Oregon

Department of Weights and Measures, 503-986-4677

Alternative Fuel Vehicle (AFV) and Infrastructure Tax Credit for Businesses

Business owners and others may be eligible for a tax credit of 35% of eligible costs for qualified alternative fuel infrastructure projects, or the incremental or conversion cost of two or more AFVs. Qualified infrastructure includes facilities for mixing, storing, compressing, or dispensing fuels for vehicles operating on alternative fuels. Qualified alternative fuels include electricity, natural gas, gasoline blended with at least 85% ethanol (E85), propane, and other fuels that the Oregon Department of Energy (ODOE) approves. Unused credits may be carried forward up to five years. Non-profit organizations and public entities that do not have an Oregon tax liability may receive the credit for an eligible project but must "pass-through" or transfer their project eligibility to a pass-through partner in exchange for a lump-sum cash payment. ODOE determines the rate that is used to calculate the cash payment. The pass-through option is also available to a project owner with an Oregon tax liability who chooses to transfer their tax credit. The credit is available through the applicant's 2017 tax year. For more information, see the ODOE Transportation Tax Credits website. (Reference Oregon Revised Statutes 315.336, 469B.320, and 469B.323)

Biofuels Production Property Tax Exemption

Property used to produce biofuels, including ethanol and biodiesel, may be eligible for a property tax exemption if it is located in a designated Rural Renewable Energy Development Zone. The Oregon Business Development Department must receive and approve an application from a qualified rural area to designate the area as a Rural Renewable Energy Development Zone. (Reference Oregon Revised Statutes 285C.350 through 285C.370)

Renewable Fuels Mandate

All gasoline sold in the state must be blended with 10% ethanol (E10). Gasoline with an octane rating of 91 or above is exempt from this mandate, as is gasoline sold for use in certain non-road applications. Gasoline that contains at least 9.2% agriculturally derived ethanol that meets ASTM specification D4806 complies with the mandate. For the purpose of the mandate, ethanol must meet ASTM specification D4806. The governor may suspend the renewable fuels mandate for ethanol if the Oregon Department of Energy finds that a sufficient amount of ethanol is not available.

All diesel fuel sold in the state must be blended with at least 5% biodiesel (B5). For the purpose of this mandate, biodiesel is defined as a motor vehicle fuel derived from vegetable oil, animal fat, or other non-petroleum resources, that is designated as B100 and complies with ASTM specification D6751. Renewable diesel qualifies as a substitute for biodiesel in the blending requirement. In addition, diesel fuel blends sold between October 1 and February 28 may contain additives to prevent congealing or gelling. At any time, the Oregon Department of Energy may request a certificate of fuel analysis for biodiesel sold at any non-retail and wholesale biodiesel dealer.

(Reference Oregon Revised Statutes 646.913 through 646.923 and Oregon Administrative Rules 603-027-0410 and 603-027-0420)

Alternative Fuel Vehicle (AFV) Acquisition, Fuel Use, and Emissions Reductions Requirements

All state agencies and transit districts must purchase AFVs and use alternative fuels to operate those vehicles to the maximum extent possible, except in regions where it is not economically or logistically possible to fuel an AFV. Each state agency must develop and report a greenhouse gas reduction baseline and determine annual reduction targets. Reports to the Oregon Department of Administrative Services must include the number of purchases or leases of AFVs or AFV conversions and the quantity of each type of alternative fuel used annually by state agency fleets. (Reference Oregon Revised Statutes283.327 and 267.030, and Executive Order 06-02, 2006)

Ethanol Infrastructure Grants and Loan Guarantees
The Rural Energy for America Program (REAP) provides grants and loan guarantees to rural (population less than 50K) small businesses to purchase renewable energy systems or make energy efficiency improvements. Eligible renewable energy systems include equipment used to distribute flexible fuels. The maximum grant funding is 25% of project costs and the maximum loan guarantee is $25 million. The program is funded through fiscal year 2018 but is subject to congressional appropriations thereafter. For more information, see the REAP website.

Point of Contact
Office of Rural Development, Business and Cooperative Programs
U.S. Department of Agriculture
Phone: (202) 690-4730
http://www.rurdev.usda.gov/

Click here for a complete list of domestic ethanol producers and sales contacts for E85/direct ethanol sales