RESIDENTIAL STANDARDS DEMONSTRATION
PROGRAM SELECTION RULES
(1) These rules describe how the Oregon Department of Energy will select persons or businesses who will receive incentives for building electrically-heated residences that meet model energy efficiency standards. The incentives will be offered by the Department contingent on an agreement with the Bonneville Power Administration (BPA). The incentives program will test model residential conservation standards proposed for residences by the Northwest Power Planning Council.
(2) Neither the Department nor the State of Oregon warrant or certify as cost-effective any measure or design for which an incentive is granted. Compliance with the model conservation standards does not guarantee or assure the safety, reliability, or performance of any energy conservation device or installation. These rules are only for the selection of incentive recipients.
(1) "Appendix J" -- 1983 Northwest Conservation and Electric Power Plan, Volume 2, Appendix J (with errata), adopted pursuant to the Pacific Northwest Electric Power Planning and Conservation Act of 1980 (Public Law 96-501), April 27, 1983, by the Northwest Power Planning Council (NPPC).
(2) "Applicant" -- A person or business applying to the Oregon Department of Energy for an incentive to build a new electrically-heated residence that meets model conservation standards.
(3) "Control House" -- A single-family residence of similar size, construction type, style, and materials as a model code standards residence and which is built to the 1979 Oregon Structural Specialty Code as amended. The control house must be near the model code standards house. The occupants of the control house must agree to participate in Department or BPA monitoring.
(4) "Cost-Accounting Data" -- Cost-related information gathered according to a process provided by Area 15 National Association of Home Builders. The purpose is to compare the costs of building a residence to the model conservation standards with the costs of building a similar residence to the Oregon Structural Specialty Code.
(5) "Department" -- Oregon Department of Energy.
(6) "Floor Area, Gross" -- Gross floor area is the floor area within the perimeter of the outside walls of the building for all heated spaces, without deduction for hallways, stairs, closets, thickness of walls, columns, or other features.
(7) "Heated Spaces" -- A space within a building which is provided with a positive heat supply to maintain air temperature at 50°F. or higher. The presence of finished living space within a basement, or registers or heating devices designed to supply heat to a basement space shall automatically meet the definition of heated space.
(8) "Incentive" -- A cash award to a person or business for building a residence to model conservation standards. The incentive may include more than one payment. The amount of the incentive will be set in the agreement between the Department and BPA.
(9) "Matched-Pair Control House" -- A single-family residence essentially the same in design to a residence for which an incentive is granted, but in which the energy efficiency measures meet only the current Oregon Structural Specialty Code. If the residence is a passive solar or sun-tempered design, it must have equivalent solar orientation and solar exposure as its matched residence. The matched-pair control house must be built by the builder of the model conservation standard residence, and must be near the model conservation standards residence. The gross floor area of each matched-pair house must be between 1,200 and 1,800 square feet. Occupants of the matched-pair control house must agree to allow the residence to be monitored by the Department or BPA.
(10) "Model Conservation Standards" -- Standards for building energy-efficient, electrically-heated residences established in Appendix J of the 1983 Northwest Conservation and Electric Power Plan or provided by the Department.
(11) "Multi-Family Residence" -- Any building which is designed, built, rented, leased, let, or hired out to be occupied, or which is occupied as the home or residence of three or more families living independently of each and doing their own cooking in the said building, and shall include flats and apartments. The building shall be only for residential uses and shall be three stories or less.
(12) "Oregon Structural Specialty Code" -- State of Oregon Structural Specialty Code and Fire and Life Safety Regulations.
(13) "Residential Standards Demonstration (RSD) Program" -- A program administered by the Oregon Department of Energy by agreement with BPA. The RSD Program provides incentives to build up to 200 electrically-heated, single-family residences and 20 electrically-heated multi-family buildings in Oregon to model conservation standards.
(14) "Single-Family Residence" -- A structure that has one or two residential units and is only for residential use.
[Publications: The publication(s) referred to or incorporated by reference in this rule are available from the agency.]
General Eligibility Requirements
(1) A home buyer or a home builder may apply for participation in the program; however, the cash incentive will be paid to the home builder and contract awarding the incentive can be signed only by the home builder.
(2) An applicant must demonstrate the financial ability to build the number of single-family residences or multi-family buildings for which incentives are requested. Such residences or buildings must be built in Oregon within eight months of entering into a contract with the Department, except in the case of natural disasters, strikes, and unavoidable shortages in materials and supplies. A time extension may be granted at the discretion of the Director of the Department for reasonable delays due to unforeseeable circumstances.
Home Builder Eligibility Requirements
(1) A home builder must demonstrate to the Department:
(a) That he or she has built at least three residences since January 1, 1979; or
(b) That he or she has done at least $250,000 gross business in building construction since January 1, 1979.
(2) All home builders who participate in the program must be bonded and licensed as required by ORS Chapter 701.
(1) Only one incentive will be granted for each residential unit.
(2) The total cost of a single-family residential unit, excluding land costs, on-site and off-site improvements, may not exceed $120,000.
(3) No person or company may receive an incentive for more than five single-family residential units. This limitation may be waived by the Director of the Department if a sufficient number of incentives have not been awarded within 60 days of the beginning of the selection and evaluation period.
(4) No Departmental employees, BPA employees involved in the RSD Program, or their immediate families are eligible to receive an incentive under this program.
(5) Proposed residences which will use heat pumps must have a gross floor area of at least 2,000 square feet.
Guidelines for Selection
(1) The Department will announce the first date that applications will be evaluated for selection. Qualified applicants will be given a preference on a "first-in-time" basis. First-in-time is determined by the date of the postmark on the envelope containing the application or the date of receipt in the Department for applications that are delivered in person. However, all applications received before the first day for selection and evaluation will be treated as if they were post-marked or received on the first day.
(2) Applications will be evaluated according to the following guidelines:
(a) Attain 30 single-family model standard residences with a matched-pair control house;
(b) Attain single-family residences with more than one control house;
(c) Attain single-family residences with one control house;
(d) Achieve a geographic distribution of residences between the climate zone of 6,000 degree-days or less and that of 6,001 degree-days or more. (See Figure 53.A, Design Criteria, Oregon Structural Specialty Code);
(e) Achieve a distribution of design types based on Appendix J, Northwest Conservation and Electric Power Plan or design types provided by the Department;
(f) Achieve the following distribution of single-family residences: 45 percent that have less than 1,400 sq. ft.; 35 percent that have between 1,401 and 2,000 sq. ft.; and 20 percent that have more than 2,000 sq. ft.;
(g) Expedite building of residences by selecting applicants who are most prepared to build, as shown by financial resources, lot ownership, and progress on building design.
[Publications: The publication(s) referred to or incorporated by reference in this rule are available from the agency.]
(1) An applicant shall submit an application on forms prescribed by the Department. The application shall:
(a) Estimate the total cost of each proposed residential unit;
(b) State the gross floor area of each proposed residential unit;
(c) State the location of each proposed residence;
(d) State the choice(s) of design type(s) to meet the model conservation standards;
(e) Provide sufficient information to document the applicant's financial ability to construct each residence for which an incentive is requested;
(f) Provide sufficient information to document the home builder's record of construction;
(g) State number of control houses or matched-pair control houses the applicant can provide;
(h) If the residence (or matched-pair control house) is a sun-tempered or passive solar design, provide a sun chart for the site;
(i) State that the land is appropriately zoned;
(j) Provide information on available utilities;
(k) State the applicant has control over the land by ownership or by option to purchase;
(l) Provide the home builder's state registration number;
(m) State the name of proposed lender that will finance construction.
(2) The first day of the selection and evaluation period will be announced by the Department. Applications will be accepted until no more than 200 qualified recipients have been selected by the Department. The Director of the Department may close the application period when a sufficient number of qualified applications have been received or after 60 days, whichever is earlier. If a sufficient number of applications has not been received within 60 days, the Director may establish a second application period.
(3) Applications will be assigned a file number upon receipt.
(4) Applicants will be notified by the Department of the status of their applications within 30 days of their receipt by the Department.
(5) Incomplete applications and applications from parties who do not meet the minimum qualifications will be returned.
(1) Parties selected to receive an incentive must sign a contract with the Department concerning compliance with RSD Program design, siting, construction, reporting, and monitoring requirements and return the contract to the Department within 30 days of the contract being offered. Failure to sign the contract will void the Department's offer of an incentive. Where an incentive has been reserved for a home buyer, that home buyer will have 30 days from notification by the Department to identify a home builder. That home builder then must sign a contract within 30 days of the Department's offer of a contract.
(2) The home builder contract will provide the method of payment(s) and inspection requirements that must be met before payment(s) is made.
(3) The home builder contract may be made contingent upon the home builder or a potential home buyer obtaining a loan commitment to pay for building the model conservation standards residence.
(4) The home builder signing the contract shall:
(a) Agree to build in Oregon an electrically-heated residence(s) to the model conservation standards;
(b) For residences that are not pre-sold at the time the incentive is approved, agree to request that the home buyer permit and assist in the monitoring of the residence's energy consumption and indoor air quality by the Department or BPA. However, agreement by the home buyer to participate in monitoring is a requirement for a home builder to receive a full incentive for matched-pair residences;
(c) Agree to provide cost-accounting data on the incremental costs of building to the model conservation standards;
(d) Agree to allow the Department, BPA, or their agents to inspect the construction of the residence to ensure compliance with the plans approved by the Department;
(e) Agree to attend and complete the technical and cost-accounting training sessions being provided by the Department and its agents.
(5) Any home buyer who is identified at the time the home builder signs a contract with the Department will be required to enter into a contract with the Department. The home buyer must:
(a) Agree to participate in Departmental or BPA monitoring of energy use and indoor air quality in the residence for at least one year; and
(b) Agree not to require any design or construction changes that will affect the model conservation standard provisions in the residence without prior written approval of the Department.
Compliance with Land Use Laws
Any party receiving an incentive shall agree to comply with all local land use ordinances and building codes and to obtain all necessary permits for construction of a residence. A portion or all of the incentive payment may be withheld until an occupancy permit is issued by the local jurisdiction.
State Archives • 800 Summer St. NE • Salem, OR 97310