In June 2021, the Oregon Legislature passed HB2021 to require that retail electricity providers reduce greenhouse gas emissions from the electricity sold to Oregon consumers 80% by 2030, 90% by 2035, and 100% by 2040. Electric companies must develop clean energy plans, which the Public Utility Commission must evaluate to ensure that the plan is in the public interest and consistent with the state’s clean energy targets. The Department of Environmental Quality must determine the amount of emissions reductions necessary for each provider, and limit the cumulative rate impact for compliance to 6% of annual revenue requirements. This bill allows performance incentives for early compliance.
The bill also requires electric companies to convene a Community Benefits and Impacts Advisory Group to assess the impact of their clean energy plans on environmental justice communities and low-income ratepayers, and requires a biennial assessment of community benefits and impacts of the clean energy plans. These must include a description of energy burdens, opportunities to increase contracting with businesses owned by women, veterans, or Black, Indigenous, or People of Color, actions to improve resilience in EJ communities, and more. The Department of Energy must convene a work group to examine opportunities to encourage the development of small scale and community-based renewable energy projects, reporting to the interim Committee of the Assembly by the end of September 2022.
At the time of this writing, the bill is awaiting the governor’s signature.