71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 3805
 
                         House Bill 3799
 
Sponsored by Representative WITT; Representative KNOPP (at the
  request of Vulcan Power Company)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Establishes percentage standards for public utilities providing
electric power from renewable resources. Establishes compliance
schedule. Provides penalty. Creates Green Power Account.
Establishes Green Power Board to govern expenditure from account.
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to renewable energy; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 2 to 6 of this 2001 Act are added to
and made a part of ORS chapter 758. + }
  SECTION 2.  { + (1)(a) Not later than July 1, 2003, a public
utility providing electric power shall ensure that not less than
four percent of all electricity sold by the utility is generated
by nonhydroelectric renewable energy sources.
  (b) Not later than July 1, 2005, a public utility providing
electric power shall ensure that not less than seven percent of
all electricity sold by the utility is generated by
nonhydroelectric renewable energy sources.
  (c) Not later than July 1, 2007, a public utility providing
electric power shall ensure that not less than 10 percent of all
electricity sold by the utility is generated by nonhydroelectric
renewable energy sources.
  (2)(a) Beginning July 1, 2003, the amount a public utility may
charge for providing electric power from nonhydroelectric
renewable energy sources shall not exceed:
  (A) Eight cents per kilowatt hour for electricity generated by
geothermal, biomass and wind technologies; or
  (B) Twenty-five cents per kilowatt hour for electricity
generated by solar technologies.
  (b) The cost per kilowatt hour may be increased annually in an
amount equal to the increase in the Consumer Price Index for the
variable cost component, but shall not exceed 40 percent of the
total cost. For purposes of this paragraph, the 'Consumer Price
Index' is the Portland Consumer Price Index for All Urban
Consumers for All Items as published by the Bureau of Labor
Statistics of the United States Department of Labor. + }
  SECTION 3.  { + A public utility providing electric power shall
execute one or more fixed price long-term electric power purchase
agreements with persons who generate electric power from
nonhydroelectric renewable energy resources. The agreements shall
be for a term of not less than 10 years. Any agreement for more
than 10 years shall provide that the seller shall reduce the
purchase price of electric power by an amount equal to the full
debt service, beginning on the 11th year of the agreement. + }
  SECTION 4.  { + A public utility providing electric power that
fails to meet the requirements of section 2 (1) of this 2001 Act
shall pay a penalty of three cents for each kilowatt hour that
the utility falls short of the requirements. Penalties under this
section shall be paid into the Green Power Account created under
section 5 of this 2001 Act. + }
  SECTION 5.  { + (1) There is established the Green Power
Account, separate and distinct from the General Fund. The Green
Power Account shall consist of moneys paid into the account under
section 4 of this 2001 Act. Interest in the account shall be
credited to the account.
  (2) Except as provided in subsection (3) of this section,
moneys in the Green Power Account shall be used to facilitate the
purchase of electric power from nonhydroelectric renewable energy
sources. The account shall be used to pay the incremental cost to
an electric utility of purchasing nonhydroelectric renewable
energy that is above the utility's marginal cost of power.
Expenditures from the Green Power Account shall be made to
electric utilities that fail to meet the requirements of section
2 (1) of this 2001 Act. Expenditures from the account shall be
subject to the approval of the Green Power Board established
under section 6 of this 2001 Act.
  (3) Not more than 10 percent of the funds available in the
account may be used to support the necessary and reasonable
expenses of the Green Power Board. + }
  SECTION 6.  { + (1) There is established the Green Power Board,
to direct expenditures from the Green Power Account established
under section 5 of this 2001 Act. The board shall consist of five
voting members and three nonvoting members. All members of the
board shall be appointed by the Governor. The five voting members
shall be residents of the state who are knowledgeable in electric
utility and renewable energy issues. The three nonvoting members
shall be employees of a public utility providing electric energy
and shall serve as a technical advisory committee to the voting
members.
  (2) The board shall review and approve or disapprove all
expenditures from the Green Power Account.
  (3) A majority of the five voting members shall constitute a
quorum for the conduct of official business.
  (4) The board shall meet at such time and place as determined
by the board. + }
  SECTION 7.  { + This 2001 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2001 Act takes effect on its
passage. + }
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