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

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

   1. (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 or partner exceeds 100 percent of the project costs.
   2. (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 or partner exceeds 100 percent of the project costs.
4. (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. (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. (6) The performance agreement must include the following terms and may also include additional terms:

   1. (a) The maximum amount of the grant and the entity to which funds will be disbursed.
   2. (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.
   3. (c) The amount by which the department may reduce the grant in response to changes in actual project cost.
   4. (d) The maximum duration of the performance agreement.
   5. (e) The requirement that the grantee install or construct the community renewable energy project substantially as described in the application.
   6. (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.
   7. (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.
   8. (h) The requirement that the applicant or partner 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.
   9. (i) The requirement that the grantee or partner 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.
   10. (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.
   11. (k) A provision allowing the performance agreement to be terminated for reasons stated in the agreement and subject to terms described in the agreement.

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

       1. (A) The grantee fails to abide by the performance agreement;
       2. (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
       3. (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. (7) For a performance agreement for developing a community renewable energy project entered into on or after August 1, 2024, if the applicant has a partner, the applicant must have a written agreement with the partner prior to grant moneys being released to the applicant. The agreement must include the right for the department to conduct a physical inspection of all the project and to audit all documentation relating to the project and may be required to include other terms or requirements as specified by the department in the performance agreement. The department may request a copy of the written agreement prior to releasing grant moneys.

8. (8) 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, if upon entering the performance agreement the applicant demonstrates that the applicant or a partner of the applicant has:

   1. (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;
   2. (b) Filed a request for interconnection with a host utility or appropriate transmission provider; and
   3. (c) Met any other requirements provided by the department in the performance agreement.

9. (9) For project development grants, subject to paragraph (8), the department may release up to 30 percent of additional grant moneys provided for in a performance agreement, not to exceed 30 percent of project cost for community renewable energy projects that qualify as community energy resilience projects, and not to exceed 15 percent of project cost for community renewable energy projects that do not qualify as community energy resilience projects upon entering into a performance agreement with an applicant for developing a community renewable energy project, if the applicant demonstrates that the applicant or a partner of the applicant has:

   1. (a) Fulfilled all requirements from paragraph (8);
   2. (b) Incurred eligible costs equaling a minimum of 25% of projected grant moneys prior to a request for additional grant moneys;
   3. (c) Provided an updated project budget that details eligible and ineligible costs;
   4. (d) Started construction or installation of the renewable energy system at the project location or will start no later than 60 days after the submission of the request for grant moneys, and not later than the required construction start date. This may be demonstrated by submitting to the Department approval from the authority having jurisdiction for construction of the system to start alongside supporting documentation such as bills of lading, contractor agreements, or other relevant and timely documentation; and;
   5. (e) Met any other requirements provided by the department in the performance agreement.
10. (10) Grant moneys not released under 330-250-0130(8) or (9) shall be released upon project completion under the terms of the performance agreement.
11. (11) The department may require a legal sufficiency review of a performance agreement by the Oregon Department of Justice prior to execution.
12. (12) 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 or partner 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.
13. (13) The department may recover grant moneys if the project fails to abide by the performance agreement.
14. (14) A grant may not be used to cover any fixed costs the applicant would incur in the applicant’s normal course of business, such as existing staff salaries or overhead costs.

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)

History

DOE 6-2024, amend filed 08/23/2024, effective 09/16/2024
DOE 1-2022, adopt filed 02/28/2022, effective 02/28/2022