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 998
 
                           A-Engrossed
 
                         Senate Bill 80
                   Ordered by the Senate May 6
             Including Senate Amendments dated May 6
 
Printed pursuant to Senate Interim Rule 213.28 by order of the
  President of the Senate in conformance with presession filing
  rules, indicating neither advocacy nor opposition on the part
  of the President (at the request of Governor Theodore R.
  Kulongoski)
 
 
                             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.
 
    { - Directs Environmental Quality Commission to adopt by rule
greenhouse gas cap-and-trade system to achieve greenhouse gas
emissions reduction goals. Requires application of cap-and-trade
system to all energy facilities. Allows suspension of state's
cap-and-trade system if federal cap-and-trade system is adopted.
Allows commission to require registration and reporting relating
to greenhouse gas emissions and to establish registration
fees. - }
    { - Establishes Climate Improvement Fund. Continuously
appropriates moneys in fund to Department of Environmental
Quality for certain expenses related to greenhouse gas
emissions. - }
    { - Creates Oregon Climate Initiative Task Force. Authorizes
task force to develop and present design recommendations for
greenhouse gas cap-and-trade system to department. Sunsets task
force on January 2, 2012. - }
    { - Requires department to report on development of
greenhouse gas cap-and-trade system and to submit to
Seventy-sixth Legislative Assembly rules adopted by commission
that implement cap-and-trade system. - }
   { +  Requires Department of Transportation, Public Utility
Commission and Department of Environmental Quality to develop and
implement plans to meet 2020 greenhouse gas emissions reduction
goal or, if meeting goal is not technologically or economically
feasible, to develop and implement alternative greenhouse gas
emissions reduction strategy. Specifies duties and powers of
state agencies in developing plans.
  Establishes Climate Policy Advisory Council for purpose of
coordinating actions of state agencies to achieve reduction goal.
Specifies duties and powers of council.
  Imposes deadlines on state agencies for submitting plans to
council. Requires council to submit report to Legislative
Assembly on state agency plans prior to January 1, 2011. Requires
 
council to submit report to Legislative Assembly on progress in
implementing plans for each odd-numbered year through 2019.
  Directs council to appoint certain advisory committees for
purposes related to carbon offsets. Requires committees to report
recommendations to appropriate legislative interim committees
prior to October 1, 2012.
  Requires governing bodies of consumer-owned utility to
establish local conservation and energy efficiency plan and to
use specified amount of revenues to fund annual conservation,
energy efficiency and carbon reduction or avoidance program.
Specifies duties and powers of utilities in establishing plans
and programs.
  Authorizes Department of Environmental Quality to require
registration and reporting by certain persons whose activities
result in emission or generation of greenhouse gases.
  Specifies responsibilities of Oregon Global Warming Commission.
  Provides whistleblower protection to employee who in good faith
reports possible violation of Act. + }
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to greenhouse gas emissions; creating new provisions;
  amending ORS 468A.210 and 659A.885; repealing ORS 468A.235,
  468A.240, 468A.255 and 468A.260; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { +  Legislative purpose. As provided in sections 3
to 8 of this 2009 Act, the Legislative Assembly directs state
agencies to use existing authorities, where appropriate, to
reduce greenhouse gas emissions immediately and to develop
comprehensive planning to enable this state to meet its 2020
statutory greenhouse gas emissions reduction goal specified in
ORS 468A.205 (1)(b). If achieving the statutory greenhouse gas
emissions reduction goal is not technologically or economically
feasible, the planning must be designed to achieve the maximum
reductions that are technologically and economically
feasible. + }
  SECTION 2.  { +  Definitions. As used in sections 3 to 8, 9, 10
and 11 of this 2009 Act, 'greenhouse gas' has the meaning given
that term in ORS 468A.210. + }
  SECTION 3.  { +  Climate Policy Advisory Council. (1) There is
established the Climate Policy Advisory Council for the purpose
of coordinating the actions of state agencies identified in
section 4 of this 2009 Act that are planning to achieve the
greenhouse gas emissions reduction goal specified in ORS 468A.205
(1)(b).
  (2) The council shall consist of the Director of the Department
of Environmental Quality, the Director of Transportation, the
chairperson of the Public Utility Commission and the Director of
the State Department of Energy.
  (3) The Director of the Department of Environmental Quality
shall serve as chairperson of the council.
  (4) The State Department of Energy shall provide clerical,
technical and management personnel to serve the council. Other
state agencies, including but not limited to the Department of
Land Conservation and Development, the Housing and Community
Services Department, the State Forestry Department and the State
Department of Agriculture, shall provide support as requested by
the State Department of Energy or the council. The council may
employ staff and enter into contracts as necessary to meet its
obligations under sections 3 to 8 of this 2009 Act. The council
may also set a budget.
  (5) The council may:
  (a) Investigate, research, develop and propose mechanisms for
reducing greenhouse gas emissions in this state from sectors of
the economy over which the state agencies that are part of the
council have authority.
  (b) Coordinate activities of state agencies in accomplishing
greenhouse gas emissions reduction activities across economic
sectors and state agency authority.
  (c) In cooperation with the Oregon Department of Administrative
Services, coordinate activities of state agencies, including the
Oregon University System, in assessing the state agency
greenhouse gas emissions and accomplishing greenhouse gas
emissions reduction activities for state government.
  (d) Inventory all carbon reduction activities under way in this
state, including but not limited to those related to:
  (A) The renewable portfolio standards established by ORS
469A.005 to 469A.210.
  (B) The public purpose charge and costs specified in ORS
757.612 and 757.689 and provisions related to small scale local
energy projects in ORS chapter 470.
  (C) Provisions specified in ORS 469.160 to 469.180 and 469.185
to 469.225.
  (D) Other energy efficiency and conservation programs
established by law in this state, including those related to
building codes and energy-efficiency standards for appliances.
  (E) The transportation and land use plans and policies of the
State of Oregon or of cities, counties, metropolitan planning
organizations or any regional government.
  (F) Limits on emissions from vehicles sold in this state.
  (G) Anticipated reductions in emissions from fuels combusted
for transportation in this state.
  (H) Other policies, programs or measures the council reasonably
expects may reduce greenhouse gas emissions.
  (e) Estimate the amount of the reduction in greenhouse gas
emissions attained from existing carbon reduction activities and
quantify other emissions that must be reduced in order to meet
the greenhouse gas emissions reduction goal specified in ORS
468A.205 (1)(b).
  (f) Undertake a series of exercises by economic sector to
identify greenhouse gas emissions reduction strategies and
activities that may be implemented.
  (g) Quantify the economic costs, on a per ton basis, of
accomplishing carbon reduction activities.
  (h) Make recommendations to state agencies regarding the
reduction of greenhouse gas emissions.
  (i) Monitor the progress and effect of policies and programs to
meet greenhouse gas emissions reduction goals specified in ORS
468A.205.
  (j) Review and provide recommendations, at least once every
three years, to plan for accomplishing carbon reduction
activities as needed in order to meet the greenhouse gas
emissions reduction goals specified in ORS 468A.205.
  (k) Identify, to the greatest extent practicable, greenhouse
gas emissions reductions from which a benefit may accrue to this
state under existing federal laws or regulations or legislation
enacted by or under consideration by Congress.
  (L) Determine whether penalties imposed upon persons emitting
greenhouse gases would affect emissions and how those penalties
would be implemented and enforced.
  (6) The council shall submit a report to the Legislative
Assembly prior to January 1 of each odd-numbered year through
2019. The reports shall include:
  (a) The state agency plans described in sections 4, 6, 7 and 8
of this 2009 Act;
  (b) The council's activities under this section concerning a
coordinated effort to meet the greenhouse gas emissions reduction
goal specified in ORS 468.205 (1)(b); and
  (c) Progress toward achieving reductions as designed in the
state agency plans.
  (7) In coordinating the greenhouse gas emissions reduction
plans of the state agencies identified in section 4 of this 2009
Act to meet the goal specified in ORS 468A.205 (1)(b), the
council shall consider the potential costs and benefits to the
environment, public health and the economy of Oregon. These costs
and benefits include, but are not limited to, effects on
individuals employed by economic sectors required to reduce
greenhouse gas emissions, effective methods to minimize the
potential to export pollution, jobs and economic opportunity,
effects on low-income and middle-income individuals, methods to
track job losses or gains, methods to coordinate existing, or to
establish new, workforce development, training and recovery
programs, impacts on overall utility rates and impacts on public
and ecosystem health.
  (8) In coordinating the greenhouse gas emissions reduction
plans of the state agencies identified in section 4 of this 2009
Act, the council shall consider the impacts and opportunities
associated with greenhouse gas emissions reduction measures,
primary, sector-wide, market and fee-based sources of reductions
including but not limited to an emissions trading market or a
carbon tax, opportunities for emissions reduction measures from
all verifiable and quantifiable voluntary actions including but
not limited to carbon sequestration and best management
practices, compliance mechanisms, administrative costs and
staffing, implementation, tracking and monitoring, evaluation,
program and measure funding and any new regulatory authority that
may be required.
  (9) All agencies of the executive department, as defined in ORS
174.112, are directed to assist the council in the performance of
its duties and to furnish such information and advice as the
members of the council consider necessary to perform their
duties.
  (10) If the council determines that meeting the greenhouse gas
emissions reduction goal specified in ORS 468A.205 (1)(b) is not
in the state's best economic interest, the council shall
demonstrate and explain in a report to the Legislative Assembly
the reasons for that determination. + }
  SECTION 4.  { +  State agency plans. (1) The Public Utility
Commission shall, pursuant to section 6 of this 2009 Act, develop
and implement a plan, within existing authority, designed to meet
the greenhouse gas emissions reduction goal specified in ORS
468A.205 (1)(b) for public utilities.
  (2) The Department of Transportation, in coordination with the
Department of Environmental Quality, the State Department of
Energy and the Department of Land Conservation and Development,
shall, pursuant to section 7 of this 2009 Act, develop and
implement a plan, within existing authority, designed to meet the
greenhouse gas emissions reduction goal specified in ORS 468A.205
(1)(b) for transportation.
  (3) The Department of Environmental Quality shall, pursuant to
section 8 of this 2009 Act, develop and implement a plan, within
existing authority, designed to meet the greenhouse gas emissions
reduction goal specified in ORS 468A.205 (1)(b) for industry.
  (4) If a state agency identified in subsections (1) to (3) of
this section determines that meeting the goal specified in ORS
468A.205 (1)(b) is not technologically or economically feasible
for the particular sector, the agency shall develop and implement
an alternative greenhouse gas emissions reduction strategy that,
as determined by the agency, is feasible and effective, instead
of meeting the goal specified in ORS 468.205 (1)(b).
  (5) The plans required by subsections (1) to (3) of this
section must be subject to review and comment before their
adoption by the relevant state agency.
  (6) The plans required by subsections (1) to (3) of this
section must be updated at least once every two years to account
for changes in technology, cost feasibility and other factors the
state agency updating the plan determines are relevant.
 
  (7) The plans required by subsections (1) to (3) of this
section are not intended to delay actions by state agencies to
reduce greenhouse gas emissions under existing authority. Each
state agency shall identify any new authority the agency deems
necessary or useful to achieve greenhouse gas emissions
reductions and incorporate those recommendations into the
agency's plan for submission to the Legislative Assembly under
section 5 of this 2009 Act. + }
  SECTION 5.  { + Deadlines for agencies and the Climate Policy
Advisory Council. The Climate Policy Advisory Council and each
state agency identified in section 4 of this 2009 Act shall meet
the following deadlines:
  (1) Prior to July 1, 2010, each agency shall submit draft plans
to the council for the sectors regulated by that agency.
  (2) Prior to September 1, 2010, the council shall consider all
agency plans and suggest revisions for the coordination of the
plans.
  (3) Prior to December 1, 2010, each agency shall submit final
plans to the council.
  (4) Prior to January 1, 2011, the council shall report to the
Legislative Assembly on the final plans.
  (5) Prior to January 1 of every odd-numbered year through 2019,
the council shall report to the Legislative Assembly on progress
in implementing the adopted plans. + }
  SECTION 6.  { +  Public Utility Commission plan. (1) Utilizing
a public process pursuant to its investigatory authority under
ORS 756.515, the Public Utility Commission shall develop a plan
to achieve greenhouse gas emissions reduction measures for
electric companies as defined in ORS 757.600 and natural gas
companies.  Except as provided in section 4 (4) of this 2009 Act,
the plan shall be designed to meet the greenhouse gas emissions
reduction goal specified in ORS 468A.205 (1)(b). In developing
the plan, the commission shall:
  (a) Consider the integrated resource planning process developed
by the commission and related orders, and the integrated resource
plans that result from that process and provide a means for
encouraging greenhouse gas emissions reductions;
  (b) Design the plan in a manner that is equitable, that seeks
to balance costs with the existing standard to ensure rates are
fair, just and reasonable, that balances the total benefits to
both customers and electric and natural gas companies and that
encourages early actions to reduce greenhouse gas emissions;
  (c) Recognize the impact of the steps that this state has taken
prior to the development of the plan that address and affect
greenhouse gas emissions, including but not limited to emissions
reduction goals, a renewable portfolio standard, a power plant
carbon dioxide emissions performance standard, a renewable fuels
standard, a tax credit system that rewards investment in
renewable energy, a public purpose charge requirement, energy
efficiency standards for appliances, loan programs, building
codes related to energy consumption and stringent land use
planning;
  (d) Ensure that activities undertaken to comply with the plan
do not disproportionately impact low-income customers and
low-income and rural communities served by electric and natural
gas companies and adopt measures as appropriate that mitigate the
impact on those customers and communities;
  (e) Consider measures that vary by utility, customer type or
technology;
  (f) Consider the significance of the contribution of each
source or category of sources to statewide emissions of
greenhouse gases;
  (g) Use least-cost programs utilizing prudently incurred
investments for reducing greenhouse gas emissions, including but
not limited to demand reduction, energy efficiency and energy
conservation, distributed generation, improvements in efficiency
of transmission and delivery systems and advanced transmissions
and delivery systems; and
  (h) Consider the costs and the effect that the plan will have
on the competitiveness, as compared to other states, of Oregon's
businesses and business sectors, as well as the costs of inaction
on Oregon utility ratepayers.
  (2) The commission shall have authority to include greenhouse
gas emissions impacts and proposals to reduce greenhouse gas
emissions when considering integrated resource plans, proposed
rates and other policy issues. The commission shall adopt by rule
guidelines for integrating greenhouse gas emissions reduction
planning with the existing integrated resource planning process.
These guidelines shall require electric and natural gas companies
to set goals for reducing greenhouse gas emissions on a five-year
time horizon and to identify actions needed to meet these
reduction goals. Measures used to meet the reduction goals may
include but are not limited to:
  (a) Energy conservation and energy efficiency, including smart
grid, low-income weatherization programs and other energy
efficiency projects;
  (b) Development of renewable energy resources;
  (c) Investment in research and development for carbon reduction
and renewable energy;
  (d) Infrastructure improvements, including transmission and
distribution investments, for efficiency and for expanding access
to renewable energy generation;
  (e) Energy storage devices;
  (f) Combined heat and power;
  (g) Distributed generation, including small scale renewable
generation, thermal energy devices and related interconnection
equipment and controls;
  (h) Transportation-related electrification including
residential and commercial charging infrastructure and utility
fleet demonstration projects; and
  (i) Demand response programs.
  (3) An electric or natural gas company that files an integrated
resource plan with the commission must identify, within the
integrated resource plan, the greenhouse gas emissions of the
company that would be reduced relative to the greenhouse gas
reduction goal specified in ORS 468A.205 (1)(b). The filed
integrated resource plan must ensure that the electric or natural
gas company meets the reductions identified under the
commission's emissions reduction plan developed under subsection
(1) of this section.
  (4) The commission shall consider recommendations made by the
committees appointed under section 10 of this 2009 Act for the
use carbon offsets to meet the goals established in the
commission's emissions reduction plan developed under subsection
(1) of this section. The commission shall ensure that the
emissions reductions achieved through the use of carbon offsets:
  (a) Are real, permanent, quantifiable, verifiable and
enforceable; and
  (b) Accrue to the electric or natural gas company's customers
that pay for the offsets.
  (5) To the greatest extent possible, the commission shall place
a higher priority on accomplishing reductions in the emissions
reduction plan developed under subsection (1) of this section for
which the commission identifies a benefit that may accrue to this
state under greenhouse gas emissions reduction legislation
enacted by or under consideration by Congress or under federal
regulations.
  (6) The commission shall use its existing authorities to pursue
all cost-effective conservation and energy efficiency measures in
the service territories of electric companies and natural gas
companies. + }
 
  SECTION 7.  { +  Department of Transportation plan. (1) The
Department of Transportation, in coordination with the Department
of Environmental Quality, the State Department of Energy and the
Department of Land Conservation and Development, shall develop a
plan for the transportation sector designed to reduce greenhouse
gas emissions. Except as provided in section 4 (4) of this 2009
Act, the plan must be designed to meet the greenhouse gas
emissions reduction goal specified in ORS 468A.205 (1)(b).
  (2) The plan must prioritize the most appropriate and effective
solutions to reduce greenhouse gas emissions and provide:
  (a) An assessment of expected emissions reductions from all
policies and programs in place as of August 7, 2007, that
recognizes the steps that Oregon has taken to affect greenhouse
gas emissions reductions prior to the development of the plan.
  (b) An inventory of measures other than those outlined in
paragraph (a) of this subsection that are necessary to meet the
goal specified in ORS 468A.205 (1)(b) for the transportation
sector, including:
  (A) Recommendations to the Legislative Assembly of measures
that:
  (i) Limit greenhouse gas emissions from vehicles sold in
Oregon.
  (ii) Reduce greenhouse gas emissions from fuels combusted for
transportation in Oregon.
  (iii) Provide additional funding mechanisms separate from the
State Highway Fund for activities within the transportation
sector that result in greenhouse gas emissions reductions.
  (iv) Grant authority, if necessary, to implement additional
policies, tools and programs that will result in reductions in
greenhouse gas emissions by the transportation sector.
  (B) An inventory of rules and any legislative authority
approved in the 2009 legislative session.
  (C) An inventory of rules adopted to facilitate the development
of infrastructure for electrification of passenger vehicles,
light trucks and commercial fleets at existing fuel stations.
  (D) An inventory of rules adopted by state agencies to
implement additional policies, tools and programs that will
result in reductions in greenhouse gas emissions by the
transportation sector. + }
  SECTION 8.  { + Department of Environmental Quality plan. (1)
Utilizing a public process than conforms with ORS chapter 183,
the Environmental Quality Commission shall direct the Department
of Environmental Quality in the development of a plan to achieve
greenhouse gas emissions reduction measures from industrial
facilities with stationary sources. Except as provided in section
4 (4) of this 2009 Act, the plan must be designed to meet the
greenhouse gas emissions reduction goal specified in ORS 468A.205
(1)(b).
  (2) The plan shall focus on direct emissions from industrial
facilities with stationary sources that emit more than 25,000
tons of carbon dioxide equivalent pollution in one year.
  (3) The plan may not include energy-related emissions
reductions accounted for in the plan developed by the Public
Utility Commission under section 6 of this 2009 Act or for
energy-related emissions reductions reported by consumer-owned
utilities under section 9 of this 2009 Act.
  (4) Industrial facilities with stationary sources may implement
the greenhouse gas emissions reduction plan on a voluntary basis
prior to January 1, 2014. If the Climate Policy Advisory Council
determines that incorporation of emissions reductions from the
industrial sector are necessary for this state to meet the
greenhouse gas emissions reduction goal specified in ORS 468A.205
(1)(b) and that achieving these reductions can be done in a way
that is cost-effective and technologically feasible, compliance
is required after January 1, 2014.
 
  (5) The plan developed under subsection (1) of this section
shall:
  (a) Prioritize the most effective solutions and consider
allowing industrial facilities with stationary sources to reduce
emissions through energy efficiency, distributed generation,
cogeneration, fuel switching or other measures.
  (b) Assess whether cost-effective greenhouse gas emissions
reduction measures can provide other pollution reduction
benefits.
  (c) Analyze potential emissions reductions, costs, cost
effectiveness and technical feasibility of measures.
  (d) Consider whether proposed emissions reduction strategies
would require new state, federal or local environmental permits
or modifications to existing permits.
  (e) Consider barriers to the viability or implementation of
greenhouse gas emissions reduction strategies.
  (f) Consider what incentives might be necessary to achieve
reductions in greenhouse gas emissions.
  (g) Propose rules for the enforcement of greenhouse gas
emissions reduction strategies to ensure compliance after January
1, 2014, if inclusion of the industrial facilities with
stationary sources is necessary for this state to meet the
greenhouse gas emissions reduction goal specified in ORS 468A.205
(1)(b).
  (h) Consider short-term voluntary measures for the reduction of
greenhouse gas emissions from industrial facilities with
stationary sources, including verification of greenhouse gas
emissions reduction measures. + }
  SECTION 9.  { +  Consumer-owned utilities; adoption of plan or
program. (1) As used in this section, 'consumer-owned utility '
and 'governing body' have the meanings given those terms in ORS
757.600.
  (2) Each governing body of a consumer-owned utility shall adopt
a resolution:
  (a) To establish a local conservation and energy efficiency
plan that implements cost-effective conservation and energy
efficiency measures within the utility's service territory; or
  (b) To fund an annual conservation, energy efficiency and
carbon reduction or avoidance program in an amount equal to two
percent of the utility's annual retail electric sales revenues
or, in the case of a utility with fewer than 17 customers per
mile of distribution line, the utility's share of state total
electric sales revenues multiplied by two percent of total
statewide retail electric sales revenues, whichever is less.
  (3)(a) The local conservation and energy efficiency plan
described in subsection (2)(a) of this section shall:
  (A) Identify the potentially achievable levels of conservation
and energy efficiency for the consumer-owned utility over a
10-year period; and
  (B) Specify a conservation acquisition target for
cost-effective conservation for each five-year period.
  (b) The consumer-owned utility shall implement the plan to
achieve the targets specified in the plan.
  (c) In implementing the local conservation and energy
efficiency plan and conservation acquisition targets, the
consumer-owned utility shall utilize methodologies of the Pacific
Northwest Electric Power and Conservation Planning Council's
current regional power plan. The governing body of the
consumer-owned utility may package conservation or energy
efficiency measures in the local conservation and energy
efficiency plan to meet the utility's conservation acquisition
target.
  (d) If the governing body of a consumer-owned utility that is a
small electric utility as described in ORS 469A.055 determines
that the small electric utility cannot meet its conservation
acquisition target within a five-year period, the governing body
shall acquire renewable resources equal to the projected
shortfall.
  (e) The governing body of a consumer-owned utility may contract
with an independent, qualified third party to operate a local
conservation and energy efficiency plan.
  (4) In establishing an annual conservation, energy efficiency
and carbon reduction or avoidance program described in subsection
(2)(b) of this section, a consumer-owned utility:
  (a) May credit against the amount described in subsection
(2)(b) of this section all direct and indirect expenditures made
for conservation and energy efficiency programs, regional market
transformation, low-income weatherization, utility loan financing
programs or any other conservation and energy efficiency measures
including conservation programs and energy efficiency programs of
the Bonneville Power Administration;
  (b) May collect a charge associated with the annual
conservation, energy efficiency and carbon reduction or avoidance
program as part of retail electric rates or through a
nonbypassable fee on each customer's electric bill as specified
by the governing body of the consumer-owned utility and meet the
conservation acquisition target over the five-year period;
  (c) Shall use revenue from a charge associated with the annual
conservation, energy efficiency and carbon reduction or avoidance
program to fund the direct and indirect costs of conservation,
energy efficiency and carbon reduction or avoidance projects,
including but not limited to projects related to renewable
resources; and
  (d) May roll over revenue from the annual conservation, energy
efficiency and carbon reduction or avoidance program for up to
five years in order to save revenue for large projects or to
provide flexibility in developing large commercial or industrial
projects.
  (5) The governing body of a consumer-owned utility may fulfill
its obligations under this section by participating in a joint
operating entity or a joint operating agency established for
purposes of energy conservation and efficiency. The joint
operating entity's or joint operating agency's obligation for
energy conservation is determined by combining the conservation
acquisition targets for all members. The members shall determine
the allocation of the obligation.
  (6) The following are eligible for funding as part of a local
conservation and energy efficiency plan or an annual
conservation, energy efficiency and carbon reduction or avoidance
program described in this section:
  (a) Energy conservation, energy efficiency and weatherization
initiatives;
  (b) Low-income weatherization, as defined in ORS 757.600;
  (c) Energy efficiency projects in schools and local
governments;
  (d) Electricity market transformation;
  (e) Renewable resource facilities of any size that are net
metering facilities, as defined in ORS 757.300;
  (f) Efficiency improvements in the electricity distribution
system;
  (g) Combined heat and power programs;
  (h) Demand response programs;
  (i) Customer loan programs that promote energy efficiency
measures;
  (j) Infrastructure and incentives to support sustainable
electric vehicle programs;
  (k) Renewable resources; and
  (L) Other activities approved by governing bodies of
consumer-owned utilities as necessary to reduce the utility's
greenhouse gas emissions.
  (7) Consumer-owned utilities with fewer than 2,500 customers in
this state that are load-following customers of the Bonneville
Power Administration may fulfill their obligations under this
section by participating in the conservation programs of the
Bonneville Power Administration.
  (8) If the Public Utility Commission by order determines that
there is a pending emergency in Oregon electricity markets, the
governing body of a consumer-owned utility need not comply with
the requirements of this section for the duration of the
emergency.
  (9)(a) Each consumer-owned utility shall provide an annual
report by December 31 of each year describing its actions under
this section to:
  (A) The governing body of the consumer-owned utility; and
  (B) The State Department of Energy.
  (b) A report provided under paragraph (a) of this subsection
may be a copy of the consumer-owned utility's conservation and
energy efficiency report made to the Bonneville Power
Administration as part of the regional reporting system.
  (10) Each governing body of a consumer-owned utility shall
adopt the resolution required by this section not later than
January 1, 2012.
  (11) This state shall credit actions taken by consumer-owned
utilities under this section against future state and federal
carbon reduction requirements including early action credit. + }
  SECTION 10.  { + Offsets. (1) The Climate Policy Advisory
Council shall appoint one or more advisory committees for the
purpose of:
  (a) Investigating the ability of a state agency to identify and
use existing carbon offset markets to reduce greenhouse gas
emissions;
  (b) Investigating the ability of the state to act as an
aggregator of approved carbon offsets and to act as an initial
supplier of carbon offsets to the market by a periodic auction;
  (c) Identifying statutory, regulatory and budgetary barriers to
the adoption of strategies to use existing carbon offset programs
pursuant to existing authority;
  (d) Establishing guidelines to determine whether reported
carbon offsets are real, permanent, quantifiable, additional and
verifiable;
  (e) Determining the geographical scope of allowable investments
in carbon offset markets; and
  (f) Determining the extent to which carbon offsets are used to
achieve carbon reductions.
  (2) The council:
  (a) Shall appoint advisory committees within 90 days of the
effective date of this 2009 Act;
  (b) Shall determine the membership and operating rules of the
advisory committees;
  (c) May cooperate and coordinate with other state agencies to
minimize duplication of effort; and
  (d) May focus the council's efforts on integrating the
potential carbon offsets with any legislation or regulations that
are being or may be contemplated by the federal government.
  (3) An advisory committee, in consultation with interested
stakeholders, shall develop recommendations for the state's
policy for forestry offset projects within this state. The
committee shall submit the final policy recommendations to the
appropriate legislative interim committees prior to October 1,
2012. The policy recommendations may address:
  (a) Specific standards and guidelines that will support carbon
accounting in managed forests participating in an offset program;
  (b) Recommendations on how any carbon that is reduced or
sequestered by a forestry offset project may be eligible for an
offset credit within a national cap-and-trade program;
  (c) Recognition of management activities that increase carbon
stocks including, but not limited to, thinning, lengthening
rotations, increased retention of trees after harvest,
fertilization, genetics, timber stand improvement, fire
management, creation or maintenance of long-term or permanent
reserves and specific site class and productivity of a managed
forest;
  (d) Specific standards and guidelines to support wood products
accounting, recognizing that carbon is stored in products after
trees are harvested, including the use of the 100-year method,
which estimates the amount of carbon stored in wood products that
are projected to remain in use after 100 years;
  (e) Guidelines on how transfer of development rights or on-site
cluster development projects may be used to create forestry
offset projects;
  (f) Guidelines on how forestry offset projects and forestry
financial incentive programs can work together so that this
state's forest landowners will not be disadvantaged in comparison
to other jurisdictions participating in a national cap-and-trade
program;
  (g) Verification or certification of carbon stocks in a manner
that will not be administratively burdensome; and
  (h) A process and timeline to survey, catalog and map Oregon
soils in a manner that describes the soil carbon sequestration of
the soils.
  (4) An advisory committee, in consultation with interested
stakeholders, shall develop recommendations for the state's
policy for agricultural offset projects within this state. The
committee shall submit its final policy recommendations to the
appropriate legislative interim committees prior to October 1,
2012. The policy recommendations may address:
  (a) A process and timeline to survey, catalog and map Oregon
soils in a manner that describes the soil carbon sequestration
level of the soils;
  (b) Activities that would increase carbon sequestration in
soils or mitigate uncontrolled emissions of methane emitted by
livestock and therefore potentially qualify as offset projects;
and
  (c) Recommendations on how any carbon that is reduced or
sequestered by an agricultural offset project may be eligible for
an offset credit within a national cap-and-trade program.
  (5) An advisory committee, in consultation with interested
stakeholders, shall develop recommendations for the state's
policy for on-road and off-road transportation electrification
offset projects within this state. The committee shall submit its
final policy recommendations to the appropriate legislative
interim committees prior to October 1, 2012. The policy
recommendations may address:
  (a) Specific standards and guidelines that support carbon
accounting for the transportation sector participating in a
transportation electrification offset project; and
  (b) Recommendations on how any carbon that is reduced or
avoided by a transportation electrification offset project, an
idling emissions reduction project or other type of project may
be eligible for an offset credit within a national cap-and-trade
program. + }
  SECTION 11.  { +  Reporting requirements. (1) In addition to
any registration and reporting required under ORS 468A.050, the
Environmental Quality Commission by rule may require registration
and reporting by:
  (a) Any person who imports, sells or distributes for use in
this state electricity, the generation of which emits greenhouse
gases; or
  (b) Any person who imports, sells or distributes for use in
this state fossil fuel that generates greenhouse gases when
combusted.
  (2) Rules adopted by the commission under this section for
electricity that is imported, sold or distributed for use in this
state may require reporting of information necessary to determine
greenhouse gas emissions from generating facilities and
transmission equipment that are used to produce and transmit the
electricity.
  (3)(a) The commission shall allow consumer-owned utilities, as
defined in ORS 757.270, to comply with reporting requirements
imposed under this section by the submission of a report prepared
by a third party. A report submitted as provided in this
paragraph may include information for more than one
consumer-owned utility, but must include all information required
by the commission for each individual utility.
  (b) For the purpose of determining greenhouse gas emissions
related to electricity purchased from the Bonneville Power
Administration by a consumer-owned utility, as defined in ORS
757.270, the commission may require that the utility report only:
  (A) The number of megawatt hours of electricity purchased by
the utility from the Bonneville Power Administration, segregated
by the types of contracts entered into by the utility with the
Bonneville Power Administration; and
  (B) The percentage of each fuel or energy type used to produce
electricity purchased under each type of contract.
  (4) Rules adopted by the commission under this section for
fossil fuel that is imported, sold or distributed for use in this
state may require reporting of the type and quantity of the fuel
and any additional information necessary to determine the carbon
content of the fuel. For the purpose of determining greenhouse
gas emissions related to liquefied petroleum gas, the commission
shall allow reporting using publications or submission of data by
the American Petroleum Institute but may require reporting of
such other information necessary to achieve the purposes of the
rules adopted by the commission under this section.
  (5) To an extent that is consistent with the purposes of the
rules adopted by the commission under this section, the
commission shall minimize the burden of the reporting required
under this section by:
  (a) Allowing concurrent reporting of information that is also
reported to another agency of the executive department, as
defined in ORS 174.112;
  (b) Allowing electronic reporting;
  (c) Allowing the use of good engineering practice calculations
in reports, or of emission factors published by the United States
Environmental Protection Agency;
  (d) Establishing thresholds for the amount of specific
greenhouse gases that may be emitted or generated without
reporting;
  (e) Requiring reporting by the fewest number of persons in a
fuel distribution system that will allow the commission to
acquire the information needed by the commission; or
  (f) Developing other appropriate means and procedures, as
determined by the commission. + }
  SECTION 12.  { + Section 13 of this 2009 Act is added to and
made a part of ORS 468A.200 to 468A.260. + }
  SECTION 13.  { + Oregon Global Warming Commission. The Oregon
Global Warming Commission shall be responsible for:
  (1) Planning and preparing for impacts caused by global warming
at the state and local levels, including public health, land use,
natural resources, ecosystems health and the viability of certain
economic sectors, including agriculture, so that Oregon is less
vulnerable to the impacts and well-prepared to adapt to the
impacts of global warming at the state and local levels;
  (2) Conducting public education and outreach efforts mandated
by ORS 468A.245;
  (3) Tracking other regional, national and international global
warming policies as they relate to adaptation strategies and
planning; and
  (4) Coordinating with the Oregon Climate Change Research
Institute to track the physical science of climate change as
mandated by ORS 468A.250 to inform the public on new global
warming policies and strategies for this state. + }
  SECTION 14.  { + Whistleblower protection. It is an unlawful
employment practice under ORS chapter 659A for an employer to
discharge, demote, suspend or in any manner discriminate or
retaliate against an employee with regard to promotion,
compensation or other terms, conditions or privileges of
employment for the reason that the employee has in good faith
reported possible violations of sections 3 to 8, 9, 10 and 11 of
this 2009 Act. + }
  SECTION 15. ORS 659A.885, as amended by section 12, chapter
100, Oregon Laws 2007, section 8, chapter 180, Oregon Laws 2007,
section 3, chapter 278, Oregon Laws 2007, section 1, chapter 280,
Oregon Laws 2007, section 4, chapter 525, Oregon Laws 2007,
section 13, chapter 903, Oregon Laws 2007, and section 16,
chapter 36, Oregon Laws 2008, is amended to read:
  659A.885. (1) Any person claiming to be aggrieved by an
unlawful practice specified in subsection (2) of this section may
file a civil action in circuit court. In any action under this
subsection, the court may order injunctive relief and any other
equitable relief that may be appropriate, including but not
limited to reinstatement or the hiring of employees with or
without back pay. A court may order back pay in an action under
this subsection only for the two-year period immediately
preceding the filing of a complaint under ORS 659A.820 with the
Commissioner of the Bureau of Labor and Industries, or if a
complaint was not filed before the action was commenced, the
two-year period immediately preceding the filing of the action.
In any action under this subsection, the court may allow the
prevailing party costs and reasonable attorney fees at trial and
on appeal. Except as provided in subsection (3) of this section:
  (a) The judge shall determine the facts in an action under this
subsection; and
  (b) Upon any appeal of a judgment in an action under this
subsection, the appellate court shall review the judgment
pursuant to the standard established by ORS 19.415 (3).
  (2) An action may be brought under subsection (1) of this
section alleging a violation of ORS 25.337, 25.424, 171.120,
399.235, 408.230, 476.574, 652.355, 653.060, 659A.030, 659A.040,
659A.043, 659A.046, 659A.063, 659A.069, 659A.100 to 659A.145,
659A.150 to 659A.186, 659A.194, 659A.203, 659A.218, 659A.230,
659A.233, 659A.236, 659A.250 to 659A.262, 659A.277, 659A.300,
659A.306, 659A.309, 659A.315, 659A.318 or 659A.421  { + or
section 14 of this 2009 Act + }.
  (3) In any action under subsection (1) of this section alleging
a violation of ORS 25.337, 25.424, 659A.030, 659A.040, 659A.043,
659A.046, 659A.069, 659A.100 to 659A.145, 659A.230, 659A.250 to
659A.262, 659A.318 or 659A.421:
  (a) The court may award, in addition to the relief authorized
under subsection (1) of this section, compensatory damages or
$200, whichever is greater, and punitive damages;
  (b) At the request of any party, the action shall be tried to a
jury;
  (c) Upon appeal of any judgment finding a violation, the
appellate court shall review the judgment pursuant to the
standard established by ORS 19.415 (1); and
  (d) Any attorney fee agreement shall be subject to approval by
the court.
  (4) In any action under subsection (1) of this section alleging
a violation of ORS 652.355 or 653.060, the court may award, in
addition to the relief authorized under subsection (1) of this
section, compensatory damages or $200, whichever is greater.
  (5) In any action under subsection (1) of this section alleging
a violation of ORS 171.120, 476.574, 659A.203 or 659A.218, the
court may award, in addition to the relief authorized under
 
subsection (1) of this section, compensatory damages or $250,
whichever is greater.
  (6) Any individual against whom any distinction, discrimination
or restriction on account of race, color, religion, sex, sexual
orientation, national origin, marital status or age, if the
individual is 18 years of age or older, has been made by any
place of public accommodation, as defined in ORS 659A.400, by any
employee or person acting on behalf of the place or by any person
aiding or abetting the place or person in violation of ORS
659A.406 may bring an action against the operator or manager of
the place, the employee or person acting on behalf of the place
or the aider or abettor of the place or person. Notwithstanding
subsection (1) of this section, in an action under this
subsection:
  (a) The court may award, in addition to the relief authorized
under subsection (1) of this section, compensatory and punitive
damages;
  (b) The operator or manager of the place of public
accommodation, the employee or person acting on behalf of the
place, and any aider or abettor shall be jointly and severally
liable for all damages awarded in the action;
  (c) At the request of any party, the action shall be tried to a
jury;
  (d) The court shall award reasonable attorney fees to a
prevailing plaintiff;
  (e) The court may award reasonable attorney fees and expert
witness fees incurred by a defendant who prevails only if the
court determines that the plaintiff had no objectively reasonable
basis for asserting a claim or no reasonable basis for appealing
an adverse decision of a trial court; and
  (f) Upon any appeal of a judgment under this subsection, the
appellate court shall review the judgment pursuant to the
standard established by ORS 19.415 (1).
  (7) When the commissioner or the Attorney General has
reasonable cause to believe that a person or group of persons is
engaged in a pattern or practice of resistance to the rights
protected by ORS 659A.145 or 659A.421 or federal housing law, or
that a group of persons has been denied any of the rights
protected by ORS 659A.145 or 659A.421 or federal housing law, the
commissioner or the Attorney General may file a civil action on
behalf of the aggrieved persons in the same manner as a person or
group of persons may file a civil action under this section. In a
civil action filed under this subsection, the court may assess
against the respondent, in addition to the relief authorized
under subsections (1) and (3) of this section, a civil penalty:
  (a) In an amount not exceeding $50,000 for a first violation;
and
  (b) In an amount not exceeding $100,000 for any subsequent
violation.
  (8) In any action under subsection (1) of this section alleging
a violation of ORS 659A.145 or 659A.421 or alleging
discrimination under federal housing law, when the commissioner
is pursuing the action on behalf of an aggrieved complainant, the
court shall award reasonable attorney fees to the commissioner if
the commissioner prevails in the action. The court may award
reasonable attorney fees and expert witness fees incurred by a
defendant that prevails in the action if the court determines
that the commissioner had no objectively reasonable basis for
asserting the claim or for appealing an adverse decision of the
trial court.
  (9) In an action under subsection (1) or (7) of this section
alleging a violation of ORS 659A.145 or 659A.421 or
discrimination under federal housing law:
  (a) 'Aggrieved person' includes a person who believes that the
person:
 
  (A) Has been injured by an unlawful practice or discriminatory
housing practice; or
  (B) Will be injured by an unlawful practice or discriminatory
housing practice that is about to occur.
  (b) An aggrieved person in regard to issues to be determined in
an action may intervene as of right in the action. The Attorney
General may intervene in the action if the Attorney General
certifies that the case is of general public importance. The
court may allow an intervenor prevailing party costs and
reasonable attorney fees at trial and on appeal.
  SECTION 16.  { +  Applicability of amendments. The amendments
to ORS 659A.885 by section 15 of this 2009 Act apply to conduct
occurring on or after the effective date of this 2009 Act. + }
  SECTION 17.  { + Repeals. ORS 468A.235, 468A.240, 468A.255 and
468A.260 are repealed. + }
  SECTION 18. ORS 468A.210 is amended to read:
  468A.210. As used in ORS 352.247 and 468A.200 to 468A.260:
  (1) 'Global warming' means an increase in the average
temperature of the earth's atmosphere that is associated with the
release of greenhouse gases.
  (2) 'Greenhouse gas' means any gas that contributes to
anthropogenic global warming including, but not limited to,
carbon dioxide, methane, nitrous oxide, hydrofluorocarbons,
perfluorocarbons and sulfur hexafluoride.
    { - (3) 'Greenhouse gas cap-and-trade system' means a system
that: - }
    { - (a) Establishes a total cap on greenhouse gas emissions
from an identified group of emitters; - }
    { - (b) Establishes a market for allowances that represent
emissions; and - }
    { - (c) Allows trading of allowances among greenhouse gas
emitters. - }
  SECTION 19.  { +  Captions. The section captions used in this
2009 Act are provided only for the convenience of the reader and
do not become part of the statutory law of this state or express
any legislative intent in the enactment of this 2009 Act. + }
  SECTION 20.  { +  Emergency clause. 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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