the department.
(3) A tax credit certification may not be transferred under
this section if the person to whom the certification was issued
has claimed any portion of the tax credit:
(a) Allowed under section 6 of this 2007 Act; and
(b) Authorized by the certification. + }
SECTION 8. { + Section 9 of this 2007 Act is added to and made
a part of ORS chapter 469. + }
SECTION 9. { + (1) The State Department of Energy shall by
rule:
(a) Identify categories of biomass that, when used by a biofuel
producer to produce biofuel in this state, qualify for a tax
credit under section 6 of this 2007 Act; and
(b) Establish a dollar rate per quantity of biomass in each
category identified in rules adopted under paragraph (a) of this
subsection, to be used to calculate the amount of credit allowed
under section 6 of this 2007 Act.
(2)(a) The department shall review rules adopted under
subsection (1) of this section at least annually.
(b) Rules adopted under subsection (1) of this section must
state the income and corporate excise tax years to which the
rules apply.
(3)(a) Each agricultural producer or biomass collector seeking
a tax credit under section 6 of this 2007 Act shall apply for and
obtain a tax credit certification from the department. The
producer or collector shall apply to the department for
certification:
(A) In the calendar year in which begins the tax year for which
the credit will be claimed under section 6 of this 2007 Act; and
(B) For the specific amount of biomass for which certification
is sought.
(b) The application shall be on a form prescribed by the
department that contains the information required by the
department, including the amount of tax credit the taxpayer
intends to claim.
(c) The department shall process applications in the order in
which the applications are filed and shall certify the amount
stated on the application, or a lesser amount that the department
determines is within the annual limit set forth in subsection (4)
of this section. The department may deny an application for tax
certification if the application is incomplete or if the
department determines that the application does not state a
reasonable basis for the allowance of any tax credit under
section 6 of this 2007 Act.
(d) The department shall give written notice of the certified
amount to the applicant.
(4) For each calendar year, the department may not certify more
than $___ per applicant as eligible for a tax credit under
section 6 of this 2007 Act.
(5)(a) A decision to deny certification or to certify a lesser
amount than was sought in the application for certification may
be appealed to the department as a contested case under ORS
chapter 183.
(b) Notwithstanding paragraph (a) of this subsection, a
decision to deny certification or to certify a lesser amount may
not be appealed if the reason for the decision is that
certification of the amount sought in the application would
result in exceeding the annual limitation on total certification
described in subsection (4) of this section.
(6) The definitions in section 6 of this 2007 Act apply to this
section. + }
SECTION 10. { + Sections 6, 7 and 9 of this 2007 Act apply to
tax credit certifications issued under section 9 of this 2007 Act
for tax years beginning on or after January 1, 2008, and before
January 1, 2013. + }
SECTION 11. ORS 314.752 is amended to read:
314.752. (1) Except as provided in ORS 314.740 (5)(b), the tax
credits allowed or allowable to a C corporation for purposes of
ORS chapter 317 or 318 shall not be allowed to an S corporation.
The business tax credits allowed or allowable for purposes of ORS
chapter 316 shall be allowed or are allowable to the shareholders
of the S corporation.
(2) In determining the tax imposed under ORS chapter 316, as
provided under ORS 314.734, on income of the shareholder of an S
corporation, there shall be taken into account the shareholder's
pro rata share of business tax credit (or item thereof) that
would be allowed to the corporation (but for subsection (1) of
this section) or recapture or recovery thereof. The credit (or
item thereof), recapture or recovery shall be passed through to
shareholders in pro rata shares as determined in the manner
prescribed under section 1377(a) of the Internal Revenue Code.
(3) The character of any item included in a shareholder's pro
rata share under subsection (2) of this section shall be
determined as if such item were realized directly from the source
from which realized by the corporation, or incurred in the same
manner as incurred by the corporation.
(4) If the shareholder is a nonresident and there is a
requirement applicable for the business tax credit that in the
case of a nonresident the credit be allowed in the proportion
provided in ORS 316.117, then that provision shall apply to the
nonresident shareholder.
(5) As used in this section, 'business tax credit' means a tax
credit granted to personal income taxpayers to encourage certain
investment, to create employment, economic opportunity or
incentive or for charitable, educational, scientific, literary or
public purposes that is listed under this subsection as a
business tax credit or is designated as a business tax credit by
law or by the Department of Revenue by rule and includes but is
not limited to the following credits: ORS 285C.309 (tribal taxes
on reservation enterprise zones), ORS 315.104 (forestation and
reforestation), ORS 315.134 (fish habitat improvement), ORS
315.138 (fish screening, by-pass devices, fishways), ORS 315.156
(crop gleaning), ORS 315.164 and 315.169 (farmworker housing),
ORS 315.204 (dependent care assistance), ORS 315.208 (dependent
care facilities), ORS 315.213 (contributions for child care), ORS
315.254 (youth apprenticeship sponsorship), ORS 315.304
(pollution control facility), ORS 315.324 (plastics recycling),
ORS 315.354 and ORS 469.207 (energy conservation facilities), ORS
315.507 (electronic commerce), ORS 315.511 (advanced
telecommunications facilities), ORS 315.604 (bone marrow
transplant expenses) and ORS 317.115 (fueling stations necessary
to operate an alternative fuel vehicle) { + and section 6 of
this 2007 Act (biomass production for biofuel) + }.
SECTION 12. ORS 318.031 is amended to read:
318.031. It being the intention of the Legislative Assembly
that this chapter and ORS chapter 317 shall be administered as
uniformly as possible (allowance being made for the difference in
imposition of the taxes), ORS 305.140 and 305.150, ORS chapter
314 and the following sections are incorporated into and made a
part of this chapter: ORS 285C.309, 315.104, 315.134, 315.156,
315.204, 315.208, 315.213, 315.254, 315.304, 315.507, 315.511 and
315.604 { + and section 6 of this 2007 Act + } (all only to the
extent applicable
{ - for - } { + to + } a corporation) and ORS chapter 317.
{ +
RENEWABLE FUEL STANDARDS + }
SECTION 13. ORS 646.905 is amended to read:
646.905. As used in ORS 646.910 to 646.920:
(1) 'Alcohol' means a volatile flammable liquid having the
general formula CnH(2n+1)OH used or sold for the purpose of
blending or mixing with gasoline for use in propelling motor
vehicles, and commonly or commercially known or sold as an
alcohol, and includes ethanol or methanol.
{ + (2) 'Biodiesel' means a diesel fuel substitute produced
from nonpetroleum renewable resources (inclusive of vegetable
oils, animal fats and biomass) that meet the registration
requirements for fuels and fuel additives established by the
United States Environmental Protection Agency and any blending
components derived from renewable fuel. + }
{ - (2) - } { + (3) + } 'Co-solvent' means an alcohol other
than methanol which is blended with either methanol or ethanol or
both to minimize phase separation in gasoline.
{ - (3) - } { + (4) + } 'Ethanol' means ethyl alcohol, a
flammable liquid having the formula C2H5OH used or sold for the
purpose of blending or mixing with gasoline for use in motor
vehicles.
{ - (4) - } { + (5) + } 'Gasoline' means any fuel sold for
use in spark ignition engines whether leaded or unleaded.
{ - (5) - } { + (6) + } 'Methanol' means methyl alcohol, a
flammable liquid having the formula CH3OH used or sold for the
purpose of blending or mixing with gasoline for use in motor
vehicles.
{ - (6) - } { + (7) + } 'Motor vehicles' means all
vehicles, vessels, watercraft, engines, machines or mechanical
contrivances that are propelled by internal combustion engines or
motors.
{ - (7) - } { + (8) + } 'Nonretail dealer' means any person
who owns, operates, controls or supervises an establishment at
which motor vehicle fuel is dispensed through a card- or
key-activated fuel dispensing device to nonretail customers.
{ - (8) - } { + (9) + } 'Retail dealer' means any person
who owns, operates, controls or supervises an establishment at
which gasoline is sold or offered for sale to the public.
{ - (9) - } { + (10) + } 'Wholesale dealer' means any
person engaged in the sale of gasoline if the seller knows or has
reasonable cause to believe the buyer intends to resell the
gasoline in the same or an altered form to another.
SECTION 14. { + Sections 15, 16, 18 and 19 of this 2007 Act
are added to and made a part of ORS 646.910 to 646.920. + }
SECTION 15. { + (1) The State Department of Agriculture shall
study and monitor biodiesel fuel production, use and sales in
this state.
(2) When the production of biodiesel in this state from sources
in Oregon, Washington, Idaho and Montana reaches a level of at
least five million gallons on an annualized basis for at least
three months, the department shall notify all retail dealers,
nonretail dealers and wholesale dealers in this state, in a
notice that meets the requirements of subsection (4) of this
section.
(3) When the production of biodiesel in this state from sources
in Oregon, Washington, Idaho and Montana reaches a level of at
least 15 million gallons on an annualized basis for at least
three months, the department shall notify all retail dealers,
nonretail dealers and wholesale dealers in this state, in a
notice that meets the requirements of subsection (4) of this
section.
(4) The notice under subsections (2) and (3) of this section
shall inform retail dealers, nonretail dealers and wholesale
dealers that:
(a) The production of biodiesel has reached the level described
in subsection (2) or (3) of this section; and
(b) Three months from the date of the notice, a retail dealer,
nonretail dealer or wholesale dealer may sell or offer for sale
only diesel fuel described in section 16 of this 2007 Act. + }
SECTION 16. { + (1) Three months after the date of the notice
given under section 15 (2) of this 2007 Act, a retail dealer,
nonretail dealer or wholesale dealer may not sell or offer for
sale diesel fuel unless the diesel fuel contains at least two
percent biodiesel by volume.
(2) Three months after the date of the notice given under
section 15 (3) of this 2007 Act, a retail dealer, nonretail
dealer or wholesale dealer may not sell or offer for sale diesel
fuel unless the diesel fuel contains at least five percent
biodiesel by volume.
(3) The State Department of Agriculture shall adopt standards
for biodiesel sold in this state. The department shall consult
the specifications established for biodiesel in ASTM
International specification D6751-06a, or similar specifications,
in forming its standards. The department may review
specifications adopted by ASTM International, or equivalent
organizations, and revise the standards adopted pursuant to this
subsection as necessary.
(4) The minimum biodiesel fuel content requirement under
subsections (1) and (2) of this section does not apply to diesel
fuel sold or offered for sale for use by railroad
locomotives. + }
SECTION 17. { + Section 16 of this 2007 Act becomes operative
on a date that is three months following the date of the first
notice required under section 15 of this 2007 Act. + }
SECTION 18. { + (1) The State Department of Agriculture shall
study and monitor the ethanol fuel production, use and sales in
this state.
(2) When production of ethanol in this state reaches a level of
at least 90 million gallons on an annualized basis for at least
three months, the department shall notify all retail dealers,
nonretail dealers and wholesale dealers in this state, in a
notice that meets the requirements of subsection (3) of this
section.
(3) The notice under subsection (2) of this section shall
inform retail dealers, nonretail dealers and wholesale dealers
that:
(a) The production of ethanol has reached the levels described
in subsection (2) of this section; and
(b) Three months from the date of the notice, a retail dealer,
nonretail dealer or wholesale dealer may sell or offer for sale
only gasoline described in section 19 of this 2007 Act. + }
SECTION 19. { + (1) A retail dealer, nonretail dealer or
wholesale dealer may not sell or offer for sale gasoline unless
the gasoline contains at least 10 percent ethanol by volume.
(2) Gasoline containing ethanol that is sold or offered for
sale meets the requirements of this section if the gasoline,
exclusive of denaturants and permitted contaminants, contains not
less than 9.2 percent by volume of agriculturally derived,
denatured ethanol that complies with the standards for ethanol
adopted by the State Department of Agriculture.
(3) The department shall adopt standards for ethanol blended
with gasoline sold in this state. The standards adopted shall
require that the gasoline blended with ethanol:
(a) Contains ethanol that is derived from agricultural or woody
waste or residue;
(b) Contains ethanol denatured as specified in 27 C.F.R. parts
20 and 21;
(c) Complies with the volatility requirements specified in 40
C.F.R. part 80;
(d) Complies with or is produced from a gasoline base stock
that complies with ASTM International specification D4814-06, or
an equivalent standard;
(e) Is not blended with casinghead gasoline, absorption
gasoline, drip gasoline or natural gasoline after it has been
sold, transferred or otherwise removed from a refinery or
terminal; and
(f) Complies with ASTM International specification D4806-06a,
or an equivalent standard.
(4) The department may review specifications adopted by ASTM
International, or equivalent organizations, and federal
regulations and revise the standards adopted pursuant to this
section as necessary. + }
SECTION 20. { + Section 19 of this 2007 Act becomes operative
on a date that is three months following the date of the notice
required under section 18 of this 2007 Act. + }
{ +
GASOLINE ADDITIVE RESTRICTIONS + }
SECTION 21. ORS 646.910 is amended to read:
646.910. { - No - } { + (1) A + } wholesale or retail
dealer may { + not + } sell or offer to sell any gasoline
blended or mixed with { + :
(a) + } { - Alcohol - } { + Ethanol + } unless the blend or
mixture meets the specifications or registration requirements
established by the United States Environmental Protection Agency
pursuant to section 211 of the Clean Air Act, 42 U.S.C. section
7545 and 40 C.F.R. Part 79 { - . - } { + ;
(b) Methyl tertiary butyl ether in concentrations that exceed
five-tenths of one percent by volume; or
(c) A total of all of the following oxygenates that exceeds
one-tenth of one percent, by weight, of:
(A) Diisopropylether.
(B) Ethyl tert-butylether.
(C) Iso-butanol.
(D) Iso-propanol.
(E) N-butanol.
(F) N-propanol.
(G) Sec-butanol.
(H) Tert-amyl methyl ether.
(I) Tert-butanol.
(J) Tert-pentanol or tert-amyl alcohol.
(K) Any other additive that has not been approved by the
California Air Resources Board or the United States Environmental
Protection Agency.
(2) Nothing in this section shall prohibit transshipment
through this state, or storage incident to the transshipment, of
gasoline that contains methyl tertiary butyl ether in
concentrations that exceed five-tenths of one percent by volume
or any of the oxygenates listed in subsection (1)(c) of this
section, provided:
(a) The gasoline is used or disposed of outside this state; and
(b) The gasoline is segregated from gasoline intended for use
within this state. + }
SECTION 22. { + The amendments to ORS 646.910 by section 21 of
this 2007 Act become operative November 1, 2009. + }
SECTION 22a. { + Section 22b is added to and made a part of
ORS 646.910 to 646.920. + }
SECTION 22b. { + Notwithstanding ORS 646.910, a person may
sell, supply or offer to sell or supply gasoline in this state
that contains any oxygenate other than ethanol, if the California
Air Resources Board, the California Environmental Policy Council
or the United States Environmental Protection Agency allows the
use of the oxygenate. + }
SECTION 22c. { + Section 22b of this 2007 Act becomes
operative on the effective date of this 2007 Act. + }
{ +
STATE GOVERNMENT USE OF BIOFUEL + }
SECTION 23. ORS 283.327 is amended to read:
283.327. (1) To the maximum extent economically possible,
state-owned motor vehicles shall use alternative fuel for
operation.
(2) State agencies shall acquire only motor vehicles capable of
using alternative fuel, except that acquired vehicles assigned to
areas unable economically to dispense alternative fuel need not
be so configured.
(3) Each agency owning motor vehicles shall comply with all
safety standards established by the United States Department of
Transportation in the conversion, operation and maintenance of
vehicles using alternative fuel.
{ + (4) To the maximum extent economically possible,
state-owned structures shall use biofuel, or direct-application
electricity generated from biofuel, where diesel is currently
utilized for stationary or back-up generation. + }
{ +
BIOFUEL CONSUMER INCOME TAX CREDIT + }
SECTION 24. { + Section 25 of this 2007 Act is added to and
made a part of ORS chapter 315. + }
SECTION 25. { + (1) As used in this section:
(a) 'Alternative fuel vehicle' means a motor vehicle that can
operate on a fuel blend.
(b) 'Biodiesel' has the meaning given that term in ORS 307.701.
(c) 'Biomass' has the meaning given that term in section 6 of
this 2007 Act.
(d) 'Bone dry ton' means matter that is dried to less than one
percent moisture content and that weighs 2,000 pounds.
(e) 'Fuel blend' means diesel fuel of blends equal to or
exceeding 99 percent biodiesel or gasoline of a blend equal to or
exceeding 85 percent methanol or ethanol.
(2)(a) A resident individual shall be allowed a credit against
the taxes otherwise due under ORS chapter 316 for costs paid or
incurred to purchase fuel blends for use in an alternative fuel
vehicle.
(b) A resident individual shall be allowed a credit against the
taxes otherwise due under ORS chapter 316 for costs paid or
incurred to purchase forest or agriculture waste or residue solid
biofuel that contains 100 percent biomass.
(3) The amount of the credit shall be calculated as follows:
(a) Determine the quantity of fuel blend or solid biofuel
purchased by the taxpayer during the tax year;
(b) Categorize the fuel blend or solid biofuel as prescribed in
rules adopted under section 28 of this 2007 Act; and
(c) Multiply the quantity of fuel blend or solid biofuel in a
particular category by the appropriate credit rate for that
category, expressed in dollars and cents, that is prescribed in
rules adopted under section 28 of this 2007 Act.
(4) Notwithstanding subsection (3) of this section:
(a) The credit allowed under this section for diesel blended
fuel may not exceed $0.50 per gallon and in any one tax year may
not exceed $200 per Oregon registered motor vehicle that is owned
or leased by the taxpayer under a lease of greater than 30 days'
duration and that is capable of using a fuel blend.
(b) The credit allowed for gasoline blended fuel may not exceed
$0.50 per gallon and in any one tax year may not exceed $200 per
Oregon registered motor vehicle that is owned or leased by the
taxpayer under a lease of greater than 30 days' duration and that
is capable of using a fuel blend.
(c) The credit allowed for forest or agriculture waste or
residue solid biofuel may not exceed $10 per bone dry ton of
solid biofuel and in any one tax year may not exceed $200 per
taxpayer.
(d) The credit allowed in any one tax year may not exceed the
tax liability of the taxpayer and may not be carried forward to a
subsequent tax year.
(5) For each tax year for which a credit is claimed under this
section, the taxpayer shall maintain records sufficient to
determine the taxpayer's purchase of qualifying fuel blends. A
taxpayer shall maintain the records required under this
subsection for at least five years.
(6) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
(7) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed by this section shall be prorated or computed in a
manner consistent with ORS 314.085.
(8) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
(9) A husband and wife who file separate returns for a taxable
year may each claim a share of the tax credit that would have
been allowed on a joint return in proportion to the contribution
of each. + }
SECTION 26. { + Section 25 of this 2007 Act applies to tax
years beginning on or after January 1, 2007, and before January
1, 2012. + }
SECTION 27. { + Section 28 of this 2007 Act is added to and
made a part of ORS chapter 469. + }
SECTION 28. { + (1) The State Department of Energy shall by
rule:
(a) Identify categories of fuel blend and solid biofuel that
qualify for the personal income tax credit allowed under section
25 of this 2007 Act; and
(b) Subject to section 25 (4) of this 2007 Act, for each
category identified in rules adopted under this section,
prescribe a dollar rate per quantity of fuel blend or solid
biofuel, to be used to calculate the amount of credit allowed
under section 25 of this 2007 Act.
(2) The department shall review rules adopted under this
section at least annually. + }
SECTION 29. { + The State Department of Energy shall adopt
rules under section 28 of this 2007 Act on or before 60 days
after the effective date of this 2007 Act. + }
{ +
ENERGY FACILITY SITING PROCESS; + }
{ +
EXCEPTIONS + }
SECTION 30. ORS 469.320 is amended to read:
469.320. (1) Except as provided in subsections (2) and (5) of
this section, no facility shall be constructed or expanded unless
a site certificate has been issued for the site thereof in the
manner provided in ORS 469.300 to 469.563, 469.590 to 469.619,
469.930 and 469.992. No facility shall be constructed or operated
except in conformity with the requirements of ORS 469.300 to
469.563, 469.590 to 469.619, 469.930 and 469.992.
(2) A site certificate is not required for:
(a) An energy facility for which no site certificate has been
issued that, on August 2, 1993, had operable electric generating
equipment for a modification that uses the same fuel type and
increases electric generating capacity, if:
(A) The site is not enlarged; and
(B) The ability of the energy facility to use fuel for
electricity production under peak steady state operating
conditions is not more than 200 million Btu per hour greater than
it was on August 2, 1993, or the energy facility expansion is
called for in the short-term plan of action of an energy resource
plan that has been acknowledged by the Public Utility Commission
of Oregon.
(b) Construction or expansion of any interstate natural gas
pipeline or associated underground natural gas storage facility
authorized by and subject to the continuing regulation of the
Federal Energy Regulatory Commission or successor agency.
(c) An energy facility, except coal and nuclear power plants,
if the energy facility:
(A) Sequentially produces electrical energy and useful thermal
energy from the same fuel source; and
(B) Under normal operating conditions, has a useful thermal
energy output of no less than 33 percent of the total energy
output or the fuel chargeable to power heat rate value is not
greater than 6,000 Btu per kilowatt hour.
(d) Temporary storage, at the site of a nuclear-fueled thermal
power plant for which a site certificate has been issued by the
State of Oregon, of radioactive waste from the plant.
(e) An energy facility as defined in ORS 469.300 (11)(a)(G), if
the plant also produces a secondary fuel used on site for the
production of heat or electricity, if the output of the primary
fuel is less than six billion Btu of heat a day.
(f) An energy facility as defined in ORS 469.300 (11)(a)(G), if
the facility:
(A) Exclusively uses { + biomass, including but not limited
to + } grain, whey, potatoes, oil seeds, waste vegetable oil or
cellulosic biomass { + , + } as the source of material for
conversion to a liquid fuel;
(B) Has received local land use approval under the applicable
acknowledged comprehensive plan and land use regulations of the
affected local government and the facility complies with any
statewide planning goals or rules of the Land Conservation and
Development Commission that are directly applicable to the
facility;
(C) Requires no new electric transmission lines or gas or
petroleum product pipelines that would require a site certificate
under subsection (1) of this section; { - and - }
(D) Produces synthetic fuel, at least 90 percent of which is
used in an industrial or refueling facility located within one
mile of the facility or is transported from the facility by rail
or barge { + ; and
(E) Emits less than 118 pounds of carbon dioxide per million
Btu from fossil fuel used for conversion energy + }.
(g) A standby generation facility, if the facility complies
with all of the following:
(A) The facility has received local land use approval under the
applicable acknowledged comprehensive plan and land use
regulations of the affected local government and the facility
complies with all statewide planning goals and applicable rules
of the Land Conservation and Development Commission;
(B) The standby generators have been approved by the Department
of Environmental Quality as having complied with all applicable
air and water quality requirements. For an applicant that
proposes to provide the physical facilities for the installation
of standby generators, the requirement of this subparagraph may
be met by agreeing to require such a term in the lease contract
for the facility; and
(C) The standby generators are electrically incapable of being
interconnected to the transmission grid. For an applicant that
proposes to provide the physical facilities for the installation
of standby generators, the requirement of this subparagraph may
be met by agreeing to require such a term in the lease contract
for the facility.
(3) The Energy Facility Siting Council may review and, if
necessary, revise the fuel chargeable to power heat rate value
set forth in subsection (2)(c)(B) of this section. In making its
determination, the council shall ensure that the fuel chargeable
to power heat rate value for facilities set forth in subsection
(2)(c)(B) of this section remains significantly lower than the
fuel chargeable to power heat rate value for the best available,
commercially viable thermal power plant technology at the time of
the revision.
(4) Any person who proposes to construct or enlarge an energy
facility and who claims an exemption under subsection (2)(a),
(c), (f) or (g) of this section from the requirement to obtain a
site certificate shall request the Energy Facility Siting Council
to determine whether the proposed facility qualifies for the
claimed exemption. The council shall make its determination
within 60 days after the request for exemption is filed. An
appeal from the council's determination on a request for
exemption shall be made under ORS 469.403, except that the scope
of review by the Supreme Court shall be the same as a review by a
circuit court under ORS 183.484. The record on review by the
Supreme Court shall be the record established in the council
proceeding on the exemption.
(5) Notwithstanding subsection (1) of this section, a separate
site certificate shall not be required for:
(a) Transmission lines, storage facilities, pipelines or
similar related or supporting facilities, if such related or
supporting facilities are addressed in and are subject to a site
certificate for another energy facility;
(b) Expansion within the site or within the energy generation
area of a facility for which a site certificate has been issued,
if the existing site certificate has been amended to authorize
expansion; or
(c) Expansion, either within the site or outside the site, of
an existing council certified surface facility related to an
underground gas storage reservoir, if the existing site
certificate is amended to authorize expansion.
(6) If the substantial loss of the steam host causes a facility
exempt under subsection (2)(c) of this section to substantially
fail to meet the exemption requirements under subsection (2)(c)
of this section, the electric generating facility shall cease to
operate one year after the substantial loss of the steam host
unless an application for a site certificate has been filed in
accordance with the provisions of ORS 469.300 to 469.563.
(7) As used in this section:
(a) 'Standby generation facility' means an electric power
generating facility, including standby generators and the
physical structures necessary to install and connect standby
generators, that provides temporary electric power in the event
of a power outage and that is electrically incapable of being
interconnected with the transmission grid.
(b) 'Total energy output' means the sum of useful thermal
energy output and useful electrical energy output.
(c) 'Useful thermal energy' means the verifiable thermal energy
used in any viable industrial or commercial process, heating or
cooling application.
(8) Notwithstanding the definition of 'energy facility' in ORS
469.300 (11)(a)(J), an electric power generating plant with an
average electric generating capacity of less than 35 megawatts
produced from wind energy at a single energy facility or within a
single energy generation area may elect to obtain a site
certificate in the manner provided in ORS 469.300 to 469.563,
469.590 to 469.619, 469.930 and 469.992. An election to obtain a
site certificate under this subsection shall be final upon
submission of an application for a site certificate.
{ +
EXCLUSIVE FARM USE FOR ON-FARM + }
{ +
BIOFUEL PRODUCTION + }
SECTION 31. ORS 215.203 is amended to read:
215.203. (1) Zoning ordinances may be adopted to zone
designated areas of land within the county as exclusive farm use
zones. Land within such zones shall be used exclusively for farm
use except as otherwise provided in ORS 215.213, 215.283 or
215.284. Farm use zones shall be established only when such
zoning is consistent with the comprehensive plan.
(2)(a) As used in this section, 'farm use' means the current
employment of land for the primary purpose of obtaining a profit
in money by raising, harvesting and selling crops or the feeding,
breeding, management and sale of, or the produce of, livestock,
poultry, fur-bearing animals or honeybees or for dairying and the
sale of dairy products or any other agricultural or horticultural
use or animal husbandry or any combination thereof. 'Farm use'
includes the preparation, storage and disposal by marketing or
otherwise of the products or by-products raised on such land for
human or animal use { + , including the commercial processing of
farm crops into biofuel + }. 'Farm use ' also includes the
current employment of land for the primary purpose of obtaining a
profit in money by stabling or training equines including but not
limited to providing riding lessons, training clinics and
schooling shows. 'Farm use' also includes the propagation,
cultivation, maintenance and harvesting of aquatic, bird and
animal species that are under the jurisdiction of the State Fish
and Wildlife Commission, to the extent allowed by the rules
adopted by the commission. 'Farm use' includes the on-site
construction and maintenance of equipment and facilities used for
the activities described in this subsection. 'Farm use ' does not
include the use of land subject to the provisions of ORS chapter
321, except land used exclusively for growing cultured Christmas
trees as defined in subsection (3) of this section or land
described in ORS 321.267 (3) or 321.824 (3).
(b) 'Current employment' of land for farm use includes:
(A) Farmland, the operation or use of which is subject to any
farm-related government program;
(B) Land lying fallow for one year as a normal and regular
requirement of good agricultural husbandry;
(C) Land planted in orchards or other perennials, other than
land specified in subparagraph (D) of this paragraph, prior to
maturity;
(D) Land not in an exclusive farm use zone which has not been
eligible for assessment at special farm use value in the year
prior to planting the current crop and has been planted in
orchards, cultured Christmas trees or vineyards for at least
three years;
(E) Wasteland, in an exclusive farm use zone, dry or covered
with water, neither economically tillable nor grazeable, lying in
or adjacent to and in common ownership with a farm use land and
which is not currently being used for any economic farm use;
(F) Except for land under a single family dwelling, land under
buildings supporting accepted farm practices, including the
processing facilities allowed by ORS 215.213 (1)(x) and 215.283
(1)(u);
(G) Water impoundments lying in or adjacent to and in common
ownership with farm use land;
(H) Any land constituting a woodlot, not to exceed 20 acres,
contiguous to and owned by the owner of land specially valued for
farm use even if the land constituting the woodlot is not
utilized in conjunction with farm use;
(I) Land lying idle for no more than one year where the absence
of farming activity is due to the illness of the farmer or member
of the farmer's immediate family. For purposes of this paragraph,
illness includes injury or infirmity whether or not such illness
results in death;
(J) Any land described under ORS 321.267 (3) or 321.824 (3);
and
(K) Land used for the primary purpose of obtaining a profit in
money by breeding, raising, kenneling or training of greyhounds
for racing.
(c) As used in this subsection, 'accepted farming practice '
means a mode of operation that is common to farms of a similar
nature, necessary for the operation of such farms to obtain a
profit in money, and customarily utilized in conjunction with
farm use.
(3) 'Cultured Christmas trees' means trees:
(a) Grown on lands used exclusively for that purpose, capable
of preparation by intensive cultivation methods such as plowing
or turning over the soil;
(b) Of a marketable species;
(c) Managed to produce trees meeting U.S. No. 2 or better
standards for Christmas trees as specified by the Agriculture
Marketing Services of the United States Department of
Agriculture; and
(d) Evidencing periodic maintenance practices of shearing for
Douglas fir and pine species, weed and brush control and one or
more of the following practices: Basal pruning, fertilizing,
insect and disease control, stump culture, soil cultivation,
irrigation.
SECTION 32. ORS 215.283 is amended to read:
215.283. (1) The following uses may be established in any area
zoned for exclusive farm use:
(a) Public or private schools, including all buildings
essential to the operation of a school.
(b) Churches and cemeteries in conjunction with churches.
(c) The propagation or harvesting of a forest product.
(d) Utility facilities necessary for public service, including
wetland waste treatment systems but not including commercial
facilities for the purpose of generating electrical power for
public use by sale or transmission towers over 200 feet in
height. A utility facility necessary for public service may be
established as provided in ORS 215.275.
(e) A dwelling on real property used for farm use if the
dwelling is occupied by a relative of the farm operator or the
farm operator's spouse, which means a child, parent, stepparent,
grandchild, grandparent, stepgrandparent, sibling, stepsibling,
niece, nephew or first cousin of either, if the farm operator
does or will require the assistance of the relative in the
management of the farm use and the dwelling is located on the
same lot or parcel as the dwelling of the farm operator.
Notwithstanding ORS 92.010 to 92.190 or the minimum lot or parcel
size requirements under ORS 215.780, if the owner of a dwelling
described in this paragraph obtains construction financing or
other financing secured by the dwelling and the secured party
forecloses on the dwelling, the secured party may also foreclose
on the homesite, as defined in ORS 308A.250, and the foreclosure
shall operate as a partition of the homesite to create a new
parcel.
(f) Primary or accessory dwellings and other buildings
customarily provided in conjunction with farm use.
(g) Operations for the exploration for and production of
geothermal resources as defined by ORS 522.005 and oil and gas as
defined by ORS 520.005, including the placement and operation of
compressors, separators and other customary production equipment
for an individual well adjacent to the wellhead. Any activities
or construction relating to such operations shall not be a basis
for an exception under ORS 197.732 (1)(a) or (b).
(h) Operations for the exploration for minerals as defined by
ORS 517.750. Any activities or construction relating to such
operations shall not be a basis for an exception under ORS
197.732 (1)(a) or (b).
(i) A site for the disposal of solid waste that has been
ordered to be established by the Environmental Quality Commission
under ORS 459.049, together with equipment, facilities or
buildings necessary for its operation.
(j) The breeding, kenneling and training of greyhounds for
racing.
(k) Climbing and passing lanes within the right of way existing
as of July 1, 1987.
(L) Reconstruction or modification of public roads and
highways, including the placement of utility facilities overhead
and in the subsurface of public roads and highways along the
public right of way, but not including the addition of travel
lanes, where no removal or displacement of buildings would occur,
or no new land parcels result.
(m) Temporary public road and highway detours that will be
abandoned and restored to original condition or use at such time
as no longer needed.
(n) Minor betterment of existing public road and highway
related facilities such as maintenance yards, weigh stations and
rest areas, within right of way existing as of July 1, 1987, and
contiguous public-owned property utilized to support the
operation and maintenance of public roads and highways.
(o) A replacement dwelling to be used in conjunction with farm
use if the existing dwelling has been listed in a county
inventory as historic property as defined in ORS 358.480.
(p) Creation of, restoration of or enhancement of wetlands.
(q) A winery, as described in ORS 215.452.
(r) Farm stands if:
(A) The structures are designed and used for the sale of farm
crops or livestock grown on the farm operation, or grown on the
farm operation and other farm operations in the local
agricultural area, including the sale of retail incidental items
and fee-based activity to promote the sale of farm crops or
livestock sold at the farm stand if the annual sale of incidental
items and fees from promotional activity do not make up more than
25 percent of the total annual sales of the farm stand; and
(B) The farm stand does not include structures designed for
occupancy as a residence or for activity other than the sale of
farm crops or livestock and does not include structures for
banquets, public gatherings or public entertainment.
(s) Alteration, restoration or replacement of a lawfully
established dwelling that:
(A) Has intact exterior walls and roof structure;
(B) Has indoor plumbing consisting of a kitchen sink, toilet
and bathing facilities connected to a sanitary waste disposal
system;
(C) Has interior wiring for interior lights;
(D) Has a heating system; and
(E) In the case of replacement:
(i) Is removed, demolished or converted to an allowable
nonresidential use within three months of the completion of the
replacement dwelling. A replacement dwelling may be sited on any
part of the same lot or parcel. A dwelling established under this
paragraph shall comply with all applicable siting standards.
However, the standards shall not be applied in a manner that
prohibits the siting of the dwelling. If the dwelling to be
replaced is located on a portion of the lot or parcel not zoned
for exclusive farm use, the applicant, as a condition of
approval, shall execute and record in the deed records for the
county where the property is located a deed restriction
prohibiting the siting of a dwelling on that portion of the lot
or parcel. The restriction imposed shall be irrevocable unless a
statement of release is placed in the deed records for the
county. The release shall be signed by the county or its designee
and state that the provisions of this paragraph regarding
replacement dwellings have changed to allow the siting of another
dwelling. The county planning director or the director's designee
shall maintain a record of the lots and parcels that do not
qualify for the siting of a new dwelling under the provisions of
this paragraph, including a copy of the deed restrictions and
release statements filed under this paragraph; and
(ii) For which the applicant has requested a deferred
replacement permit, is removed or demolished within three months
after the deferred replacement permit is issued. A deferred
replacement permit allows construction of the replacement
dwelling at any time. If, however, the established dwelling is
not removed or demolished within three months after the deferred
replacement permit is issued, the permit becomes void. The
replacement dwelling must comply with applicable building codes,
plumbing codes, sanitation codes and other requirements relating
to health and safety or to siting at the time of construction. A
deferred replacement permit may not be transferred, by sale or
otherwise, except by the applicant to the spouse or a child of
the applicant.
(t) A site for the takeoff and landing of model aircraft,
including such buildings or facilities as may reasonably be
necessary. Buildings or facilities shall not be more than 500
square feet in floor area or placed on a permanent foundation
unless the building or facility preexisted the use approved under
this paragraph. The site shall not include an aggregate surface
or hard surface area unless the surface preexisted the use
approved under this paragraph. As used in this paragraph, 'model
aircraft' means a small-scale version of an airplane, glider,
helicopter, dirigible or balloon that is used or intended to be
used for flight and is controlled by radio, lines or design by a
person on the ground.
(u) A facility for the processing of farm crops { + or the
production of biofuel that is + } located on a farm operation
that provides at least one-quarter of the farm crops processed at
the facility. The building established for the processing
facility shall not exceed 10,000 square feet of floor area
exclusive of the floor area designated for preparation, storage
or other farm use or devote more than 10,000 square feet to the
processing activities within another building supporting farm
uses. A processing facility shall comply with all applicable
siting standards but the standards shall not be applied in a
manner that prohibits the siting of the processing facility.
(v) Fire service facilities providing rural fire protection
services.
(w) Irrigation canals, delivery lines and those structures and
accessory operational facilities associated with a district as
defined in ORS 540.505.
(x) Utility facility service lines. Utility facility service
lines are utility lines and accessory facilities or structures
that end at the point where the utility service is received by
the customer and that are located on one or more of the
following:
(A) A public right of way;
(B) Land immediately adjacent to a public right of way,
provided the written consent of all adjacent property owners has
been obtained; or
(C) The property to be served by the utility.
(y) Subject to the issuance of a license, permit or other
approval by the Department of Environmental Quality under ORS
454.695, 459.205, 468B.050, 468B.053 or 468B.055, or in
compliance with rules adopted under ORS 468B.095, and as provided
in ORS 215.246 to 215.251, the land application of reclaimed
water, agricultural or industrial process water or biosolids for
agricultural, horticultural or silvicultural production, or for
irrigation in connection with a use allowed in an exclusive farm
use zone under this chapter.
(z) A county law enforcement facility that lawfully existed on
August 20, 2002, and is used to provide rural law enforcement
services primarily in rural areas, including parole and
post-prison supervision, but not including a correctional
facility as defined under ORS 162.135.
(2) The following nonfarm uses may be established, subject to
the approval of the governing body or its designee in any area
zoned for exclusive farm use subject to ORS 215.296:
(a) Commercial activities that are in conjunction with farm use
but not including the processing of farm crops as described in
subsection (1)(u) of this section.
(b) Operations conducted for:
(A) Mining and processing of geothermal resources as defined by
ORS 522.005 and oil and gas as defined by ORS 520.005 not
otherwise permitted under subsection (1)(g) of this section;
(B) Mining, crushing or stockpiling of aggregate and other
mineral and other subsurface resources subject to ORS 215.298;
(C) Processing, as defined by ORS 517.750, of aggregate into
asphalt or portland cement; and
(D) Processing of other mineral resources and other subsurface
resources.
(c) Private parks, playgrounds, hunting and fishing preserves
and campgrounds. Subject to the approval of the county governing
body or its designee, a private campground may provide yurts for
overnight camping. No more than one-third or a maximum of 10
campsites, whichever is smaller, may include a yurt. The yurt
shall be located on the ground or on a wood floor with no
permanent foundation. Upon request of a county governing body,
the Land Conservation and Development Commission may provide by
rule for an increase in the number of yurts allowed on all or a
portion of the campgrounds in a county if the commission
determines that the increase will comply with the standards
described in ORS 215.296 (1). As used in this paragraph, 'yurt'
means a round, domed shelter of cloth or canvas on a collapsible
frame with no plumbing, sewage disposal hookup or internal
cooking appliance.
(d) Parks and playgrounds. A public park may be established
consistent with the provisions of ORS 195.120.
(e) Community centers owned by a governmental agency or a
nonprofit community organization and operated primarily by and
for residents of the local rural community. A community center
authorized under this paragraph may provide services to veterans,
including but not limited to emergency and transitional shelter,
preparation and service of meals, vocational and educational
counseling and referral to local, state or federal agencies
providing medical, mental health, disability income replacement
and substance abuse services, only in a facility that is in
existence on January 1, 2006. The services may not include direct
delivery of medical, mental health, disability income replacement
or substance abuse services.
(f) Golf courses.
(g) Commercial utility facilities for the purpose of generating
power for public use by sale.
(h) Personal-use airports for airplanes and helicopter pads,
including associated hangar, maintenance and service facilities.
A personal-use airport, as used in this section, means an
airstrip restricted, except for aircraft emergencies, to use by
the owner, and, on an infrequent and occasional basis, by invited
guests, and by commercial aviation activities in connection with
agricultural operations. No aircraft may be based on a
personal-use airport other than those owned or controlled by the
owner of the airstrip. Exceptions to the activities permitted
under this definition may be granted through waiver action by the
Oregon Department of Aviation in specific instances. A
personal-use airport lawfully existing as of September 13, 1975,
shall continue to be permitted subject to any applicable rules of
the Oregon Department of Aviation.
(i) Home occupations as provided in ORS 215.448.
(j) A facility for the primary processing of forest products,
provided that such facility is found to not seriously interfere
with accepted farming practices and is compatible with farm uses
described in ORS 215.203 (2). Such a facility may be approved for
a one-year period which is renewable. These facilities are
intended to be only portable or temporary in nature. The primary
processing of a forest product, as used in this section, means
the use of a portable chipper or stud mill or other similar
methods of initial treatment of a forest product in order to
enable its shipment to market. Forest products, as used in this
section, means timber grown upon a parcel of land or contiguous
land where the primary processing facility is located.
(k) A site for the disposal of solid waste approved by the
governing body of a city or county or both and for which a permit
has been granted under ORS 459.245 by the Department of
Environmental Quality together with equipment, facilities or
buildings necessary for its operation.
(L) One manufactured dwelling or recreational vehicle, or the
temporary residential use of an existing building, in conjunction
with an existing dwelling as a temporary use for the term of a
hardship suffered by the existing resident or a relative of the
resident. Within three months of the end of the hardship, the
manufactured dwelling or recreational vehicle shall be removed or
demolished or, in the case of an existing building, the building
shall be removed, demolished or returned to an allowed
nonresidential use. The governing body or its designee shall
provide for periodic review of the hardship claimed under this
paragraph. A temporary residence approved under this paragraph is
not eligible for replacement under subsection (1)(s) of this
section.
(m) Transmission towers over 200 feet in height.
(n) Dog kennels not described in subsection (1)(j) of this
section.
(o) Residential homes as defined in ORS 197.660, in existing
dwellings.
(p) The propagation, cultivation, maintenance and harvesting of
aquatic species that are not under the jurisdiction of the State
Fish and Wildlife Commission or insect species. Insect species
shall not include any species under quarantine by the State
Department of Agriculture or the United States Department of
Agriculture. The county shall provide notice of all applications
under this paragraph to the State Department of Agriculture.
Notice shall be provided in accordance with the county's land use
regulations but shall be mailed at least 20 calendar days prior
to any administrative decision or initial public hearing on the
application.
(q) Construction of additional passing and travel lanes
requiring the acquisition of right of way but not resulting in
the creation of new land parcels.
(r) Reconstruction or modification of public roads and highways
involving the removal or displacement of buildings but not
resulting in the creation of new land parcels.
(s) Improvement of public road and highway related facilities,
such as maintenance yards, weigh stations and rest areas, where
additional property or right of way is required but not resulting
in the creation of new land parcels.
(t) A destination resort that is approved consistent with the
requirements of any statewide planning goal relating to the
siting of a destination resort.
(u) Room and board arrangements for a maximum of five unrelated
persons in existing residences.
(v) Operations for the extraction and bottling of water.
(w) Expansion of existing county fairgrounds and activities
directly relating to county fairgrounds governed by county fair
boards established pursuant to ORS 565.210.
(x) A living history museum related to resource based
activities owned and operated by a governmental agency or a local
historical society, together with limited commercial activities
and facilities that are directly related to the use and enjoyment
of the museum and located within authentic buildings of the
depicted historic period or the museum administration building,
if areas other than an exclusive farm use zone cannot accommodate
the museum and related activities or if the museum administration
buildings and parking lot are located within one quarter mile of
an urban growth boundary. As used in this paragraph:
(A) 'Living history museum' means a facility designed to depict
and interpret everyday life and culture of some specific historic
period using authentic buildings, tools, equipment and people to
simulate past activities and events; and
(B) 'Local historical society' means the local historical
society recognized by the county governing body and organized
under ORS chapter 65.
(y) An aerial fireworks display business that has been in
continuous operation at its current location within an exclusive
farm use zone since December 31, 1986, and possesses a
wholesaler's permit to sell or provide fireworks.
(z) A landscaping business, as defined in ORS 671.520, or a
business providing landscape architecture services, as described
in ORS 671.318, if the business is pursued in conjunction with
the growing and marketing of nursery stock on the land that
constitutes farm use.
(3) Roads, highways and other transportation facilities and
improvements not allowed under subsections (1) and (2) of this
section may be established, subject to the approval of the
governing body or its designee, in areas zoned for exclusive farm
use subject to:
(a) Adoption of an exception to the goal related to
agricultural lands and to any other applicable goal with which
the facility or improvement does not comply; or
(b) ORS 215.296 for those uses identified by rule of the Land
Conservation and Development Commission as provided in section 3,
chapter 529, Oregon Laws 1993.
SECTION 33. ORS 308A.056 is amended to read:
308A.056. (1) As used in ORS 308A.050 to 308A.128, 'farm use'
means the current employment of land for the primary purpose of
obtaining a profit in money by:
(a) Raising, harvesting and selling crops;
(b) Feeding, breeding, managing or selling livestock, poultry,
fur-bearing animals or honeybees or the produce thereof;
(c) Dairying and selling dairy products;
(d) Stabling or training equines, including but not limited to
providing riding lessons, training clinics and schooling shows;
(e) Propagating, cultivating, maintaining or harvesting aquatic
species and bird and animal species to the extent allowed by the
rules adopted by the State Fish and Wildlife Commission;
(f) On-site constructing and maintaining equipment and
facilities used for the activities described in this subsection;
(g) Preparing, storing or disposing of, by marketing or
otherwise, the products or by-products raised for human or animal
use on land described in this section; { - or - }
{ + (h) Commercial processing of farm crops into biofuel;
or + }
{ - (h) - } { + (i) + } Using land described in this
section for any other agricultural or horticultural use or animal
husbandry or any combination thereof.
(2) 'Farm use' does not include the use of land subject to
timber and forestland taxation under ORS chapter 321, except land
used exclusively for growing cultured Christmas trees or land
described in ORS 321.267 (3) or 321.824 (3) (relating to land
used to grow certain hardwood timber, including hybrid
cottonwood).
(3) For purposes of this section, land is currently employed
for farm use if the land is:
(a) Farmland, the operation or use of which is subject to any
farm-related government program;
(b) Land lying fallow for one year as a normal and regular
requirement of good agricultural husbandry;
(c) Land planted in orchards or other perennials, other than
land specified in paragraph (d) of this subsection, prior to
maturity;
(d) Land not in an exclusive farm use zone that has not been
eligible for assessment at special farm use value in the year
prior to planting the current crop and has been planted in
orchards, cultured Christmas trees or vineyards for at least
three years;
(e) Wasteland, in an exclusive farm use zone, dry or covered
with water, neither economically tillable nor grazeable, lying in
or adjacent to and in common ownership with farm use land and
that is not currently being used for any economic farm use;
(f) Except for land under a single family dwelling, land under
buildings supporting accepted farming practices, including the
processing facilities allowed by ORS 215.213 (1)(x) and 215.283
(1)(u);
(g) Water impoundments lying in or adjacent to and in common
ownership with farm use land;
(h) Any land constituting a woodlot, not to exceed 20 acres,
contiguous to and owned by the owner of land specially valued for
farm use even if the land constituting the woodlot is not
utilized in conjunction with farm use;
(i) Land lying idle for no more than one year when the absence
of farming activity is the result of the illness of the farmer or
a member of the farmer's immediate family, including injury or
infirmity, regardless of whether the illness results in death;
(j) Land described under ORS 321.267 (3) or 321.824 (3)
(relating to land used to grow certain hardwood timber, including
hybrid cottonwood); or
(k) Land used for the primary purpose of obtaining a profit in
money by breeding, raising, kenneling or training greyhounds for
racing.
(4) As used in this section:
(a) 'Accepted farming practice' means a mode of operation that
is common to farms of a similar nature, necessary for the
operation of these similar farms to obtain a profit in money and
customarily utilized in conjunction with farm use.
(b) 'Cultured Christmas trees' means trees:
(A) Grown on lands used exclusively for that purpose, capable
of preparation by intensive cultivation methods such as plowing
or turning over the soil;
(B) Of a marketable species;
(C) Managed to produce trees meeting U.S. No. 2 or better
standards for Christmas trees as specified by the Agricultural
Marketing Service of the United States Department of Agriculture;
and
(D) Evidencing periodic maintenance practices of shearing for
Douglas fir and pine species, weed and brush control and one or
more of the following practices:
(i) Basal pruning;
(ii) Fertilizing;
(iii) Insect and disease control;
(iv) Stump culture;
(v) Soil cultivation; or
(vi) Irrigation.
SECTION 34. { + The amendments to ORS 308A.056 by section 33
of this 2007 Act apply to tax years beginning on or after July 1,
2006. + }
{ +
CAPTIONS + }
SECTION 35. { + The unit captions used in this 2007 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2007 Act. + }
{ +
EFFECTIVE DATE + }
SECTION 36. { + This 2007 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-fourth
Legislative Assembly adjourns sine die. + }
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