Oregon Revised Statute

Oregon Industrial Equipment Regulations and Proposed Rulemaking

Background:

The State of Oregon has been burdened with the highest unemployment rate in the nation for the past few years. Traditional industries in forest products and fisheries have all but disappeared. The State’s efforts to increase employment have focused on attracting new, diversified industry to the State, specifically the “High Tech” sector. In this context, high- tech means silicon wafer/computer chip manufacturing. Intel is the primary Oregon employer in this market, with other companies also having facilities in the State. Total investment in this sector is several billion dollars in plants and equipment, and has resulted in a noticeable upswing in the employment rate.

In order to entice this kind of capital investment, the Oregon legislature and governor(s) have promised to make the state “business friendly” through tax incentives, state investment in higher education for a compatible workforce, streamlining approval processes, and removing governmental red tape. One such obstacle to be addressed was the certification and approval of complex, single-purpose built manufacturing equipment. The industry stated that they have safety systems in place that are much more stringent than any that Oregon could enforce, and they are also under the careful watch of OSHA. Insisting on listing, field evaluation, or other certification of this complex equipment would mean needless expenses in time, fees, and modifications to comply with some possible inadequate standard, and the net result would not increase safety.

The legislature passed a revision to the Electrical Statute in 2002 (I believe) to simply exempt this high-tech equipment from virtually any State oversight, stating that no permit would be required, no 3rd party certification or evaluation was required, and no Oregon electrical license was required to work on it. The inspection of the electrical installation stops with the connection of the equipment to the premises wiring supply. In Oregon, all local jurisdictions must follow the State regulations, so no local modification to this statute is permitted. The statute is found in ORS 479; the electrical section beginning with 479.510. In order to clarify the application and enforcement of the statute, the Oregon Electrical and Elevator Board is charged with rulemaking, found in OAR (Oregon Administrative Rule) 918-261-XXXX. The relevant ORS and OAR sections are reproduced below. The entire body of these regulations may be viewed on the Oregon Building Codes Division web site at http://www.leg.state.or.us/ors/479.html and http://www.cbs.state.or.us/external/bcd/rules_statutes.html#oar for the statutes and rules, respectively.

Oregon Revised Statute

479.530 Definitions for ORS 479.510 to 479.945 and 479.995

(14) “Industrial electrical equipment” means electrical products used in industry or government that utilizes electric energy for mechanical, chemical, heating, lighting or similar purposes, that is designed to service or produce a product and that is used directly in the production of the service or product.

ORS 479.540 Exemptions; rules

(8)(a) A license or permit is not required for the installation or assembly of industrial electrical equipment by the duly authorized agents of the factory, vendor or owner.

(b) The license and permit exemptions of this subsection do not apply to activity in an area where industrial electrical equipment is installed in or enters a hazardous location or penetrates or enters a fire rated assembly or plenum rated assembly.

(c) As used in this subsection:

(A) “Duly authorized agents” means individuals trained by the factory or a vendor or by experience and who are knowledgeable in the operation, maintenance, repair and installation of industrial electrical equipment.

(B) “Installation or assembly” means the reassembly at a job site of equipment that is wired and assembled at the factory and then disassembled for shipping purposes or of existing equipment that is relocated. “Installation or assembly” does not include work involving field fabricated assemblies or any other electrical product that is not an original part of the industrial electrical equipment. “Installation or assembly” does not include the connection of industrial electrical equipment to a power source.

Proposed Oregon Administrative Rule (OAR) 918-261-XXXX

"Industrial electrical equipment designed for and used directly in the production of a product, which due to the equipment's design or use requires specialized and specific training in the process, function, design, modification, repair or maintenance of the equipment is exempt from permits, specifically for repair, modification, or maintenance. Individuals performing work under this rule are exempt from licensing."

My concern at this point is including the term “modification” in the rule along with repair, installation, and maintenance. The Board made it clear that while no electrical license is required, it is imperative that anyone working on such equipment be factory trained and be a “duly authorized agent” of the manufacturer. This language was included in the early draft of the rule, but was omitted as the rule was “wordsmithed” to death by the Board members. I suggested that the wording be changed to indicate the any modifications must be authorized my the manufacturer of the equipment to prevent the owner from having alterations made that the OEM never anticipated and might not be aware of. My comments were essentially ignored with the explanation that the owner is still legally obligated to follow OSHA regulations for safety and the intent is to leave these decisions to the owner.