ORS 459.005 does not apply to wood residue that:
(1) Is a by-product of manufacturing wood products or processing wood at a facility that manufactures wood products, including a sawmill, pulp mill or paper mill;
(2) Is not commingled with other types of solid waste; and
(3)(a) Is combusted as a fuel by the generator of the wood residue in a facility that has obtained a permit described in ORS 468A.040 and that is owned or operated by that generator; or
(b) Is purchased from or exchanged by the generator of the wood residue for fair market value and is combusted as a fuel in a facility that has obtained a permit described in ORS 468A.040.