2007 Oregon Code - Chapter 469 :: Chapter 469A - Renewable Portfolio Standards
Chapter 469A
— Renewable Portfolio Standards
2007 EDITION
RENEWABLE PORTFOLIO STANDARDS
PUBLIC HEALTH AND SAFETY
DEFINITIONS
469A.005Â Definitions
QUALIFYING ELECTRICITY
469A.010Â Qualifying
electricity
469A.020Â Qualifying
electricity; age of generating facility
469A.025Â Renewable
energy sources
RENEWABLE PORTFOLIO STANDARDS
469A.050Â Applicable
standard
469A.052Â Large
utility renewable portfolio standard
469A.055Â Small
electric utilities
469A.060Â Exemptions
from compliance with renewable portfolio standard
469A.065Â Renewable
portfolio standard for electricity service suppliers
469A.070Â Manner
of complying with renewable portfolio standards
469A.075Â Implementation
plan for electric companies; annual reports; rules
COST LIMITATION
469A.100Â Limits
on cost of compliance with renewable portfolio standard
COST RECOVERY
469A.120Â Cost
recovery by electric companies
RENEWABLE ENERGY CERTIFICATES
469A.130Â Renewable
energy certificates system
469A.135Â Renewable
energy certificates that may be used to comply with standards
469A.140Â Use,
transfer and banking of certificates
469A.145Â Limitations
on use of unbundled certificates to meet renewable portfolio standard
469A.150Â Multistate
electric companies; rules
COMPLIANCE REPORTS
469A.170Â Compliance
reports
ALTERNATIVE COMPLIANCE PAYMENTS
469A.180Â Electric
companies; electricity service suppliers
469A.185Â Consumer-owned
utilities
PENALTY
469A.200Â Penalty
GREEN POWER RATE
469A.205Â Green
power rate
COMMUNITY-BASED RENEWABLE ENERGY PROJECTS
469A.210Â 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)
DEFINITIONS
     469A.005
Definitions. As used in ORS
469A.005 to 469A.210:
     (1) “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.
     (2) “BPA electricity” means electricity
provided by the Bonneville Power Administration, including all electricity from
the Federal Columbia River Power System hydroelectric projects and other
electricity acquired by the Bonneville Power Administration by contract.
     (3) “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 certificate that was issued for the electricity; or
     (b) By an electric utility by generation
of the electricity for which the certificate was issued.
     (4) “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
utility or supplier in the compliance report submitted under ORS 469A.170.
     (5) “Consumer-owned utility” means a
municipal electric utility, a peopleÂ’s utility district organized under ORS
chapter 261 that sells electricity or an electric cooperative organized under
ORS chapter 62.
     (6) “Electric company” has the meaning
given that term in ORS 757.600.
     (7) “Electric utility” has the meaning
given that term in ORS 757.600.
     (8) “Electricity service supplier” has the
meaning given that term in ORS 757.600.
     (9) “Qualifying electricity” means
electricity described in ORS 469A.010.
     (10) “Renewable energy source” means a
source of electricity described in ORS 469A.025.
     (11) “Retail electricity consumer” means a
retail electricity consumer, as defined in ORS 757.600, that is located in
     (12) “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 for which
the certificate was issued. [2007 c.301 §1]
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) 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.
     (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]
     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
     (4) Subject to the limit imposed by ORS
469A.025 (5), electricity from a hydroelectric facility that is owned by an electric
utility and 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. [2007 c.301 §3]
     469A.025
Renewable energy sources.
(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 byproducts 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)
     (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:
     (a) Municipal solid waste; or
     (b) 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, Public Law 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) 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) 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 subsection is not
subject to the requirements of subsection (4) of this section.
     (6) Electricity generated from hydrogen
gas derived from any source of energy described in subsections (1) to (5) of
this section may be used to comply with a renewable portfolio standard.
     (7) If electricity generation employs
multiple energy sources, that portion of the electricity generated that is
attributable to energy sources described in subsections (1) to (6) of this
section may be used to comply with a renewable portfolio standard.
     (8) 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]
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 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 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 utility to retail electricity consumers in each of the calendar
years 2020, 2021, 2022, 2023 and 2024 must be qualifying electricity; and
     (d) At least 25 percent of the electricity
sold by the utility to retail electricity consumers in calendar year 2025 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 utility is subject to the renewable portfolio standard described
in subsection (3) of this section. The utility becomes subject to the standard
described in subsection (3) of this section in the calendar year following the
three-year period during which the 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 utility becomes subject to the standard
described in this subsection, at least five percent of the electricity sold by
the 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 utility becomes subject to the standard
described in this subsection, at least 15 percent of the electricity sold by
the 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 utility becomes subject to the standard described
in this subsection, at least 20 percent of the electricity sold by the 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 utility becomes subject to the standard
described in this subsection, at least 25 percent of the electricity sold by
the utility to retail electricity consumers in a calendar year must be
qualifying electricity. [2007 c.301 §6]
     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 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. 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 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 facilityÂ’s pollution mitigation equipment or
the facilityÂ’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 at any time
after June 6, 2007, the utility acquires service territory of an electric
company without the consent of the electric company.
     (6) Beginning in the calendar year
following the year in which an electric utilityÂ’s exemption terminates under
subsection (4) or (5) of this section, the utility is subject to the renewable
portfolio standard described in ORS 469A.052 (3) and related provisions of ORS
469A.005 to 469A.210.
     (7) 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]
     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 utility to acquire electricity in excess of the utilityÂ’s projected
load requirements in any calendar year; and
     (b) Acquiring the additional electricity
would require the 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 utility to substitute qualifying electricity for electricity
available to the utility under contracts for electricity from dams that are
owned by Washington public utility districts and are located between the Grand
Coulee Dam and the Columbia RiverÂ’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 utility must
comply, in the calendar year following the expiration of the contract, with the
renewable portfolio standard applicable to the utility.
     (3) A consumer-owned utility is not
required to comply with a renewable portfolio standard to the extent that
compliance would require the utility to reduce the utilityÂ’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 utility to
meet agreed portions of the utilityÂ’s load requirements for a defined period of
time. [2007 c.301 §8]
     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 standard and file the plan with the Public Utility
Commission. Implementation plans must be revised and updated at least once
every two years.
     (2) An implementation plan must at a
minimum 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 the
implementation plan no later than six months after the plan is filed with the
commission. The commission may acknowledge the 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; and
     (c) Providing for the integration of the
implementation plan with the integrated resource planning guidelines
established by the commission and in effect on June 6, 2007.
     (5) The 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 standards
of the commission relating to least-cost, least-risk planning for acquisition
of resources. [2007 c.301 §11]
     Note: Section 11a, chapter 301, Oregon Laws 2007,
provides:
     Sec.
11a. An electric company
shall develop and file with the Public Utility Commission an initial
implementation plan under section 11 of this 2007 Act [469A.075] no later than
January 1, 2010. [2007 c.301 §11a]
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 utilityÂ’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. The governing
body of a consumer-owned utility shall establish the annual revenue requirement
for the consumer-owned utility.
     (3) The annual revenue requirement for an
electric utility shall be calculated based only on the operations of the
utility relating to electricity. The annual revenue requirement does not include
any amount expended by the utility for energy efficiency programs for customers
of the 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) All operating expenses of the utility
during the compliance year, including depreciation and taxes; and
     (b) For electric companies, an amount
equal to the total rate base of the company for the compliance year multiplied
by the rate of return established by the commission for debt and equity of the
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 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]
     Note: Section 12a, chapter 301, Oregon Laws 2007,
provides:
     Sec.
12a. The Public Utility
Commission shall establish the methodology for determining the annual revenue
requirement of an electric company for purposes of section 12 of this 2007 Act
[469A.100] no later than July 1, 2008. [2007 c.301 §12a]
COST RECOVERY
     469A.120
Cost recovery by electric companies. (1) Except as provided in ORS 469A.180 (5), all prudently incurred
costs associated with compliance with a renewable portfolio standard 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 and other costs associated with transmission and delivery of
qualifying electricity to retail electricity consumers.
     (2) Costs associated with compliance with
a renewable portfolio standard are not an above-market cost for the purposes of
ORS 757.600 to 757.689.
     (3) 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 and for associated electricity transmission.
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.
     (4) 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 (3) of this section. 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. A filing
made under this subsection is subject to the commissionÂ’s authority under ORS
757.215 to suspend a rate, or schedule of rates, for investigation. [2007 c.301
§13]
     Note: Section 13a, chapter 301, Oregon Laws 2007,
provides:
     Sec.
13a. The Public Utility
Commission shall establish the automatic adjustment clause or another method
for timely recovery of costs as required by section 13 (3) of this 2007 Act
[469A.120 (3)] no later than January 1, 2008. The clause or method shall apply
to all prudently incurred costs described in section 13 (3) of this 2007 Act
incurred by an electric company since the date of the companyÂ’s last general
rate case that was decided by the commission before the effective date of this
2007 Act [June 6, 2007]. [2007 c.301 §13a]
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.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 certificate is issued is located in the
     (b) The qualifying electricity for which
the certificate is issued is delivered to the Bonneville Power Administration,
to the transmission system of an electric utility or to another delivery point
designated by an electric utility for the purpose of subsequent delivery to the
electric utility.
     (2) An unbundled renewable energy
certificate may be used to comply with a renewable portfolio standard if the
facility that generates the qualifying electricity for which the certificate is
issued 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. [2007 c.301 §15]
     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 an electric utility 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. For the purpose of complying with a renewable
portfolio standard in any calendar year:
     (a) Banked renewable energy certificates
must be used, up to the limit imposed by ORS 469A.145, before other
certificates are used; and
     (b) Banked renewable energy certificates
with the oldest issuance date must be used to comply with the standard before
banked renewable energy certificates with more recent issuance dates are used.
     (3) 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 utility or supplier has not used,
traded, sold or otherwise transferred the certificate.
     (4) The same renewable energy certificate
may be used by an electric utility or electricity service supplier to comply
with 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 any other state may not use the same
certificate to comply with a renewable portfolio standard established under ORS
469A.005 to 469A.210. [2007 c.301 §16]
     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 renewable energy certificates issued for
electricity generated in Oregon 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 renewable energy certificates issued for
electricity generated in
     (4) The limitation imposed by subsection
(1) of this section does not apply to an electricity service supplier. [2007
c.301 §17]
     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.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. (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
companyÂ’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 companyÂ’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]
     Note: Section 20a, chapter 301, Oregon Laws 2007,
provides:
     Sec.
20a. The Public Utility
Commission shall establish initial alternative compliance rates as required by
section 20 of this 2007 Act [469A.180] no later than July 1, 2009. [2007 c.301 §20a]
     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. The Legislative Assembly finds that
community-based renewable energy projects are an essential element of
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]
_______________
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