Oregon Revised Statutes (ORS)

Oregon Administrative Rules

Rural Renewable Energy Development Zone

Rural Renewable Energy Development (RRED) Zones offer an incentive to encourage new investments that either:

  • Harness wind, geothermal, solar, biomass or other unconventional forms of energy in Oregon to generate electricity, or
  • Produce, distribute, or store any of a wide variety of biofuels.

Throughout Oregon, a city, county or several contiguous counties can set up a RRED Zone that covers all the territory in the jurisdiction(s) outside the urban growth boundary (UGB) of any metropolitan area or sizeable city.

The incentive is the standard (3- to 5-year) exemption on qualified property available in any enterprise zone, except that in a RRED Zone it is only for renewable energy activities (which would also be eligible in an enterprise zone). The total amount of property (among one or more projects) that can qualify is subject to a locally-set cap with each RRED Zone. That cap can be no greater than $250 million in initial market value of each project.

Since 2013, the local government sponsor may waive the requirement to create full-time employment with a new project by resolution(s), if the cost of the investment is $5 million or more. This is like the $25 million waiver in an enterprise zone, except that local additional conditions may not be imposed.

Designated Zones

Clackamas County* Effective May 3, 2011
Coos County Effective December 2, 2019
Crook County Effective January 1, 2020
Deschutes County* Effective January 8, 2015
Douglas County Effective January 29, 2020
Gilliam County Effective January 20, 2021
Jackson County* Effective December 12, 2014
Lake County Effective July 1, 2019
Linn County* Effective July 1, 2018
Malheur County Effective January 1, 2015
Polk County* Effective July 1, 2018
Sherman County Effective February 28, 2019
Wasco County Effective May 6, 2020
City of Pilot Rock Effective February 18, 2020

*Excluding any area within urban growth boundary (UGB) of a metropolitan region or city with a population of 30,000 or more.