In early November, the Oregonian published an article criticizing the Business Energy Tax Credit (BETC) program for straining the state budget, and the governor’s office for intentionally underestimating the cost of the program. On November 17, Steven E. Grasty, the chairman of the Harney County board of commissioners, opined on how the program has effected rural Oregon. Instead of focusing on whether the legislation was pushed through based on a miscalculation, Grasty offers a perspective on how BETC has benefited rural Oregon’s economies. He writes:

For many rural counties, these projects have meant a dramatic reversal in fortunes. Farmers, many of whom were considering selling generations-long farmsteads, are now able to supplement their incomes and continue farming. Communities that just a few years ago were reducing police and fire coverage and other critical community services are meeting their needs and will be able to do so for the next 20 years because of the stable property-tax payments being generated.

From the Columbia Gorge to Lake County, renewable energy has become a central focus for economic development, but how much of a role do programs like BETC have in strengthening this industry?

Gratsy’s position is that the economic benefits outweigh the costs because programs like BETC are a necessary component of attracting renewable energy projects to Oregon. He sites statistics suggesting that renewable energy projects have been responsible for $2 billion in private investments, “hundreds of millions of dollars in property tax payments and at least $75 million in new income taxes paid.” Governor Kulungoski makes the same argument in his response, but on Tuesday he petitioned his team to report on BETC’s effectiveness. Hopefully this report will help clarify whether BETC is a program that we can’t afford, or one that we can’t afford to live without. 

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