Local Option - Local Improvement Districts (Oregon)

From Open Energy Information


Last modified on February 12, 2015.

Financial Incentive Program

Place Oregon

Name Local Option - Local Improvement Districts
Incentive Type PACE Financing
Applicable Sector Commercial, Industrial, Multi-Family Residential, Residential, Special Improvement District, Local Improvement District
Eligible Technologies Locally determined, Locally determined
Active Incentive Yes
Implementing Sector State/Territory
Energy Category Energy Efficiency Incentive Programs, Renewable Energy Incentive Programs

Terms Locally determined
Program Administrator Programs administered locally

References DSIRE[1]


Note: The Federal Housing Financing Agency (FHFA) issued a statement in July 2010 concerning the senior lien status associated with most PACE programs. In response to the FHFA statement, most local PACE programs have been suspended until further clarification is provided.

Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. Oregon has authorized certain local governments to establish such programs, as described below. (Not all local governments in Oregon offer PACE financing; contact your local government to find out if it has established a PACE financing program.)

Oregon has authorized the creation of "local improvement districts" where cities and counties provide financing for the installation of renewable-energy systems and energy-efficiency improvements to residential, commercial, industrial or other qualifying real property. HB 2626, enacted in July 2009, authorizes local governments to provide loans for renewable energy and energy efficiency improvements. Local governments may issue revenue bonds to finance this loan program or can borrow money from the Oregon Department of Energy under the Energy Efficiency and Sustainable Technologies Loan Program for small-scale local energy projects. Prior to establishing the program, the local government must notify the electric and gas utilities in the area, as the loans may be paid back on utility bills. The loans may be secured with a lien on the property, although liens are not senior. Some potential options for loan repayment are via a special assessment on local government taxes, utility bills, or another approved method of loan repayment.

Incentive Contact

Contact Name Kathy Estes
Department Oregon Department of Energy
Address 625 Marion Street, N.E.
Place Salem, Oregon
Zip/Postal Code 97301-3737
Phone (503) 378-5048

Email kathy.estes@state.or.us
Website http://egov.oregon.gov/energy

Authorities (Please contact the if there are any file problems.)

Authority 1: HB 2626
Date Enacted 2009-07-22

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"