Chapter 469A — Renewable Portfolio Standards

 

2017 EDITION

 

 

RENEWABLE PORTFOLIO STANDARDS

 

PUBLIC HEALTH AND SAFETY

 

DEFINITIONS

 

469A.005  Definitions

 

QUALIFYING ELECTRICITY

 

469A.010  Qualifying electricity

 

469A.020  Qualifying electricity; age of generating facility

 

469A.025  Renewable energy sources; rules

 

469A.027  Certification of eligibility for certain generating facilities; generation date of electricity

 

469A.029  Eligibility; registration date for certain generating facilities with tracking system

 

469A.031  Eligibility; registration date of generating facility that uses biomass with Western Renewable Energy Generation Information System

 

RENEWABLE PORTFOLIO STANDARDS

 

469A.050  Applicable standard

 

469A.052  Large utility renewable portfolio standard

 

469A.055  Small electric utilities

 

469A.060  Exemptions from compliance with renewable portfolio standard

 

469A.062  Temporary exemption for purposes of meeting reliability standards of North American Electric Reliability Corporation

 

469A.065  Renewable portfolio standard for electricity service suppliers

 

469A.070  Manner of complying with renewable portfolio standards

 

469A.075  Implementation plan for electric companies; annual reports; rules

 

COST LIMITATION

 

469A.100  Limits on cost of compliance with renewable portfolio standard

 

COST RECOVERY

 

469A.120  Cost recovery by electric companies

 

RENEWABLE ENERGY CERTIFICATES

 

469A.130  Renewable energy certificates system

 

469A.132  Thermal renewable energy certificates

 

469A.135  Renewable energy certificates that may be used to comply with standards

 

469A.140  Use, transfer and banking of certificates

 

469A.145  Limitations on use of unbundled certificates to meet renewable portfolio standard

 

469A.147  Exemption from limitation on use of unbundled certificates for consumer-owned utilities

 

469A.150  Multistate electric companies; rules

 

COMPLIANCE REPORTS

 

469A.170  Compliance reports; rules

 

ALTERNATIVE COMPLIANCE PAYMENTS

 

469A.180  Electric companies; electricity service suppliers

 

469A.185  Consumer-owned utilities

 

PENALTY

 

469A.200  Penalty

 

GREEN POWER RATE

 

469A.205  Green power rate

 

COMMUNITY-BASED RENEWABLE ENERGY PROJECTS

 

469A.210  Goal for community-based renewable energy projects

 

JOB IMPACT STUDY

 

(Temporary provisions relating to job impact study are compiled as notes following ORS 469A.210)

 

HYDROGEN POWER STATIONS

 

469A.300  Hydrogen power stations; compliance with renewable portfolio standard; cost recovery for prudent energy investments

 

DEFINITIONS

 

     469A.005 Definitions. As used in ORS 469A.005 to 469A.210:

     (1) “Acquires service territory” does not include an acquisition by a city of a facility, plant, equipment or service territory within the boundaries of the city, pursuant to ORS 225.020 or city charter, if the city:

     (a) Already owns, controls or operates an electric light and power system for supplying electricity to the inhabitants of the city and for general municipal purposes;

     (b) Provides fair, just and reasonable compensation to the electric company whose service territory is acquired that:

     (A) Gives consideration for the service territory rights and the cost of the facility, plant or equipment acquired and for depreciation, fair market value, reproduction cost and any other relevant factor; and

     (B) Is based on the present value of the service territory rights and the facility, plant and equipment acquired, including the value of poles, wires, transformers and similar and related appliances necessarily required to provide electric service; and

     (c) Pays any stranded costs obligation established pursuant to ORS 757.483.

     (2) “Banked renewable energy certificate” means a bundled or unbundled renewable energy certificate that is not used by an electric utility or electricity service supplier to comply with a renewable portfolio standard in a calendar year, and that is carried forward for the purpose of compliance with a renewable portfolio standard in a subsequent year.

     (3) “BPA electricity” means electricity provided by the Bonneville Power Administration, including electricity generated by the Federal Columbia River Power System hydroelectric projects and electricity acquired by the Bonneville Power Administration by contract.

     (4) “Bundled renewable energy certificate” means a renewable energy certificate for qualifying electricity that is acquired:

     (a) By an electric utility or electricity service supplier by a trade, purchase or other transfer of electricity that includes the renewable energy certificate that was issued for the electricity; or

     (b) By an electric utility by generation of the electricity for which the renewable energy certificate was issued.

     (5) “Compliance year” means the calendar year for which the electric utility or electricity service supplier seeks to establish compliance with the renewable portfolio standard applicable to the electric utility or electricity service supplier in the compliance report submitted under ORS 469A.170.

     (6) “Consumer-owned utility” means a municipal electric utility, a people’s utility district organized under ORS chapter 261 that sells electricity or an electric cooperative organized under ORS chapter 62.

     (7) “Distribution utility” has the meaning given that term in ORS 757.600.

     (8) “Electric company” has the meaning given that term in ORS 757.600.

     (9) “Electric utility” has the meaning given that term in ORS 757.600.

     (10) “Electricity service supplier” has the meaning given that term in ORS 757.600.

     (11) “Qualifying electricity” means electricity described in ORS 469A.010.

     (12) “Renewable energy source” means a source of electricity described in ORS 469A.025.

     (13) “Retail electricity consumer” means a retail electricity consumer, as defined in ORS 757.600, that is located in Oregon.

     (14) “Unbundled renewable energy certificate” means a renewable energy certificate for qualifying electricity that is acquired by an electric utility or electricity service supplier by trade, purchase or other transfer without acquiring the electricity that is associated with the renewable energy certificate. [2007 c.301 §1; 2016 c.28 §3]

 

QUALIFYING ELECTRICITY

 

     469A.010 Qualifying electricity. (1) Except as provided in this section, and subject to ORS 469A.135, electricity generated from a renewable energy source may be used to comply with a renewable portfolio standard only if the facility that generates the electricity meets the requirements of ORS 469A.020.

     (2)(a) Any electricity that the Bonneville Power Administration has designated as environmentally preferred power, or has given a similar designation for electricity generated from a renewable resource, may be used to comply with a renewable portfolio standard.

     (b) Any electricity generated from a renewable energy source by a facility may be used to comply with a renewable portfolio standard, subject to ORS 469A.135, if the facility:

     (A) Burned coal as a fuel source;

     (B) Completely ceases to burn coal as a fuel source; and

     (C) Converts to a renewable energy source after January 1, 2012.

     (3) The Legislative Assembly finds that hydroelectric energy is an important renewable energy source and electricity from hydroelectric generators may be used to comply with a renewable portfolio standard as provided in ORS 469A.005 to 469A.210. [2007 c.301 §2; 2011 c.225 §1]

 

     469A.020 Qualifying electricity; age of generating facility. (1) Except as provided in this section, electricity may be used to comply with a renewable portfolio standard only if the electricity is generated by a facility that becomes operational on or after January 1, 1995.

     (2) Electricity from a generating facility, other than a hydroelectric facility, that became operational before January 1, 1995, may be used to comply with a renewable portfolio standard if the electricity is attributable to capacity or efficiency upgrades made on or after January 1, 1995.

     (3) Electricity from a hydroelectric facility that became operational before January 1, 1995, may be used to comply with a renewable portfolio standard if the electricity is attributable to efficiency upgrades made on or after January 1, 1995. If an efficiency upgrade is made to a Bonneville Power Administration facility, only that portion of the electricity generation attributable to Oregon’s share of the electricity may be used to comply with a renewable portfolio standard.

     (4) Subject to the limit imposed by ORS 469A.025 (5), electricity from a hydroelectric facility that became operational before January 1, 1995, may be used to comply with a renewable portfolio standard if the facility is certified as a low-impact hydroelectric facility on or after January 1, 1995, by a national certification organization recognized by the State Department of Energy by rule, and if the facility is either:

     (a) Owned by an electric utility; or

     (b) Not owned by an electric utility and located in Oregon and licensed by the Federal Energy Regulatory Commission under the Federal Power Act, 16 U.S.C. 791a et seq., or exempt from such license.

     (5) Electricity from a generating facility located in this state that uses biomass and that became operational before January 1, 1995, may be used to comply with a renewable portfolio standard if the facility meets the requirements of the federal Public Utility Regulatory Policies Act of 1978 (P.L. 95-617) on March 4, 2010.

     (6) A facility located in this state that generates electricity from direct combustion of municipal solid waste and that became operational before January 1, 1995, may be used to comply with a renewable portfolio standard for up to 11 average megawatts of electricity generated per calendar year. [2007 c.301 §3; 2010 c.17 §1; 2010 c.71 §1; 2016 c.28 §4]

 

     469A.025 Renewable energy sources; rules. (1) Electricity generated utilizing the following types of energy may be used to comply with a renewable portfolio standard:

     (a) Wind energy.

     (b) Solar photovoltaic and solar thermal energy.

     (c) Wave, tidal and ocean thermal energy.

     (d) Geothermal energy.

     (2) Except as provided in subsection (3) of this section, electricity generated from biomass and biomass by-products may be used to comply with a renewable portfolio standard, including but not limited to electricity generated from:

     (a) Organic human or animal waste;

     (b) Spent pulping liquor;

     (c) Forest or rangeland woody debris from harvesting or thinning conducted to improve forest or rangeland ecological health and to reduce uncharacteristic stand replacing wildfire risk;

     (d) Wood material from hardwood timber grown on land described in ORS 321.267 (3);

     (e) Agricultural residues;

     (f) Dedicated energy crops; and

     (g) Landfill gas or biogas produced from organic matter, wastewater, anaerobic digesters or municipal solid waste.

     (3) Electricity generated from the direct combustion of biomass may not be used to comply with a renewable portfolio standard if any of the biomass combusted to generate the electricity includes wood that has been treated with chemical preservatives such as creosote, pentachlorophenol or chromated copper arsenate.

     (4) Electricity generated by a hydroelectric facility may be used to comply with a renewable portfolio standard only if:

     (a) The facility is located outside any protected area designated by the Pacific Northwest Electric Power and Conservation Planning Council as of July 23, 1999, or any area protected under the federal Wild and Scenic Rivers Act, P.L. 90-542, or the Oregon Scenic Waterways Act, ORS 390.805 to 390.925; or

     (b) The electricity is attributable to efficiency upgrades made to the facility on or after January 1, 1995.

     (5)(a) Up to 50 average megawatts of electricity per year generated by an electric utility from certified low-impact hydroelectric facilities described in ORS 469A.020 (4)(a) may be used to comply with a renewable portfolio standard, without regard to the number of certified facilities operated by the electric utility or the generating capacity of those facilities. A hydroelectric facility described in this paragraph is not subject to the requirements of subsection (4) of this section.

     (b) Up to 40 average megawatts of electricity per year generated by certified low-impact hydroelectric facilities described in ORS 469A.020 (4)(b) may be used to comply with a renewable portfolio standard, without regard to the number of certified facilities or the generating capacity of those facilities. A hydroelectric facility described in this paragraph is not subject to the requirements of subsection (4) of this section.

     (6)(a) Direct combustion of municipal solid waste in a generating facility located in this state may be used to comply with a renewable portfolio standard. The qualification of a municipal solid waste facility for use in compliance with a renewable portfolio standard has no effect on the qualification of the facility for a tax credit under ORS 469B.130 to 469B.169.

     (b) The total amount of electricity generated in this state by direct combustion of municipal solid waste by generating facilities that became operational in this state on or after January 1, 1995, may not exceed nine average megawatts per year for the purpose of complying with a renewable portfolio standard.

     (7) Electricity generated from hydrogen gas, including electricity generated by hydrogen power stations using anhydrous ammonia as a fuel source, may be used to comply with a renewable portfolio standard if:

     (a) The electricity is derived from:

     (A) Any source of energy described in subsection (1) or (2) of this section; or

     (B) A hydroelectric facility that complies with subsection (4) of this section and that is certified as a low-impact hydroelectric facility as described in ORS 469A.020 (4); and

     (b) The output of the original source of energy is not also used to comply with a renewable portfolio standard.

     (8) If electricity generation employs multiple energy sources, that portion of the electricity generated that is attributable to energy sources described in this section may be used to comply with a renewable portfolio standard.

     (9) The State Department of Energy by rule may approve energy sources other than those described in this section that may be used to comply with a renewable portfolio standard. The department may not approve petroleum, natural gas, coal or nuclear fission as an energy source that may be used to comply with a renewable portfolio standard. [2007 c.301 §4; 2010 c.17 §3; 2010 c.71 §2]

 

     469A.027 Certification of eligibility for certain generating facilities; generation date of electricity. The State Department of Energy may certify as eligible for renewable energy certificates a facility that qualifies under ORS 469A.020 (5) and (6) and 469A.025 (6) and (7) only for electricity generated on or after January 1, 2011. [2010 c.17 §4]

 

     Note: 469A.027 to 469A.031 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 469A or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

     469A.029 Eligibility; registration date for certain generating facilities with tracking system. To be eligible for renewable energy certificates, the owner or operator of a generating facility that qualifies under ORS 469A.020 (5) and (6) and 469A.025 (6) and (7) must register the generating facility with the Western Renewable Energy Generation Information System or other regional system or trading program designated by the State Department of Energy before January 1, 2011. [2010 c.17 §5]

 

     Note: See note under 469A.027.

 

     469A.031 Eligibility; registration date of generating facility that uses biomass with Western Renewable Energy Generation Information System. Notwithstanding ORS 469A.029, a facility described in ORS 469A.020 (5) is eligible for renewable energy certificates if the owner or operator of the generating facility registered the generating facility with the Western Renewable Energy Generation Information System on or after January 1, 2011. [2017 c.249 §1]

 

     Note: See note under 469A.027.

 

RENEWABLE PORTFOLIO STANDARDS

 

     469A.050 Applicable standard. (1) Electric utilities must comply with the applicable renewable portfolio standard described in ORS 469A.052 or 469A.055.

     (2) Electricity service suppliers must comply with the renewable portfolio standard established under ORS 469A.065. [2007 c.301 §5]

 

     469A.052 Large utility renewable portfolio standard. (1) The large utility renewable portfolio standard imposes the following requirements on an electric utility that makes sales of electricity to retail electricity consumers in an amount that equals three percent or more of all electricity sold to retail electricity consumers:

     (a) At least five percent of the electricity sold by the electric utility to retail electricity consumers in each of the calendar years 2011, 2012, 2013 and 2014 must be qualifying electricity;

     (b) At least 15 percent of the electricity sold by the electric utility to retail electricity consumers in each of the calendar years 2015, 2016, 2017, 2018 and 2019 must be qualifying electricity;

     (c) At least 20 percent of the electricity sold by the electric utility to retail electricity consumers in each of the calendar years 2020, 2021, 2022, 2023 and 2024 must be qualifying electricity;

     (d) At least 25 percent of the electricity sold by a consumer-owned utility to retail electricity consumers in the calendar year 2025 and subsequent calendar years must be qualifying electricity;

     (e) At least 27 percent of the electricity sold by an electric company to retail electricity consumers in each of the calendar years 2025, 2026, 2027, 2028 and 2029 must be qualifying electricity;

     (f) At least 35 percent of the electricity sold by an electric company to retail electricity consumers in each of the calendar years 2030, 2031, 2032, 2033 and 2034 must be qualifying electricity;

     (g) At least 45 percent of the electricity sold by an electric company to retail electricity consumers in each of the calendar years 2035, 2036, 2037, 2038 and 2039 must be qualifying electricity; and

     (h) At least 50 percent of the electricity sold by an electric company to retail electricity consumers in the calendar year 2040 and subsequent calendar years must be qualifying electricity.

     (2) If, on June 6, 2007, an electric utility makes sales of electricity to retail electricity consumers in an amount that equals less than three percent of all electricity sold to retail electricity consumers, but in any three consecutive calendar years thereafter makes sales of electricity to retail electricity consumers in amounts that average three percent or more of all electricity sold to retail electricity consumers, the electric utility is subject to the renewable portfolio standard described in subsection (3) of this section. The electric utility becomes subject to the renewable portfolio standard described in subsection (3) of this section in the calendar year following the three-year period during which the electric utility makes sales of electricity to retail electricity consumers in amounts that average three percent or more of all electricity sold to retail electricity consumers.

     (3) An electric utility described in subsection (2) of this section must comply with the following renewable portfolio standard:

     (a) Beginning in the fourth calendar year after the calendar year in which the electric utility becomes subject to the renewable portfolio standard described in this subsection, at least five percent of the electricity sold by the electric utility to retail electricity consumers in a calendar year must be qualifying electricity;

     (b) Beginning in the 10th calendar year after the calendar year in which the electric utility becomes subject to the renewable portfolio standard described in this subsection, at least 15 percent of the electricity sold by the electric utility to retail electricity consumers in a calendar year must be qualifying electricity;

     (c) Beginning in the 15th calendar year after the calendar year in which the electric utility becomes subject to the renewable portfolio standard described in this subsection, at least 20 percent of the electricity sold by the electric utility to retail electricity consumers in a calendar year must be qualifying electricity; and

     (d) Beginning in the 20th calendar year after the calendar year in which the electric utility becomes subject to the renewable portfolio standard described in this subsection, at least 25 percent of the electricity sold by the electric utility to retail electricity consumers in a calendar year must be qualifying electricity. [2007 c.301 §6; 2016 c.28 §5]

 

     Note: Section 27, chapter 28, Oregon Laws 2016, provides:

     Sec. 27. (1) On or after January 1, 2020, but no later than December 31, 2021, the Public Utility Commission shall investigate the impacts of the amendments to ORS 469A.052 by section 5 of this 2016 Act on:

     (a) Rates;

     (b) Greenhouse gas emissions;

     (c) Electrical system reliability and operations;

     (d) The allocation of risk between customers of electric companies and electric companies;

     (e) The eligibility and timing of cost recovery for the generation of qualifying electricity; and

     (f) The resource procurement process.

     (2) In addition to the investigation described in subsection (1) of this section, on or after January 1, 2020, but no later than December 31, 2021, the commission shall investigate the forecasting of projected state and federal production tax credits as described in section 18b of this 2016 Act [757.264] and allowing those costs to be included in rates through any variable power cost forecasting process established by the commission.

     (3) On or after January 1, 2020, but no later than December 31, 2021, the commission shall report the findings of the investigations conducted under this section to the interim committees of the Legislative Assembly related to business and energy. As part of the report, the commission may make recommendations for legislation. The commission shall submit the report in the manner required by ORS 192.245. [2016 c.28 §27]

 

     469A.055 Small electric utilities. (1) Except as provided in this section, an electric utility that makes sales of electricity to retail electricity consumers in an amount that equals less than three percent of all electricity sold to retail electricity consumers is not subject to ORS 469A.005 to 469A.210.

     (2) Beginning in calendar year 2025, at least five percent of the electricity sold to retail electricity consumers in a calendar year by an electric utility must be qualifying electricity if the electric utility makes sales of electricity to retail electricity consumers in an amount that equals less than one and one-half percent of all electricity sold to retail electricity consumers.

     (3) Beginning in calendar year 2025, at least 10 percent of the electricity sold to retail electricity consumers in a calendar year by an electric utility must be qualifying electricity if the electric utility makes sales of electricity to retail electricity consumers in an amount that equals or is more than one and one-half percent, and less than three percent, of all electricity sold to retail electricity consumers.

     (4) The exemption provided by subsection (1) of this section terminates if an electric utility, or a joint operating entity that includes the electric utility as a member, acquires electricity from an electricity generating facility that uses coal as an energy source or makes an investment on or after June 6, 2007, in an electricity generating facility that uses coal as an energy source. Beginning in the calendar year following the year in which an electric utility’s exemption terminates under this subsection, the electric utility is subject to the renewable portfolio standard described in ORS 469A.052 (3) and the provisions of ORS 469A.005 to 469A.210 that apply to ORS 469A.052 (3). This subsection does not apply to:

     (a) A wholesale market purchase by an electric utility for which the energy source for the electricity is not known;

     (b) BPA electricity;

     (c) Acquisition of electricity under a contract entered into before June 6, 2007;

     (d) A renewal or replacement contract for a contract for purchase of electricity described in paragraph (c) of this subsection;

     (e) A purchase of electricity if the electricity is included in a contract for the purchase of qualifying electricity and is necessary to shape, firm or integrate the qualifying electricity;

     (f) Electricity provided to an electric utility under a contract for the acquisition of an interest in an electricity generating facility that was entered into by the electric utility before June 6, 2007, or entered into before June 6, 2007, by an electric cooperative organized under ORS chapter 62 of which the electric utility is a member, without regard to whether the electricity is being used to serve the load of the electric utility on June 6, 2007; or

     (g) Investments in an electricity generating facility that uses coal as an energy source if the investments are for the purpose of improving the facility’s pollution mitigation equipment or the facility’s efficiency or are necessary to comply with requirements or standards imposed by governmental entities.

     (5) The exemption provided by subsection (1) of this section terminates for a consumer-owned utility if the consumer-owned utility acquires service territory of an electric utility without the consent of the electric utility. Except as provided in subsection (6) of this section, beginning in the calendar year following the year in which a consumer-owned utility’s exemption terminates under this subsection, the consumer-owned utility is subject to the renewable portfolio standard described in ORS 469A.052 (3) and the provisions of ORS 469A.005 to 469A.210 that apply to ORS 469A.052 (3).

     (6) If an electric utility acquires service territory of another electric utility without the consent of the electric utility from which service territory was acquired, then beginning in the calendar year following the acquisition, the percentage of the acquiring electric utility’s electricity sold to all retail electricity consumers of the acquiring electric utility that is sold to retail electricity consumers that are located in the acquired service territory is subject to the renewable portfolio standard that is applicable to the electric utility from which service territory was acquired and the provisions of ORS 469A.005 to 469A.210 that apply to the renewable portfolio standard.

     (7) The provisions of this section do not authorize the acquisition by a municipal electric utility of service territory of a people’s utility district organized under ORS chapter 261.

     (8) The provisions of this section do not affect the requirement that electric utilities offer a green power rate under ORS 469A.205. [2007 c.301 §7; 2016 c.28 §8]

 

     469A.060 Exemptions from compliance with renewable portfolio standard. (1) Electric utilities are not required to comply with the renewable portfolio standards described in ORS 469A.052 and 469A.055 to the extent that:

     (a) Compliance with the standard would require the electric utility to acquire electricity in excess of the electric utility’s projected load requirements in any calendar year; and

     (b) Acquiring the additional electricity would require the electric utility to substitute qualifying electricity for electricity derived from an energy source other than coal, natural gas or petroleum.

     (2)(a) Electric utilities are not required to comply with a renewable portfolio standard to the extent that compliance would require the electric utility to substitute qualifying electricity for electricity available to the electric utility under contracts for electricity from dams that are owned by Washington public utility districts and that are located between the Grand Coulee Dam and the Columbia River’s junction with the Snake River. The provisions of this subsection apply only to contracts entered into before June 6, 2007, and to renewal or replacement contracts for contracts entered into before June 6, 2007.

     (b) If a contract described in paragraph (a) of this subsection expires and is not renewed or replaced, the electric utility must comply, in the calendar year following the expiration of the contract, with the renewable portfolio standard applicable to the electric utility.

     (3) A consumer-owned utility is not required to comply with a renewable portfolio standard to the extent that compliance would require the consumer-owned utility to reduce the consumer-owned utility’s purchases of the lowest priced electricity from the Bonneville Power Administration pursuant to section 5 of the Pacific Northwest Electric Power Planning and Conservation Act of 1980, P.L. 96-501, as in effect on June 6, 2007. The exemption provided by this subsection applies only to firm commitments for BPA electricity that the Bonneville Power Administration has assured will be available to a consumer-owned utility to meet agreed portions of the consumer-owned utility’s load requirements for a defined period of time. [2007 c.301 §8; 2016 c.28 §26]

 

     469A.062 Temporary exemption for purposes of meeting reliability standards of North American Electric Reliability Corporation. (1) Upon its own motion or at the request of an electric company, the Public Utility Commission may open an investigation to determine whether an electric company’s compliance with one or more of the requirements of ORS 469A.052 is likely to result in conflicts with or compromises to the electric company’s obligation to comply with the mandatory and enforceable reliability standards of the North American Electric Reliability Corporation, or compromises to the integrity of the electric company’s electrical system. An electric company making a request under this subsection must submit an application to the commission that includes:

     (a) An explanation of the reliability or integrity issue and how a temporary exemption from complying with one or more of the requirements of ORS 469A.052 will avoid the reliability or integrity issue; and

     (b) A plan to achieve full compliance with the requirements of ORS 469A.052.

     (2) In applying for a temporary exemption under this section, an electric company has the burden of demonstrating that compliance with one or more of the requirements of ORS 469A.052 is likely to result in:

     (a) Conflicts with or compromises to the electric company’s obligation to comply with the mandatory and enforceable reliability standards of the North American Electric Reliability Corporation; or

     (b) Compromises to the integrity of the electric company’s electrical system.

     (3) If the commission determines under this section that compliance with one or more of the requirements of ORS 469A.052 is likely to result in conflicts with or compromises to an electric company’s obligation to comply with the mandatory and enforceable reliability standards of the North American Electric Reliability Corporation, or compromises to the integrity of the electric company’s electrical system, the commission shall issue an order:

     (a) Notwithstanding ORS 469A.052, temporarily exempting the electric company from one or more of the requirements of ORS 469A.052 for an amount of time sufficient to allow the electric company to achieve full compliance with the requirements of ORS 469A.052;

     (b) Directing the electric company to file a progress report on achieving full compliance with the requirements of ORS 469A.052 within six months after issuing the order, or within an amount of time determined to be reasonable by the commission; and

     (c) Directing the electric company to take specific actions to achieve full compliance with the requirements of ORS 469A.052.

     (4) An electric company may request an extension of a temporary exemption granted under this section.

     (5) This section does not permanently relieve an electric company of its obligation to comply with the requirements of ORS 469A.052. [2016 c.28 §13]

 

     469A.065 Renewable portfolio standard for electricity service suppliers. An electricity service supplier must meet the requirements of the renewable portfolio standards that are applicable to the electric utilities that serve the territories in which the electricity service supplier sells electricity to retail electricity consumers. The Public Utility Commission shall establish procedures for implementation of the renewable portfolio standards for electricity service suppliers that sell electricity in the service territory of an electric company. If an electricity service supplier sells electricity in territories served by more than one electric company, the commission may provide for an aggregate standard based on the amount of electricity sold by the electricity service supplier in each territory. Pursuant to ORS 757.676, a consumer-owned utility may establish procedures for the implementation of the renewable portfolio standards for electricity service suppliers that sell electricity in the territory served by the consumer-owned utility. [2007 c.301 §9]

 

     469A.070 Manner of complying with renewable portfolio standards. (1) Except as provided in subsection (2) of this section, an electric utility or electricity service supplier must comply with the renewable portfolio standard applicable to the utility or supplier in each calendar year by:

     (a) Using bundled renewable energy certificates issued or acquired during the compliance year;

     (b) Subject to the limitations described in ORS 469A.140 and 469A.145, using unbundled or banked renewable energy certificates; or

     (c) Making alternative compliance payments as described in ORS 469A.180.

     (2) Bundled or unbundled renewable energy certificates that are issued or acquired by an electric utility or electricity service supplier on or before March 31 in a calendar year may be used by the utility or supplier to comply with the renewable portfolio standard applicable to the utility or supplier for the preceding calendar year. [2007 c.301 §10]

 

     469A.075 Implementation plan for electric companies; annual reports; rules. (1) An electric company that is subject to a renewable portfolio standard shall develop an implementation plan for meeting the requirements of the renewable portfolio standard and file the implementation plan with the Public Utility Commission. Implementation plans must be revised and updated at least once every two years.

     (2) At a minimum, an implementation plan must contain:

     (a) Annual targets for acquisition and use of qualifying electricity; and

     (b) The estimated cost of meeting the annual targets, including the cost of transmission, the cost of firming, shaping and integrating qualifying electricity, the cost of alternative compliance payments and the cost of acquiring renewable energy certificates.

     (3) The commission shall acknowledge an implementation plan no later than six months after the implementation plan is filed with the commission. The commission may acknowledge the implementation plan subject to conditions specified by the commission.

     (4) The commission shall adopt rules:

     (a) Establishing requirements for the content of implementation plans;

     (b) Establishing the procedure for acknowledgment of implementation plans under this section, including provisions for public comment;

     (c) Providing for the integration of an implementation plan with the integrated resource planning guidelines established by the commission for the purpose of planning for the least-cost, least-risk acquisition of resources; and

     (d) Providing for the evaluation of competitive bidding processes that allow for diverse ownership of renewable energy sources that generate qualifying electricity.

     (5) An implementation plan filed under this section may include procedures that will be used by the electric company to determine whether the costs of constructing a facility that generates electricity from a renewable energy source, or the costs of acquiring bundled or unbundled renewable energy certificates, are consistent with the renewable portfolio standards of the commission relating to least-cost, least-risk planning for acquisition of resources. [2007 c.301 §11; 2016 c.28 §6]

 

COST LIMITATION

 

     469A.100 Limits on cost of compliance with renewable portfolio standard. (1) Electric utilities are not required to comply with a renewable portfolio standard during a compliance year to the extent that the incremental cost of compliance, the cost of unbundled renewable energy certificates and the cost of alternative compliance payments under ORS 469A.180 exceeds four percent of the electric utility’s annual revenue requirement for the compliance year.

     (2) For each electric company, the Public Utility Commission shall establish the annual revenue requirement for a compliance year no later than January 1 of the compliance year. For each consumer-owned utility, the governing body of the consumer-owned utility shall establish the annual revenue requirement for a compliance year.

     (3) The annual revenue requirement for an electric utility shall be calculated based only on the operations of the electric utility relating to electricity. The annual revenue requirement does not include any amount expended by the electric utility for energy efficiency programs for customers of the electric utility or for low income energy assistance, the incremental cost of compliance with a renewable portfolio standard, the cost of unbundled renewable energy certificates or the cost of alternative compliance payments under ORS 469A.180. The annual revenue requirement does include:

     (a) The operating expenses of the electric utility during the compliance year, including depreciation and taxes; and

     (b) For electric companies, an amount equal to the total rate base of the electric company for the compliance year multiplied by the rate of return established by the commission for debt and equity of the electric company.

     (4) For the purposes of this section, the incremental cost of compliance with a renewable portfolio standard is the difference between the levelized annual delivered cost of the qualifying electricity and the levelized annual delivered cost of an equivalent amount of reasonably available electricity that is not qualifying electricity. For the purpose of this subsection, the commission or the governing body of a consumer-owned utility shall use the net present value of delivered cost, including:

     (a) Capital, operating and maintenance costs of generating facilities;

     (b) Financing costs attributable to capital, operating and maintenance expenditures for generating facilities;

     (c) Transmission and substation costs;

     (d) Load following and ancillary services costs; and

     (e) Costs associated with using other assets, physical or financial, to integrate, firm or shape renewable energy sources on a firm annual basis to meet retail electricity needs.

     (5) For the purposes of this section, the governing body of a consumer-owned utility may include in the incremental cost of compliance with a renewable portfolio standard all expenses associated with research, development and demonstration projects related to the generation of qualifying electricity by the consumer-owned utility.

     (6) The commission shall establish limits on the incremental cost of compliance with the renewable portfolio standard for electricity service suppliers under ORS 469A.065 that are the equivalent of the cost limits applicable to the electric companies that serve the territories in which the electricity service supplier sells electricity to retail electricity consumers. If an electricity service supplier sells electricity in territories served by more than one electric company, the commission may provide for an aggregate cost limit based on the amount of electricity sold by the electricity service supplier in each territory. Pursuant to ORS 757.676, a consumer-owned utility may establish limits on the cost of compliance with the renewable portfolio standard for electricity service suppliers that sell electricity in the territory served by the consumer-owned utility. [2007 c.301 §12; 2016 c.28 §25]

 

COST RECOVERY

 

     469A.120 Cost recovery by electric companies. (1) Except as provided in ORS 469A.180 (5), all prudently incurred costs associated with complying with ORS 469A.005 to 469A.210 are recoverable in the rates of an electric company, including interconnection costs, costs associated with using physical or financial assets to integrate, firm or shape renewable energy sources on a firm annual basis to meet retail electricity needs, above-market costs and other costs associated with transmission and delivery of qualifying electricity to retail electricity consumers.

     (2)(a) The Public Utility Commission shall establish an automatic adjustment clause as defined in ORS 757.210 or another method that allows timely recovery of costs prudently incurred by an electric company to construct or otherwise acquire facilities that generate electricity from renewable energy sources, costs related to associated electricity transmission and costs related to associated energy storage.

     (b) Notwithstanding any other provision of law, upon the request of any interested person the commission shall conduct a proceeding to establish the terms of the automatic adjustment clause or other method for timely recovery of costs. The commission shall provide parties to the proceeding with the procedural rights described in ORS 756.500 to 756.610, including but not limited to the opportunity to develop an evidentiary record, conduct discovery, introduce evidence, conduct cross-examination and submit written briefs and oral argument. The commission shall issue a written order with findings on the evidentiary record developed in the proceeding.

     (3)(a) An electric company must file with the commission for approval of a proposed rate change to recover costs under the terms of an automatic adjustment clause or other method for timely recovery of costs established under subsection (2) of this section. As part of an electric company’s request for approval under this subsection, the electric company may specify the date or the dates on which the electric company will begin to include in the electric company’s rates, in full or in part, the costs recoverable under subsection (2) of this section. The commission may accept or reject the date or dates specified by the electric company.

     (b) Notwithstanding any other provision of law, upon the request of any interested person the commission shall conduct a proceeding to determine whether to approve a proposed change in rates under the automatic adjustment clause or other method for timely recovery of costs. The commission shall provide parties to the proceeding with the procedural rights described in ORS 756.500 to 756.610, including but not limited to the opportunity to develop an evidentiary record, conduct discovery, introduce evidence, conduct cross-examination and submit written briefs and oral argument. The commission shall issue a written order with findings on the evidentiary record developed in the proceeding.

     (c) A filing made under this subsection is subject to the commission’s authority under ORS 757.215 to suspend a rate, or schedule of rates, for investigation. [2007 c.301 §13; 2010 c.79 §1; 2016 c.28 §11]

 

RENEWABLE ENERGY CERTIFICATES

 

     469A.130 Renewable energy certificates system. (1) The State Department of Energy shall establish a system of renewable energy certificates that can be used by an electric utility or electricity service supplier to establish compliance with the applicable renewable portfolio standard. The department shall consult with the Public Utility Commission before establishing a system of renewable energy certificates under this section. The department may allow use of renewable energy certificates that are issued, monitored, accounted for or transferred by or through a regional system or trading program, including but not limited to the Western Renewable Energy Generation Information System. The system established by the department shall allow issuance, transfer and use of renewable energy certificates in electronic form.

     (2) The validity of a bundled renewable energy certificate for purposes of compliance with the applicable renewable portfolio standard is not affected by the substitution of any other electricity for the qualifying electricity at any point after the time of generation. [2007 c.301 §14]

 

     469A.132 Thermal renewable energy certificates. If a facility that generates electricity using biomass also generates thermal energy for a secondary purpose, the State Department of Energy, as part of the system established under ORS 469A.130, shall provide that renewable energy certificates must be issued for the generation of the thermal energy. For purposes of issuing renewable energy certificates under this section, 3,412,000 British thermal units are equivalent to one megawatt-hour. [2016 c.28 §16]

 

     469A.135 Renewable energy certificates that may be used to comply with standards. (1) A bundled renewable energy certificate may be used to comply with a renewable portfolio standard if:

     (a) The facility that generates the qualifying electricity for which the bundled renewable energy certificate is issued is located in the United States and within the geographic boundary of the Western Electricity Coordinating Council; and

     (b) The qualifying electricity for which the bundled renewable energy certificate is issued is delivered to:

     (A) The Bonneville Power Administration;

     (B) The transmission system of an electric utility;

     (C) A delivery point designated by the electric utility for the purpose of subsequent delivery to the electric utility; or

     (D) A delivery point mutually agreed to by a distribution utility and an electricity service supplier for the purpose of subsequent delivery to the distribution utility serving the customer of the electricity service supplier.

     (2) An unbundled renewable energy certificate may be used to comply with a renewable portfolio standard if the facility that generates the qualifying electricity with which the unbundled renewable energy certificate is associated is located within the geographic boundary of the Western Electricity Coordinating Council.

     (3) Renewable energy certificates issued for any electricity that the Bonneville Power Administration has designated as environmentally preferred power, or has given a similar designation for electricity generated from a renewable resource, may be used to comply with a renewable portfolio standard without regard to the location of the generating facility.

     (4) This section does not affect the obligations or requirements:

     (a) Imposed under or agreed to in a contract with a distribution utility;

     (b) Imposed under tariff schedules approved by the Public Utility Commission;

     (c) Imposed under an approved open access transmission tariff; or

     (d) Imposed under rules adopted by the commission under ORS 757.600 to 757.689. [2007 c.301 §15; 2016 c.28 §9]

 

     469A.140 Use, transfer and banking of certificates. (1) Renewable energy certificates may be traded, sold or otherwise transferred.

     (2) Renewable energy certificates that are not used by a consumer-owned utility to comply with a renewable portfolio standard in a calendar year may be banked and carried forward indefinitely for the purpose of complying with a renewable portfolio standard in a subsequent year. For the purpose of a consumer-owned utility complying with a renewable portfolio standard in any calendar year, banked renewable energy certificates with the oldest issuance date must be used to comply with the renewable portfolio standard before banked renewable energy certificates with more recent issuance dates are used.

     (3)(a) Renewable energy certificates issued on or before March 8, 2016, that are not used by an electric company or electricity service supplier to comply with a renewable portfolio standard in a calendar year may be banked and carried forward indefinitely for the purpose of complying with a renewable portfolio standard in a subsequent year.

     (b) For qualifying electricity generated from a renewable energy source that becomes operational on or before March 8, 2016, or for qualifying electricity that is acquired under a contract, having a duration of less than 20 years, for the purchase of electricity generated from a renewable energy source that becomes operational between March 8, 2016, and December 31, 2022, renewable energy certificates issued for the qualifying electricity after March 8, 2016, that are not used by an electric company or an electricity service supplier to comply with a renewable portfolio standard in the calendar year in which the renewable energy certificates are issued may be banked and carried forward, for up to five compliance years immediately following the compliance year in which the renewable energy certificates are issued, for the purpose of complying with a renewable portfolio standard in one of those five compliance years.

     (c) For qualifying electricity generated from a renewable energy source that becomes operational between March 8, 2016, and December 31, 2022, or for qualifying electricity that is acquired under a contract, having a duration of 20 years or more, for the purchase of electricity generated from a renewable energy source that becomes operational between March 8, 2016, and December 31, 2022, renewable energy certificates issued for the qualifying electricity during the five-year period after the date the renewable energy source becomes operational that are not used by an electric company or an electricity service supplier to comply with a renewable portfolio standard in the calendar year in which the renewable energy certificates are issued may be banked and carried forward indefinitely for the purpose of complying with a renewable portfolio standard in a subsequent year.

     (d) For qualifying electricity generated from a renewable energy source that becomes operational between March 8, 2016, and December 31, 2022, or for qualifying electricity that is acquired under a contract, having a duration of 20 years or more, for the purchase of electricity generated from a renewable energy source that becomes operational between March 8, 2016, and December 31, 2022, renewable energy certificates issued for the qualifying electricity more than five years after the renewable energy source becomes operational that are not used by an electric company or an electricity service supplier to comply with a renewable portfolio standard in the calendar year in which the renewable energy certificates are issued may be banked and carried forward, for up to five compliance years immediately following the compliance year in which the renewable energy certificates are issued, for the purpose of complying with a renewable portfolio standard in one of those five compliance years.

     (e) For qualifying electricity generated from a renewable energy source that becomes operational after December 31, 2022, renewable energy certificates issued for the qualifying electricity that are not used by an electric company or an electricity service supplier to comply with a renewable portfolio standard in the calendar year in which the renewable energy certificates are issued may be banked and carried forward, for up to five compliance years immediately following the compliance year in which the renewable energy certificates are issued, for the purpose of complying with a renewable portfolio standard in one of those five compliance years.

     (4) An electric utility or electricity service supplier is responsible for demonstrating that a renewable energy certificate used to comply with a renewable portfolio standard is derived from a renewable energy source and that the electric utility or electricity service supplier has not used, traded, sold or otherwise transferred the renewable energy certificate.

     (5) A renewable energy certificate may be used by an electric utility or electricity service supplier to comply with both a federal renewable portfolio standard and a renewable portfolio standard established under ORS 469A.005 to 469A.210. An electric utility or electricity service supplier that uses a renewable energy certificate to comply with a renewable portfolio standard imposed by a state other than this state may not use the same renewable energy certificate to comply with a renewable portfolio standard established under ORS 469A.005 to 469A.210. [2007 c.301 §16; 2016 c.28 §7]

 

     469A.145 Limitations on use of unbundled certificates to meet renewable portfolio standard. (1) Except as otherwise provided in this section, unbundled renewable energy certificates, including banked unbundled renewable energy certificates, may not be used to meet more than 20 percent of the requirements of the large utility renewable portfolio standard described in ORS 469A.052 for any compliance year.

     (2) The limitation imposed by subsection (1) of this section does not apply to unbundled renewable energy certificates associated with electricity generated in this state from a renewable energy source by a net metering facility, as defined in ORS 757.300, or another generating facility that is not directly connected to a distribution or transmission system.

     (3) The limitation imposed by subsection (1) of this section does not apply to unbundled renewable energy certificates associated with electricity generated in this state by a qualifying facility under ORS 758.505 to 758.555.

     (4) The limitation imposed by subsection (1) of this section does not apply to an electricity service supplier for purposes of meeting the renewable portfolio standard described in ORS 469A.065 during compliance years before 2021. [2007 c.301 §17; 2016 c.28 §10]

 

     Note: Section 17a, chapter 301, Oregon Laws 2007, provides:

     Sec. 17a. Notwithstanding section 17 (1) of this 2007 Act [469A.145 (1)], for compliance years before 2020, a consumer-owned utility subject to the large utility renewable portfolio standard described in section 6 of this 2007 Act [469A.052] may use unbundled renewable energy certificates, including banked unbundled renewable energy certificates, to meet up to 50 percent of the requirements of the standard. [2007 c.301 §17a]

 

     469A.147 Exemption from limitation on use of unbundled certificates for consumer-owned utilities. Unless the exemption provided by ORS 469A.055 (1) terminated for the consumer-owned utility pursuant to ORS 469A.055 (5), a consumer-owned utility described in ORS 469A.052 (2) that is subject to the large utility renewable portfolio standard described in ORS 469A.052 (3) may use, notwithstanding ORS 469A.145 (1), unbundled renewable energy certificates, including banked unbundled renewable energy certificates, to meet:

     (1) Up to 100 percent of the standard described in ORS 469A.052 (3)(a); and

     (2) Up to 75 percent of the standard described in ORS 469A.052 (3)(b) or (c). [2014 c.100 §2]

 

     469A.150 Multistate electric companies; rules. The Public Utility Commission by rule shall establish a process for allocating the use of renewable energy certificates by an electric company that makes sales of electricity to retail customers in more than one state. [2007 c.301 §18]

 

COMPLIANCE REPORTS

 

     469A.170 Compliance reports; rules. (1) Each electric utility and electricity service supplier that is subject to a renewable portfolio standard shall make an annual compliance report for the purpose of detailing compliance, or failure to comply, with the renewable portfolio standard applicable in the compliance year. An electric company or electricity service supplier shall make the report to the Public Utility Commission. A consumer-owned utility shall make the report to the members or customers of the utility.

     (2) The commission shall review each compliance report filed under this section by an electric company or electricity service supplier for the purposes of determining whether the company or supplier has complied with the renewable portfolio standard applicable to the company or supplier and the manner in which the company or supplier has complied. In reviewing the reports, the commission shall consider:

     (a) The relative amounts of renewable energy certificates and other payments used by the company or supplier to meet the applicable renewable portfolio standard, including:

     (A) Bundled renewable energy certificates;

     (B) Unbundled renewable energy certificates;

     (C) Banked renewable energy certificates; and

     (D) Alternative compliance payments under ORS 469A.180.

     (b) The timing of electricity purchases.

     (c) The market prices for electricity purchases and unbundled renewable energy certificates.

     (d) Whether the actions taken by the company or supplier are contributing to long term development of generating capacity using renewable energy sources.

     (e) The effect of the actions taken by the company or supplier on the rates payable by retail electricity consumers.

     (f) Good faith forecasting differences associated with the projected number of retail electricity consumers served and the availability of electricity from renewable energy sources.

     (g) For electric companies, consistency with the implementation plan filed under ORS 469A.075, as acknowledged by the commission.

     (h) Any other factors deemed reasonable by the commission.

     (3) The commission by rule may establish requirements for compliance reports submitted by an electric company or electricity service supplier. [2007 c.301 §19]

 

ALTERNATIVE COMPLIANCE PAYMENTS

 

     469A.180 Electric companies; electricity service suppliers. (1) The Public Utility Commission shall establish an alternative compliance rate for each compliance year for each electric company or electricity service supplier that is subject to a renewable portfolio standard. The rate shall be expressed in dollars per megawatt-hour.

     (2) The commission shall establish an alternative compliance rate based on the cost of qualifying electricity, contracts that the electric company or electricity service supplier has acquired for future delivery of qualifying electricity and the number of unbundled renewable energy certificates that the company or supplier anticipates using in the compliance year to meet the renewable portfolio standard applicable to the company or supplier. The commission shall also consider any determinations made under ORS 469A.170 in reviewing the compliance report made by the electric company or electricity service supplier for the previous compliance year. In establishing an alternative compliance rate, the commission shall set the rate to provide adequate incentive for the electric company or electricity service supplier to purchase or generate qualifying electricity in lieu of using alternative compliance payments to meet the renewable portfolio standard applicable to the company or supplier.

     (3) An electric company or electricity service supplier may elect to use, or may be required by the commission to use, alternative compliance payments to comply with the renewable portfolio standard applicable to the company or supplier. Any election by an electric company or electricity service supplier to use alternative compliance payments is subject to review by the commission under ORS 469A.170. An electric company or electricity service supplier may not be required to make alternative compliance payments that would result in the company or supplier exceeding the cost limitation established under ORS 469A.100.

     (4) The commission shall determine for each electric company the extent to which alternative compliance payments may be recovered in the rates of the company. Each electric company shall deposit any amounts recovered in the rates of the company for alternative compliance payments in a holding account established by the company. Amounts in the holding account shall accrue interest at the rate of return authorized by the commission for the electric company.

     (5) Amounts in holding accounts established under subsection (4) of this section may be expended by an electric company only for costs of acquiring new generating capacity from renewable energy sources, investments in efficiency upgrades to electricity generating facilities owned by the company and energy conservation programs within the company’s service area. The commission must approve expenditures by an electric company from a holding account established under subsection (4) of this section. Amounts that are collected from customers and spent by an electric company under this subsection may not be included in the company’s rate base.

     (6) The commission shall require electricity service suppliers to establish holding accounts and make payments to those accounts on a substantially similar basis as provided for electric companies. The commission must approve expenditures by an electricity service supplier from a holding account established under this subsection. The commission may approve expenditures only for energy conservation programs for customers of the electricity service supplier. [2007 c.301 §20]

 

     469A.185 Consumer-owned utilities. The governing body of a consumer-owned utility shall establish an alternative compliance rate for the utility. To the extent possible, the alternative compliance rate shall be determined by the governing body of the consumer-owned utility in a manner similar to that used by the Public Utility Commission in establishing alternative compliance rates under ORS 469A.180. Amounts collected as alternative compliance payments by a consumer-owned utility may be used for the purposes specified in ORS 469A.180 (5) and for the purpose of paying expenses associated with research, development and demonstration projects related to the generation of qualifying electricity by the utility. [2007 c.301 §21]

 

PENALTY

 

     469A.200 Penalty. If an electric company or electricity service supplier that is subject to a renewable portfolio standard under ORS 469A.005 to 469A.210 fails to comply with the standard in the manner provided by ORS 469A.005 to 469A.210, the Public Utility Commission may impose a penalty against the company or supplier in an amount determined by the commission. A penalty under this section is in addition to any alternative compliance payment required or elected under ORS 469A.180. Moneys paid for penalties under this section shall be transmitted by the commission to the nongovernmental entity receiving moneys under ORS 757.612 (3)(d) and may be used only for the purposes specified in ORS 757.612 (1). [2007 c.301 §22]

 

GREEN POWER RATE

 

     469A.205 Green power rate. (1) Electric utilities shall allow retail electricity consumers to elect a green power rate. A significant portion of the electricity purchased or generated by a utility that is attributable to moneys paid by retail electricity consumers who elect the green power rate must be qualifying electricity, and the utility must inform consumers of the sources of the electricity purchased or generated by the utility that is attributable to moneys paid by consumers who elect the green power rate. The green power rate shall reasonably reflect the costs of the electricity purchased or generated by the utility that is attributable to moneys paid by retail electricity consumers who elect the green power rate. All prudently incurred costs associated with the green power rate are recoverable in a green power rate offered by an electric company.

     (2) Any qualifying electricity procured by an electric utility to provide electricity under a green power rate under subsection (1) of this section or ORS 757.603 (2)(a) may not be used by the utility to comply with the requirements of a renewable portfolio standard.

     (3) The provisions of subsection (1) of this section do not apply to electric companies that are subject to ORS 757.603 (2)(a).

     (4) An electric utility may comply with the requirements of subsection (1) of this section by contracting with a third-party provider. [2007 c.301 §23]

 

COMMUNITY-BASED RENEWABLE ENERGY PROJECTS

 

     469A.210 Goal for community-based renewable energy projects. (1) The Legislative Assembly finds that community-based renewable energy projects, including but not limited to marine renewable energy resources that are either developed in accordance with the Territorial Sea Plan adopted pursuant to ORS 196.471 or located on structures adjacent to the coastal shorelands, are an essential element of this state’s energy future.

     (2) For purposes related to the findings in subsection (1) of this section, by the year 2025, at least eight percent of the aggregate electrical capacity of all electric companies that make sales of electricity to 25,000 or more retail electricity consumers in this state must be composed of electricity generated by one or both of the following sources:

     (a) Small-scale renewable energy projects with a generating capacity of 20 megawatts or less that generate electricity utilizing a type of energy described in ORS 469A.025; or

     (b) Facilities that generate electricity using biomass that also generate thermal energy for a secondary purpose.

     (3) Regardless of the facility’s nameplate capacity, any single facility described in subsection (2)(b) of this section may be used to comply with the requirement specified in subsection (2) of this section for up to 20 megawatts of capacity. [2007 c.301 §24; 2010 c.68 §1; 2016 c.28 §14; 2017 c.452 §1]

 

JOB IMPACT STUDY

 

     Note: Sections 25 and 26, chapter 301, Oregon Laws 2007, provide:

     Sec. 25. (1) The State Department of Energy shall periodically conduct a study to evaluate the impact of sections 1 to 24 of this 2007 Act [469A.005 to 469A.210] on jobs in this state. The study shall assess the number of new jobs created in the renewable energy sector in this state and the average wage rates and the provision of health care and other benefits for those jobs. In addition, the study shall investigate the extent to which workforce training opportunities are being provided to employees to prepare the employees for jobs in the renewable energy sector.

     (2) The department shall conduct the first study under this section not later than two years after the effective date of this 2007 Act [June 6, 2007]. [2007 c.301 §25]

     Sec. 26. Section 25 of this 2007 Act is repealed January 2, 2026. [2007 c.301 §26]

 

HYDROGEN POWER STATIONS

 

     469A.300 Hydrogen power stations; compliance with renewable portfolio standard; cost recovery for prudent energy investments. To facilitate the creation of hydrogen power stations using anhydrous ammonia as a fuel source to comply with a renewable portfolio standard under ORS 469A.005 to 469A.210, the Public Utility Commission may allow full recovery of costs by public utilities in prudent energy investments related to the planning, financing, construction and operation of hydrogen power stations. These investments may include, but need not be limited to:

     (1) Systems designed to synthesize anhydrous ammonia fuel using electricity generated from renewable energy sources listed in ORS 469A.025;

     (2) Infrastructure designed to store anhydrous ammonia generated from renewable energy sources as a nonpolluting fuel for electricity generation and any other purpose;

     (3) Energy systems designed to use anhydrous ammonia generated from renewable energy sources as a fuel to generate electricity; and

     (4) Electronic control and management systems designed to effectively integrate hydrogen power station processes into the electricity transmission grid. [2010 c.17 §2]

_______________