(1) The Heat Pump Deployment Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned by the Heat Pump Deployment Fund shall be credited to the fund. The fund consists of:

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(a) Moneys appropriated or otherwise transferred to the fund by the Legislative Assembly;

(b) Moneys received from federal, state or local sources;

(c) Gifts, grants or other moneys contributed to the fund; and

(d) Other amounts deposited in the fund from any source.

(2) Moneys in the fund are continuously appropriated to the State Department of Energy for the purpose of the Heat Pump Deployment Program established under ORS § 469B.460.

(3) The department may use reasonable amounts from the fund, but no more than 15 percent of the fund, necessary to:

(a) Administer and market the Heat Pump Deployment Program; and

(b) Provide for the compensation and expenses of members of the Heat Pump Deployment Advisory Council established under ORS § 469B.463.

(4) The Director of the State Department of Energy shall submit a biennial report to the Legislative Assembly in the manner provided by ORS § 293.640 regarding the expenditures of moneys deposited in the Heat Pump Deployment Fund, including:

(a) A detailed description of the use of the moneys;

(b) A detailed description of the loans, grants or other financial assistance provided from the moneys and, where applicable, an accounting of the repayment status of the loans;

(c) The nature and amounts of the administrative expenses and marketing costs paid from the moneys; and

(d) Indicators of program success. [2022 c.86 § 16]

(Residential Heat Pump Rebates and Grants)

Sections 19 to 21 and 23, chapter 86, Oregon Laws 2022, provide:

(1) The State Department of Energy shall provide rebates for the purchase and installation of air-source or ground-source heat pumps to owners of a dwelling unit used as a residential tenancy and to owners of a manufactured dwelling or recreational vehicle who rent a space in a manufactured dwelling or recreational vehicle park.

(2)(a) Rebates available under this section may only be claimed by a contractor that installs a heat pump for the owner of a residential dwelling unit in Oregon. A contractor that claims a rebate under this section must use the full amount of the rebate to reduce the net cost to the customer of the purchase of the heat pump for which the rebate is issued.

(b) The amount that may be claimed as a rebate under this section may not exceed:

(A) For the owner of a dwelling unit used as a residential tenancy, 60 percent of the purchase price of the heat pump.

(B) For the owner of a manufactured dwelling or recreation vehicle, a percentage of the purchase price of the heat pump as established by the department.

(c) To be eligible to claim a rebate on behalf of a customer under this section, a contractor that installs a heat pump must, at the time of the installation:

(A) Hold any license, bond, insurance or permit required to sell and install the heat pump;

(B) Demonstrate a history of compliance with the rules and other requirements of the Construction Contractors Board, the Bureau of Labor and Industries and the Workers’ Compensation Division and the Occupational Safety and Health Division of the Department of Consumer and Business Services; and

(C) Meet any other certification requirements set forth in rules adopted by the State Department of Energy.

(3) To claim a rebate under this section, a contractor must:

(a) Before installing a heat pump, apply to the department to reserve a rebate on behalf of the customer for whom the heat pump will be installed.

(b) After installing the heat pump, verify the purchase and installation of the heat pump on a form provided by the department that must contain:

(A) The location of the heat pump;

(B) A description of the heat pump;

(C) Evidence that the contractor is eligible to claim a rebate under subsection (2)(c) of this section;

(D) A statement signed by both the contractor and the customer for whom the heat pump is installed that the customer has received the full value of the rebate as a reduction in the net cost of the purchase and installation of the heat pump and that the rebate was clearly reflected on an invoice provided to the customer;

(E) The projected energy savings from the installation of the heat pump; and

(F) Any other information that the department determines is necessary.

(4) Rebates made under this section must be made from moneys in the Residential Heat Pump Fund established under section 21 of this 2022 Act. A rebate may be made only if there are moneys available in the fund to make the rebate.

(5) Pursuant to the procedures for a contested case under ORS Chapter 183, the department may:

(a) Deny or revoke a contractor’s eligibility to claim a rebate on behalf of a customer under this section if the department finds that:

(A) The contractor’s eligibility was obtained by fraud or misrepresentation by the contractor;

(B) The contractor’s performance for installation of heat pumps does not meet industry standards; or

(C) The contractor has misrepresented to customers either the program established under this section or the nature or quality of the heat pumps for which rebates are available.

(b) Revoke a rebate or a portion of a rebate made under this section if the department finds that:

(A) The rebate was obtained by fraud or misrepresentation; or

(B) The rebate was obtained by mistake or miscalculation.

(6)(a) The department may adopt rules to administer the rebate program.

(b) In adopting rules under this section, the department may coordinate or consult with:

(A) The Housing and Community Services Department, the Building Codes Division of the Department of Consumer and Business Services and any other relevant state agencies;

(B) Nonprofit organizations and utilities; and

(C) Other incentive providers.

(c) Rules adopted under this section may include:

(A) Preferences for providing rebates that benefit low and moderate income residential tenants;

(B) Preferences for providing rebates to support heat pumps with superior energy efficiency;

(C) Provisions for determining eligibility and verification of heat pumps; and

(D) Policies and procedures for the administration and enforcement of this section and section 21 of this 2022 Act, which may include policies and procedures for audits and inspections. [2022 c.86 § 19]

(1) The State Department of Energy shall provide grants for upgrades, including electrical and mechanical upgrades, to facilitate the installation of heat pumps for owners of a dwelling unit or a manufactured dwelling for whom a rebate has been reserved under section 19 (3)(a) of this 2022 Act.

(2) Grants made under this section must be made from moneys in the Residential Heat Pump Fund established under section 21 of this 2022 Act. A grant may be made only if there are moneys available in the fund to make the grant.

(3)(a) The department shall adopt rules to administer the grant program.

(b) In adopting rules under this section, the department may coordinate or consult with:

(A) The Housing and Community Services Department, the Building Codes Division of the Department of Consumer and Business Services, the United States Department of Energy and any other relevant agencies;

(B) Nonprofit organizations and utilities; and

(C) Other incentive providers.

(c) Rules adopted under this section must include:

(A) Preferences for providing grants that benefit low and moderate income residential tenants;

(B) Provisions for determining eligibility and verification of the upgrades; and

(C) Policies and procedures for the administration and enforcement of this section. [2022 c.86 § 20]

(1) The Residential Heat Pump Fund is established in the State Treasury, separate and distinct from the General Fund. Moneys in the Residential Heat Pump Fund consist of:

(a) Amounts donated to the fund;

(b) Amounts appropriated or otherwise transferred to the fund by the Legislative Assembly; and

(c) Other amounts deposited into the fund from any public or private source.

(2) Moneys in the fund are continuously appropriated to the State Department of Energy to be used to provide grants and rebates under sections 19 and 20, chapter 86, Oregon Laws 2022, and to pay the costs and expenses of the department related to the administration and implementation of sections 19 and 20, chapter 86, Oregon Laws 2022.

(3) In each calendar year, of the moneys available for issuing grants and rebate from the fund:

(a) 25 percent must be reserved for affordable housing providers; and

(b) 25 percent must be reserved for owners of units occupied by low or moderate income households. [2022 c.86 § 21; 2023 c.442 § 75]

(1) Sections 19 to 21, chapter 86, Oregon Laws 2022, are repealed on January 2, 2026.

(2) On the date of the repeal of sections 19 to 21, chapter 86, Oregon Laws 2022, under subsection (1) of this section, any moneys in the Residential Heat Pump Fund that are unexpended, unobligated and not subject to any conditions or reservations under section 19 (3)(a), chapter 86, Oregon Laws 2022, are transferred to the General Fund. [2022 c.86 § 23; 2023 c.442 § 76]

(Community Cooling Spaces Grants)