330-280-0030 Project Eligibility (1) To be eligible for a rebate for the sale or installation of a heat pump, the project must meet the following requirements: (a) The heat pump must be installed by an eligible contractor. The contractor may use subcontractors in the installation of a heat pump; however, all firms and individuals working on the installation of a heat pump, whether working on behalf of the contractor or a subcontractor, must hold any license, bond, insurance, or permit required for the work performed. (b) A contractor must submit a reservation application before installing a heat pump. (c) The heat pump must be installed at, and serve, one of the following dwellings: (A) A dwelling unit used as a residential tenancy, which does not include vacation occupancy or transient occupancy in a hotel or motel as defined in ORS 90.100; or (B) A manufactured dwelling or recreational vehicle that is located in a rented space in a manufactured dwelling or recreational vehicle park. (d) The heat pump must be installed and function to provide heating and cooling for the living area of a dwelling; a space used only for storage is not eligible. (e) The heat pump must meet the technical specifications provided in these rules. (f) All necessary permits must have been received from the local jurisdiction and any final inspections conducted by the authority having jurisdiction must be passed. (g) The indoor and outdoor units must be designed to be compatible with one another according to the manufacturer’s product specifications and the proposed system must match the efficiency rating test conditions. The heat pump must be Air-Conditioning, Heating, and Refrigeration Institute (AHRI) certified. (h) The heat pump must be appropriately sized to the space or structure. A contractor may attest that the heat pump is appropriately sized in the reservation application. The Department reserves the right to audit the heat pump sizing documentation provided in the reservation application to verify that the heat pump is appropriately sized to the space or structure before or after a rebate is reserved for a contractor. (i) The heat pump system must be installed in accordance with the manufacturer’s specifications. (j) If applicable, the heat pump’s auxiliary heat control must be set at or below a temperature of 35 degrees Fahrenheit, except in situations when supplemental heating is required during a defrost cycle or system failure. (k) The heat pump system must include at least a five-year warranty against manufacturer defects. (l) Installations of heat pump systems must include at least a one-year labor warranty covering the system. (m) Under no circumstances will more than one rebate be issued under the program for the purchase and installation of the same heat pump. (n) The heat pump must be new, meaning that it has not previously been used to provide heating or cooling. (2) To be eligible for a grant for upgrades to facilitate the installation of a heat pump, the project must meet the following requirements: (a) A rebate for the sale or installation of a heat pump must have been reserved. (b) Upgrades must be to facilitate the installation of a heat pump. These may include: (A) A new electrical panel or other upgrades to the electrical system of the dwelling the department determines are eligible; (B) Mechanical upgrades to facilitate the installation of a heat pump the department determines are eligible; (C) Other upgrades the department determines are eligible. (c) A grant request must be approved before the work to carry out the upgrades has begun. (d) All necessary permits must have been received from the local jurisdiction and any final inspections conducted by the authority having jurisdiction must be passed. Statutory/Other Authority: Oregon Laws 2022, Chapter 86 (Senate Bill 1536) & ORS 469.040 Statutes/Other Implemented: Oregon Laws 2022, Chapter 86 (Senate Bill 1536) History: DOE 2-2024, amend filed 04/30/2024, effective 05/01/2024 DOE 2-2023, adopt filed 04/17/2023, effective 04/18/2023