BETC reform under way

Enlarge Image

After a day of committee testimony from the renewable energy industry and months of questions about the need for the program, the language that’s emerging from Salem outlines a Business Energy Tax Credit that’s toned down, but still helpful to the clean-energy businesses that depend on it for their growth. The BETC could come to a vote in the Legislature as soon as next week.

Among the modifications being proposed are:

· Limits on credits to wind project larger than 10 megawatts.

· Caps on pre-certified credit costs for renewable energy projects at $300 million for the current biennium, extended on a pro-rated basis next year.

· Statutory adoption of rules put forward by the Oregon Department of Energy in November designed to eliminate the practice of filing multiple BETC applications for the same projects, refine the criteria for project eligibility and performance standards and to give the department the ability to revoke, suspend or add conditions to applications.

The BETC, a tax credit for businesses that are developing renewable energy projects — such as solar arrays or wind farms — was designed to encourage the growth of the sector and create jobs in Oregon. But the program come under fire in part because of the $235 million it is expected to cost the state during the current two-year budget cycle in lost revenue.

“We understand that the Legislature is doing their best to allow growth in renewable energy sector and be mindful of budgetary concerns,” said Suzanne Leta Liou, senior policy advocate of Renewable Northwest Project.

Organizations such as RNP still have concerns over the details of the BETC regulations For example, they’d like to see the credits extended until 2014 to provide a consistent development environment for renewable-energy projects that take several years to come to fruition. The sunset date of the BETC is among issues that are still outstanding.