Financing Idle Reduction

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Financing Idle Reduction Technologies Justin
Klure
July 15, 2004
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Department of Energy - Mission
protect Oregons environment by
saving energy, developing clean new energy
resources and cleaning up nuclear waste.
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Truck Idle Reduction in Oregon

• West Coast Global Warming Initiative
• Governors Global Warming Initiative (Oregon)
• Oregon Solutions
• LRAPA

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Truck Idle Reduction in Oregon

• Specific Actions
• Establish a core network of facilities along the
  west coast Interstate 5 (I-5) corridor
• Instituting similar and compatible programs to
  encourage truck operators to use these facilities
• Market existing incentives to support deployment
  of this technology

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Business Energy Tax Credit

• Encourages investments in
• Energy Efficiency
• Transportation
• Renewable Energy
• Recycling

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Business Energy Tax Credit

• Program highlights
• Began in 1980
• 6,500 tax credits issued
• Total project cost of about
• 550 million
• Projects save or generate
• energy worth over 146 million per year

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Business Energy Tax Credit

• 35 credit of eligible costs
• 10 million maximum eligible cost per project
• Credit taken over 5 years (1 year for projects
  under 20,000)
• Eligible cost based on maximum 15 year simple
  payback
• Pass-through option at 25.5 cash payment first
  year
• Pre-approval required

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• The Pass Through- Partner
• Pays the net present value (25.5) of eligible
  project
• costs and gets the 35 tax credit
• Business or Individual (one or more)
• Must have an Oregon tax liability
• Can help capitalize a project

35 tax credit
Project owner (church, school, public entity,
business, etc.)
Pass-through partner (business or individual
withan Oregon tax liability)
25.5 payment
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Energy Loan Program
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Energy Loan Program - cont.
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Application Process

• Application
• Discuss project with us during development
• We will do a preliminary review before we need an
  application fee
• Provide business plan with proforma financials
• Applications available on our web site
• Technical Review
• We also do a technical review of your project

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• Oregon Department of Energy
• 1-800-221-8035
• www.energy.state.or.us
• Justin Klure
• 503-378-4040
• justin.klure_at_state.or.us