ORS Chapter 469a
Chapter 469A — RenewablePortfolio Standards
2009 EDITION
RENEWABLEPORTFOLIO STANDARDS
PUBLICHEALTH AND SAFETY
DEFINITIONS
469A.005 Definitions
QUALIFYINGELECTRICITY
469A.010 Qualifyingelectricity
469A.020 Qualifyingelectricity; age of generating facility
469A.025 Renewableenergy sources; rules
RENEWABLEPORTFOLIO STANDARDS
469A.050 Applicablestandard
469A.052 Largeutility renewable portfolio standard
469A.055 Smallelectric utilities
469A.060 Exemptionsfrom compliance with renewable portfolio standard
469A.065 Renewableportfolio standard for electricity service suppliers
469A.070 Mannerof complying with renewable portfolio standards
469A.075 Implementationplan for electric companies; annual reports; rules
COSTLIMITATION
469A.100 Limitson cost of compliance with renewable portfolio standard
COSTRECOVERY
469A.120 Costrecovery by electric companies
RENEWABLEENERGY CERTIFICATES
469A.130 Renewableenergy certificates system
469A.135 Renewableenergy certificates that may be used to comply with standards
469A.140 Use,transfer and banking of certificates
469A.145 Limitationson use of unbundled certificates to meet renewable portfolio standard
469A.150 Multistateelectric companies; rules
COMPLIANCEREPORTS
469A.170 Compliancereports
ALTERNATIVECOMPLIANCE PAYMENTS
469A.180 Electriccompanies; electricity service suppliers
469A.185 Consumer-ownedutilities
PENALTY
469A.200 Penalty
GREENPOWER RATE
469A.205 Greenpower rate
COMMUNITY-BASEDRENEWABLE ENERGY PROJECTS
469A.210 Goalfor community-based renewable energy projects
JOBIMPACT STUDY
(Temporaryprovisions relating to job impact study are compiled as notes following ORS469A.210)
DEFINITIONS
469A.005Definitions.As used in ORS 469A.005 to 469A.210:
(1)“Banked renewable energy certificate” means a bundled or unbundled renewableenergy certificate that is not used by an electric utility or electricityservice supplier to comply with a renewable portfolio standard in a calendaryear and that is carried forward for the purpose of compliance with a renewableportfolio standard in a subsequent year.
(2)“BPA electricity” means electricity provided by the Bonneville PowerAdministration, including all electricity from the Federal Columbia River PowerSystem hydroelectric projects and other electricity acquired by the BonnevillePower Administration by contract.
(3)“Bundled renewable energy certificate” means a renewable energy certificate forqualifying electricity that is acquired:
(a)By an electric utility or electricity service supplier by a trade, purchase orother transfer of electricity that includes the certificate that was issued forthe electricity; or
(b)By an electric utility by generation of the electricity for which thecertificate was issued.
(4)“Compliance year” means the calendar year for which the electric utility orelectricity service supplier seeks to establish compliance with the renewableportfolio standard applicable to the utility or supplier in the compliancereport submitted under ORS 469A.170.
(5)“Consumer-owned utility” means a municipal electric utility, a people’s utilitydistrict organized under ORS chapter 261 that sells electricity or an electriccooperative 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 ORS469A.025.
(11)“Retail electricity consumer” means a retail electricity consumer, as definedin ORS 757.600, that is located in Oregon.
(12)“Unbundled renewable energy certificate” means a renewable energy certificatefor qualifying electricity that is acquired by an electric utility orelectricity service supplier by trade, purchase or other transfer withoutacquiring the electricity for which the certificate was issued. [2007 c.301 §1]
QUALIFYINGELECTRICITY
469A.010Qualifying electricity. (1) Except as provided in this section, and subjectto ORS 469A.135, electricity generated from a renewable energy source may beused to comply with a renewable portfolio standard only if the facility thatgenerates the electricity meets the requirements of ORS 469A.020.
(2)Any electricity that the Bonneville Power Administration has designated asenvironmentally preferred power, or has given a similar designation forelectricity generated from a renewable resource, may be used to comply with arenewable portfolio standard.
(3)The Legislative Assembly finds that hydroelectric energy is an importantrenewable energy source and electricity from hydroelectric generators may beused to comply with a renewable portfolio standard as provided in ORS 469A.005to 469A.210. [2007 c.301 §2]
469A.020Qualifying electricity; age of generating facility. (1) Except asprovided in this section, electricity may be used to comply with a renewableportfolio standard only if the electricity is generated by a facility thatbecomes 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 arenewable portfolio standard if the electricity is attributable to capacity orefficiency upgrades made on or after January 1, 1995.
(3)Electricity from a hydroelectric facility that became operational before January1, 1995, may be used to comply with a renewable portfolio standard if theelectricity is attributable to efficiency upgrades made on or after January 1,1995. If an efficiency upgrade is made to a Bonneville Power Administrationfacility, only that portion of the electricity generation attributable toOregon’s share of the electricity may be used to comply with a renewableportfolio standard.
(4)Subject to the limit imposed by ORS 469A.025 (5), electricity from ahydroelectric facility that is owned by an electric utility and that becameoperational before January 1, 1995, may be used to comply with a renewableportfolio standard if the facility is certified as a low-impact hydroelectricfacility on or after January 1, 1995, by a national certification organizationrecognized by the State Department of Energy by rule. [2007 c.301 §3]
469A.025Renewable energy sources; rules. (1) Electricity generated utilizing thefollowing types of energy may be used to comply with a renewable portfoliostandard:
(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 generatedfrom biomass and biomass by-products may be used to comply with a renewableportfolio standard, including but not limited to electricity generated from:
(a)Organic human or animal waste;
(b)Spent pulping liquor;
(c)Forest or rangeland woody debris from harvesting or thinning conducted to improveforest or rangeland ecological health and to reduce uncharacteristic standreplacing wildfire risk;
(d)Wood material from hardwood timber grown on land described in ORS 321.267 (3);
(e)Agricultural residues;
(f)Dedicated energy crops; and
(g)Landfill gas or biogas produced from organic matter, wastewater, anaerobicdigesters or municipal solid waste.
(3)Electricity generated from the direct combustion of biomass may not be used tocomply with a renewable portfolio standard if any of the biomass combusted togenerate 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 arenewable portfolio standard only if:
(a)The facility is located outside any protected area designated by the PacificNorthwest Electric Power and Conservation Planning Council as of July 23, 1999,or any area protected under the federal Wild and Scenic Rivers Act, Public Law90-542, 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 onor after January 1, 1995.
(5)Up to 50 average megawatts of electricity per year generated by an electricutility from certified low-impact hydroelectric facilities described in ORS469A.020 (4) may be used to comply with a renewable portfolio standard, withoutregard to the number of certified facilities operated by the electric utilityor the generating capacity of those facilities. A hydroelectric facilitydescribed 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 energydescribed in subsections (1) to (5) of this section may be used to comply witha renewable portfolio standard.
(7)If electricity generation employs multiple energy sources, that portion of theelectricity generated that is attributable to energy sources described insubsections (1) to (6) of this section may be used to comply with a renewableportfolio standard.
(8)The State Department of Energy by rule may approve energy sources other thanthose described in this section that may be used to comply with a renewableportfolio standard. The department may not approve petroleum, natural gas, coalor nuclear fission as an energy source that may be used to comply with arenewable portfolio standard. [2007 c.301 §4]
RENEWABLEPORTFOLIO STANDARDS
469A.050Applicable standard.(1) Electric utilities must comply with the applicable renewable portfoliostandard described in ORS 469A.052 or 469A.055.
(2)Electricity service suppliers must comply with the renewable portfolio standardestablished under ORS 469A.065. [2007 c.301 §5]
469A.052Large utility renewable portfolio standard. (1) The large utilityrenewable portfolio standard imposes the following requirements on an electricutility that makes sales of electricity to retail electricity consumers in anamount that equals three percent or more of all electricity sold to retailelectricity consumers:
(a)At least five percent of the electricity sold by the utility to retailelectricity consumers in each of the calendar years 2011, 2012, 2013 and 2014must be qualifying electricity;
(b)At least 15 percent of the electricity sold by the utility to retailelectricity consumers in each of the calendar years 2015, 2016, 2017, 2018 and2019 must be qualifying electricity;
(c)At least 20 percent of the electricity sold by the utility to retailelectricity consumers in each of the calendar years 2020, 2021, 2022, 2023 and2024 must be qualifying electricity; and
(d)At least 25 percent of the electricity sold by the utility to retailelectricity consumers in calendar year 2025 and subsequent calendar years mustbe qualifying electricity.
(2)If, on June 6, 2007, an electric utility makes sales of electricity to retailelectricity consumers in an amount that equals less than three percent of allelectricity sold to retail electricity consumers, but in any three consecutivecalendar years thereafter makes sales of electricity to retail electricityconsumers in amounts that average three percent or more of all electricity soldto retail electricity consumers, the utility is subject to the renewableportfolio standard described in subsection (3) of this section. The utilitybecomes subject to the standard described in subsection (3) of this section inthe calendar year following the three-year period during which the utilitymakes sales of electricity to retail electricity consumers in amounts thataverage three percent or more of all electricity sold to retail electricityconsumers.
(3)An electric utility described in subsection (2) of this section must complywith the following renewable portfolio standard:
(a)Beginning in the fourth calendar year after the calendar year in which theutility becomes subject to the standard described in this subsection, at leastfive percent of the electricity sold by the utility to retail electricityconsumers in a calendar year must be qualifying electricity;
(b)Beginning in the 10th calendar year after the calendar year in which theutility becomes subject to the standard described in this subsection, at least15 percent of the electricity sold by the utility to retail electricityconsumers in a calendar year must be qualifying electricity;
(c)Beginning in the 15th calendar year after the calendar year in which theutility becomes subject to the standard described in this subsection, at least20 percent of the electricity sold by the utility to retail electricityconsumers in a calendar year must be qualifying electricity; and
(d)Beginning in the 20th calendar year after the calendar year in which theutility becomes subject to the standard described in this subsection, at least25 percent of the electricity sold by the utility to retail electricityconsumers in a calendar year must be qualifying electricity. [2007 c.301 §6]
469A.055Small electric utilities. (1) Except as provided in this section, an electricutility that makes sales of electricity to retail electricity consumers in anamount that equals less than three percent of all electricity sold to retailelectricity consumers is not subject to ORS 469A.005 to 469A.210.
(2)Beginning in calendar year 2025, at least five percent of the electricity soldto retail electricity consumers in a calendar year by an electric utility mustbe qualifying electricity if the electric utility makes sales of electricity toretail electricity consumers in an amount that equals less than one andone-half percent of all electricity sold to retail electricity consumers.
(3)Beginning in calendar year 2025, at least 10 percent of the electricity sold toretail electricity consumers in a calendar year by an electric utility must bequalifying electricity if the electric utility makes sales of electricity toretail electricity consumers in an amount that equals or is more than one andone-half percent, and less than three percent, of all electricity sold toretail electricity consumers.
(4)The exemption provided by subsection (1) of this section terminates if anelectric utility, or a joint operating entity that includes the utility as amember, acquires electricity from an electricity generating facility that usescoal as an energy source or makes an investment on or after June 6, 2007, in anelectricity generating facility that uses coal as an energy source. Thissubsection does not apply to:
(a)A wholesale market purchase by an electric utility for which the energy sourcefor 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 electricitydescribed in paragraph (c) of this subsection;
(e)A purchase of electricity if the electricity is included in a contract for thepurchase of qualifying electricity and is necessary to shape, firm or integratethe qualifying electricity;
(f)Electricity provided to an electric utility under a contract for theacquisition of an interest in an electricity generating facility that wasentered 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 theelectric utility is a member, without regard to whether the electricity isbeing 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 energysource if the investments are for the purpose of improving the facility’spollution mitigation equipment or the facility’s efficiency or are necessary tocomply with requirements or standards imposed by governmental entities.
(5)The exemption provided by subsection (1) of this section terminates for aconsumer-owned utility if at any time after June 6, 2007, the utility acquiresservice territory of an electric company without the consent of the electriccompany.
(6)Beginning in the calendar year following the year in which an electric utility’sexemption terminates under subsection (4) or (5) of this section, the utilityis 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 electricutilities offer a green power rate under ORS 469A.205. [2007 c.301 §7]
469A.060Exemptions from compliance with renewable portfolio standard. (1) Electricutilities are not required to comply with the renewable portfolio standardsdescribed in ORS 469A.052 and 469A.055 to the extent that:
(a)Compliance with the standard would require the utility to acquire electricityin excess of the utility’s projected load requirements in any calendar year;and
(b)Acquiring the additional electricity would require the utility to substitutequalifying electricity for electricity derived from an energy source other thancoal, natural gas or petroleum.
(2)(a)Electric utilities are not required to comply with a renewable portfoliostandard to the extent that compliance would require the utility to substitutequalifying electricity for electricity available to the utility under contractsfor electricity from dams that are owned by Washington public utility districtsand are located between the Grand Coulee Dam and the Columbia River’s junctionwith the Snake River. The provisions of this subsection apply only to contractsentered into before June 6, 2007, and to renewal or replacement contracts forcontracts entered into before June 6, 2007.
(b)If a contract described in paragraph (a) of this subsection expires and is notrenewed or replaced, the utility must comply, in the calendar year followingthe expiration of the contract, with the renewable portfolio standardapplicable to the utility.
(3)A consumer-owned utility is not required to comply with a renewable portfoliostandard to the extent that compliance would require the utility to reduce theutility’s purchases of the lowest priced electricity from the Bonneville PowerAdministration pursuant to section 5 of the Pacific Northwest Electric PowerPlanning 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 firmcommitments for BPA electricity that the Bonneville Power Administration hasassured will be available to a utility to meet agreed portions of the utility’sload requirements for a defined period of time. [2007 c.301 §8]
469A.065Renewable portfolio standard for electricity service suppliers. An electricityservice supplier must meet the requirements of the renewable portfoliostandards that are applicable to the electric utilities that serve theterritories in which the electricity service supplier sells electricity toretail electricity consumers. The Public Utility Commission shall establishprocedures for implementation of the renewable portfolio standards forelectricity service suppliers that sell electricity in the service territory ofan electric company. If an electricity service supplier sells electricity interritories served by more than one electric company, the commission mayprovide for an aggregate standard based on the amount of electricity sold bythe electricity service supplier in each territory. Pursuant to ORS 757.676, aconsumer-owned utility may establish procedures for the implementation of therenewable portfolio standards for electricity service suppliers that sellelectricity in the territory served by the consumer-owned utility. [2007 c.301 §9]