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Senate hears bill to create loan‑loss reserve for rural and underserved public infrastructure projects
Summary
Senate Bill 759 (dash 2) would direct the state Department of Energy to establish a loan loss reserve program to support infrastructure projects in rural and underserved communities; the program would provide loans, grants, interest buy‑downs and workforce requirements.
The Senate Committee on Labor and Business held a public hearing on Senate Bill 759 on March 25. The underlying bill directed the Oregon Business Development Department to study a loan loss reserve fund for infrastructure projects in underserved communities; a dash 2 amendment replaced that text with a program directing the Department of Energy to establish a loan loss reserve program.
Under the dash 2 amendment, the Department of Energy would establish a loan loss reserve program providing loans and grants to eligible public bodies for eligible infrastructure projects in rural and underserved communities. The program would permit enrollment of eligible projects, require contractor participation in registered apprenticeship programs, set a goal that at least 15% of total work hours be performed by women, minority individuals and veterans, and require employers to offer family health insurance and retirement benefits.
Sponsor Senator Chris Gorsek (testifying as "Senator Gorsek") told the committee the program would help local governments, school districts and tribal governments secure financing for projects such as grid modernization and solar/battery installations. Supporters including labor representatives and trade organizations testified in support, saying loan loss reserves act like a co‑signer to reduce borrowing costs for rural districts and would enable projects to proceed that otherwise could not secure financing.
Witnesses from Smart Local 16, Ironworkers Local 29, and other labor and environmental organizations described examples of rural school projects paired with solar and battery storage that could act as community hubs during emergencies and reduce energy costs. Testimony emphasized job creation, apprenticeships and built‑in labor standards.
No registered opposition was reported in the committee; the committee closed the public hearing after supportive testimony and indicated no immediate vote that day.
