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What is Energy Trust of Oregon, Inc.? What is the Open Solicitation Program? What renewable energy technologies typically apply through the Open Solicitation Program? What level of funding is available? What type of funding is available? What role do green tags play in funding from Energy Trust? What are “above-market” costs? How does Energy Trust determine the above-market costs? How do I apply for Energy Trust assistance? What happens after I submit an initial application? When should I submit an application? What criteria are used to evaluate an application? What happens if my application is approved? If I qualify for Energy Trust funding, can I also receive other subsidies? Where can I get more information? For more information, call us at 1-866-368-7878. Photos left to right: wind turbine, Small hydro photo courtesy of Dulas, Ltd What is Energy Trust of Oregon, Inc.?The mission of Energy Trust of Oregon, Inc. is to change the way Oregonians produce and use energy. On behalf of Oregon customers of Pacific Power and Portland General Electric (PGE), Energy Trust invests in renewable energy technologies to help Oregonians save energy, increase the comfort of their homes and businesses, and move toward energy self-reliance. In 1999, the Oregon legislature adopted, and the governor approved, legislation establishing public-purpose funding to be used for new cost-effective local energy conservation, new market transformation efforts, the above-market costs of new renewable energy resources, and new low-income weatherization. The Oregon Public Utility Commission (OPUC) was authorized to direct the manner in which the collected funds would be spent. Energy Trust of Oregon, Inc. was formed as a nonprofit corporation and entered into a grant agreement with the OPUC. The OPUC Grant Agreement governs the manner in which Energy Trust receives and expends collected public purpose funds. Energy Trust began operations in March 2002. What is the Open Solicitation Program?The Open Solicitation Program provides opportunities to receive financial incentives and support for innovative commercial applications of renewable energy technology. The program is designed to:
The Open Solicitation Program does not fund research and development. What renewable energy technologies typically apply through the Open Solicitation Program?The Open Solicitation Program typically funds projects using commercial technologies not covered by other Energy Trust programs. Those include new electricity generation facilities, or new additions to existing facilities, fueled by geothermal energy, hydroelectric facilities located outside state and federally protected areas, wave energy, and other new technologies that are commercially available. Biopower, solar, and wind projects should apply to the appropriate Energy Trust programs. “New renewable resource” may not include any portion of a renewable energy resource project under contract to the Bonneville Power Administration on or before July 2001. What level of funding is available?In 2008, Energy Trust currently is providing approximately $1.5 million for the Open Solicitation Program. There is no funding cap for projects, but the projected program budget is expected to fund approximately 4 to 6 projects. Energy Trust is able to provide up to 100% of a qualifying project’s above-market costs. In return, Energy Trust takes title to a share of the green tags generated over the project’s operating lifetime. (See next question.) In most cases, we would make payment over the first few years of the project’s operating life, contingent on its production of electricity. Under no circumstances would Energy Trust make payment before commercial operation. For selected projects, we may be able to contribute funds toward feasibility analyses. For instance, this may be appropriate when an applicant has a promising concept, but lacks the information or resources to determine whether the project makes sense for them or for Energy Trust. In most cases, we can provide up to 50% of the cost of the feasibility analysis. What role do green tags play in funding from Energy Trust?Green tags are tradable financial instruments that represent the environmental attributes of electricity generated from renewable resources. When Energy Trust provides funding for a renewable energy project, it takes title to a share of the project’s green tags proportional to its share of the above-market costs and in relation to the market value for those tags. For instance, if the project is $1 million above market, and Energy Trust provides $500,000, Energy Trust may take one half of the tags generated in each year of the project’s estimated operating life. If Energy Trust offers less funding than the tags are worth in credible green tag markets, then Energy Trust will reduce its share of tags on a negotiated basis. Energy Trust holds the green tags in trust for the ratepayers who contribute the funds we invest in renewable projects. What are “above-market” costs?The OPUC Grant Agreement under which Energy Trust operates requires that our funds offset all or a portion of a project's “above-market costs.” Above-market costs are the difference between the present value of the electricity produced by the project, and the present value of the costs and expenses incurred to generate that electricity (see below). Energy Trust's Board of Directors has not set a fixed percentage for the amount of the above-market costs that Energy Trust will pay. How does Energy Trust determine the above-market costs?Energy Trust staff determines above-market costs through three steps:
To calculate the project’s cost of electricity (as in Step 2, above), Energy Trust considers information provided by the applicant, including:
How do I apply for Energy Trust assistance?First, review the program Guidelines and Eligibility These will give you a sense of how well your project fits with our program goals and criteria. If you believe that your project is eligible for funding, download and submit the Open Solicitation Initial Application form What happens after I submit an initial application?The following guidelines describe the process for most applicants. However, where unique circumstances dictate, Energy Trust staff may approve an altered timeline.
To improve Energy Trust programs and processes, program evaluators periodically seek to interview renewable energy project developers at various stages of the application process, as well as those who do not receive Energy Trust funding for their projects. If you are contacted by a member of our evaluation team, we hope you will share your experiences and your suggestions for improving the Open Solicitation Program.
When should I submit an application?We encourage you to submit your completed Initial Application as early as possible in the calendar year (ideally, prior to August). Once all available funding has been committed for the current fiscal year, we may defer evaluation of new projects until the following year. What criteria are used to evaluate an application?Energy Trust staff will review applications based on the following criteria and any other factors staff deems relevant:
If Energy Trust approves your Full Application, Energy Trust will enter into negotiations with you to develop a written contract to detail the terms and conditions of Energy Trust’s support. In these negotiations, time is of the essence and Energy Trust discourages prolonged contract negotiations. In general, Energy Trust strongly prefers contracts that are consistent with Energy Trust’s standard terms and conditions; negotiations for such contracts can generally be completed within a month. In some cases, a few terms and conditions may need to be substituted or waived, in accordance with contract negotiations. Any party involved in these contract discussions can terminate such negotiations at any time and for any reason. If it appears that contract negotiations are not proceeding in a timely manner, Energy Trust may opt to terminate discussions and redirect available funding to another eligible project. Notice of approval of your full application should not be considered a commitment, and no obligations or legal relations shall exist between Energy Trust and an approved applicant until a contract has been fully executed in writing by and between Energy Trust and the approved applicant. Approved applicants will be expected to construct and complete approved projects in a timely manner, generally one year or less, and an approved applicant should expect that performance milestones will be included in any contract with Energy Trust. Applicants should expect to see a contract provision which would allow Energy Trust to terminate the contract if it appears that project construction is not proceeding in accordance with performance milestones. If I qualify for Energy Trust funding, can I also receive other subsidies?Yes. We expect applicants to pursue diligently all other applicable forms of funding, so as to minimize the project’s above-market funding requirement. These may include Oregon Business Energy Tax Credits, federal production tax credits, state and federal accelerated depreciation, and other subsidies. In some cases, this may require applicants without a tax burden (municipalities, tribal entities or not-for-profit organizations, for example) to develop an ownership structure able to absorb available tax benefits. In addition, we expect applicants to use the lowest-cost financing available, which in many cases may be represented by the Oregon State Energy Loan Program. Can entities that “self direct” their public purpose charge participate in the Open Solicitation Program?Yes, self-directing entities can participate in the Open Solicitation program, but they may qualify for only a reduced level of financial support. Oregon law requires customers of PGE and Pacific Power to pay a public purpose charge to fund certain energy efficiency and renewable resource acquisitions. Under the OPUC Grant Agreement, Energy Trust receives and invests some of the funds generated by the public purpose charge. Although payment of the public purpose charge is generally mandatory, certain large customers – those that use more than 1 average megawatt of electricity (8,760,000 kilowatt-hours) at 1 site in 1 year – may “self-direct” their public purpose charge payments to pay for certified energy efficiency or renewable resource projects at their own facilities. Self-direction is optional, and a customer may over time change from self-directing to contributing to the general public purpose charge, and vice versa. Customers interested in self-direction must be pre-approved to do so by the Oregon Department of Energy. Entities that self-direct may still qualify for services and incentives provided by Energy Trust. However, such services and incentives may be reduced and may be subject to partial repayment under certain circumstances for example, if the entity elects to self-direct within 36 months of receiving our funding. If you are uncertain as to your self-direction status or have general questions about self-direction, more information can be found at the Oregon Department of Energy's website or by calling them at 800-221-8035.
For questions regarding the Open Solicitation program, contact:
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