75th OREGON LEGISLATIVE ASSEMBLY--2009 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 3567
B-Engrossed
House Bill 3039
Ordered by the Senate June 8
Including House Amendments dated April 27 and Senate Amendments
dated June 8
Sponsored by COMMITTEE ON SUSTAINABILITY AND ECONOMIC DEVELOPMENT
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.
{ - Requires each electric company to maintain specified
generating capacity from qualifying solar photovoltaic energy
systems on or before January 1, 2020. Specifies qualifications
for systems. - }
{ - Allows electric companies to set rates to recover
reasonable return on investment in systems. - }
{ - Allows electric companies to use systems to comply with
renewable portfolio standard established by statute. Sunsets
provision on January 2, 2014. - }
Directs Public Utility Commission to establish pilot program
for each electric company to demonstrate use and effectiveness of
{ - systems - } { + incentive rates and payments for
electricity delivered from equipment and devices that have
primary purpose of collecting solar energy and generating
electricity by photovoltaic effect + }. Directs commission to
report on implementation of { - systems - } { + pilot
programs + } to Legislative Assembly on or before January 1,
2011.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to qualifying renewable energy projects; and declaring
an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + As used in sections 1 to 3 of this 2009 Act:
(1) 'Electric company' has the meaning given that term in ORS
757.600.
(2) 'Nameplate capacity' means the maximum rated output of a
generator or other electric power production equipment under
specific conditions designated by the manufacturer.
(3) 'Qualifying system' means:
(a) An alternative energy system used for emergency backup
power by a state agency or facility that is at least 30 percent
more efficient than existing agency or facility sources,
including fuel cells; or
(b) A solar photovoltaic energy system that:
(A) Meets the electric company's customer load service
obligation as its primary purpose;
(B) Directly connects to an electric company's electrical
system within this state or indirectly connects through the
system of an electric company's customer or the electric system
of a third party that is not an electric company's customer but
whose system is located within this state;
(C) Has meters or other devices in place to monitor and measure
the quantity of energy generated by the solar photovoltaic energy
system; and
(D) Meets any other siting, design, installation and electric
output standards required by the laws of this state.
(4) 'Resource value' means the estimated value to an electric
company of the electricity delivered from a solar photovoltaic
energy system associated with:
(a) The avoided cost of energy, including avoided fuel price
volatility, minus the costs of firming and shaping the
electricity generated from the facility;
(b) Avoided distribution and transmission cost; and
(c) The renewable energy certificates established under ORS
469A.130.
(5) 'Retail electricity consumer' means a retail electricity
consumer, as defined in ORS 757.600, that is located in Oregon
and is served by an electric company.
(6) 'Solar photovoltaic energy system' means equipment and
devices that have the primary purpose of collecting solar energy
and generating electricity by photovoltaic effect. + }
SECTION 2. { + (1) The Public Utility Commission shall
establish a pilot program for each electric company to
demonstrate the use and effectiveness of volumetric incentive
rates and payments for electricity delivered from solar
photovoltaic energy systems that are permanently installed in
this state by retail electricity consumers and that first become
operational after the program begins. The cumulative nameplate
capacity of the qualifying systems enrolled in all of the pilot
programs may not exceed 25 megawatts of alternating current.
(2) The commission by rule shall adopt requirements for the
pilot programs described in subsection (1) of this section. Each
electric company shall file for commission approval rate
schedules for the pilot programs that conform to the
requirements.
(3) The commission may establish incentive rates for the pilot
programs to enable the development of the most efficient solar
photovoltaic energy systems.
(4) A retail electricity consumer participating in a pilot
program may receive payments based on the actual electricity
generated from solar photovoltaic energy system output for 15
years from the consumer's date of enrollment in the program, at
rates or through a rate formula in a rate schedule established at
the time of enrollment.
(5) The commission may adjust the rate schedule as needed for
new pilot program participants for the purpose of meeting the
goal established in subsection (1) of this section. Once a retail
electricity consumer is enrolled in a program, the rates or rate
formula for determining payments to the consumer may not be
modified.
(6) The commission shall establish pilot programs designed to
attain a goal of 75 percent of the energy under each program to
be generated by small-scale qualifying systems. The commission by
rule shall define the size of a small-scale qualifying system and
may adjust the definition of size for small-scale qualifying
systems based upon the costs of the energy generated, the
feasibility of attaining the goal and other factors. The
commission may also adjust the maximum percentage goal of energy
generated by small-scale qualifying systems based upon the same
factors.
(7) The commission may establish total generator nameplate
capacity limits for an electric company so that the rate impact
of the pilot program for any customer class does not exceed 0.25
percent of the electric company's revenue requirement for the
class in any year.
(8) Ownership of renewable energy certificates established
under ORS 469A.130 that are associated with renewable energy
generation that is sold to an electric company under the pilot
programs must be transferred to the electric company and may be
used to comply with the renewable portfolio standard described in
ORS 469A.052 or 469A.055.
(9) To the extent that incentive rates paid for electricity
delivered to each electric company under a pilot program exceed
the resource value, qualifying systems participating in the pilot
programs are not eligible for expenditures under ORS 757.612
(3)(b)(B) or tax credits under ORS 469.160 to 469.180 or 469.185
to 469.225.
(10) All prudently incurred costs associated with compliance
with this section are recoverable in the rates of an electric
company. The costs associated with the resource value are
recoverable in the rates of all retail electricity consumers.
Prudently incurred costs in excess of the resource value are
recoverable from customer classes eligible for the pilot programs
described in subsection (1) of this section.
(11) The commission shall advise and assist the owners and
operators of qualifying systems in identifying and using grants,
incentive moneys, federal funding and other sources of
noninvestment financial support for the construction and
operation of qualifying systems.
(12) The pilot programs described in subsection (1) of this
section close to new participants on March 31, 2015, or when 25
megawatts of alternating current of nameplate capacity of solar
photovoltaic energy systems have been permanently installed by
retail electricity consumers under the pilot programs, whichever
is earlier.
(13) The commission shall submit a report to the Legislative
Assembly by January 1 of each odd-numbered year beginning in
2011. The report must evaluate the effectiveness of paying
incentive rates under the pilot programs described in subsection
(1) of this section compared to incentive rates described in
subsection (9) of this section for promoting the use of solar
photovoltaic energy systems and reducing system costs. The report
must also evaluate the estimated cost of the program to retail
electricity consumers. + }
SECTION 3. { + (1) Before constructing or renovating a major
facility, an authorized state agency shall, after comparing
various equipment options and to the greatest extent practicable,
use fuel cell power systems for emergency backup power
applications and for critical power applications in lieu of other
equipment options.
(2)(a) The State Department of Energy shall, in consultation
with the Oregon Department of Administrative Services, adopt
rules establishing criteria for the comparison of fuel cell power
systems and other equipment options required by subsection (1) of
this section.
(b) Criteria to be established under this subsection must
address:
(A) The impact of emissions, including but not limited to
nitrous oxide, sulfur oxide, carbon monoxide, carbon dioxide and
particulates, from various equipment options, on the environment,
regardless of whether the equipment is installed indoors or
installed outdoors;
(B) Life cycle costs, including but not limited to acquisition
costs, installation and commissioning costs, siting and
permitting costs, maintenance costs and fueling and
decommissioning costs; and
(C) The complexity of equipment options and any ancillary
equipment. + }
SECTION 4. { + The Public Utility Commission shall report to
the Legislative Assembly prior to January 1, 2011, on any
recommended legislative changes to improve implementation of the
pilot programs and any adjustments the commission has made by
rule as authorized by section 2 of this 2009 Act to improve
implementation of the pilot programs. + }
SECTION 5. { + Sections 1 to 3 of this 2009 Act become
operative on April 1, 2010. + }
SECTION 6. { + This 2009 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2009 Act takes effect on its
passage. + }
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