DOE conceals rationale

for energy credit discounts

 

Imagine a government agency that thwarts the will of elected officials, as it makes dubious deals with businesses, then tries to hide from the public the purported legal rationale for its actions.

No need to invent such a cagey agency. It already exists. Here in Oregon. It’s called the state Department of Energy.

When the Oregon Legislature passed laws creating the Business Energy Tax Credit program, the purpose was to encourage individuals and businesses to invest in projects that were energy efficient or would use renewable sources. Recipients could use the credits to reduce their tax bill. The credits could also be transferred to a third party to raise capital.

The program and the prices were to be administered by the state Department of Energy. Hillary Borrud, a reporter with our Capital Bureau, uncovered how shoddy that oversight has been.

She revealed that Energy officials quietly stopped enforcing pricing and other rules for the credit transfers back in 2011. This allowed private brokers to arrange deals in which the prices were never verified by the state. It was later learned that some buyers avoided paying capital gains taxes on the transfer.

Energy’s inconsistent handling of the credits program is troubling and smacks of political favoritism. In the wake of these revelations, there has been a steady stream of resignations of Energy officials, including the head of the loan program and the agency’s chief financial officer.

Gov. Kate Brown has asked the Legislature to review and then shut down the Business Energy Tax Credit program. That’s not good enough. A full audit is warranted.

Gov. Brown should also order the release of a recent opinion on the matter by the Department of Justice. Energy officials have claimed for years that lawyers at Justice vetted and approved the discounted sales. If that’s the case, why are Energy officials and the governor refusing to release that report?

Our company, EO Media Group, along with Pamplin Media Group and the Oregonian, have been rebuffed in attempts to obtain the opinion under Oregon’s Public Records Law. That law is aimed at ensuring that the public’s business is transparent to its citizens and taxpayers.

Officials at the Department of Energy have ignored directions from the Legislature and its own administrative rules. Now they’re hiding behind claims of attorney-client privilege. It’s past time they give up this charade.