Bill Text: OR SB863 | 2011 | Regular Session | Enrolled


Bill Title: Relating to utility bill assistance for low-income families; and declaring an emergency.

Spectrum: Slight Partisan Bill (Democrat 4-2)

Status: (Passed) 2011-06-30 - Effective date, June 28, 2011. [SB863 Detail]

Download: Oregon-2011-SB863-Enrolled.html


     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

                            Enrolled

                         Senate Bill 863

Sponsored by Senator SHIELDS; Senator ROSENBAUM, Representatives
  BAILEY, KOTEK, MCLANE, WEIDNER (at the request of Community
  Action Partnership of Oregon)

                     CHAPTER ................

                             AN ACT

Relating to utility bill assistance for low-income families;
  creating new provisions; amending ORS 458.515 and 757.612; and
  declaring an emergency.

Be It Enacted by the People of the State of Oregon:

  SECTION 1. ORS 458.515 is amended to read:
  458.515. (1) The Director of the Housing and Community Services
Department shall appoint an advisory committee  { + on energy + }
whose members { + :
  (a) + } Shall be appointed based on a demonstrated interest in
and knowledge of low income energy assistance programs { + ; + }
 { - and - }
   { +  (b) Shall be + } broadly representative of organizations,
fuel providers and consumer groups that represent low income
persons, particularly elderly persons and persons with
disabilities { + ; + }   { - and - }
   { +  (c) Shall + } have special qualifications with respect to
solving the energy consumption problems of low income
persons { + ;
  (d) Must include a representative from each electric company or
Oregon Community Power whose ratepayers contribute funding to the
Housing and Community Services Department Low-Income Electric
Bill Payment Assistance Fund established in ORS 456.587; and
  (e) Must include a representative of the Citizens' Utility
Board established under ORS chapter 774 + }.
  (2) The committee shall meet not less than   { - twice - }
 { +  four times + } a year to advise and assist the Housing and
Community Services Department in regard to rules, policies and
programs regarding low income energy assistance programs provided
for under ORS 458.510.
  SECTION 2. ORS 757.612 is amended to read:
  757.612. (1) There is established an annual public purpose
expenditure standard for electric companies and Oregon Community
Power to fund new cost-effective local energy conservation, new
market transformation efforts, the above-market costs of new
renewable energy resources and new low-income weatherization. The
public purpose expenditure standard shall be funded by the public
purpose charge described in subsection (2) of this section.
  (2)(a) Beginning on the date an electric company or Oregon
Community Power offers direct access to its retail electricity
consumers, except residential electricity consumers, the electric

Enrolled Senate Bill 863 (SB 863-A)                        Page 1

company or Oregon Community Power shall collect a public purpose
charge from all of the retail electricity consumers located
within its service area until January 1, 2026. Except as provided
in paragraph (b) of this subsection, the public purpose charge
shall be equal to three percent of the total revenues collected
by the electric company, Oregon Community Power or the
electricity service supplier from its retail electricity
consumers for electricity services, distribution, ancillary
services, metering and billing, transition charges and other
types of costs included in electric rates on July 23, 1999.
  (b) For an aluminum plant that averages more than 100 average
megawatts of electricity use per year, beginning on March 1,
2002, the electric company or Oregon Community Power whose
territory abuts the greatest percentage of the site of the
aluminum plant shall collect from the aluminum company a public
purpose charge equal to one percent of the total revenue from the
sale of electricity services to the aluminum plant from any
source.
  (3)(a) The Public Utility Commission shall establish rules
implementing the provisions of this section relating to electric
companies and Oregon Community Power.
  (b) Subject to paragraph (e) of this subsection, funds
collected by an electric company or Oregon Community Power
through public purpose charges shall be allocated as follows:
  (A) Sixty-three percent for new cost-effective conservation and
new market transformation.
  (B) Nineteen percent for the above-market costs of constructing
and operating new renewable energy resources with a nominal
electric generating capacity, as defined in ORS 469.300, of 20
megawatts or less.
  (C) Thirteen percent for new low-income weatherization.
  (D) Five percent shall be transferred to the Housing and
Community Services Department Electricity Public Purpose Charge
Fund established by ORS 456.587 (1) and used for the purpose of
providing grants as described in ORS 458.625 (2).
  (c) The costs of administering subsections (1) to (6) of this
section for an electric company or Oregon Community Power shall
be paid out of the funds collected through public purpose
charges.  The commission may require that an electric company or
Oregon Community Power direct funds collected through public
purpose charges to the state agencies responsible for
implementing subsections (1) to (6) of this section in order to
pay the costs of administering such responsibilities.
  (d) The commission shall direct the manner in which public
purpose charges are collected and spent by an electric company or
Oregon Community Power and may require an electric company or
Oregon Community Power to expend funds through competitive bids
or other means designed to encourage competition, except that
funds dedicated for low-income weatherization shall be directed
to the Housing and Community Services Department as provided in
subsection (7) of this section. The commission may also direct
that funds collected by an electric company or Oregon Community
Power through public purpose charges be paid to a nongovernmental
entity for investment in public purposes described in subsection
(1) of this section. Notwithstanding any other provision of this
subsection:
  (A) At least 80 percent of the funds allocated for conservation
shall be spent within the service area of the electric company
that collected the funds; or

Enrolled Senate Bill 863 (SB 863-A)                        Page 2

  (B) If Oregon Community Power collected the funds, at least 80
percent of the funds allocated for conservation shall be spent
within the service area of Oregon Community Power.
  (e)(A) The first 10 percent of the funds collected annually by
an electric company or Oregon Community Power under subsection
(2) of this section shall be distributed to education service
districts, as described in ORS 334.010, that are located in the
service territory of the electric company or Oregon Community
Power. The funds shall be distributed to individual education
service districts according to the weighted average daily
membership (ADMw) of the component school districts of the
education service district for the prior fiscal year as
calculated under ORS 327.013. The commission shall establish by
rule a methodology for distributing a proportionate share of
funds under this paragraph to education service districts that
are only partially located in the service territory of the
electric company or Oregon Community Power.
  (B) An education service district that receives funds under
this paragraph shall use the funds first to pay for energy audits
for school districts located within the education service
district. An education service district may not expend additional
funds received under this paragraph on a school district facility
until an energy audit has been completed for that school
district.  To the extent practicable, an education service
district shall coordinate with the State Department of Energy and
incorporate federal funding in complying with this paragraph.
Following completion of an energy audit for an individual school
district, the education service district may expend funds
received under this paragraph to implement the energy audit. Once
an energy audit has been conducted and completely implemented for
each school district within the education service district, the
education service district may expend funds received under this
paragraph for any of the following purposes:
  (i) Conducting energy audits. A school district shall conduct
an energy audit prior to expending funds on any other purpose
authorized under this paragraph unless the school district has
performed an energy audit within the three years immediately
prior to receiving the funds.
  (ii) Weatherization and upgrading the energy efficiency of
school district facilities.
  (iii) Energy conservation education programs.
  (iv) Purchasing electricity from environmentally focused
sources and investing in renewable energy resources.
  (f) The commission may not establish a different public purpose
charge than the public purpose charge described in subsection (2)
of this section.
  (g) If the commission directs funds collected through public
purpose charges to a nongovernmental entity, the entity shall:
  (A) Include on the entity's board of directors an ex officio
member designated by the commission, who shall also serve on the
entity's nominating committee for filling board vacancies.
  (B) Require the entity's officers and directors to provide an
annual disclosure of economic interest to be filed with the
commission on or prior to April 15 of each calendar year for
public review in a form similar to the statement of economic
interest required for public officials under ORS 244.060.
  (C) Require the entity's officers and directors to declare
actual and potential conflicts of interest at regular meetings of
the entity's governing body when such conflicts arise, and
require an officer or director to abstain from participating in

Enrolled Senate Bill 863 (SB 863-A)                        Page 3

any discussion or vote on any item where that officer or director
has an actual conflict of interest. For the purposes of this
subparagraph, 'actual conflict of interest' and 'potential
conflict of interest' have the meanings given those terms in ORS
244.020.
  (D) Arrange for an independent auditor to audit the entity's
financial statements annually, and direct the auditor to file an
audit opinion with the commission for public review.
  (E) File with the commission annually the entity's budget,
action plan and quarterly and annual reports for public review.
  (F) At least once every five years, contract for an independent
management evaluation to review the entity's operations,
efficiency and effectiveness, and direct the independent reviewer
to file a report with the commission for public review.
  (h) The commission may remove from the board of directors of a
nongovernmental entity an officer or director who fails to
provide an annual disclosure of economic interest or declare
actual or potential conflict of interest, as described in
paragraph (g)(B) and (C) of this subsection, in connection with
the allocation or expenditure of funds collected through public
purpose charges and directed to the entity.
  (4)(a) An electric company that satisfies its obligations under
this section shall have no further obligation to invest in
conservation, new market transformation or new low-income
weatherization or to provide a commercial energy conservation
services program and is not subject to ORS 469.631 to 469.645 and
469.860 to 469.900.
  (b) Oregon Community Power, for any period during which Oregon
Community Power collects a public purpose charge under subsection
(2) of this section:
  (A) Shall have no other obligation to invest in conservation,
new market transformation or new low-income weatherization or to
provide a commercial energy conservation services program; and
  (B) Is not subject to ORS 469.631 to 469.645 and 469.860 to
469.900.
  (5)(a) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year
shall receive a credit against public purpose charges billed by
an electric company or Oregon Community Power for that site. The
amount of the credit shall be equal to the total amount of
qualifying expenditures for new energy conservation, not to
exceed 68 percent of the annual public purpose charges, and the
above-market costs of purchases of new renewable energy resources
incurred by the retail electricity consumer, not to exceed 19
percent of the annual public purpose charges, less administration
costs incurred under this subsection. The credit may not exceed,
on an annual basis, the lesser of:
  (A) The amount of the retail electricity consumer's qualifying
expenditures; or
  (B) The portion of the public purpose charge billed to the
retail electricity consumer that is dedicated to new energy
conservation, new market transformation or the above-market costs
of new renewable energy resources.
  (b) To obtain a credit under this subsection, a retail
electricity consumer shall file with the State Department of
Energy a description of the proposed conservation project or new
renewable energy resource and a declaration that the retail
electricity consumer plans to incur the qualifying expenditure.
The State Department of Energy shall issue a notice of
precertification within 30 days of receipt of the filing, if such

Enrolled Senate Bill 863 (SB 863-A)                        Page 4

filing is consistent with this subsection. The credit may be
taken after a retail electricity consumer provides a letter from
a certified public accountant to the State Department of Energy
verifying that the precertified qualifying expenditure has been
made.
  (c) Credits earned by a retail electricity consumer as a result
of qualifying expenditures that are not used in one year may be
carried forward for use in subsequent years.
  (d)(A) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year may
request that the State Department of Energy hire an independent
auditor to assess the potential for conservation investments at
the site. If the independent auditor determines there is no
available conservation measure at the site that would have a
simple payback of one to 10 years, the retail electricity
consumer shall be relieved of 54 percent of its payment
obligation for public purpose charges related to the site. If the
independent auditor determines that there are potential
conservation measures available at the site, the retail
electricity consumer shall be entitled to a credit against public
purpose charges related to the site equal to 54 percent of the
public purpose charges less the estimated cost of available
conservation measures.
  (B) A retail electricity consumer shall be entitled each year
to the credit described in this subsection unless a subsequent
independent audit determines that new conservation investment
opportunities are available. The State Department of Energy may
require that a new independent audit be performed on the site to
determine whether new conservation measures are available,
provided that the independent audits shall occur no more than
once every two years.
  (C) The retail electricity consumer shall pay the cost of the
independent audits described in this subsection.
  (6) Electric utilities and retail electricity consumers shall
receive a fair and reasonable credit for the public purpose
expenditures of their energy suppliers. The State Department of
Energy shall adopt rules to determine eligible expenditures and
the methodology by which such credits are accounted for and used.
The rules also shall adopt methods to account for eligible public
purpose expenditures made through consortia or collaborative
projects.
  (7)(a) In addition to the public purpose charge provided under
subsection (2) of this section, an electric company or Oregon
Community Power shall collect funds for low-income electric bill
payment assistance in an amount determined under paragraph (b) of
this subsection.
  (b) The commission shall establish the amount to be collected
by each electric company in calendar year 2008 from retail
electricity consumers served by the company, and the rates to be
charged to retail electricity consumers served by the company, so
that the total anticipated collection for low-income electric
bill payment assistance by all electric companies in calendar
year 2008 is $15 million. In calendar year 2009 and subsequent
calendar years, the commission may not change the rates
established for retail electricity consumers, but the total
amount collected in a calendar year for low-income electric bill
payment assistance may vary based on electricity usage by retail
electricity consumers and changes in the number of retail
electricity consumers in this state. In no event shall a retail

Enrolled Senate Bill 863 (SB 863-A)                        Page 5

electricity consumer be required to pay more than $500 per month
per site for low-income electric bill payment assistance.
  (c) Funds collected by the low-income electric bill payment
assistance charge shall be paid into the Housing and Community
Services Department Low-Income Electric Bill Payment Assistance
Fund established by ORS 456.587 (2). Moneys deposited in the fund
under this paragraph shall be used by the Housing and Community
Services Department for the purpose of funding low-income
electric bill payment assistance. The department's cost of
administering this subsection shall be paid out of funds
collected by the low-income electric bill payment assistance
charge. Moneys deposited in the fund under this paragraph shall
be expended solely for low-income electric bill payment
assistance. Funds collected from an electric company or Oregon
Community Power shall be expended in the service area of the
electric company or Oregon Community Power from which the funds
are collected.
  (d) { + (A) + } The Housing and Community Services Department,
in consultation with the   { - federal - }  advisory committee on
energy  { +  established by ORS 458.515 + }, shall determine the
manner in which funds collected under this subsection will be
allocated by the department to energy assistance program
providers for the purpose of providing low-income bill payment
and crisis assistance { + . + }  { - , including programs
that - }
   { +  (B) The department shall investigate and may implement
alternative delivery models specified by the advisory committee
on energy, in consultation with electric companies, to + }
effectively reduce service disconnections and related costs to
retail electricity consumers and electric utilities.
   { +  (C) + } Priority assistance shall be directed to
low-income electricity consumers who are in danger of having
their electricity service disconnected.
   { +  (D) The department shall maintain records and provide
those records upon request to an electric company, Oregon
Community Power and the Citizens' Utility Board established under
ORS chapter 774 on a quarterly basis. Records maintained must
include the numbers of low-income electricity consumers served,
the average amounts paid and the type of assistance provided.
Electric companies and Oregon Community Power shall, if
requested, provide the department with aggregate data relating to
consumers served on a quarterly basis to support program
development. + }
  (e) Interest on moneys deposited in the Housing and Community
Services Department Low-Income Electric Bill Payment Assistance
Fund established by ORS 456.587 (2) may be used to provide
  { - heating - }  bill payment and crisis assistance to
electricity consumers whose primary source of heat is not
electricity.
  (f) Notwithstanding ORS 757.310, the commission may allow an
electric company or Oregon Community Power to provide reduced
rates or other payment or crisis assistance or low-income program
assistance to a low-income household eligible for assistance
under the federal Low Income Home Energy Assistance Act of 1981,
as amended and in effect on July 23, 1999.
  (8) For purposes of this section, 'retail electricity
consumers' includes any direct service industrial consumer that
purchases electricity without purchasing distribution services
from the electric utility.

Enrolled Senate Bill 863 (SB 863-A)                        Page 6

  (9) For purposes of this section, amounts collected by Oregon
Community Power through public purpose charges are not considered
moneys received from electric utility operations.
  SECTION 3.  { + (1) Notwithstanding the $15 million limitation
expressed in ORS 757.612 (7)(b), the Public Utility Commission
shall direct electric companies or Oregon Community Power to
collect a combined total of an additional $5 million per 12-month
period from residential electricity consumers for the low-income
electric bill payment assistance provided for in ORS 757.612
(7)(a) if the Housing and Community Services Department requests
an increase due to finding, in consultation with the advisory
committee on energy, that two or more of the following events
have occurred:
  (a) The unemployment rate in Oregon as determined by the Bureau
of Labor Statistics of the United States Department of Labor has
exceeded 10 percent for at least six months of the previous
12-month period.
  (b) The poverty rate in Oregon as determined by the United
States Census Bureau has exceeded 12 percent during the previous
12-month period.
  (c) The moneys allocated for the year under the federal Low
Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et
seq.)  are 75 percent or less of the previous year's allocation.
  (d) The number of households in Oregon receiving supplemental
nutrition assistance has exceeded 20 percent during the previous
12-month period.
  (2) The additional moneys collected pursuant to this section
may not be collected for more than:
  (a) Twelve months from the date that the Public Utility
Commission directs the electric companies or Oregon Community
Power to make the collection, without an additional finding by
the Housing and Community Services Department, not less than nine
months after its initial finding under subsection (1) of this
section, that two or more of the events specified in subsection
(1) of this section have occurred; or
  (b) A total of 24 months. + }
  SECTION 4.  { + Section 3 of this 2011 Act is repealed on
January 2, 2014. + }
  SECTION 5.  { + This 2011 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2011 Act takes effect on its
passage. + }
                         ----------

Enrolled Senate Bill 863 (SB 863-A)                        Page 7

Passed by Senate May 24, 2011

    .............................................................
                               Robert Taylor, Secretary of Senate

    .............................................................
                              Peter Courtney, President of Senate

Passed by House June 15, 2011

    .............................................................
                                    Bruce Hanna, Speaker of House

    .............................................................
                                   Arnie Roblan, Speaker of House

Enrolled Senate Bill 863 (SB 863-A)                        Page 8

Received by Governor:

......M.,............., 2011

Approved:

......M.,............., 2011

    .............................................................
                                         John Kitzhaber, Governor

Filed in Office of Secretary of State:

......M.,............., 2011

    .............................................................
                                   Kate Brown, Secretary of State

Enrolled Senate Bill 863 (SB 863-A)                        Page 9
feedback