Oregon Revised Statutes Chapter 315 § 315.141 — Biomass production or collection; fee; rules; documentation

Biomass production or collection; fee; rules; documentation. (1) As used in this section: (a) “Agricultural producer” means a person that produces biomass in Oregon that is used, in Oregon, as biofuel or to produce biofuel. (b) “Biofuel” means liquid, gaseous or solid fuels, derived from biomass, that have been converted into a processed fuel ready for use as energy by a biofuel producer’s customers or for direct biomass energy use at the biofuel producer’s site. (c) “Biofuel producer” means a person that through activities in Oregon: (A) Alters the physical makeup of biomass to convert it into biofuel; (B) Changes one biofuel into another type of biofuel; or (C) Uses biomass in Oregon to produce energy. (d) “Biomass” means organic matter that is available on a renewable or recurring basis and that is derived from: (A) Forest or rangeland woody debris from harvesting or thinning conducted to improve forest or rangeland ecological health and reduce uncharacteristic stand replacing wildfire risk; (B) Wood material from hardwood timber described in ORS 321.267 (3); (C) Agricultural residues; (D) Offal and tallow from animal rendering; (E) Food wastes collected as provided under ORS chapter 459 or 459A; (F) Wood debris collected as provided under ORS chapter 459 or 459A; (G) Wastewater solids; or (H) Crops grown solely to be used for energy. (e) “Biomass” does not mean wood that has been treated with creosote, pentachlorophenol, inorganic arsenic or other inorganic chemical compounds or waste, other than matter described in paragraph (d) of this subsection. (f) “Biomass collector” means a person that collects biomass in Oregon to be used, in Oregon, as biofuel or to produce biofuel. (g) “Canola” means plants of the genus Brassica: (A) In which seeds having a high oil content are the primary economically valuable product; and (B) That have a high erucic acid content suitable for industrial uses or a low erucic acid content suitable for edible oils. (h) “Oilseed processor” means a person that receives agricultural oilseeds and separates them into meal and oil by mechanical or chemical means. (i) “Willamette Valley” means Clackamas, Linn, Marion, Multnomah, Polk, Washington and Yamhill Counties and the portion of Benton and Lane Counties lying east of the summit of the Coast Range. (2) The Director of the State Department of Energy may adopt rules to define criteria, only as the criteria apply to organic biomass, to determine additional characteristics of biomass for purposes of this section. (3)(a) An agricultural producer or biomass collector shall be allowed a credit against the taxes that would otherwise be due under ORS chapter 316 or, if the taxpayer is a corporation, under ORS chapter 317 or 318 for: (A) The production of biomass in Oregon that is used, in Oregon, as biofuel or to produce biofuel; or (B) The collection of biomass in Oregon that is used, in Oregon, as biofuel or to produce biofuel. (b) A credit under this section may be claimed in the tax year in which the credit is certified under subsection (5) of this section. (c) A taxpayer may be allowed a credit under this section for more than one of the roles defined in subsection (1) of this section, but a biofuel producer that is not also an agricultural producer or a biomass collector may not claim a credit under this section. (d) A credit under this section may be claimed only once for each unit of biomass. (e) Notwithstanding paragraph (a) of this subsection, a tax credit: (A) Is not allowed for canola grown, collected or produced in the Willamette Valley; and (B) Is not allowed for grain corn, but a tax credit shall be allowed for other corn material. (4) The amount of the credit shall equal the amount certified under subsection (5) of this section. (5)(a) The State Department of Energy may establish by rule procedures and criteria for determining the amount of the tax credit to be certified under this section, consistent with ORS 469B.403. The department shall provide written certification to taxpayers that are eligible to claim the credit under this section. (b) The State Department of Energy may charge and collect a fee from taxpayers for certification of credits under this section. The fee may not exceed the cost to the department of determining the amount of certified cost. (6) The amount of the credit claimed under this section for any tax year may not exceed the tax liability of the taxpayer. (7) Each agricultural producer or biomass collector shall maintain the written documentation of the amount certified for tax credit under this section in its records for a period of at least five years after the tax year in which the credit is claimed and provide the written documentation to the Department of Revenue upon request. (8) The credit shall be claimed on a form prescribed by the Department of Revenue that contains the information required by the department. (9) An