Challenge
In 2011, the Oregon Department of Energy introduced the Energy Incentives Program that gave transit agencies an opportunity to earn tax credits for qualifying operating costs. Cherriots, a Salem-Keizer area transit provider, participated in the program and earned tax credits by making significant investments to reduce greenhouse gas emissions throughout their fleet. Monetizing those credits proved impossible due to legislatively prescribed pass-through rates, and Cherriots was ultimately stuck with unsellable credits when the state closed the program in 2015.
Approach
During the 2021 legislative session, the CFM state team worked to introduce legislation and collaborated with lawmakers on the Joint Committee on Transportation to address the issue of expired tax credits held by transit providers. The goal was to formulate a solution that would support the original intent of the Energy Incentive Program while maintaining credibility for state agencies to entice stakeholders in future incentive-based programs.
Success
After months of negotiation, multiple bill drafts and many public hearings, lawmakers adopted CFM’s proposed solution, resulting in direct tax credit buyouts for agencies totaling $5,928,184 for Cherriots, $718,079 for Yamhill County Transportation, $288,451 for Columbia County Rider Transportation and $44,975 for the Lebanon Transportation Program. Cherriots and other agencies committed to using these funds for new zero-emission buses and related charging infrastructure.
