Renewable Portfolio Standard (Oregon)

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Last modified on February 12, 2015.

Rules Regulations Policies Program

Place Oregon

Name Renewable Portfolio Standard
Incentive Type Renewables Portfolio Standard
Applicable Sector Investor-Owned Utility, Municipal Utility, Retail Supplier, Rural Electric Cooperative
Eligible Technologies Anaerobic Digestion, Biomass, Geothermal Electric, Hydroelectric, Hydrogen, Landfill Gas, Municipal Solid Waste, Ocean Thermal, Photovoltaics, Solar Thermal Electric, Tidal Energy, Wave Energy, Wind
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs








Credit Trading Yes (WREGIS)
Credit Transfers Accepted From None
Credit Transfers Accepted To WREGIS into NAR, NC-RETS

(Refers to tracking system compatibility only, not RPS eligibility. Please see statutes and regulations for information on facility eligibility)




















Standard Large utilities: 25% by 2025

Small utilities: 10% by 2025
Smallest utilities: 5% by 2025


Technology Minimum PV (IOUs): 20 MW sized 500 kW to 5 MW by 2020












Website http://www.oregon-rps.org
Date added to DSIRE 2007-06-04
Last DSIRE Review 2012-06-29
Last Substantive Modification
to Summary by DSIRE
2011-06-29


References DSIRE[1]


Summary

As part of the Oregon Renewable Energy Act of 2007 (Senate Bill 838), the state of Oregon established a renewable portfolio standard (RPS) for electric utilities and retail electricity suppliers. Different RPS targets apply depending on a utility's size. Electricity service suppliers must meet the requirements applicable to the electric utilities that serve the territories in which the electricity service supplier sells electricity to retail consumers.

Large utilities -- those with 3% or more of the state's load -- must ensure that a percentage of the electricity sold to retail customers in-state be derived from newer eligible renewable energy resources according to the following schedule:

  • 5% by 2011
  • 15% by 2015
  • 20% by 2020
  • 25% by 2025

Eligible “newer” resources are primarily those placed in service on or after January 1, 1995, as discussed further below. Smaller utilities are subject to lower standards. Utilities with less than 1.5% of state load must meet a 5% RPS by 2025. Utilities with more than 1.5%, but less than 3% of state load must meet a 10% RPS by 2025. However, utilities that buy into a new coal plant or sign a new contract specifically for new coal power and publicly-owned utilities that annex investor-owned utility territory without consent are subject to the “large utility” standards.

The legislation also established a goal that by 2025 at least 8% of Oregon's retail electrical load comes from small-scale, community renewable energy projects with a capacity of 20 megawatts (MW) or less. In fact, the legislation modified Oregon's public purpose charge for renewable resources to focus on smaller projects of 20 MW or less and extended the sunset date on the public purpose charge through 2025.

Eligible renewable resources include electricity generated from solar, wind, hydropower, ocean thermal, wave, and tidal power, geothermal, hydrogen using anhydrous ammonia derived from certain renewable sources, municipal solid waste, and biomass, including biogas. Initially, incineration facilities using municipal solid waste were not eligible, but with the passage of HB 3674 in March 2010, municipal solid waste facilities are eligible. Only 11 MW of municipal solid waste can count towards the RPS each year. Incineration facilities using chemically-treated wood are not eligible. Eligible resources must be located within Western Electricity Coordinating Council (WECC) territory or must be designated environmentally preferable by the Bonneville Power Administration (BPA).

To qualify as an eligible renewable resource, electricity must be generated by a facility that becomes operational on or after January 1, 1995. Electricity from facilities operational before January 1, 1995, attributable to efficiency or, for non-hydropower facilities, capacity upgrades, on or after January 1, 1995 is a qualifying resource. A limited amount of hydropower from facilities operational before 1995 can qualify as an eligible resource under certain conditions. 50 average MW of utility-owned, pre-1995, low-impact hydropower can be used for compliance; 40 average MW of non-utility owned, pre-1995, low-impact hydropower can be used for compliance. HB 3674 (2010) allowed pre-1995 biomass and municipal solid waste facilities to be eligible for RPS compliance beginning in 2026. Renewable energy certificates from these facilities can be purchased prior to 2026, but cannot be used for compliance until 2026. Additionally, with the passage of HB 2622 (2011), electricity generated by facilities that burn coal as a fuel source, but stop burning coal completely and convert to renewable energy after January 1, 2012, can be used to comply with the RPS.

A matrix detailing eligible resources, targets by utility size, and affected utilities is available on the program web site above.

RPS compliance must be demonstrated through the purchase of renewable energy credits (RECs) through the Western Renewable Energy Generation Information System (WREGIS). RECs may be either bundled with, or purchased separately from, electricity contracts. Unbundled RECs can only meet 20% of a large utility's compliance obligation and 50% of a large consumer-owned utility's obligation. RECs procured before March 31 of a given year may be used for a previous year's compliance, and RECs may be banked and carried forward indefinitely for future compliance. Note that bundled RECs must come from a facility in the U.S. portion of the WECC.

RECs cannot be counted toward compliance with both Oregon's RPS and an RPS of another state or use in voluntary “green power” programs. However, RECs can be counted toward both Oregon's RPS and a federal RPS should one be enacted.

In July 2009, HB 3039 created a multiplier for RECs generated by certain solar photovoltaic (PV) systems. This legislation requires electric utilities (excluding municipal electric utilities, public utility districts, and electric co-operatives) to develop 20 MW-AC of solar PV by January 1, 2020. Individual PV systems used to meet this target must have a capacity of 500 kilowatts to 5 MW. Systems installed to meet this target that are operational prior to January 1, 2016, will be credited for two kilowatt-hours (kWh) for each kWh generated, with respect to RPS compliance.

There are two mechanisms that serve as cost protections for Oregon consumers -- an alternative compliance payment (ACP) mechanism and an overarching “cost cap” on utility RPS expenditures. In lieu of procuring renewable resources, utilities can pay an ACP to be placed in a holding account to be spent on energy conservation programs or procuring eligible resources. The Oregon Public Utilities Commission (PUC) established the ACP rate of $50 per megawatt-hour (MWh) for 2011 and will establish the rate for each investor-owned utility and electricity supplier by October 1 of each even numbered year for the next even numbered year and the following odd year. The governing body will establish an ACP rate for consumer-owned utilities. Electric utilities are not required to fully comply with a renewable portfolio standard during a compliance year to the extent that compliance costs exceed 4% of the utility's annual revenue requirement for the compliance year.

Utilities are also exempt from RPS compliance requirements if the purchase of electricity from eligible sources would:

  • exceed a utility's projected load requirements;
  • require the utility to substitute eligible renewable electricity for sources other than coal, natural gas or petroleum;
  • require the utility to substitute eligible renewable electricity from existing large hydropower located on the Columbia River; or
  • reduce a consumer-owned utility's purchase of the lowest price electricity from the BPA.

Investor-owned utilities are allowed to recover all of their prudently-incurred costs, including above-market costs, associated with RPS compliance in electricity rates.

Investor-owned utilities and electricity service suppliers must submit a compliance report annually to the PUC. Consumer-owned utilities must submit the report to the members or customers of the utility. The PUC can impose penalties against investor-owned utilities or suppliers that fail to comply with the RPS in an amount the PUC determines -- in addition to any alternative compliance payment. Payments will be transmitted to the Oregon Energy Trust to support renewable energy and energy efficiency programs.

In addition to the RPS, utilities are required to offer a voluntary green power program whose subscriptions cannot be counted towards RPS compliance, as noted above.


Incentive Contact

Contact Name Julie Peacock
Department Oregon Department of Energy

Address 625 Marion Street, N.E.

Place Salem, Oregon
Zip/Postal Code 97301-3737
Phone (503) 373-2125

Fax (503) 373-7806
Email julie.peacock@state.or.us
Website http://www.oregon.gov/energy
     
     

Authorities (Please contact the if there are any file problems.)

Authority 1: ORS § 469A
Date Effective 2007-01-01
Date Enacted 2007-06-06


Authority 2: OAR 330-160-0015 to 330-160-0050
Date Effective 2008-09-03
Date Enacted 2008, subsequently amended


Authority 3: OR PUC Order No. 10-200
Date Effective 2010-05-28
Date Enacted 2010-05-28


Authority 4: HB 3674
Date Effective 2010-03-04
Date Enacted 2010-03-04















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"