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The future of Oregon’s has spurred debate in public hearings in the Legislature recently. And at least one thing is certain about the program that provides incentives for conservation, manufacturing and renewable development projects: It will soon be much smaller.

鈥淚t’s basically nothing,鈥� said Alan Hickenbottom, general manager of commercial solar company Tanner Creek Energy.

By 鈥渘othing,鈥� Hickenbottom referred to $10 million 鈥� the amount of money the joint tax credits committee has to allocate for the next biennium for BETC and other tax credits set to sunset in 2012, including the Residential Energy Tax Credit, the Film and Television Tax Credit, and the Research and Development Tax Credit.

鈥淲e’re talking about keeping programs on life support,鈥� said Rep. Jules Bailey, D-Portland. 鈥淭he reality is now starting to hit home for people: We don’t have dollars to spare, regardless of how important the program is.鈥�

The BETC program alone had worked with up to $150 million per year. Advocates say the decrease in funding is bad news for sectors such as solar.

鈥淲e will lose the momentum that we’ve built over the past 10 years or so in solar in Oregon,鈥� said Sandra Walden, president and owner of Real Energy Solutions, which develops commercial solar projects.

Uncertainty about BETC’s future forced Real Energy Solutions to diversify; it has picked up work such as feasibility studies to compensate for cutbacks in the commercial solar installation business. Walden said that some planned projects were killed when BETC money ran out or when projects didn’t score high enough to be awarded the credit.

Tanner Creek Energy, meanwhile, was acquired by Christenson Electric in March.

鈥淭his is no news to me,鈥� Hickenbottom said. 鈥淏ut it’s going to catch a lot of my colleagues flat-footed.鈥�

鈥淐ertainly there will be jobs lost and companies will move to other states,鈥� said Walden, noting that her company has searched for work in Hawaii and Southern California. 鈥淪taying here will be hard,鈥� she said.

Other renewable sectors, like large wind development and even residential solar installation, will not suffer as much from BETC’s cuts because they have developed to economies of scale or have lower up-front capital costs, Hickenbottom said.

For commercial solar, however, BETC’s incentive was needed to reduce prices to make projects feasible, Hickenbottom said. His company was able to sell solar to businesses and nonprofits because of benefits provided by BETC.

鈥淔or any capital expenditure a company is going to make, once you start talking about something under a five-year payback, they’re interested. BETC allowed us to get under five years,鈥� Hickenbottom said. 鈥淏ETC was everything.鈥�

Though other credits and incentives were available for solar installation, BETC 鈥� and its increase to a 50 percent credit 鈥� 鈥渒icked off the solar gold rush in Oregon,鈥� Hickenbottom said.

He said that BETC helped lower prices, but added that cutting the program down to 鈥渂asically nothing鈥� is too much, too soon.

鈥淐ommercial folks are going to take a hit,鈥� Hickenbottom said.

Nevertheless, there seems to be no doubt that BETC will be different in the future.

鈥淚 can pretty much tell you we’re not going to renew BETC as it’s been,鈥� Bailey said. Already, the program has been split between renewable, conservation and manufacturing components. Bailey thinks all of the programs will continue, with some changes, which developers understand.

鈥淲e’re hoping, by the end of the day, that more money can be found,鈥� said Robert Grott, executive director of the Northwest Environmental Business Council.

鈥淲e’re grateful for whatever can be done,鈥� said Walden, who encouraged legislators to make BETC’s purpose clear.

鈥淎ny future allocations need to have clear guidelines for what the funds should do for the state,鈥� she said.