Bill Text: OR HB2936 | 2011 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to tax treatment of waste materials; prescribing an effective date.

Spectrum: Bipartisan Bill

Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2936 Detail]

Download: Oregon-2011-HB2936-Introduced.html


     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 2334

                         House Bill 2936

Sponsored by Representatives THOMPSON, HANNA, ROBLAN, SCHAUFLER
  (Presession filed.)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Establishes tax credit for transportation of woody biomass from
forest management operations to biofuel producer.
  Establishes tax credit for biomass electrical generation based
on kilowatt hours of electricity produced.
  Establishes tax credit for purchase of equipment to collect or
process reclaimed material or to manufacture product from
reclaimed material.
  Applies to tax years beginning on or after January 1, 2011.
  Directs State Department of Energy to conduct study of biomass
facility sites in state.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to tax treatment of waste materials; creating new
  provisions; amending ORS 215.203, 215.213, 215.283, 308A.056,
  314.752, 315.141, 318.031 and 469.790 and section 6, chapter
  739, Oregon Laws 2007; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:

                               { +
TAX CREDIT FOR TRANSPORTATION OF WOODY BIOMASS + }

  SECTION 1. ORS 469.790 is amended to read:
  469.790. To be eligible for the tax credit under ORS 315.141,
the biomass must be produced or collected in Oregon as a
feedstock for bioenergy or biofuel production in Oregon. The
credit rates for biomass are:
  (1) For oil seed crops, $0.05 per pound.
  (2) For grain crops, including but not limited to wheat, barley
and triticale, $0.90 per bushel.
  (3) For virgin oil or alcohol delivered for production in
Oregon from Oregon-based feedstock, $0.10 per gallon.
  (4) For used cooking oil or waste grease, $0.10 per gallon.
  (5) For wastewater biosolids, $10.00 per wet ton.
  (6) For woody biomass collected from nursery, orchard,
agricultural, forest or rangeland property in Oregon, including
but not limited to prunings, thinning, plantation rotations, log
landing or slash resulting from harvest or forest health
stewardship, $10.00 per green ton.

  (7) For grass, wheat, straw or other vegetative biomass from
agricultural crops, $10.00 per green ton.
  (8) For yard debris and municipally generated food waste, $5.00
per wet ton.
  (9) For animal manure or rendering offal, $5.00 per wet ton.
   { +  (10) For transportation of woody biomass from forest
management operations to a biofuel producer, $10.00 per green
ton. + }
  SECTION 2. ORS 315.141 is amended to read:
  315.141. (1) As used in this section:
  (a) 'Agricultural producer' means a person that produces
biomass in Oregon that is used, in Oregon, as biofuel or to
produce biofuel.
   { +  (b) 'Bioenergy' means heat or electricity produced by
using woody biomass. + }
    { - (b) - }   { + (c) + } 'Biofuel' means liquid, gaseous or
solid fuels, derived from biomass, that have been converted into
a processed fuel ready for use as energy by a biofuel producer's
customers or for direct biomass energy use at the biofuel
producer's site.
    { - (c) - }   { + (d) + } 'Biofuel producer' means a person
that through activities in Oregon:
  (A) Alters the physical makeup of biomass to convert it into
biofuel;
  (B) Changes one biofuel into another type of biofuel; or
  (C) Uses biomass in Oregon to produce energy.
    { - (d) - }   { + (e) + } 'Biomass' means organic matter that
is available on a renewable or recurring basis and that is
derived from:
  (A) Forest or rangeland woody debris from harvesting or
thinning conducted to improve forest or rangeland ecological
health and reduce uncharacteristic stand replacing wildfire risk;
  (B) Wood material from hardwood timber described in ORS 321.267
(3);
  (C) Agricultural residues;
  (D) Offal and tallow from animal rendering;
  (E) Food wastes collected as provided under ORS chapter 459 or
459A;
  (F) Yard or wood debris collected as provided under ORS chapter
459 or 459A;
  (G) Wastewater solids; or
  (H) Crops grown solely to be used for energy.
    { - (e) - }   { + (f) + } 'Biomass' does not mean wood that
has been treated with creosote, pentachlorophenol, inorganic
arsenic or other inorganic chemical compounds or waste, other
than matter described in paragraph   { - (d) - }   { + (e) + } of
this subsection.
    { - (f) - }   { + (g) + } 'Biomass collector' means a person
that collects biomass in Oregon to be used, in Oregon, as biofuel
or to produce  { +  bioenergy or + } biofuel.
   { +  (h) 'Woody biomass' has the meaning given that term in
ORS 526.277. 'Woody biomass' includes biomass as defined in
subsection (1)(e)(A) of this section.
  (i) 'Woody biomass transporter' means a person that transports
woody biomass from forest management operations to a bioenergy or
biofuel producer. + }
  (2) The Director of the State Department of Energy may adopt
rules to define criteria, only as the criteria apply to organic
biomass, to determine additional characteristics of biomass for
purposes of this section.
  (3)(a) An agricultural producer { + , + }   { - or - }  biomass
collector  { + or woody biomass transporter + } shall be allowed
a credit against the taxes that would otherwise be due under ORS
chapter 316 or, if the taxpayer is a corporation, under ORS
chapter 317 or 318 for:

  (A) The production of biomass in Oregon that is used, in
Oregon, as biofuel or to produce biofuel; or
  (B) The collection of biomass { + , or the transportation of
woody biomass, + } in Oregon that is used, in Oregon, as biofuel
or to produce biofuel { +  or bioenergy + }.
  (b) A credit under this section may be claimed in the tax year
in which the credit is certified under subsection (5) of this
section.
  (c) A taxpayer may be allowed a credit under this section for
more than one of the roles defined in subsection (1) of this
section, but a biofuel producer that is not also an agricultural
producer or a biomass collector may not claim a credit under this
section.  { + The State Department of Energy shall increase the
amount certified under subsection (5) of this section to reflect
multiple roles of a taxpayer. + }
  (d) Notwithstanding paragraph (a) of this subsection, a tax
credit is not allowed for grain corn, but a tax credit shall be
allowed for other corn material.
  (4) The amount of the credit shall equal the amount certified
under subsection (5) of this section.
  (5)(a) The State Department of Energy may establish by rule
procedures and criteria for determining the amount of the tax
credit to be certified under this section, consistent with ORS
469.790. The department shall provide written certification to
taxpayers that are eligible to claim the credit under this
section.
  (b) The State Department of Energy may charge and collect a fee
from taxpayers for certification of credits under this section.
The fee may not exceed the cost to the department of determining
the amount of certified cost.
  (c) The State Department of Energy shall provide to the
Department of Revenue a list, by tax year, of taxpayers for which
a credit is certified under this section, upon request of the
Department of Revenue.
  (6) The amount of the credit claimed under this section for any
tax year may not exceed the tax liability of the taxpayer.
  (7) Each agricultural producer { + , + }   { - or - }  biomass
collector  { + or woody biomass transporter + } shall maintain
the written documentation of the amount certified for tax credit
under this section in its records for a period of at least five
years after the tax year in which the credit is claimed and
provide the written documentation to the Department of Revenue
upon request.
  (8) The credit shall be claimed on a form prescribed by the
Department of Revenue that contains the information required by
the department.
  (9) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a particular tax year may be
carried forward and offset against the taxpayer's tax liability
for the next succeeding tax year. Any credit remaining unused in
the next succeeding tax year may be carried forward and used in
the second succeeding tax year, and likewise any credit not used
in that second succeeding tax year may be carried forward and
used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in
the fourth succeeding tax year, but may not be carried forward
for any tax year thereafter.
  (10) In the case of a credit allowed under this section:
  (a) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
  (b) If a change in the status of the taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
  (c) If a change in the taxable year of the taxpayer occurs as
described in ORS 314.085, or if the Department  { + of
Revenue + } terminates the taxpayer's taxable year under ORS
314.440, the credit allowed under this section shall be prorated
or computed in a manner consistent with ORS 314.085.
  SECTION 3.  { + The amendments to ORS 315.141 and 469.790 by
sections 1 and 2 of this 2011 Act apply to tax years beginning on
or after January 1, 2011. + }
  SECTION 3a. Section 6, chapter 739, Oregon Laws 2007, as
amended by section 5, chapter 590, Oregon Laws 2007, and section
18, chapter 913, Oregon Laws 2009, is amended to read:
   { +  Sec. 6. + } (1) ORS 315.141, 315.144 and 469.790 apply to
tax credits for tax years beginning on or after January 1, 2007,
and before January 1, 2012.
   { +  (2) Notwithstanding subsection (1) of this section, a tax
credit shall be allowed for the transportation of woody biomass
under ORS 315.141 in tax years beginning on or after January 1,
2011, and before January 1, 2017. + }
    { - (2) - }  { +  (3) + } Notwithstanding subsection (1) of
this section, a tax credit is not allowed for wheat grain (other
than nongrain wheat material) before tax years beginning on or
after January 1, 2009, or on or after January 1, 2012.

                               { +
TAX CREDIT FOR BIOMASS ELECTRICAL GENERATION + }

  SECTION 4.  { + Section 5 of this 2011 Act is added to and made
a part of ORS chapter 315. + }
  SECTION 5.  { + (1) A taxpayer may claim a credit against taxes
imposed by ORS chapter 316 or, if the taxpayer is a corporation,
by ORS chapter 317 or 318 for biomass electrical generation as
described in subsection (4) of this section.
  (2)(a) The amount of the credit allowed under this section is
equal to 2.1 cents for every kilowatt hour of electricity
generated from biomass by a closed-loop generating operation that
grows the biomass used by the facility on a schedule of
sustainable plantings and harvests.
  (b) The amount of the credit allowed under this section is
equal to one cent for every kilowatt hour of electricity
generated from biomass by a facility that is not a closed-loop
generating operation.
  (3) The credit allowed under this section may not exceed the
tax liability of the taxpayer.
  (4) Electricity qualifies for the credit provided in this
section if:
  (a) The electricity is generated by a facility located in
Oregon;
  (b) The facility generates electricity using only biomass, as
defined in ORS 315.141; and
  (c) The facility generating the electricity is first placed in
service on or after January 1, 1995.
  (5) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a particular tax year may be
carried forward and offset against the taxpayer's tax liability
for the next succeeding tax year. Any credit remaining unused in
the next succeeding tax year may be carried forward and used in
the second succeeding tax year, and likewise, any credit not used
in that second succeeding tax year may be carried forward and
used in the third succeeding tax year and any credit not used in
that third succeeding tax year may be carried forward and used in
the fourth succeeding tax year, but may not be carried forward
for any tax year thereafter.
  (6) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
  (7) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
  (8) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed under this section shall be prorated or computed
in a manner consistent with ORS 314.085. + }
  SECTION 6.  { + Section 5 of this 2011 Act applies to tax years
beginning on or after January 1, 2011. + }

                               { +
TAX CREDIT FOR USE OF RECLAIMED MATERIAL + }

  SECTION 7.  { + Section 8 of this 2011 Act is added to and made
a part of ORS chapter 315. + }
  SECTION 8.  { + (1) As used in this section, 'reclaimed
material' means:
  (a) Woody biomass as defined in ORS 315.141.
  (b) Yard or wood debris collected as provided under ORS chapter
459 or 459A.
  (2) A credit against the taxes otherwise due under ORS chapter
316 or, if the taxpayer is a corporation, under ORS chapter 317
or 318, is allowed to a taxpayer for expenses related to the
purchase of equipment used during the tax year to collect or
process reclaimed material for use as bioenergy as defined in ORS
315.141.
  (3) The taxpayer must be the owner of the equipment.
  (4) The amount of the tax credit available to a taxpayer under
this section shall be 35 percent of the cost of the equipment.
  (5) The credit allowed under this section may not exceed the
tax liability of the taxpayer for the tax year in which the
credit is claimed.
  (6) Collection of reclaimed material is subject to the
requirements under ORS chapters 459 and 459A for cities and
counties to regulate the collection of solid waste.
  (7) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a particular year may be carried
forward and offset against the taxpayer's tax liability for the
next succeeding tax year. Any credit remaining unused in the next
succeeding tax year may be carried forward and used in the second
succeeding tax year, but may not be carried forward for any tax
year thereafter. + }
  SECTION 9.  { + Section 8 of this 2011 Act applies to tax years
beginning on or after January 1, 2011. + }

                               { +
CONFORMING AMENDMENTS + }

  SECTION 10. ORS 314.752, as amended by section 26, chapter 76,
Oregon Laws 2010, is amended to read:
  314.752. (1) Except as provided in ORS 314.740 (5)(b), the tax
credits allowed or allowable to a C corporation for purposes of
ORS chapter 317 or 318 shall not be allowed to an S corporation.
The business tax credits allowed or allowable for purposes of ORS
chapter 316 shall be allowed or are allowable to the shareholders
of the S corporation.
  (2) In determining the tax imposed under ORS chapter 316, as
provided under ORS 314.734, on income of the shareholder of an S
corporation, there shall be taken into account the shareholder's
pro rata share of business tax credit (or item thereof) that
would be allowed to the corporation (but for subsection (1) of
this section) or recapture or recovery thereof. The credit (or
item thereof), recapture or recovery shall be passed through to
shareholders in pro rata shares as determined in the manner
prescribed under section 1377(a) of the Internal Revenue Code.
  (3) The character of any item included in a shareholder's pro
rata share under subsection (2) of this section shall be
determined as if such item were realized directly from the source
from which realized by the corporation, or incurred in the same
manner as incurred by the corporation.
  (4) If the shareholder is a nonresident and there is a
requirement applicable for the business tax credit that in the
case of a nonresident the credit be allowed in the proportion
provided in ORS 316.117, then that provision shall apply to the
nonresident shareholder.
  (5) As used in this section, 'business tax credit' means a tax
credit granted to personal income taxpayers to encourage certain
investment, to create employment, economic opportunity or
incentive or for charitable, educational, scientific, literary or
public purposes that is listed under this subsection as a
business tax credit or is designated as a business tax credit by
law or by the Department of Revenue by rule and includes but is
not limited to the following credits: ORS 285C.309 (tribal taxes
on reservation enterprise zones and reservation partnership
zones), ORS 315.104 (forestation and reforestation), ORS 315.134
(fish habitat improvement), ORS 315.138 (fish screening, by-pass
devices, fishways), ORS 315.156 (crop gleaning), ORS 315.164 and
315.169 (farmworker housing), ORS 315.204 (dependent care
assistance), ORS 315.208 (dependent care facilities), ORS 315.213
(contributions for child care), ORS 315.304 (pollution control
facility), ORS 315.324 (plastics recycling), ORS 315.354 and
469.207 (energy conservation facilities), ORS 315.507 (electronic
commerce), ORS 315.511 (advanced telecommunications facilities),
ORS 315.604 (bone marrow transplant expenses), ORS 317.115
(fueling stations necessary to operate an alternative fuel
vehicle) { + , + }   { - and - }  ORS 315.141 (biomass
 { - production for biofuel - } ) { + , section 5 of this 2011
Act (biomass electrical generation) and section 8 of this 2011
Act (use of reclaimed material) + }.
  SECTION 11. ORS 318.031 is amended to read:
  318.031. It being the intention of the Legislative Assembly
that this chapter and ORS chapter 317 shall be administered as
uniformly as possible (allowance being made for the difference in
imposition of the taxes), ORS 305.140 and 305.150, ORS chapter
314 and the following sections are incorporated into and made a
part of this chapter: ORS 285C.309, 315.104, 315.134, 315.141,
315.156, 315.204, 315.208, 315.213, 315.304, 315.507, 315.511 and
315.604  { +  and sections 5 and 8 of this 2011 Act + } (all only
to the extent applicable to a corporation) and ORS chapter 317.
  SECTION 12. ORS 215.203 is amended to read:
  215.203. (1) Zoning ordinances may be adopted to zone
designated areas of land within the county as exclusive farm use
zones. Land within such zones shall be used exclusively for farm
use except as otherwise provided in ORS 215.213, 215.283 or
215.284. Farm use zones shall be established only when such
zoning is consistent with the comprehensive plan.
  (2)(a) As used in this section, 'farm use' means the current
employment of land for the primary purpose of obtaining a profit
in money by raising, harvesting and selling crops or the feeding,
breeding, management and sale of, or the produce of, livestock,
poultry, fur-bearing animals or honeybees or for dairying and the
sale of dairy products or any other agricultural or horticultural
use or animal husbandry or any combination thereof. 'Farm use'
includes the preparation, storage and disposal by marketing or
otherwise of the products or by-products raised on such land for
human or animal use. 'Farm use' also includes the current
employment of land for the primary purpose of obtaining a profit
in money by stabling or training equines including but not
limited to providing riding lessons, training clinics and
schooling shows. 'Farm use' also includes the propagation,
cultivation, maintenance and harvesting of aquatic, bird and
animal species that are under the jurisdiction of the State Fish
and Wildlife Commission, to the extent allowed by the rules
adopted by the commission. 'Farm use' includes the on-site
construction and maintenance of equipment and facilities used for
the activities described in this subsection. 'Farm use' does not
include the use of land subject to the provisions of ORS chapter
321, except land used exclusively for growing cultured Christmas
trees as defined in subsection (3) of this section or land
described in ORS 321.267 (3) or 321.824 (3).
  (b) 'Current employment' of land for farm use includes:
  (A) Farmland, the operation or use of which is subject to any
farm-related government program;
  (B) Land lying fallow for one year as a normal and regular
requirement of good agricultural husbandry;
  (C) Land planted in orchards or other perennials, other than
land specified in subparagraph (D) of this paragraph, prior to
maturity;
  (D) Land not in an exclusive farm use zone which has not been
eligible for assessment at special farm use value in the year
prior to planting the current crop and has been planted in
orchards, cultured Christmas trees or vineyards for at least
three years;
  (E) Wasteland, in an exclusive farm use zone, dry or covered
with water, neither economically tillable nor grazeable, lying in
or adjacent to and in common ownership with a farm use land and
which is not currently being used for any economic farm use;
  (F) Except for land under a single family dwelling, land under
buildings supporting accepted farm practices, including the
processing facilities allowed by ORS 215.213 (1)(u) and 215.283
(1)(r) and the processing of farm crops into  { + bioenergy
or + } biofuel as commercial activities in conjunction with farm
use under ORS 215.213 (2)(c) and 215.283 (2)(a);
  (G) Water impoundments lying in or adjacent to and in common
ownership with farm use land;
  (H) Any land constituting a woodlot, not to exceed 20 acres,
contiguous to and owned by the owner of land specially valued for
farm use even if the land constituting the woodlot is not
utilized in conjunction with farm use;
  (I) Land lying idle for no more than one year where the absence
of farming activity is due to the illness of the farmer or member
of the farmer's immediate family. For purposes of this paragraph,
illness includes injury or infirmity whether or not such illness
results in death;
  (J) Any land described under ORS 321.267 (3) or 321.824 (3);
  (K) Land used for the primary purpose of obtaining a profit in
money by breeding, raising, kenneling or training of greyhounds
for racing; and
  (L) Land used for the processing of farm crops into
 { + bioenergy or + } biofuel, as defined in ORS 315.141, if:
  (i) Only the crops of the landowner are being processed;
  (ii) The  { + bioenergy and + } biofuel from all of the crops
purchased for processing into  { + bioenergy or + } biofuel
 { - is - }   { + are + } used on the farm of the landowner; or
  (iii) The landowner is custom processing crops  { + from other
landowners in the area + } into  { + bioenergy or + } biofuel
 { - from other landowners in the area - }  for   { - their - }
use or sale { +  by the landowners + }.
  (c) As used in this subsection, 'accepted farming practice '
means a mode of operation that is common to farms of a similar
nature, necessary for the operation of such farms to obtain a
profit in money, and customarily utilized in conjunction with
farm use.
  (3) 'Cultured Christmas trees' means trees:
  (a) Grown on lands used exclusively for that purpose, capable
of preparation by intensive cultivation methods such as plowing
or turning over the soil;
  (b) Of a marketable species;
  (c) Managed to produce trees meeting U.S. No. 2 or better
standards for Christmas trees as specified by the Agriculture
Marketing Services of the United States Department of
Agriculture; and
  (d) Evidencing periodic maintenance practices of shearing for
Douglas fir and pine species, weed and brush control and one or
more of the following practices: Basal pruning, fertilizing,
insect and disease control, stump culture, soil cultivation,
irrigation.
  SECTION 13. ORS 215.213 is amended to read:
  215.213. (1) In counties that have adopted marginal lands
provisions under ORS 197.247 (1991 Edition), the following uses
may be established in any area zoned for exclusive farm use:
  (a) Churches and cemeteries in conjunction with churches.
  (b) The propagation or harvesting of a forest product.
  (c) Utility facilities necessary for public service, including
wetland waste treatment systems but not including commercial
facilities for the purpose of generating electrical power for
public use by sale or transmission towers over 200 feet in
height. A utility facility necessary for public service may be
established as provided in ORS 215.275.
  (d) A dwelling on real property used for farm use if the
dwelling is occupied by a relative of the farm operator or the
farm operator's spouse, which means a child, parent, stepparent,
grandchild, grandparent, stepgrandparent, sibling, stepsibling,
niece, nephew or first cousin of either, if the farm operator
does or will require the assistance of the relative in the
management of the farm use and the dwelling is located on the
same lot or parcel as the dwelling of the farm operator.
Notwithstanding ORS 92.010 to 92.192 or the minimum lot or parcel
size requirements under ORS 215.780, if the owner of a dwelling
described in this paragraph obtains construction financing or
other financing secured by the dwelling and the secured party
forecloses on the dwelling, the secured party may also foreclose
on the homesite, as defined in ORS 308A.250, and the foreclosure
shall operate as a partition of the homesite to create a new
parcel.
  (e) Nonresidential buildings customarily provided in
conjunction with farm use.
  (f) Primary or accessory dwellings customarily provided in
conjunction with farm use. For a primary dwelling, the dwelling
must be on a lot or parcel that is managed as part of a farm
operation and is not smaller than the minimum lot size in a farm
zone with a minimum lot size acknowledged under ORS 197.251.
  (g) Operations for the exploration for and production of
geothermal resources as defined by ORS 522.005 and oil and gas as
defined by ORS 520.005, including the placement and operation of
compressors, separators and other customary production equipment
for an individual well adjacent to the wellhead. Any activities
or construction relating to such operations shall not be a basis
for an exception under ORS 197.732 (2)(a) or (b).
  (h) Operations for the exploration for minerals as defined by
ORS 517.750. Any activities or construction relating to such
operations shall not be a basis for an exception under ORS
197.732 (2)(a) or (b).
  (i) One manufactured dwelling or recreational vehicle, or the
temporary residential use of an existing building, in conjunction
with an existing dwelling as a temporary use for the term of a
hardship suffered by the existing resident or a relative of the
resident. Within three months of the end of the hardship, the
manufactured dwelling or recreational vehicle shall be removed or
demolished or, in the case of an existing building, the building
shall be removed, demolished or returned to an allowed
nonresidential use. The governing body or its designee shall
provide for periodic review of the hardship claimed under this
paragraph. A temporary residence approved under this paragraph is
not eligible for replacement under paragraph (q) of this
subsection.
  (j) Climbing and passing lanes within the right of way existing
as of July 1, 1987.
  (k) Reconstruction or modification of public roads and
highways, including the placement of utility facilities overhead
and in the subsurface of public roads and highways along the
public right of way, but not including the addition of travel
lanes, where no removal or displacement of buildings would occur,
or no new land parcels result.
  (L) Temporary public road and highway detours that will be
abandoned and restored to original condition or use at such time
as no longer needed.
  (m) Minor betterment of existing public road and highway
related facilities, such as maintenance yards, weigh stations and
rest areas, within right of way existing as of July 1, 1987, and
contiguous public-owned property utilized to support the
operation and maintenance of public roads and highways.
  (n) A replacement dwelling to be used in conjunction with farm
use if the existing dwelling has been listed in a county
inventory as historic property as defined in ORS 358.480.
  (o) Creation, restoration or enhancement of wetlands.
  (p) A winery, as described in ORS 215.452.
  (q) Alteration, restoration or replacement of a lawfully
established dwelling that:
  (A) Has intact exterior walls and roof structure;
  (B) Has indoor plumbing consisting of a kitchen sink, toilet
and bathing facilities connected to a sanitary waste disposal
system;
  (C) Has interior wiring for interior lights;
  (D) Has a heating system; and
  (E) In the case of replacement:
  (i) Is removed, demolished or converted to an allowable
nonresidential use within three months of the completion of the
replacement dwelling. A replacement dwelling may be sited on any
part of the same lot or parcel. A dwelling established under this
paragraph shall comply with all applicable siting standards.
However, the standards shall not be applied in a manner that
prohibits the siting of the dwelling. If the dwelling to be
replaced is located on a portion of the lot or parcel not zoned
for exclusive farm use, the applicant, as a condition of
approval, shall execute and record in the deed records for the
county where the property is located a deed restriction
prohibiting the siting of a dwelling on that portion of the lot
or parcel. The restriction imposed shall be irrevocable unless a
statement of release is placed in the deed records for the
county. The release shall be signed by the county or its designee
and state that the provisions of this paragraph regarding
replacement dwellings have changed to allow the siting of another
dwelling. The county planning director or the director's designee
shall maintain a record of the lots and parcels that do not
qualify for the siting of a new dwelling under the provisions of
this paragraph, including a copy of the deed restrictions and
release statements filed under this paragraph; and
  (ii) For which the applicant has requested a deferred
replacement permit, is removed or demolished within three months
after the deferred replacement permit is issued. A deferred
replacement permit allows construction of the replacement
dwelling at any time. If, however, the established dwelling is
not removed or demolished within three months after the deferred
replacement permit is issued, the permit becomes void. The
replacement dwelling must comply with applicable building codes,
plumbing codes, sanitation codes and other requirements relating
to health and safety or to siting at the time of construction. A
deferred replacement permit may not be transferred, by sale or
otherwise, except by the applicant to the spouse or a child of
the applicant.
  (r) Farm stands if:
  (A) The structures are designed and used for the sale of farm
crops or livestock grown on the farm operation, or grown on the
farm operation and other farm operations in the local
agricultural area, including the sale of retail incidental items
and fee-based activity to promote the sale of farm crops or
livestock sold at the farm stand if the annual sale of incidental
items and fees from promotional activity do not make up more than
25 percent of the total annual sales of the farm stand; and
  (B) The farm stand does not include structures designed for
occupancy as a residence or for activity other than the sale of
farm crops or livestock and does not include structures for
banquets, public gatherings or public entertainment.
  (s) An armed forces reserve center, if the center is within
one-half mile of a community college. For purposes of this
paragraph, 'armed forces reserve center' includes an armory or
National Guard support facility.
  (t) A site for the takeoff and landing of model aircraft,
including such buildings or facilities as may reasonably be
necessary. Buildings or facilities shall not be more than 500
square feet in floor area or placed on a permanent foundation
unless the building or facility preexisted the use approved under
this paragraph. The site shall not include an aggregate surface
or hard surface area unless the surface preexisted the use
approved under this paragraph. An owner of property used for the
purpose authorized in this paragraph may charge a person
operating the use on the property rent for the property. An
operator may charge users of the property a fee that does not
exceed the operator's cost to maintain the property, buildings
and facilities. As used in this paragraph, 'model aircraft' means
a small-scale version of an airplane, glider, helicopter,
dirigible or balloon that is used or intended to be used for
flight and is controlled by radio, lines or design by a person on
the ground.
  (u) A facility for the processing of farm crops, or the
production of  { + bioenergy or + } biofuel as defined in ORS
315.141, that is located on a farm operation that provides at
least one-quarter of the farm crops processed at the facility.
The building established for the processing facility shall not
exceed 10,000 square feet of floor area exclusive of the floor
area designated for preparation, storage or other farm use or
devote more than 10,000 square feet to the processing activities
within another building supporting farm uses. A processing
facility shall comply with all applicable siting standards but
the standards shall not be applied in a manner that prohibits the
siting of the processing facility.
  (v) Fire service facilities providing rural fire protection
services.
  (w) Irrigation canals, delivery lines and those structures and
accessory operational facilities associated with a district as
defined in ORS 540.505.
  (x) Utility facility service lines. Utility facility service
lines are utility lines and accessory facilities or structures
that end at the point where the utility service is received by
the customer and that are located on one or more of the
following:
  (A) A public right of way;
  (B) Land immediately adjacent to a public right of way,
provided the written consent of all adjacent property owners has
been obtained; or
  (C) The property to be served by the utility.
  (y) Subject to the issuance of a license, permit or other
approval by the Department of Environmental Quality under ORS
454.695, 459.205, 468B.050, 468B.053 or 468B.055, or in
compliance with rules adopted under ORS 468B.095, and as provided
in ORS 215.246 to 215.251, the land application of reclaimed
water, agricultural or industrial process water or biosolids for
agricultural, horticultural or silvicultural production, or for
irrigation in connection with a use allowed in an exclusive farm
use zone under this chapter.
  (2) In counties that have adopted marginal lands provisions
under ORS 197.247 (1991 Edition), the following uses may be
established in any area zoned for exclusive farm use subject to
ORS 215.296:
  (a) A primary dwelling in conjunction with farm use or the
propagation or harvesting of a forest product on a lot or parcel
that is managed as part of a farm operation or woodlot if the
farm operation or woodlot:
  (A) Consists of 20 or more acres; and
  (B) Is not smaller than the average farm or woodlot in the
county producing at least $2,500 in annual gross income from the
crops, livestock or forest products to be raised on the farm
operation or woodlot.
  (b) A primary dwelling in conjunction with farm use or the
propagation or harvesting of a forest product on a lot or parcel
that is managed as part of a farm operation or woodlot smaller
than required under paragraph (a) of this subsection, if the lot
or parcel:
  (A) Has produced at least $20,000 in annual gross farm income
in two consecutive calendar years out of the three calendar years
before the year in which the application for the dwelling was
made or is planted in perennials capable of producing upon
harvest an average of at least $20,000 in annual gross farm
income; or
  (B) Is a woodlot capable of producing an average over the
growth cycle of $20,000 in gross annual income.
  (c) Commercial activities that are in conjunction with farm
use, including the processing of farm crops into  { + bioenergy
or + } biofuel not permitted under ORS 215.203 (2)(b)(L) or
subsection (1)(u) of this section.
  (d) Operations conducted for:
  (A) Mining and processing of geothermal resources as defined by
ORS 522.005 and oil and gas as defined by ORS 520.005, not
otherwise permitted under subsection (1)(g) of this section;
  (B) Mining, crushing or stockpiling of aggregate and other
mineral and other subsurface resources subject to ORS 215.298;
  (C) Processing, as defined by ORS 517.750, of aggregate into
asphalt or portland cement; and
  (D) Processing of other mineral resources and other subsurface
resources.
  (e) Community centers owned by a governmental agency or a
nonprofit community organization and operated primarily by and
for residents of the local rural community, hunting and fishing
preserves, public and private parks, playgrounds and campgrounds.
Subject to the approval of the county governing body or its
designee, a private campground may provide yurts for overnight
camping. No more than one-third or a maximum of 10 campsites,
whichever is smaller, may include a yurt. The yurt shall be
located on the ground or on a wood floor with no permanent
foundation. Upon request of a county governing body, the Land
Conservation and Development Commission may provide by rule for
an increase in the number of yurts allowed on all or a portion of
the campgrounds in a county if the commission determines that the
increase will comply with the standards described in ORS 215.296
(1). A public park or campground may be established as provided
under ORS 195.120. As used in this paragraph, 'yurt' means a
round, domed shelter of cloth or canvas on a collapsible frame
with no plumbing, sewage disposal hookup or internal cooking
appliance.
  (f) Golf courses on land determined not to be high-value
farmland as defined in ORS 195.300.
  (g) Commercial utility facilities for the purpose of generating
power for public use by sale.
  (h) Personal-use airports for airplanes and helicopter pads,
including associated hangar, maintenance and service facilities.
A personal-use airport as used in this section means an airstrip
restricted, except for aircraft emergencies, to use by the owner,
and, on an infrequent and occasional basis, by invited guests,
and by commercial aviation activities in connection with
agricultural operations. No aircraft may be based on a
personal-use airport other than those owned or controlled by the
owner of the airstrip.  Exceptions to the activities permitted
under this definition may be granted through waiver action by the
Oregon Department of Aviation in specific instances. A
personal-use airport lawfully existing as of September 13, 1975,
shall continue to be permitted subject to any applicable rules of
the Oregon Department of Aviation.
  (i) A facility for the primary processing of forest products,
provided that such facility is found to not seriously interfere
with accepted farming practices and is compatible with farm uses
described in ORS 215.203 (2). Such a facility may be approved for
a one-year period which is renewable. These facilities are
intended to be only portable or temporary in nature. The primary
processing of a forest product, as used in this section, means
the use of a portable chipper or stud mill or other similar
methods of initial treatment of a forest product in order to
enable its shipment to market. Forest products, as used in this
section, means timber grown upon a parcel of land or contiguous
land where the primary processing facility is located.
  (j) A site for the disposal of solid waste approved by the
governing body of a city or county or both and for which a permit
has been granted under ORS 459.245 by the Department of
Environmental Quality together with equipment, facilities or
buildings necessary for its operation.
  (k) Dog kennels.
  (L) Residential homes as defined in ORS 197.660, in existing
dwellings.
  (m) The propagation, cultivation, maintenance and harvesting of
aquatic species that are not under the jurisdiction of the State
Fish and Wildlife Commission or insect species. Insect species
shall not include any species under quarantine by the State
Department of Agriculture or the United States Department of
Agriculture. The county shall provide notice of all applications
under this paragraph to the State Department of Agriculture.
Notice shall be provided in accordance with the county's land use
regulations but shall be mailed at least 20 calendar days prior
to any administrative decision or initial public hearing on the
application.
  (n) Home occupations as provided in ORS 215.448.
  (o) Transmission towers over 200 feet in height.
  (p) Construction of additional passing and travel lanes
requiring the acquisition of right of way but not resulting in
the creation of new land parcels.
  (q) Reconstruction or modification of public roads and highways
involving the removal or displacement of buildings but not
resulting in the creation of new land parcels.
  (r) Improvement of public road and highway related facilities
such as maintenance yards, weigh stations and rest areas, where
additional property or right of way is required but not resulting
in the creation of new land parcels.
  (s) A destination resort that is approved consistent with the
requirements of any statewide planning goal relating to the
siting of a destination resort.
  (t) Room and board arrangements for a maximum of five unrelated
persons in existing residences.
  (u) A living history museum related to resource based
activities owned and operated by a governmental agency or a local
historical society, together with limited commercial activities
and facilities that are directly related to the use and enjoyment
of the museum and located within authentic buildings of the
depicted historic period or the museum administration building,
if areas other than an exclusive farm use zone cannot accommodate
the museum and related activities or if the museum administration
buildings and parking lot are located within one quarter mile of
the metropolitan urban growth boundary. As used in this
paragraph:
  (A) 'Living history museum' means a facility designed to depict
and interpret everyday life and culture of some specific historic
period using authentic buildings, tools, equipment and people to
simulate past activities and events; and
  (B) 'Local historical society' means the local historical
society, recognized as such by the county governing body and
organized under ORS chapter 65.
  (v) Operations for the extraction and bottling of water.
  (w) An aerial fireworks display business that has been in
continuous operation at its current location within an exclusive
farm use zone since December 31, 1986, and possesses a
wholesaler's permit to sell or provide fireworks.
  (x) A landscape contracting business, as defined in ORS
671.520, or a business providing landscape architecture services,
as described in ORS 671.318, if the business is pursued in
conjunction with the growing and marketing of nursery stock on
the land that constitutes farm use.
  (y) Public or private schools for kindergarten through grade
12, including all buildings essential to the operation of a
school, primarily for residents of the rural area in which the
school is located.
  (3) In counties that have adopted marginal lands provisions
under ORS 197.247 (1991 Edition), a single-family residential
dwelling not provided in conjunction with farm use may be
established on a lot or parcel with soils predominantly in
capability classes IV through VIII as determined by the
Agricultural Capability Classification System in use by the
United States Department of Agriculture Soil Conservation Service
on October 15, 1983. A proposed dwelling is subject to approval
of the governing body or its designee in any area zoned for
exclusive farm use upon written findings showing all of the
following:
  (a) The dwelling or activities associated with the dwelling
will not force a significant change in or significantly increase
the cost of accepted farming practices on nearby lands devoted to
farm use.
  (b) The dwelling is situated upon generally unsuitable land for
the production of farm crops and livestock, considering the
terrain, adverse soil or land conditions, drainage and flooding,
location and size of the tract. A lot or parcel shall not be
considered unsuitable solely because of its size or location if
it can reasonably be put to farm use in conjunction with other
land.
  (c) Complies with such other conditions as the governing body
or its designee considers necessary.
  (4) In counties that have adopted marginal lands provisions
under ORS 197.247 (1991 Edition), one single-family dwelling, not
provided in conjunction with farm use, may be established in any
area zoned for exclusive farm use on a lot or parcel described in
subsection (7) of this section that is not larger than three
acres upon written findings showing:
  (a) The dwelling or activities associated with the dwelling
will not force a significant change in or significantly increase
the cost of accepted farming practices on nearby lands devoted to
farm use;
  (b) If the lot or parcel is located within the Willamette River
Greenway, a floodplain or a geological hazard area, the dwelling
complies with conditions imposed by local ordinances relating

specifically to the Willamette River Greenway, floodplains or
geological hazard areas, whichever is applicable; and
  (c) The dwelling complies with other conditions considered
necessary by the governing body or its designee.
  (5) Upon receipt of an application for a permit under
subsection (4) of this section, the governing body shall notify:
  (a) Owners of land that is within 250 feet of the lot or parcel
on which the dwelling will be established; and
  (b) Persons who have requested notice of such applications and
who have paid a reasonable fee imposed by the county to cover the
cost of such notice.
  (6) The notice required in subsection (5) of this section shall
specify that persons have 15 days following the date of postmark
of the notice to file a written objection on the grounds only
that the dwelling or activities associated with it would force a
significant change in or significantly increase the cost of
accepted farming practices on nearby lands devoted to farm use.
If no objection is received, the governing body or its designee
shall approve or disapprove the application. If an objection is
received, the governing body shall set the matter for hearing in
the manner prescribed in ORS 215.402 to 215.438. The governing
body may charge the reasonable costs of the notice required by
subsection (5)(a) of this section to the applicant for the permit
requested under subsection (4) of this section.
  (7) Subsection (4) of this section applies to a lot or parcel
lawfully created between January 1, 1948, and July 1, 1983. For
the purposes of this section:
  (a) Only one lot or parcel exists if:
  (A) A lot or parcel described in this section is contiguous to
one or more lots or parcels described in this section; and
  (B) On July 1, 1983, greater than possessory interests are held
in those contiguous lots, parcels or lots and parcels by the same
person, spouses or a single partnership or business entity,
separately or in tenancy in common.
  (b) 'Contiguous' means lots, parcels or lots and parcels that
have a common boundary, including but not limited to, lots,
parcels or lots and parcels separated only by a public road.
  (8) A person who sells or otherwise transfers real property in
an exclusive farm use zone may retain a life estate in a dwelling
on that property and in a tract of land under and around the
dwelling.
  (9) No final approval of a nonfarm use under this section shall
be given unless any additional taxes imposed upon the change in
use have been paid.
  (10) Roads, highways and other transportation facilities and
improvements not allowed under subsections (1) and (2) of this
section may be established, subject to the approval of the
governing body or its designee, in areas zoned for exclusive farm
use subject to:
  (a) Adoption of an exception to the goal related to
agricultural lands and to any other applicable goal with which
the facility or improvement does not comply; or
  (b) ORS 215.296 for those uses identified by rule of the Land
Conservation and Development Commission as provided in section 3,
chapter 529, Oregon Laws 1993.
  SECTION 14. ORS 215.283 is amended to read:
  215.283. (1) The following uses may be established in any area
zoned for exclusive farm use:
  (a) Churches and cemeteries in conjunction with churches.
  (b) The propagation or harvesting of a forest product.
  (c) Utility facilities necessary for public service, including
wetland waste treatment systems but not including commercial
facilities for the purpose of generating electrical power for
public use by sale or transmission towers over 200 feet in
height. A utility facility necessary for public service may be
established as provided in ORS 215.275.
  (d) A dwelling on real property used for farm use if the
dwelling is occupied by a relative of the farm operator or the
farm operator's spouse, which means a child, parent, stepparent,
grandchild, grandparent, stepgrandparent, sibling, stepsibling,
niece, nephew or first cousin of either, if the farm operator
does or will require the assistance of the relative in the
management of the farm use and the dwelling is located on the
same lot or parcel as the dwelling of the farm operator.
Notwithstanding ORS 92.010 to 92.192 or the minimum lot or parcel
size requirements under ORS 215.780, if the owner of a dwelling
described in this paragraph obtains construction financing or
other financing secured by the dwelling and the secured party
forecloses on the dwelling, the secured party may also foreclose
on the homesite, as defined in ORS 308A.250, and the foreclosure
shall operate as a partition of the homesite to create a new
parcel.
  (e) Primary or accessory dwellings and other buildings
customarily provided in conjunction with farm use.
  (f) Operations for the exploration for and production of
geothermal resources as defined by ORS 522.005 and oil and gas as
defined by ORS 520.005, including the placement and operation of
compressors, separators and other customary production equipment
for an individual well adjacent to the wellhead. Any activities
or construction relating to such operations shall not be a basis
for an exception under ORS 197.732 (2)(a) or (b).
  (g) Operations for the exploration for minerals as defined by
ORS 517.750. Any activities or construction relating to such
operations shall not be a basis for an exception under ORS
197.732 (2)(a) or (b).
  (h) Climbing and passing lanes within the right of way existing
as of July 1, 1987.
  (i) Reconstruction or modification of public roads and
highways, including the placement of utility facilities overhead
and in the subsurface of public roads and highways along the
public right of way, but not including the addition of travel
lanes, where no removal or displacement of buildings would occur,
or no new land parcels result.
  (j) Temporary public road and highway detours that will be
abandoned and restored to original condition or use at such time
as no longer needed.
  (k) Minor betterment of existing public road and highway
related facilities such as maintenance yards, weigh stations and
rest areas, within right of way existing as of July 1, 1987, and
contiguous public-owned property utilized to support the
operation and maintenance of public roads and highways.
  (L) A replacement dwelling to be used in conjunction with farm
use if the existing dwelling has been listed in a county
inventory as historic property as defined in ORS 358.480.
  (m) Creation, restoration or enhancement of wetlands.
  (n) A winery, as described in ORS 215.452.
  (o) Farm stands if:
  (A) The structures are designed and used for the sale of farm
crops or livestock grown on the farm operation, or grown on the
farm operation and other farm operations in the local
agricultural area, including the sale of retail incidental items
and fee-based activity to promote the sale of farm crops or
livestock sold at the farm stand if the annual sale of incidental
items and fees from promotional activity do not make up more than
25 percent of the total annual sales of the farm stand; and
  (B) The farm stand does not include structures designed for
occupancy as a residence or for activity other than the sale of
farm crops or livestock and does not include structures for
banquets, public gatherings or public entertainment.
  (p) Alteration, restoration or replacement of a lawfully
established dwelling that:
  (A) Has intact exterior walls and roof structure;
  (B) Has indoor plumbing consisting of a kitchen sink, toilet
and bathing facilities connected to a sanitary waste disposal
system;
  (C) Has interior wiring for interior lights;
  (D) Has a heating system; and
  (E) In the case of replacement:
  (i) Is removed, demolished or converted to an allowable
nonresidential use within three months of the completion of the
replacement dwelling. A replacement dwelling may be sited on any
part of the same lot or parcel. A dwelling established under this
paragraph shall comply with all applicable siting standards.
However, the standards shall not be applied in a manner that
prohibits the siting of the dwelling. If the dwelling to be
replaced is located on a portion of the lot or parcel not zoned
for exclusive farm use, the applicant, as a condition of
approval, shall execute and record in the deed records for the
county where the property is located a deed restriction
prohibiting the siting of a dwelling on that portion of the lot
or parcel. The restriction imposed shall be irrevocable unless a
statement of release is placed in the deed records for the
county. The release shall be signed by the county or its designee
and state that the provisions of this paragraph regarding
replacement dwellings have changed to allow the siting of another
dwelling. The county planning director or the director's designee
shall maintain a record of the lots and parcels that do not
qualify for the siting of a new dwelling under the provisions of
this paragraph, including a copy of the deed restrictions and
release statements filed under this paragraph; and
  (ii) For which the applicant has requested a deferred
replacement permit, is removed or demolished within three months
after the deferred replacement permit is issued. A deferred
replacement permit allows construction of the replacement
dwelling at any time. If, however, the established dwelling is
not removed or demolished within three months after the deferred
replacement permit is issued, the permit becomes void. The
replacement dwelling must comply with applicable building codes,
plumbing codes, sanitation codes and other requirements relating
to health and safety or to siting at the time of construction. A
deferred replacement permit may not be transferred, by sale or
otherwise, except by the applicant to the spouse or a child of
the applicant.
  (q) A site for the takeoff and landing of model aircraft,
including such buildings or facilities as may reasonably be
necessary. Buildings or facilities shall not be more than 500
square feet in floor area or placed on a permanent foundation
unless the building or facility preexisted the use approved under
this paragraph. The site shall not include an aggregate surface
or hard surface area unless the surface preexisted the use
approved under this paragraph. An owner of property used for the
purpose authorized in this paragraph may charge a person
operating the use on the property rent for the property. An
operator may charge users of the property a fee that does not
exceed the operator's cost to maintain the property, buildings
and facilities. As used in this paragraph, 'model aircraft' means
a small-scale version of an airplane, glider, helicopter,
dirigible or balloon that is used or intended to be used for
flight and is controlled by radio, lines or design by a person on
the ground.
  (r) A facility for the processing of farm crops, or the
production of  { + bioenergy or + } biofuel as defined in ORS
315.141, that is located on a farm operation that provides at
least one-quarter of the farm crops processed at the facility.
The building established for the processing facility shall not
exceed 10,000 square feet of floor area exclusive of the floor
area designated for preparation, storage or other farm use or
devote more than 10,000 square feet to the processing activities
within another building supporting farm uses. A processing
facility shall comply with all applicable siting standards but
the standards shall not be applied in a manner that prohibits the
siting of the processing facility.
  (s) Fire service facilities providing rural fire protection
services.
  (t) Irrigation canals, delivery lines and those structures and
accessory operational facilities associated with a district as
defined in ORS 540.505.
  (u) Utility facility service lines. Utility facility service
lines are utility lines and accessory facilities or structures
that end at the point where the utility service is received by
the customer and that are located on one or more of the
following:
  (A) A public right of way;
  (B) Land immediately adjacent to a public right of way,
provided the written consent of all adjacent property owners has
been obtained; or
  (C) The property to be served by the utility.
  (v) Subject to the issuance of a license, permit or other
approval by the Department of Environmental Quality under ORS
454.695, 459.205, 468B.050, 468B.053 or 468B.055, or in
compliance with rules adopted under ORS 468B.095, and as provided
in ORS 215.246 to 215.251, the land application of reclaimed
water, agricultural or industrial process water or biosolids for
agricultural, horticultural or silvicultural production, or for
irrigation in connection with a use allowed in an exclusive farm
use zone under this chapter.
  (w) A county law enforcement facility that lawfully existed on
August 20, 2002, and is used to provide rural law enforcement
services primarily in rural areas, including parole and
post-prison supervision, but not including a correctional
facility as defined under ORS 162.135.
  (2) The following nonfarm uses may be established, subject to
the approval of the governing body or its designee in any area
zoned for exclusive farm use subject to ORS 215.296:
  (a) Commercial activities that are in conjunction with farm
use, including the processing of farm crops into  { + bioenergy
or + } biofuel not permitted under ORS 215.203 (2)(b)(L) or
subsection (1)(r) of this section.
  (b) Operations conducted for:
  (A) Mining and processing of geothermal resources as defined by
ORS 522.005 and oil and gas as defined by ORS 520.005 not
otherwise permitted under subsection (1)(f) of this section;
  (B) Mining, crushing or stockpiling of aggregate and other
mineral and other subsurface resources subject to ORS 215.298;
  (C) Processing, as defined by ORS 517.750, of aggregate into
asphalt or portland cement; and
  (D) Processing of other mineral resources and other subsurface
resources.
  (c) Private parks, playgrounds, hunting and fishing preserves
and campgrounds. Subject to the approval of the county governing
body or its designee, a private campground may provide yurts for
overnight camping. No more than one-third or a maximum of 10
campsites, whichever is smaller, may include a yurt. The yurt
shall be located on the ground or on a wood floor with no
permanent foundation. Upon request of a county governing body,
the Land Conservation and Development Commission may provide by
rule for an increase in the number of yurts allowed on all or a
portion of the campgrounds in a county if the commission
determines that the increase will comply with the standards
described in ORS 215.296 (1). As used in this paragraph, 'yurt'
means a round, domed shelter of cloth or canvas on a collapsible
frame with no plumbing, sewage disposal hookup or internal
cooking appliance.

  (d) Parks and playgrounds. A public park may be established
consistent with the provisions of ORS 195.120.
  (e) Community centers owned by a governmental agency or a
nonprofit community organization and operated primarily by and
for residents of the local rural community. A community center
authorized under this paragraph may provide services to veterans,
including but not limited to emergency and transitional shelter,
preparation and service of meals, vocational and educational
counseling and referral to local, state or federal agencies
providing medical, mental health, disability income replacement
and substance abuse services, only in a facility that is in
existence on January 1, 2006. The services may not include direct
delivery of medical, mental health, disability income replacement
or substance abuse services.
  (f) Golf courses on land determined not to be high-value
farmland, as defined in ORS 195.300.
  (g) Commercial utility facilities for the purpose of generating
power for public use by sale.
  (h) Personal-use airports for airplanes and helicopter pads,
including associated hangar, maintenance and service facilities.
A personal-use airport, as used in this section, means an
airstrip restricted, except for aircraft emergencies, to use by
the owner, and, on an infrequent and occasional basis, by invited
guests, and by commercial aviation activities in connection with
agricultural operations. No aircraft may be based on a
personal-use airport other than those owned or controlled by the
owner of the airstrip.  Exceptions to the activities permitted
under this definition may be granted through waiver action by the
Oregon Department of Aviation in specific instances. A
personal-use airport lawfully existing as of September 13, 1975,
shall continue to be permitted subject to any applicable rules of
the Oregon Department of Aviation.
  (i) Home occupations as provided in ORS 215.448.
  (j) A facility for the primary processing of forest products,
provided that such facility is found to not seriously interfere
with accepted farming practices and is compatible with farm uses
described in ORS 215.203 (2). Such a facility may be approved for
a one-year period which is renewable. These facilities are
intended to be only portable or temporary in nature. The primary
processing of a forest product, as used in this section, means
the use of a portable chipper or stud mill or other similar
methods of initial treatment of a forest product in order to
enable its shipment to market. Forest products, as used in this
section, means timber grown upon a parcel of land or contiguous
land where the primary processing facility is located.
  (k) A site for the disposal of solid waste approved by the
governing body of a city or county or both and for which a permit
has been granted under ORS 459.245 by the Department of
Environmental Quality together with equipment, facilities or
buildings necessary for its operation.
  (L) One manufactured dwelling or recreational vehicle, or the
temporary residential use of an existing building, in conjunction
with an existing dwelling as a temporary use for the term of a
hardship suffered by the existing resident or a relative of the
resident. Within three months of the end of the hardship, the
manufactured dwelling or recreational vehicle shall be removed or
demolished or, in the case of an existing building, the building
shall be removed, demolished or returned to an allowed
nonresidential use. The governing body or its designee shall
provide for periodic review of the hardship claimed under this
paragraph. A temporary residence approved under this paragraph is
not eligible for replacement under subsection (1)(p) of this
section.
  (m) Transmission towers over 200 feet in height.
  (n) Dog kennels.

  (o) Residential homes as defined in ORS 197.660, in existing
dwellings.
  (p) The propagation, cultivation, maintenance and harvesting of
aquatic species that are not under the jurisdiction of the State
Fish and Wildlife Commission or insect species. Insect species
shall not include any species under quarantine by the State
Department of Agriculture or the United States Department of
Agriculture. The county shall provide notice of all applications
under this paragraph to the State Department of Agriculture.
Notice shall be provided in accordance with the county's land use
regulations but shall be mailed at least 20 calendar days prior
to any administrative decision or initial public hearing on the
application.
  (q) Construction of additional passing and travel lanes
requiring the acquisition of right of way but not resulting in
the creation of new land parcels.
  (r) Reconstruction or modification of public roads and highways
involving the removal or displacement of buildings but not
resulting in the creation of new land parcels.
  (s) Improvement of public road and highway related facilities,
such as maintenance yards, weigh stations and rest areas, where
additional property or right of way is required but not resulting
in the creation of new land parcels.
  (t) A destination resort that is approved consistent with the
requirements of any statewide planning goal relating to the
siting of a destination resort.
  (u) Room and board arrangements for a maximum of five unrelated
persons in existing residences.
  (v) Operations for the extraction and bottling of water.
  (w) Expansion of existing county fairgrounds and activities
directly relating to county fairgrounds governed by county fair
boards established pursuant to ORS 565.210.
  (x) A living history museum related to resource based
activities owned and operated by a governmental agency or a local
historical society, together with limited commercial activities
and facilities that are directly related to the use and enjoyment
of the museum and located within authentic buildings of the
depicted historic period or the museum administration building,
if areas other than an exclusive farm use zone cannot accommodate
the museum and related activities or if the museum administration
buildings and parking lot are located within one quarter mile of
an urban growth boundary. As used in this paragraph:
  (A) 'Living history museum' means a facility designed to depict
and interpret everyday life and culture of some specific historic
period using authentic buildings, tools, equipment and people to
simulate past activities and events; and
  (B) 'Local historical society' means the local historical
society recognized by the county governing body and organized
under ORS chapter 65.
  (y) An aerial fireworks display business that has been in
continuous operation at its current location within an exclusive
farm use zone since December 31, 1986, and possesses a
wholesaler's permit to sell or provide fireworks.
  (z) A landscape contracting business, as defined in ORS
671.520, or a business providing landscape architecture services,
as described in ORS 671.318, if the business is pursued in
conjunction with the growing and marketing of nursery stock on
the land that constitutes farm use.
  (aa) Public or private schools for kindergarten through grade
12, including all buildings essential to the operation of a
school, primarily for residents of the rural area in which the
school is located.
  (3) Roads, highways and other transportation facilities and
improvements not allowed under subsections (1) and (2) of this
section may be established, subject to the approval of the

governing body or its designee, in areas zoned for exclusive farm
use subject to:
  (a) Adoption of an exception to the goal related to
agricultural lands and to any other applicable goal with which
the facility or improvement does not comply; or
  (b) ORS 215.296 for those uses identified by rule of the Land
Conservation and Development Commission as provided in section 3,
chapter 529, Oregon Laws 1993.
  SECTION 15. ORS 308A.056 is amended to read:
  308A.056. (1) As used in ORS 308A.050 to 308A.128, 'farm use'
means the current employment of land for the primary purpose of
obtaining a profit in money by:
  (a) Raising, harvesting and selling crops.
  (b) Feeding, breeding, managing or selling livestock, poultry,
fur-bearing animals or honeybees or the produce thereof.
  (c) Dairying and selling dairy products.
  (d) Stabling or training equines, including but not limited to
providing riding lessons, training clinics and schooling shows.
  (e) Propagating, cultivating, maintaining or harvesting aquatic
species and bird and animal species to the extent allowed by the
rules adopted by the State Fish and Wildlife Commission.
  (f) On-site constructing and maintaining equipment and
facilities used for the activities described in this subsection.
  (g) Preparing, storing or disposing of, by marketing or
otherwise, the products or by-products raised for human or animal
use on land described in this section.
  (h) Implementing a remediation plan previously presented to the
assessor for the county in which the land that is the subject of
the plan is located.
  (i) Using land described in this section for any other
agricultural or horticultural use or animal husbandry or any
combination thereof.
  (2) 'Farm use' does not include the use of land subject to
timber and forestland taxation under ORS chapter 321, except land
used exclusively for growing cultured Christmas trees or land
described in ORS 321.267 (3) or 321.824 (3) (relating to land
used to grow certain hardwood timber, including hybrid
cottonwood).
  (3) For purposes of this section, land is currently employed
for farm use if the land is:
  (a) Farmland, the operation or use of which is subject to any
farm-related government program;
  (b) Land lying fallow for one year as a normal and regular
requirement of good agricultural husbandry;
  (c) Land planted in orchards or other perennials, other than
land specified in paragraph (d) of this subsection, prior to
maturity;
  (d) Land not in an exclusive farm use zone that has not been
eligible for assessment at special farm use value in the year
prior to planting the current crop and has been planted in
orchards, cultured Christmas trees or vineyards for at least
three years;
  (e) Wasteland, in an exclusive farm use zone, dry or covered
with water, neither economically tillable nor grazeable, lying in
or adjacent to and in common ownership with farm use land and
that is not currently being used for any economic farm use;
  (f) Except for land under a single family dwelling, land under
buildings supporting accepted farming practices, including the
processing facilities allowed by ORS 215.213 (1)(u) and 215.283
(1)(r) and the processing of farm crops into  { + bioenergy
or + } biofuel as commercial activities in conjunction with farm
use under ORS 215.213 (2)(c) and 215.283 (2)(a);
  (g) Water impoundments lying in or adjacent to and in common
ownership with farm use land;
  (h) Any land constituting a woodlot, not to exceed 20 acres,
contiguous to and owned by the owner of land specially valued for
farm use even if the land constituting the woodlot is not
utilized in conjunction with farm use;
  (i) Land lying idle for no more than one year when the absence
of farming activity is the result of the illness of the farmer or
a member of the farmer's immediate family, including injury or
infirmity, regardless of whether the illness results in death;
  (j) Land described under ORS 321.267 (3) or 321.824 (3)
(relating to land used to grow certain hardwood timber, including
hybrid cottonwood);
  (k) Land used for the primary purpose of obtaining a profit in
money by breeding, raising, kenneling or training greyhounds for
racing;
  (L) Land subject to a remediation plan previously presented to
the assessor for the county in which the land that is the subject
of the plan is located; or
  (m) Land used for the processing of farm crops into
 { + bioenergy or + } biofuel, as defined in ORS 315.141, if:
  (i) Only the crops of the landowner are being processed;
  (ii) The  { + bioenergy and + } biofuel from all of the crops
purchased for processing into  { + bioenergy or + } biofuel
 { - is - }   { + are + } used on the farm of the landowner; or
  (iii) The landowner is custom processing crops  { + from other
landowners in the area + } into  { + bioenergy or + } biofuel
 { - from other landowners in the area - }  for   { - their - }
use or sale { +  by the landowners + }.
  (4) As used in this section:
  (a) 'Accepted farming practice' means a mode of operation that
is common to farms of a similar nature, necessary for the
operation of these similar farms to obtain a profit in money and
customarily utilized in conjunction with farm use.
  (b) 'Cultured Christmas trees' means trees:
  (A) Grown on lands used exclusively for that purpose, capable
of preparation by intensive cultivation methods such as plowing
or turning over the soil;
  (B) Of a marketable species;
  (C) Managed to produce trees meeting U.S. No. 2 or better
standards for Christmas trees as specified by the Agricultural
Marketing Service of the United States Department of Agriculture;
and
  (D) Evidencing periodic maintenance practices of shearing for
Douglas fir and pine species, weed and brush control and one or
more of the following practices:
  (i) Basal pruning;
  (ii) Fertilizing;
  (iii) Insect and disease control;
  (iv) Stump culture;
  (v) Soil cultivation; or
  (vi) Irrigation.
  SECTION 16.  { + The amendments to ORS 215.203, 215.213,
215.283 and 308A.056 by sections 12 to 15 of this 2011 Act apply
to tax years beginning on or after January 1, 2011. + }

                               { +
BIOMASS FACILITY SITING STUDY + }

  SECTION 17. { +  The State Department of Energy shall conduct a
study of biomass facility sites in this state, including retired
or abandoned wood processing plants in rural communities, and the
benefits of favorable tax treatment for biomass electrical
generation operations in rural communities. The department shall
report the results of the study to the Legislative Assembly in
the manner provided by ORS 192.245 before February 1, 2013. + }

                               { +
CAPTIONS; EFFECTIVE DATE + }

  SECTION 18.  { + The unit captions used in this 2011 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2011 Act. + }
  SECTION 19.  { + This 2011 Act takes effect on the 91st day
after the date on which the 2011 session of the Seventy-sixth
Legislative Assembly adjourns sine die. + }
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