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DEPARTMENT OF ENVIRONMENTAL QUALITY

 

DIVISION 259

CLEAN DIESEL GRANT AND LOAN RULES

340-259-0005

Clean Diesel Initiative Goal

(1) The Environmental Quality Commission establishes the Clean Diesel Initiative Goal to reduce excess lifetime risk of cancer due to exposure to diesel engine emissions to no more than one case per million individuals by 2017.

(2) In order to meet the Clean Diesel Initiative Goal, the Environmental Quality Commission establishes a target to substantially reduce the risk to school children from diesel engine emissions produced by Oregon school buses by the end of 2013. To achieve this target by 2013, the Department will use the grant, loan, and tax credit programs in OAR 340-016-0210 through 340-016-0340 and 340-259-0010 through 340-259-0065 to attempt to:

(a) Replace all Oregon diesel school buses model year 1993 and older with diesel school buses model year 2007 and newer;

(b) Retrofit half of Oregon diesel school buses model years 1994 through 2006 with best available emissions retrofit technology pursuant to OAR 340-259-0015(18); and

(c) Retrofit all appropriate Oregon diesel school buses model year 1994 and newer with closed crankcase ventilation, in order to reduce the exposure of school children to diesel particulate matter within the school bus cabin.

Stat. Auth.: OL 2007, ch. 855 (HB 2172 (2007)).
Stats. Implemented: OL 2007, ch. 855 (HB 2172 (2007))
Hist.: DEQ 9-2008, f. & cert. ef. 7-11-08

340-259-0010

Purpose and Scope

(1) The purpose of the clean diesel grant and loan rules is to make grants and loans available to the owners or operators of diesel engines for the retrofit of an Oregon diesel engine, for the repower of a non-road Oregon diesel engine, or for the scrapping of an Oregon truck engine.

(2) The rules in this division do not apply to DEQ grants or loans using moneys received from the federal government for initiatives to reduce emissions from diesel engines. DEQ may exercise its discretion to issue such grants and awards as it deems appropriate, consistent with and subject to federal law.

Stat. Auth.: OL 2007, Ch. 855 (2007 HB 2172). ORS 468.020, 468A.803
Stats. Implemented: OL 2007, Ch. 855 (2007 HB 2172), 468A.803
Hist.: DEQ 9-2008, f. & cert. ef. 7-11-08; DEQ 10-2013(Temp), f. 10-28-13, cert. ef. 10-29-13 thru 4-27-14; DEQ 3-2014, f. & cert. ef. 3-31-14

340-259-0015

Definitions

The definitions in OAR 340-200-0020 and this rule apply to this division. If the same term is defined in this rule and 340-200-0020, the definition in this rule applies to this division.

(1) "Applicable local, state or federal pollution or emissions law" means a regulation that requires a diesel engine to meet pollution or emissions standards and has a compliance date before the installation of a repower or retrofit is completed.

(2) “Applicant” means the owner or operator of an Oregon diesel engine, a nonroad Oregon diesel engine or an Oregon diesel truck engine applying for a grant or loan under this division.

(3) “Clean Diesel Service Provider” means a person that the Department has certified under OAR 259-0065 to install qualifying repowers or retrofits under the Clean Diesel Repower and Retrofit Tax Credit regulations, 340-016-0270 through 340-016-0340, or the Clean Diesel Grant and Loan regulations, 340-259-0005 through 340-259-0065.

(4) “Combined weight” has the meaning given that term in ORS 825.005.

(5) “Cost-effectiveness threshold” means the cost, in dollars, per ton of diesel particulate matter reduced determined pursuant to OAR 340-259-0025.

(6) “Grant Round” means the period of time in which the Department accepts applications for grants and loans and disburses grant or loan awards.

(7) “Heavy-duty truck” means a motor vehicle or combination of vehicles operated as a unit that has a combined weight that is greater than 26,000 pounds.

(8) “Incremental cost” means the cost of a qualifying repower or retrofit less a baseline cost that would otherwise be incurred in the normal course of business.

(9) “Medium-duty truck” means a motor vehicle or combination of vehicles operated as a unit that has a combined weight that is greater than 14,000 pounds but less than or equal to 26,000 pounds.

(10) “Motor vehicle” has the meaning given that term in ORS 825.005.

(11) “Nonroad Oregon diesel engine” means any Oregon diesel engine that was not designed primarily to propel a motor vehicle on public highways of this state.

(12) “Operating condition” means functioning properly without any needed repairs.

(13) “Oregon diesel engine” means an engine at least 50 percent of the use of which, as measured by miles driven or hours operated, will occur in Oregon for the three years following the repowering or retrofitting of the engine.

(14) “Oregon diesel truck engine” means a diesel engine in a truck at least 50 percent of the use of which, as measured by miles driven or hours operated, has occurred in Oregon for the two years preceding the scrapping of the engine.

(15) “Public highway” has the meaning given that term in ORS 825.005.

(16) “Qualified Installer” means a person that installs a repower or retrofit and is:

(a) A Clean Diesel Service Provider; or

(b) An employee of the applicant, if the applicant and vendor verify that the employee:

(A) Installed or will install the repower or retrofit to meet the warranty conditions; and

(B) Possesses the necessary skill to install the repower or retrofit.

(17) “Repower” means to scrap an old diesel engine and replace it with a new engine, a used engine or a remanufactured engine, or with electric motors, drives or fuel cells, with a minimum useful life of seven years.

(18) “Retrofit” means to equip a diesel engine with new emissions-reducing parts or technology after the manufacture of the original engine. A retrofit must use the greatest degree of emissions reduction available for the particular application of the equipment retrofitted that meets the cost-effectiveness threshold specified in OAR 340-259-0025.

(19) “Scrap” means to destroy and render inoperable.

(20) “Truck” means a motor vehicle or combination of vehicles operated as a unit that has a combined weight hat is greater than 14,000 pounds.

Stat. Auth.: OL 2007, Ch. 855 (HB 2172 (2007))
Stats. Implemented: OL 2007, Ch. 855 (HB 2172 (2007))
Hist.: DEQ 9-2008, f. & cert. ef. 7-11-08

340-259-0020

Determining the Certified Cost of a Qualifying Repower or Retrofit

(1) The Department must determine the certified cost of a qualifying repower or retrofit pursuant to this rule.

(2) The certified cost of a qualifying repower or retrofit may not exceed:

(a) The incremental cost of labor and equipment that the Department finds necessary to perform a qualifying repower or retrofit; or

(b) The cost effectiveness threshold.

(3) The Department must reduce the incremental cost of a qualifying repower or retrofit by the value of any existing financial incentive that directly reduces the cost of the qualifying repower or retrofit, including tax credits, other grants or loans, or any other public financial assistance.

(4) The certified cost of a qualifying retrofit of an Oregon diesel engine may include part or all of the reasonable costs of:

(a) The retrofit equipment, including delivery charges;

(b) Supplies directly related to the installation of the retrofit;

(c) Labor, including any re-engineering of the vehicle or retrofit equipment needed to install the retrofit equipment if performed by:

(A) A Clean Diesel Service Provider; or

(B) A Qualified Installer employed by the applicant, and the applicant provides documentation of the employee’s work as to specific tasks, hours worked, compensation, and other information requested by the Department; and

(d) Other costs directly related to the retrofit, subject to Department approval.

(5) The certified cost of a qualifying repower of a non-road Oregon diesel engine may include part or all of the reasonable costs of:

(a) The new engine, used engine, remanufactured engine, electric motors, drives or fuel cells, including delivery charges;

(b) Additional equipment that must be installed with the new engine, used engine, remanufactured engine, electric motors, drives or fuel cells;

(c) Supplies directly related to the installation of the new engine, used engine, remanufactured engine, electric motors, drives or fuel cells;

(d) Removing and scrapping the old engine;

(e) Labor, including any re-engineering of the vehicle or repower equipment needed to install the new engine, used engine, remanufactured engine, electric motors, drives or fuel cells if performed by:

(A) A Clean Diesel Service Provider; or

(B) A Qualified Installer employed by the applicant, and the applicant provides documentation of the employee’s work as to specific tasks, hours worked, compensation, and other information requested by the Department; and

(f) Other costs directly related to the repower, subject to Department approval.

(6) Ineligible Costs. The Department may not include the following in the certified cost:

(a) Expenses for travel;

(b) Interest and warranty charges;

(c) Costs of ordinary maintenance, operation, repair or replacement, including spare parts;

(d) Legal fees and associated costs;

(e) Fees to finance the project;

(f) Tax credit application and associated fees;

(g) Any labor of the owner or operator’s employees not listed in subsections (4)(c) and (5)(e);

(h) The cost of any portion of a repower or retrofit undertaken to comply with any applicable local, state, or federal pollution oremissions law.

(i) Costs incurred after the expiration date of the grant or loan agreement;

(j) Ordinary operating expenses that are not directly related to the project; or

(k) Other costs the Department excludes.

(7) The Department may require documentation of any costs claimed by the applicant and may reduce the certified cost of a qualifying repower or retrofit.

Stat. Auth.: OL 2007, Ch. 855 (HB 2172 (2007))
Stats. Implemented: OL 2007, Ch. 855 (HB 2172 (2007))
Hist.: DEQ 9-2008, f. & cert. ef. 7-11-08

340-259-0025

Determining the Cost Effectiveness Threshold for a Repower or Retrofit

(1) Except as adjusted under section (2) of this rule, the cost effectiveness threshold is $250,000 per ton of diesel particulate matter reduced for the calendar year 2008 and thereafter.

(2) On an annual basis, the Department may calculate an adjustment of the Cost Effectiveness Threshold amount specified in section (1) of this rule based upon the increase or decrease (if any) from August of the preceding year to August of the year in which the calculation is made in the U.S. City Average Consumer Price Index for All Urban Consumers for All Items as prepared by the Bureau of Labor Statistics of the United States Department of Labor or its successor.

Stat. Auth.: OL 2007, Ch. 855 (HB 2172 (2007))
Stats. Implemented: OL 2007, Ch. 855 (HB 2172 (2007))
Hist.: DEQ 9-2008, f. & cert. ef. 7-11-08

340-259-0030

Standards for Qualifying Repowers and Retrofits

(1) To qualify for a grant or loan under this division, the repower or retrofit must:

(a) Be either a repower of a nonroad Oregon diesel engine or a retrofit of an Oregon diesel engine;

(b) For a retrofit, use technologies:

(A) Verified by the United States Environmental Protection Agency pursuant to its January 22, 2002 Final Draft Testing Protocol “Generic Verification Protocol for Diesel Exhaust Catalysts, Particulate Filters, and Engine Modification Control Technologies for Highway and Nonroad Use Diesel Engines” or its September 2003 “Generic Verification Protocol for Determination of Emissions Reductions Obtained by Use of Alternative or Reformulated Liquid Fuels, Fuel Additives, Fuel Emulsions, and Lubricants for Highway and Nonroad Use Diesel Engines and Light Duty Gasoline Engines and Vehicles;”

(B) Verified by the California Air Resources Board pursuant to Title 13, California Code of Regulations, Chapter 14, "Verification Procedure, Warranty and In-Use Compliance Requirements for In-Use Strategies to Control Emissions from Diesel Engines," as in effect on June 18, 2008; or

(C) Determined by the Department to have been verified through an equivalent emission testing program;

(c) Reduce diesel particulate matter emissions by at least 25 percent compared to baseline emissions for the engine year and specific installation; and

(d) Be installed by a Qualified Installer.

(2) If the Department approved a Clean Diesel Repower and Retrofit Tax Credit application under OAR 340-016-0330 or a grant or loan application under OAR 340-259-0055 to repower or retrofit a vehicle or engine, a subsequent grant or loan under this division for the same vehicle or engine is available only if the new repower or retrofit reduces diesel particulate matter emissions below the emissions achieved by the previous repower or retrofit.

Stat. Auth.: OL 2007, Ch. 855 (HB 2172 (2007)).
Stats. Implemented: OL 2007, Ch. 855 (HB 2172 (2007))
Hist.: DEQ 9-2008, f. & cert. ef. 7-11-08

340-259-0035

Standards for Qualifying Oregon Diesel Truck Engine Scrapping Projects

(1) In order to qualify for an Oregon diesel truck engine scrapping grant, the engine to be scrapped must:

(a) Have been manufactured prior to 1994;

(b) Be in an operating condition at the time of the grant application or, if repairs are needed, the owner must demonstrate to the Department’s satisfaction that the engine can be repaired to an operating condition for less than its commercial scrap value;

(c) Have been used in Oregon at least 50 percent of the time, as measured by miles driven or hours operated, for the two years preceding the scrapping of the engine; and

(d) Have been insured for driving for the two years preceding the scrapping.

(2) The engine to be scrapped does not qualify for an Oregon diesel truck engine scrapping grant if the owner or operator of the engine has applied for or received any other tax credit or other public financial assistance concerning emission reductions for the engine.

(3) Except as adjusted under section (6) of this rule, the maximum grant allowed for scrapping a medium-duty truck engine is $2,000 for the calendar year 2008 and thereafter. The Department may allow grants for the maximum amount or a lesser amount.

(4) Except as adjusted under section (6) of this rule, the maximum grant allowed for scrapping a heavy-duty truck engine for a vehicle that has a combined weight under 33,000 pounds is $2,000 for the calendar year 2008 and thereafter. The Department may allow grants for the maximum amount or a lesser amount.

(5) Except as adjusted under section (6) of this rule, the maximum grant allowed for scrapping a heavy-duty truck engine that has a combined weight that is 33,000 pounds or more is $7,000 for the calendar year 2008 and thereafter. The Department may allow grants for the maximum amount or a lesser amount.

(6) On an annual basis, the Department may adjust the maximum grant amounts specified in subsections (3) to (5) of this section based upon the increase or decrease (if any) from August of the preceding year to August of the year in which the calculation is made in the U.S. City Average Consumer Price Index for All Urban Consumers for All Items as prepared by the Bureau of Labor Statistics of the United States Department of Labor or its successor.

Stat. Auth.: OL 2007, Ch. 855 (HB 2172 (2007)).
Stats. Implemented: OL 2007, Ch. 855 (HB 2172 (2007))
Hist.: DEQ 9-2008, f. & cert. ef. 7-11-08

340-259-0040

Approval Preferences for Grant and Loan Awards

(1) Subject to OAR 340-259-0045 to 340-259-0055, the Department may award grants and loans under this division based on all the following preferences, or may award grants and loans in a simplified year-round process that uses only the preferences in subsections (1)(a)–(c) of this section:

(a) Percent of engine use in Oregon;

(b) Benefit to sensitive populations or areas with elevated concentrations of diesel particulate matter;

(c) Cost effectiveness;

(d) Length of project benefits;

(e) Commitment of funding, expertise, materials, labor or other assistance from third parties;

(f) Commitment to making additional air quality improvements such as, but not limited to participating in Oregon’s Clean Fleets Recognition Program, EPA’s SmartWay Transport Partnership, having a policy that specifies replacement of old equipment or reduces idling, or conducting a fleet analysis;

(g) Amount of emissions reductions in Oregon;

(h) The applicant’s past grant or loan performance, such as maintenance and recordkeeping;

(i) Capacity to complete and maintain the repower, retrofit or scrapping project effectively; and

(j) Other preferences the Department may specify.

(2) The Department may include, in any public notice announcing grant and loan availability, a request for applications for specific repower, retrofit and scrapping projects or project areas that will be given preference. The Department may designate funds to target specific projects or areas.

Stat. Auth.: OL 2007, Ch. 855 (HB 2172 (2007)).
Stats. Implemented: OL 2007, Ch. 855 (HB 2172 (2007))
Hist.: DEQ 9-2008, f. & cert. ef. 7-11-08

340-259-0045

Grant and Loan Award Process

(1) The Department will determine the amount of grants and loans available, and may:

(a) Allocate funds for specific engine types, geographic areas, or other specific purposes.

(b) Establish and publish public notice of deadlines for submission of applications.

(c) Make funds available for year-round application submissions. When a year-round process is used:

(A) Completed applications will be reviewed in the order they are received; and

(B) Funds will be awarded until they are no longer available.

(d) Make funds available through grant rounds. When grant rounds are used:

(A) Completed applications received by the published deadline will be reviewed without preference for date of receipt;

(B) The Department may rank projects for purposes of grant and loan awards; and

(C) The Department will establish a maximum funding amount for each grant round that is less than the Department’s available funding.

(2) The Department will allocate a portion of the funds available for grants and loans for applicants that own or operate 10 or fewer Oregon diesel engines and will provide for simplified access to financial assistance for those applicants.

(3) Beginning on June 25, 2008 and ending on June 30, 2010, the Department must reserve 75 percent of the funds available for grants and loans under this division for Oregon diesel engines that:

(a) Will be used in Oregon for at least 75 percent of the total number of miles that the vehicle is driven during the three years following the repowering or retrofitting of the engine; or

(b) Will be used in Oregon for at least 75 percent of the total number of hours the engine is operated during the three years following the repowering or retrofitting of the engine.

Stat. Auth.: OL 2007, Ch. 855 (HB 2172 (2007))
Stats. Implemented: OL 2007, Ch. 855 (HB 2172 (2007))
Hist.: DEQ 9-2008, f. & cert. ef. 7-11-08

340-259-0050

Application Procedures

(1) An application for a grant or loan for a qualifying repower or retrofit must include:

(a) The name and address of the applicant;

(b) A complete budget for the proposed repower or retrofit, including a list of the different costs that comprise the total budget;

(c) A workplan and schedule for completion of the proposed repower or retrofit;

(d) A statement of the amount and source of any existing financial incentives from public funds that directly reduce the cost of the proposed repower or retrofit, including tax credits, grants, loans or any other public financial assistance;

(e) Any information requested by the Department that is necessary to evaluate the proposed repower or retrofit based on the approval preferences for grant and loan awards pursuant to 340-259-0040;

(f) Documentation that the proposed repower or retrofit meets the standards of a qualifying repower or retrofit pursuant to OAR 340-259-0030;

(g) The manufacturer name and serial number of the engine to be retrofitted or the engine, electric motors, drives or fuel cells to be installed as a repower, and, if available, the federal Environmental Protection Agency diesel engine family number;

(h) For the vehicle or equipment on which the repower or retrofit will be performed, the vehicle identification number or identification number, and license plate number for licensed motor vehicles;

(i) For a retrofit, documentation that the retrofit will use the greatest degree of emissions reduction available for the particular application of the equipment retrofitted that meets the cost-effectiveness threshold;

(j) For a repower, documentation that the repower will have a minimum seven-year useful life.

(k) A statement by the applicant that at least 50 percent of the use of the engine, as measured by miles driven or hours operated, will occur in Oregon for the three years following the repowering or retrofitting of the engine;

(l) The applicant’s signature attesting that the application is true and correct; and

(m) Any additional information the Department may require.

(2) An application for an Oregon diesel truck engine scrapping project must include:

(a) The name and address of the applicant;

(b) A complete budget for the proposed scrapping project, including a list of the different costs that comprise the total budget;

(c) A statement of the amount and source of any existing financial incentives that directly reduce the cost of the proposed scrapping project, including tax credits, grants, loans or any other public financial assistance;

(d) Any information requested by the Department that is necessary to evaluate the proposed scrapping project;

(e) Documentation that the proposed scrapping project qualifies for an Oregon diesel truck engine scrapping grant pursuant to OAR 340-259-0035;

(f) The vehicle identification number for the vehicle from which the engine will be scrapped, and license plate number for licensed motor vehicles;

(g) Documentation that the engine was used in Oregon at least 50 percent during the last two years as measured by miles driven or hours operated;

(h) Documentation that the engine was insured for driving for the two years preceding the scrapping;

(i) The applicant’s signature attesting that the application is true and correct; and

(j) Any additional information the Department may require.

(3) Applications must be submitted on the most current form prescribed by the Department. Current applications forms are available on the Department’s website.

(4) Upon determining that it does not require any additional information and that the application is complete, the Department will review the application pursuant to OAR 340-259-0055.

(5) If the Department determines that it requires additional information or that the application is incomplete, the Department will request additional information no later than 30 days after receiving the application.

(6) The applicant must submit the information requested under OAR 340-259-0050(5) within 30 days of the date of the Department’s request, or the Department may deny the application.

Stat. Auth.: OL 2007, Ch. 855 (HB 2172 (2007)).
Stats. Implemented: OL 2007, Ch. 855 (HB 2172 (2007))
Hist.: DEQ 9-2008, f. & cert. ef. 7-11-08

340-259-0055

Review and Approval or Denial

(1) Within 30 days of determining that it does not require any additional information and that the application is complete pursuant to OAR 340-259-0050(4), the Department must provide written notice to the applicant of whether it has approved or denied the application, and if approved, the amount of the grant or loan.

(2) The Department will approve or deny completed applications based on funding availability, application content, whether the project meets the standards of a qualified repower, retrofit or Oregon diesel truck engine scrapping project, and approvalpreferences for grant and loan awards pursuant to 340-259-0040.

(3) For approved applications, the Department may award grants and loans in amounts less than requested by the applicant. The Department determination the amount of the grant or loan based on funding availability, application content, and approval preferences for grant and loan awards pursuant to 340-259-0040.

(4) Applications that are denied due to lack of funding may be resubmitted if the Department obtains additional funding.

Stat. Auth.: OL 2007, Ch. 855 (HB 2172 (2007)).

Stats. Implemented: OL 2007, Ch. 855 (HB 2172 (2007))

Hist.: DEQ 9-2008, f. & cert. ef. 7-11-08

340-259-0060

Grant or Loan Agreements and Conditions

(1) Following approval of the application for a repower or retrofit grant or loan pursuant to OAR 340-259-0055, the Department and the applicant will enter into an agreement with the following terms and conditions:

(a) Recordkeeping requirements;

(b) Maintenance requirements;

(c) End date — term of project;

(d) Method of payment;

(e) Audit by the Department; and

(f) Other terms and conditions necessary to monitor compliance with applicable requirements of the grant or loan.

(2) Following approval of the application for a truck engine scrapping project, the Department will provide the grant money to the applicant within 30 days, provided that the allocation for truck scrapping grants has not been exceeded.

(3) If the repower or retrofit has not been fully completed within one year of the Department approval, funding may be terminated. The money allocated to the grant or loan will be available for reallocation by the Department.

(4) The Department may allow an extension of time for a grant or loan recipient to complete a project, upon receipt from the fund recipient, and Department approval, of acceptable documentation of need.

(5) The Department may at any time review and audit requests for payment and make adjustments due to mathematical errors, items not built or bought, unreasonable costs, lack of progress under the grant or loan, or other reasons.

(6) The Department may require grant and loan recipients to submit records and materials necessary to monitor compliance with applicable requirements and the grant or loan agreement, including but not limited to:

(a) Relevant invoices;

(b) For a repower or truck engine scrapping grant, an invoice for the scrapped engine that includes the name of the scrap yard, scrapping price and date, scrapped engine manufacturer and serial number, and, if available, EPA engine family number; and

(c) For a repower or truck scrapping grant, documentation that the engine block of the scrapped engine has had a hole drilled in it or has otherwise been destroyed or rendered inoperable.

(7) If the recipient does not comply with applicable requirements, including but not limited to the grant or loan agreement, the Department may:

(a) Order the recipient to refund all grants and loans received;

(b) Impose penalties pursuant to ORS 468.140; or

(c) Take any other appropriate legal or enforcement action.

(8) Grants and loans will be disbursed to the recipient within 30 days of receipt by the Department of a completed grant or loan disbursement request form accompanied by receipts, invoices or other documentation required by the grant or loan agreement.

Stat. Auth.: OL 2007, Ch. 855 (HB 2172 (2007)).

Stats. Implemented: OL 2007, Ch. 855 (HB 2172 (2007))

Hist.: DEQ 9-2008, f. & cert. ef. 7-11-08

340-259-0065

Certification as a Clean Diesel Service Provider

(1) The Department may certify a person as a Clean Diesel Service Provider.

(2) A Clean Diesel Service Provider must:

(a) Provide applicants with information about Department tax credit, grant, and loan regulations applicable to the repower or retrofit, and may assist applicants with the tax credit, grant, and loan application forms;

(b) Install repowers and retrofits according to tax credit, grant, and loan regulations;

(c) Provide applicants with warranty information, estimated annual maintenance costs, an anticipated maintenance schedule, and any other information needed to maintain performance of the repower or retrofit; and

(d) Verify the quality and performance of an installation.

(3) The Department may certify a person as a Clean Diesel Service Provider on one or more technologies.

(4) To obtain certification as a Clean Diesel Service Provider, the person must demonstrate:

(a) One or more employees have technical expertise with repower and retrofit technology;

(b) Possession of equipment required to analyze a diesel engine to determine appropriate retrofit or repower technology;

(c) One or more employees are trained in technology selection, installation, and support of exhaust emission devices or repowering engines;

(d) Professionalism while interacting with the Department and applicants;

(e) Evidence that the person has been authorized to do warranty work or install devices or engines to maintain warranty; and

(f) Other qualifications required by the Department.

(5) The Department may revoke the certification of a Clean Diesel Service Provider if the Department finds that the person or one or more of its employees:

(a) Obtained certification by fraud or misrepresentation;

(b) Performed an installation that does not meet industry standards. The Department may find that the Clean Diesel Service Provider’s performance does not meet industry standards if the person or one of its employees:

(A) Does not carry the required level of insurance, licensure or bonding set by the Department;

(B) Fails to install the repower or retrofit in compliance with standards adopted under OAR 340-016-0210 through 340-016-0260 and 340-259-0010 through 340-259-0065;

(C) Fails to install the repower or retrofit system in a professional manner as determined by the Department;

(D) Fails to install the repower or retrofit system to comply with manufacturers’ published specifications;

(E) Fails to honor contract provisions;

(F) Fails to honor a warranty that they are contractually obligated to perform;

(G) Fails to make corrections to remedy failure to comply with paragraphs (A) through (G) of this subsection requested by the Department within 30 days of written notification identifying the problem from the Department, unless a time extension is granted by the Department; or

(H) Does not meet eligibility requirements in subsection (4).

(c) Misrepresented to the applicant either the tax credit, grant, or loan program or the nature or quality of the repower or retrofit by:

(A) Providing false or misleading information to the applicant regarding the availability, amount or nature of the tax credit, grant, or loan;

(B) Providing false or misleading information to the applicant regarding the tax credit, grant, or loan application;

(C) Providing false or misleading information to the applicant regarding eligibility standards for the tax credit, grant or loan;

(D) Misrepresenting the nature of the performance of the repower or retrofit or claimed excess emission reductions to the applicant and to the Department;

(E) Misrepresenting the cost of a repower or retrofit;

(F) Misrepresenting a competitor’s product or service; or

(G) Failing to make corrections requested in writing by the Department to remedy violations of (A) through (F) of this subsection within 30 days, unless more time is allowed by the Department.

(6) Certification is not a guarantee or warranty of any kind that the Clean Diesel Service Provider will properly install any individual repower or retrofit or perform any other work as certified. As a condition of certification, the Department may require the person to defend, indemnify and hold the Department harmless from any claims related to work performed by the person related to its certification.

Stat. Auth.: OL 2007, Ch. 855 (HB 2172 (2007)), OL 2007, Ch. 843 (HB 3201 (2007)).
Stats. Implemented: OL 2007, Ch. 855 (HB 2172 (2007)), OL 2007, Ch. 843 (HB 3201 (2007)).
Hist.: DEQ 9-2008, f. & cert. ef. 7-11-08

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