Friday, August 22, 2014

Oregon Proposes Renewable Energy Cooperative Corporation Exemption

[This story previously appeared in Securities Regulation Daily.]

By Jay Fishman, J.D.

The Oregon Finance and Corporate Securities Division proposed rules allowing renewable energy cooperative corporations to claim an Oregon Securities Law registration exemption for their membership shares or capital stock. The proposed rulemaking would restrict the amount that renewable energy cooperative corporations could raise from non-accredited investors, to $750,000 per project, and limit the amount non-accredited investors can invest based on the individual’s net worth.

Renewable energy cooperative cooperatives could draw on lower-net worth investors from well-defined communities, and simultaneously claim other available Oregon exemptions for their membership shares or capital stock, such as the existing accredited investor exemption (e.g., institutional and higher-net worth individuals). Renewable energy cooperative corporations would provide two disclosures to prospective members: (1) a general disclosure discussing the workings of the renewable energy cooperative corporation and the risks associated with developing renewable energy generation facilities; and (2) a specific disclosure discussing the risks of a particular project.

Comment period. Interested persons may email comments on the proposed rulemaking to Comments must be received by 5:00 p.m. on September 12, 2014.