Bill Text: OR HB2792 | 2013 | Regular Session | Introduced
Bill Title: Relating to energy; appropriating money; prescribing an effective date; providing for revenue raising that requires approval by a three-fifths majority.
Spectrum: Committee Bill
Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2792 Detail]
Download: Oregon-2013-HB2792-Introduced.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 936
House Bill 2792
Sponsored by COMMITTEE ON ENERGY AND ENVIRONMENT
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Imposes tax on each fuel supplier and utility based on amount
of carbon in carbon-based fuel that is sold by fuel supplier to
consumers in state or that is used to produce carbon-generated
electricity supplied by utility to consumers in state. Limits tax
on certain oil and natural gas to six percent of market value of
oil or natural gas. Allows credit against tax for creation of
forestry carbon offsets.
Distributes proceeds of tax to State Highway Fund, Common
School Fund, General Fund, State Department of Energy, Department
of Environmental Quality, Department of Land Conservation and
Development and Department of Education. Applies to carbon-based
fuel sold to consumers or used to produce carbon-generated
electricity on or after effective date of Act.
Appropriates moneys from General Fund to Department of Revenue
and State Department of Energy for purpose of funding first year
of administration of tax.
Repeals renewable fuels standard adopted by State Department of
Agriculture. Applies to biodiesel fuel sold in Oregon after
effective date of Act.
Adjusts sunset of low carbon fuel standard adopted by
Environmental Quality Commission.
Repeals energy siting assessment paid to State Department of
Energy. Applies to fiscal years beginning on or after effective
date of Act.
Changes rate of motor vehicle fuel tax. Applies to fuel used on
or after effective date of Act.
Repeals statutes and deletes provisions related to renewable
portfolio standards.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to energy; creating new provisions; amending ORS
261.253, 261.305, 261.335, 261.348, 261.355, 262.015, 262.075,
291.055, 319.530, 468A.280, 469.410, 469.421, 469.681,
469A.300, 526.780, 646.921, 757.365, 757.370, 757.522, 757.531
and 757.533 and section 49, chapter 753, Oregon Laws 2009, and
section 8, chapter 754, Oregon Laws 2009; repealing ORS
469A.005, 469A.010, 469A.020, 469A.025, 469A.050, 469A.052,
469A.055, 469A.060, 469A.065, 469A.070, 469A.075, 469A.100,
469A.120, 469A.130, 469A.135, 469A.140, 469A.145, 469A.150,
469A.170, 469A.180, 469A.185, 469A.200, 469A.205, 469A.210,
646.922, 757.375 and 758.552 and sections 17a, 25 and 26,
chapter 301, Oregon Laws 2007, section 47a, chapter 753, Oregon
Laws 2009, and section 9, chapter 754, Oregon Laws 2009;
appropriating money; prescribing an effective date; and
providing for revenue raising that requires approval by a
three-fifths majority.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + As used in sections 1 to 6 of this 2013 Act:
(1) 'Carbon-based fuel' means coal, natural gas, petroleum
products and any other product used for fuel that contains carbon
and emits carbon dioxide when combusted. 'Carbon-based fuel '
does not include any product used for fuel that is from a
resource that is less than 1,000 years old in its natural state.
(2) 'Carbon-generated electricity' means electric energy that
is produced using a carbon-based fuel.
(3) 'Fuel supplier' means a person that sells carbon-based fuel
to consumers.
(4) 'Utility' means a public utility operating under ORS
chapter 757, a people's utility district operating under ORS
chapter 261, a municipal utility operating under ORS chapter 225
or any other entity that supplies carbon-generated electricity to
consumers. + }
SECTION 2. { + (1) A tax is imposed on each fuel supplier and
utility at a rate of $___ per ton of carbon in a carbon-based
fuel that is:
(a) Sold by a fuel supplier to consumers in this state; or
(b) Used to produce carbon-generated electricity that is
supplied by a utility to consumers in this state.
(2) Notwithstanding the rate designated under subsection (1) of
this section, the amount of tax imposed on oil or natural gas
under this section may not exceed six percent of the market value
of oil or natural gas that is described in Article IX, section
3b, of the Oregon Constitution. If the total of all taxes imposed
by all laws on oil or natural gas described in Article IX,
section 3b, of the Oregon Constitution, exceeds six percent of
the market value of the oil or natural gas, the amount that is in
excess because of taxes imposed by the laws of this state, other
than the tax imposed by this section, shall be refunded to the
taxpayer.
(3) The Department of Revenue shall calculate the tax liability
of a fuel supplier or utility by multiplying the rate designated
in subsection (1) of this section by the total amount of carbon
in carbon-based fuels that are:
(a) Sold by the fuel supplier to consumers in this state in the
previous calendar year; or
(b) Used to produce carbon-generated electricity supplied by
the utility to consumers in this state in the previous calendar
year.
(4)(a) If a utility is unable to provide the information
required for the calculation under subsection (3) of this
section, the Department of Revenue shall calculate the utility's
tax liability by multiplying the rate designated in subsection
(1) of this section by the product of the average amount of
carbon used in the production of one kilowatt of electricity
supplied by the utility and the total number of kilowatts of
electricity supplied by the utility to consumers in this state.
(b) The State Department of Energy shall calculate the average
amount of carbon used in the production of one kilowatt of
electricity supplied by the utility based upon the proportion
that each carbon-based fuel constitutes of the total amount of
carbon-based fuel used in the generation of the electricity by
the utility and the amount of carbon used in the production of
one kilowatt of electricity for each carbon-based fuel. Each
year, the State Department of Energy shall recalculate and report
to the Department of Revenue the average amount of carbon used in
the production of one kilowatt of electricity supplied by the
utility to take into account any changes in the relative
proportion of carbon-based fuels used in the generation of the
electricity by the utility.
(5) The Department of Revenue and the State Department of
Energy may adopt any rules necessary for the calculation of tax
liability and the collection of the tax imposed under this
section.
(6) The tax imposed under this section does not apply to:
(a) Carbon-based fuel or carbon-generated electricity that this
state is prohibited from taxing under the Constitution or laws of
the United States or the Constitution or laws of the State of
Oregon.
(b) Any fuel supplier or utility that is administered by a
federal agency.
(c) Any carbon-based fuel or carbon-generated electricity that
is transported through this state, or produced in this state, but
not consumed in this state. + }
SECTION 3. { + (1) Every fuel supplier and utility required to
pay the tax imposed under section 2 of this 2013 Act shall file a
report with the Department of Revenue on or before April 1 of
each year.
(2) The report filed by a fuel supplier under this section
shall include:
(a) The total amount of each carbon-based fuel sold by the fuel
supplier to consumers in this state in the previous calendar
year;
(b) The market value of and any taxes paid for any oil or
natural gas that is described in Article IX, section 3b, of the
Oregon Constitution, and sold by the fuel supplier to consumers
in this state in the previous calendar year; and
(c) Any other information required by the department by rule.
(3) The report filed by a utility under this section shall
include:
(a) The total amount of each carbon-based fuel used to produce
the carbon-generated electricity supplied by the utility to
consumers in this state in the previous calendar year;
(b) The market value of and any taxes paid for any oil or
natural gas that is described in Article IX, section 3b, of the
Oregon Constitution, and used to produce carbon-generated
electricity supplied by the utility to consumers in this state in
the previous calendar year; and
(c) Any other information required by the department by rule.
(4) If a utility is unable to provide the information required
under subsection (3) of this section, the utility shall report:
(a) To the State Department of Energy the information required
by the department by rule to make the calculations under section
2 (4) of this 2013 Act; and
(b) To the Department of Revenue the total number of kilowatts
of electricity generated using carbon-based fuel and supplied by
the utility to consumers in this state in the previous calendar
year.
(5) Each fuel supplier and utility shall keep records, render
statements, make returns and comply with rules adopted by the
Department of Revenue and the Department of Energy related to the
tax imposed under section 2 of this 2013 Act. + }
SECTION 4. { + (1) On or before June 1 of each year, the
Department of Revenue shall send to each fuel supplier and
utility an assessment that identifies the tax liability of the
fuel supplier or utility for the previous calendar year for the
tax imposed under section 2 of this 2013 Act.
(2) On or before July 1 of each year, each fuel supplier and
utility that receives an assessment under subsection (1) of this
section shall pay the amount of the tax liability to the
department.
(3) If the amount paid by the fuel supplier or utility under
subsection (2) of this section exceeds the amount of tax payable,
the department shall refund the amount of the excess with
interest at the rate established under ORS 305.220 for each month
or fraction of a month from the date of payment of the excess
until the date of the refund. A refund is not available to a fuel
supplier or utility that fails to claim the refund within two
years after the due date for the filing of the return with
respect to which the claim for refund relates.
(4) If a fuel supplier or utility fails to pay the tax assessed
against it under subsection (1) of this section, the department
may enforce collection by the issuance of a distraint warrant for
the collection of the delinquent amount and all penalties,
interest and collection charges. The warrant shall be issued,
docketed and proceeded upon in the same manner and shall have the
same force and effect as is prescribed with respect to warrants
for the collection of delinquent income taxes. + }
SECTION 5. { + Moneys received by the Department of Revenue
pursuant to the tax imposed under section 2 of this 2013 Act
shall be deposited in a suspense account created pursuant to ORS
293.445. Moneys in the account shall be distributed as follows:
(1) All moneys that are collected from motor vehicle fuel or
any other product used for the propulsion of motor vehicles shall
be used in the manner described in Article IX, section 3a, of the
Oregon Constitution.
(2) All moneys that are collected from natural gas or oil
described in Article VIII, section 2 (1)(g), of the Oregon
Constitution, shall be used in the manner described in Article
VIII, section 2 (2), of the Oregon Constitution.
(3) All moneys collected from sources not described in
subsection (1) or (2) of this section, minus any amounts the
Department of Revenue or State Department of Energy may collect
to cover costs incurred by the Department of Revenue or State
Department of Energy in the administration of the tax, shall be
deposited as follows:
(a) ___ percent to the General Fund.
(b) ___ percent to the State Department of Energy, with no more
than $___ to be used for administrative costs of the department.
(c) ___ percent to the Department of Environmental Quality.
(d) ___ percent to the Department of Land Conservation and
Development.
(e) ___ percent to the Department of Education. + } { + + }
SECTION 6. { + Unless the context requires otherwise, the
provisions of ORS chapters 305, 314 and 316 that relate to the
audit and examination of reports and returns, confidentiality and
disclosure of reports and returns, determination of deficiencies,
assessments, claims for refunds, penalties, interest, jeopardy
assessments, warrants, conferences and appeals to the Oregon Tax
Court, and related procedures, apply to sections 1 to 6 of this
2013 Act, the same as if the tax were a tax imposed upon or
measured by net income. + }
SECTION 7. { + For the purpose of first calculating the tax
liability of fuel suppliers and utilities under section 2 of this
2013 Act, the State Department of Energy shall determine the
amount of carbon by weight in each carbon-based fuel and report
those percentages to the Department of Revenue. + }
SECTION 8. { + (1) In addition to and not in lieu of any other
appropriation, there is appropriated to the Department of
Revenue, for the biennium beginning July 1, 2013, out of the
General Fund, the amount of $___, which may be expended for the
purpose of funding the first year of administration of the tax
imposed under section 2 of this 2013 Act.
(2) In addition to and not in lieu of any other appropriation,
there is appropriated to the State Department of Energy, for the
biennium beginning July 1, 2013, out of the General Fund, the
amount of $___, which may be expended for the purpose of
assisting the Department of Revenue in administering the first
year of the tax imposed under section 2 of this 2013 Act. + }
SECTION 9. { + Sections 1 to 6 of this 2013 Act apply to
carbon-based fuel sold to consumers in this state or used to
produce carbon-generated electricity that is supplied to
consumers in this state on or after the effective date of this
2013 Act. + }
SECTION 10. { + A fuel supplier or utility, as defined in
section 1 of this 2013 Act, may reduce or eliminate liability for
the tax imposed under sections 1 to 6 of this 2013 Act through
the creation of forestry carbon offsets as provided in ORS
526.780. Tax liability shall be reduced at a rate of ___ cents
per dollar of tax otherwise due. + }
SECTION 11. ORS 526.780 is amended to read:
526.780. (1) The State Forester may enter into agreements with
nonfederal forest landowners as a means to market, register,
transfer { - or - } { + , + } sell { + or allow as credits
against the tax imposed under sections 1 to 6 of this 2013
Act + } forestry carbon offsets on behalf of the landowners to
provide a stewardship incentive for nonfederal forestlands.
(2) The State Forester may enter into an agreement described in
this section if all of the following criteria are met:
(a) The agreement must ensure continuous management of the
nonfederal forestlands at a standard that, in the judgment of the
State Forester, would not occur in the absence of the agreement.
(b) Any forestry carbon offsets managed by the agreement must
be attributable to the subject nonfederal forestland as
determined by the forestry carbon offset accounting system
established in ORS 526.783.
(c) Prices for the transfer or sale of forestry carbon offsets
may be negotiated on behalf of the nonfederal forest landowner
and must be at or greater than fair market value.
(d) The agreement must provide for the following distribution
of proceeds from the transfer or sale of forest carbon offsets
attributable to the subject nonfederal forestland:
(A) Not less than 50 percent to the nonfederal forest
landowner;
(B) Not more than 25 percent to the State Forester to fund
programs providing coordinated technical, financial or management
planning assistance to nonindustrial private forest landowners;
and
(C) Not more than 25 percent to the State Forester to fund
administration of the forestry carbon offset program.
(3) All revenues received and any interest earned on moneys
distributed to the State Forester under subsection (2)(d)(B) and
(C) of this section shall be credited to the State Forestry
Department Account and may be expended only for the purposes
stated in subsection (2)(d)(B) and (C) of this section.
(4) A person or governmental agency may create a forestry
carbon offset by performing, financing or otherwise causing one
or more of the following activities:
(a) Afforestation or reforestation of underproducing lands that
are not subject to required reforestation under the Oregon Forest
Practices Act;
(b) Forest management activities not required under law
existing at the point of creation of the forestry carbon offset,
including but not limited to the following practices:
(A) Stand density control treatments in overstocked,
underproducing stands of timber;
(B) Silvicultural practices that increase forest stand biomass,
including but not limited to structure based management, variable
retention, uneven age management, longer rotation ages and no
harvest reserves;
(C) Expanded riparian buffers and other leave areas; and
(D) Deferred harvest rotations past 50 years or the age of
economic maturity, whichever is longer; and
(c) Other activities as defined by rule by the State Board of
Forestry.
{ + (5) In lieu of receiving payment under subsection
(2)(d)(A) of this section, a nonfederal forest landowner may
elect to claim a credit against the tax otherwise due under
sections 1 to 6 of this 2013 Act. + }
SECTION 12. { + ORS 646.922 is repealed. + }
SECTION 13. ORS 646.921 is amended to read:
646.921. (1) The State Department of Agriculture shall study
and monitor biodiesel fuel production, use and sales and
certificates of analysis in this state.
{ - (2) When the capacity of biodiesel production facilities
in Oregon reaches a level of at least 15 million gallons on an
annualized basis, the department shall notify all retail dealers,
nonretail dealers and wholesale dealers in this state that the
capacity of biodiesel production facilities in Oregon has reached
a level of at least 15 million gallons on an annualized basis and
that a retail dealer, nonretail dealer or wholesale dealer may
sell or offer for sale diesel fuel only as described in ORS
646.922 (2) after the date that is two months after the date of
the notice given by the department under this subsection. - }
{ - (3) - } { + (2) + } All retail dealers, nonretail
dealers and wholesale dealers in Oregon are required to provide,
upon the request of the department, a certificate of analysis for
biodiesel received.
SECTION 14. { + The repeal of ORS 646.922 by section 12 of
this 2013 Act and the amendments to ORS 646.921 by section 13 of
this 2013 Act apply to biodiesel fuel sold in this state after
the effective date of this 2013 Act. + }
SECTION 15. Section 8, chapter 754, Oregon Laws 2009, is
amended to read:
{ + Sec. 8. + } Sections 6 and 7 { - of this 2009 Act - }
{ + , chapter 754, Oregon Laws 2009, + } are repealed on
{ - December 31, 2015 - } { + the effective date of this 2013
Act + }.
SECTION 16. ORS 469.421 is amended to read:
469.421. (1) Subject to the provisions of ORS 469.441, any
person submitting a notice of intent, a request for exemption
under ORS 469.320, a request for an expedited review under ORS
469.370, a request for an expedited review under ORS 469.373, a
request for the State Department of Energy to approve a pipeline
under ORS 469.405 (3), an application for a site certificate or a
request to amend a site certificate shall pay all expenses
incurred by the Energy Facility Siting Council, the State
Department of Energy and the Oregon Department of Administrative
Services related to the review and decision of the council. These
expenses may include legal expenses, expenses incurred in
processing and evaluating the application, issuing a final order
or site certificate, commissioning an independent study by a
contractor, state agency or local government under ORS 469.360,
and changes to the rules of the council that are specifically
required and related to the particular site certificate.
(2) Every person submitting a notice of intent to file for a
site certificate, a request for exemption or a request for
expedited review shall submit the fee required under the fee
schedule established under ORS 469.441 to the State Department of
Energy when the notice or request is submitted to the council. To
the extent possible, the full cost of the evaluation shall be
paid from the fee paid under this subsection. However, if costs
of the evaluation exceed the fee, the person submitting the
notice or request shall pay any excess costs shown in an itemized
statement prepared by the council. In no event shall the council
incur evaluation expenses in excess of 110 percent of the fee
initially paid unless the council provides prior notification to
the applicant and a detailed projected budget the council
believes necessary to complete the project. If costs are less
than the fee paid, the excess shall be refunded to the person
submitting the notice or request.
(3) Before submitting a site certificate application, the
applicant shall request from the State Department of Energy an
estimate of the costs expected to be incurred in processing the
application. The department shall inform the applicant of that
amount and require the applicant to make periodic payments of the
costs pursuant to a cost reimbursement agreement. The cost
reimbursement agreement shall provide for payment of 25 percent
of the estimated costs when the applicant submits the
application. If costs of the evaluation exceed the estimate, the
applicant shall pay any excess costs shown in an itemized
statement prepared by the council. In no event shall the council
incur evaluation expenses in excess of 110 percent of the fee
initially estimated unless the council provided prior
notification to the applicant and a detailed projected budget the
council believes is necessary to complete the project. If costs
are less than the fee paid, the council shall refund the excess
to the applicant.
(4) Any person who is delinquent in the payment of fees under
subsections (1) to (3) of this section shall be subject to the
provisions of subsection { - (11) - } { + (10) + } of this
section.
(5) Subject to the provisions of ORS 469.441, each holder of a
certificate shall pay an annual fee, due every July 1 following
issuance of a site certificate. For each fiscal year, upon
approval of the State Department of Energy's budget authorization
by an odd-numbered year regular session of the Legislative
Assembly or as revised by the Emergency Board meeting in an
interim period or by the Legislative Assembly meeting in special
session or in an even-numbered year regular session, the Director
of the State Department of Energy promptly shall enter an order
establishing an annual fee based on the amount of revenues that
the director estimates is needed to fund the cost of ensuring
that the facility is being operated consistently with the terms
and conditions of the site certificate, any order issued by the
department under ORS 469.405 (3) and any applicable health or
safety standards. In determining this cost, the director shall
include both the actual direct cost to be incurred by the
council, the State Department of Energy and the Oregon Department
of Administrative Services to ensure that the facility is being
operated consistently with the terms and conditions of the site
certificate, any order issued by the State Department of Energy
under ORS 469.405 (3) and any applicable health or safety
standards, and the general costs to be incurred by the council,
the State Department of Energy and the Oregon Department of
Administrative Services to ensure that all certificated
facilities are being operated consistently with the terms and
conditions of the site certificates, any orders issued by the
State Department of Energy under ORS 469.405 (3) and any
applicable health or safety standards that cannot be allocated to
an individual, licensed facility. Not more than 35 percent of the
annual fee charged each facility shall be for the recovery of
these general costs. The fees for direct costs shall reflect the
size and complexity of the facility and its certificate
conditions.
(6) Each holder of a site certificate executed after July 1 of
any fiscal year shall pay a fee for the remaining portion of the
year. The amount of the fee shall be set at the cost of
regulating the facility during the remaining portion of the year
determined in the same manner as the annual fee.
(7) When the actual costs of regulation incurred by the
council, the State Department of Energy and the Oregon Department
of Administrative Services for the year, including that portion
of the general regulation costs that have been allocated to a
particular facility, are less than the annual fees for that
facility, the unexpended balance shall be refunded to the site
certificate holder. When the actual regulation costs incurred by
the council, the State Department of Energy and the Oregon
Department of Administrative Services for the year, including
that portion of the general regulation costs that have been
allocated to a particular facility, are projected to exceed the
annual fee for that facility, the Director of the State
Department of Energy may issue an order revising the annual fee.
{ - (8) In addition to any other fees required by law, each
energy resource supplier shall pay to the State Department of
Energy annually its share of an assessment to fund the activities
of the Energy Facility Siting Council, the Oregon Department of
Administrative Services and the State Department of Energy,
determined by the Director of the State Department of Energy in
the following manner: - }
{ - (a) Upon approval of the budget authorization of the
Energy Facility Siting Council, the Oregon Department of
Administrative Services and the State Department of Energy by an
odd-numbered year regular session of the Legislative Assembly,
the Director of the State Department of Energy shall promptly
enter an order establishing the amount of revenues required to be
derived from an assessment pursuant to this subsection in order
to fund the activities of the Energy Facility Siting Council, the
Oregon Department of Administrative Services and the State
Department of Energy, including those enumerated in ORS 469.030
and others authorized by law, for the first fiscal year of the
forthcoming biennium. On or before June 1 of each even-numbered
year, the Director of the State Department of Energy shall enter
an order establishing the amount of revenues required to be
derived from an assessment pursuant to this subsection in order
to fund the activities of the Energy Facility Siting Council, the
Oregon Department of Administrative Services and the State
Department of Energy, including those enumerated in ORS 469.030
and others authorized by law, for the second fiscal year of the
biennium. The order shall take into account any revisions to the
biennial budget of the Energy Facility Siting Council, the State
Department of Energy and the Oregon Department of Administrative
Services made by the Emergency Board meeting in an interim period
or by the Legislative Assembly meeting in special session or in
an even-numbered year regular session. However, an assessment
under this section may not be used to derive revenue for funding
State Department of Energy activities related to the energy
efficiency and sustainable technology loan program described in
ORS chapter 470. - }
{ - (b) Each order issued by the director pursuant to
paragraph (a) of this subsection shall allocate the aggregate
assessment set forth therein to energy resource suppliers in
accordance with paragraph (c) of this subsection. - }
{ - (c) The amount assessed to an energy resource supplier
shall be based on the ratio which that supplier's annual gross
operating revenue derived within this state in the preceding
calendar year bears to the total gross operating revenue derived
within this state during that year by all energy resource
suppliers. The assessment against an energy resource supplier
shall not exceed five-tenths of one percent of the supplier's
gross operating revenue derived within this state in the
preceding calendar year. The director shall exempt from payment
of an assessment any individual energy resource supplier whose
calculated share of the annual assessment is less than $250. - }
{ - (d) The director shall send each energy resource supplier
subject to assessment pursuant to this subsection a copy of each
order issued, by registered or certified mail. The amount
assessed to the energy resource supplier pursuant to the order
shall be considered to the extent otherwise permitted by law a
government-imposed cost and recoverable by the energy resource
supplier as a cost included within the price of the service or
product supplied. - }
{ - (e) The amounts assessed to individual energy resource
suppliers pursuant to paragraph (c) of this subsection shall be
paid to the State Department of Energy as follows: - }
{ - (A) Amounts assessed for the first fiscal year of a
biennium shall be paid not later than 90 days following
adjournment sine die of the odd-numbered year regular session of
the Legislative Assembly; and - }
{ - (B) Amounts assessed for the second fiscal year of a
biennium shall be paid not later than July 1 of each
even-numbered year or 90 days following adjournment sine die of
the even-numbered year regular session of the Legislative
Assembly, whichever is later. - }
{ - (f) An energy resource supplier shall provide the
director, on or before May 1 of each year, a verified statement
showing its gross operating revenues derived within the state for
the preceding calendar year. The statement shall be in the form
prescribed by the director and is subject to audit by the
director. The statement shall include an entry showing the total
operating revenue derived by petroleum suppliers from fuels sold
that are subject to the requirements of section 3a, Article IX of
the Oregon Constitution, and ORS 319.020 with reference to
aircraft fuel and motor vehicle fuel, and ORS 319.530. The
director may grant an extension of not more than 15 days for the
requirements of this subsection if: - }
{ - (A) The energy supplier makes a showing of hardship
caused by the deadline; - }
{ - (B) The energy supplier provides reasonable assurance
that the energy supplier can comply with the revised deadline;
and - }
{ - (C) The extension of time does not prevent the Energy
Facility Siting Council, the Oregon Department of Administrative
Services or the State Department of Energy from fulfilling their
statutory responsibilities. - }
{ - (g) As used in this section: - }
{ - (A) 'Energy resource supplier' means an electric utility,
natural gas utility or petroleum supplier supplying, generating,
transmitting or distributing electricity, natural gas or
petroleum products in Oregon. - }
{ - (B) 'Gross operating revenue' means gross receipts from
sales or service made or provided within this state during the
regular course of the energy supplier's business, but does not
include either revenue derived from interutility sales within the
state or revenue received by a petroleum supplier from the sale
of fuels that are subject to the requirements of section 3a,
Article IX of the Oregon Constitution, or ORS 319.020 or
319.530. - }
{ - (C) 'Petroleum supplier' has the meaning given that term
in ORS 469.020. - }
{ - (h) In determining the amount of revenues that must be
derived from any class of energy resource suppliers by assessment
pursuant to this subsection, the director shall take into account
all other known or readily ascertainable sources of revenue to
the Energy Facility Siting Council, the Oregon Department of
Administrative Services and the State Department of Energy,
including, but not limited to, fees imposed under this section
and federal funds, and may take into account any funds previously
assessed pursuant to ORS 469.420 (1979 Replacement Part) or
section 7, chapter 792, Oregon Laws 1981. - }
{ - (i) Orders issued by the director pursuant to this
section shall be subject to judicial review under ORS 183.484.
The taking of judicial review shall not operate to stay the
obligation of an energy resource supplier to pay amounts assessed
to it on or before the statutory deadline. - }
{ - (9)(a) - } { + (8)(a) + } In addition to any other fees
required by law, each operator of a nuclear fueled thermal power
plant or nuclear installation within this state shall pay to the
State Department of Energy annually on July 1, an assessment in
an amount determined by the director to be necessary to fund the
activities of the state and the counties associated with
emergency preparedness for a nuclear fueled thermal power plant
or nuclear installation. The assessment shall not exceed $461,250
per year. Moneys collected as assessments under this subsection
are continuously appropriated to the State Department of Energy
for this purpose.
(b) The State Department of Energy shall maintain and shall
cause other state agencies and counties to maintain time and
billing records for the expenditure of any fees collected from an
operator of a nuclear fueled thermal power plant under paragraph
(a) of this subsection.
{ - (10) - } { + (9) + } Reactors operated by a college,
university or graduate center for research purposes and electric
utilities not connected to the Northwest Power Grid are exempt
from the fee requirements of subsections (5) { - , (8) and
(9) - } { + and (8) + } of this section.
{ - (11)(a) - } { + (10)(a) + } All fees assessed by the
director against holders of site certificates for facilities that
have an installed capacity of 500 megawatts or greater may be
paid in several installments, the schedule for which shall be
negotiated between the director and the site certificate holder.
(b) { - Energy resource suppliers or - } Applicants or
holders of a site certificate who fail to pay a fee provided
under subsections (1) to { - (9) - } { + (8) + } of this
section or the fees required under ORS 469.360 after it is due
and payable shall pay, in addition to that fee, a penalty of two
percent of the fee a month for the period that the fee is past
due. Any payment made according to the terms of a schedule
negotiated under paragraph (a) of this subsection shall not be
considered past due. The director may bring an action to collect
an unpaid fee or penalty in the name of the State of Oregon in a
court of competent jurisdiction. The court may award reasonable
attorney fees to the director if the director prevails in an
action under this subsection. The court may award reasonable
attorney fees to a defendant who prevails in an action under this
subsection if the court determines that the director had no
objectively reasonable basis for asserting the claim or no
reasonable basis for appealing an adverse decision of the trial
court.
SECTION 17. ORS 291.055 is amended to read:
291.055. (1) Notwithstanding any other law that grants to a
state agency the authority to establish fees, all new state
agency fees or fee increases adopted during the period beginning
on the date of adjournment sine die of a regular session of the
Legislative Assembly and ending on the date of adjournment sine
die of the next regular session of the Legislative Assembly:
(a) Are not effective for agencies in the executive department
of government unless approved in writing by the Director of the
Oregon Department of Administrative Services;
(b) Are not effective for agencies in the judicial department
of government unless approved in writing by the Chief Justice of
the Supreme Court;
(c) Are not effective for agencies in the legislative
department of government unless approved in writing by the
President of the Senate and the Speaker of the House of
Representatives;
(d) Shall be reported by the state agency to the Oregon
Department of Administrative Services within 10 days of their
adoption; and
(e) Are rescinded on adjournment sine die of the next regular
session of the Legislative Assembly as described in this
subsection, unless otherwise authorized by enabling legislation
setting forth the approved fees.
(2) This section does not apply to:
(a) Any tuition or fees charged by the State Board of Higher
Education and the public universities listed in ORS 352.002.
(b) Taxes or other payments made or collected from employers
for unemployment insurance required by ORS chapter 657 or premium
assessments required by ORS 656.612 and 656.614 or contributions
and assessments calculated by cents per hour for workers'
compensation coverage required by ORS 656.506.
(c) Fees or payments required for:
(A) Health care services provided by the Oregon Health and
Science University, by the Oregon Veterans' Homes and by other
state agencies and institutions pursuant to ORS 179.610 to
179.770.
(B) Assessments and premiums paid to the Oregon Medical
Insurance Pool established by ORS 735.614 and 735.625.
(C) Copayments and premiums paid to the Oregon medical
assistance program.
(D) Assessments paid to the Department of Consumer and Business
Services under ORS 743.951 and 743.961.
(d) Fees created or authorized by statute that have no
established rate or amount but are calculated for each separate
instance for each fee payer and are based on actual cost of
services provided.
(e) State agency charges on employees for benefits and
services.
(f) Any intergovernmental charges.
(g) Forest protection district assessment rates established by
ORS 477.210 to 477.265 and the Oregon Forest Land Protection Fund
fees established by ORS 477.760.
(h) State Department of Energy assessments required by
{ - ORS 469.421 (8) and - } { + ORS + } 469.681.
(i) Any charges established by the State Parks and Recreation
Director in accordance with ORS 565.080 (3).
(j) Assessments on premiums charged by the Department of
Consumer and Business Services pursuant to ORS 731.804 or fees
charged by the Division of Finance and Corporate Securities of
the Department of Consumer and Business Services to banks, trusts
and credit unions pursuant to ORS 706.530 and 723.114.
(k) Public Utility Commission operating assessments required by
ORS 756.310 or charges paid to the Residential Service Protection
Fund required by chapter 290, Oregon Laws 1987.
(L) Fees charged by the Housing and Community Services
Department for intellectual property pursuant to ORS 456.562.
(m) New or increased fees that are anticipated in the
legislative budgeting process for an agency, revenues from which
are included, explicitly or implicitly, in the legislatively
adopted budget or the legislatively approved budget for the
agency.
(n) Tolls approved by the Oregon Transportation Commission
pursuant to ORS 383.004.
(o) Convenience fees as defined in ORS 182.126 and established
by the Oregon Department of Administrative Services under ORS
182.132 (3) and recommended by the Electronic Government Portal
Advisory Board.
(3)(a) Fees temporarily decreased for competitive or
promotional reasons or because of unexpected and temporary
revenue surpluses may be increased to not more than their prior
level without compliance with subsection (1) of this section if,
at the time the fee is decreased, the state agency specifies the
following:
(A) The reason for the fee decrease; and
(B) The conditions under which the fee will be increased to not
more than its prior level.
(b) Fees that are decreased for reasons other than those
described in paragraph (a) of this subsection may not be
subsequently increased except as allowed by ORS 291.050 to
291.060 and 294.160.
SECTION 18. ORS 469.410 is amended to read:
469.410. (1) Any applicant for a site certificate for an energy
facility shall be deemed to have met all the requirements of ORS
176.820, 192.501 to 192.505, 192.690, 469.010 to 469.155, 469.300
to 469.563, 469.990, 757.710 and 757.720 relating to eligibility
for a site certificate and a site certificate shall be issued by
the Energy Facility Siting Council for:
(a) Any transmission lines for which application has been filed
with the federal government and the Public Utility Commission of
Oregon prior to July 2, 1975; and
(b) Any energy facility under construction on July 2, 1975.
(2) Each applicant for a site certificate under this section
shall pay the fees required by ORS 469.421 (2) to { - (9) - }
{ + (8) + }, if applicable, and shall execute a site
certificate in which the applicant agrees:
(a) To abide by the conditions of all licenses, permits and
certificates required by the State of Oregon or any subdivision
in the state to operate the energy facility and issued prior to
July 2, 1975; and
(b) On and after July 2, 1975, to abide by the rules of the
Director of the State Department of Energy adopted pursuant to
ORS 469.040 (1)(d) and rules of the council adopted pursuant to
ORS 469.300 to 469.563, 469.590 to 469.619 and 469.930.
(3) The council has continuing authority over the site for
which the site certificate is issued and may inspect, or direct
the State Department of Energy to inspect, or request another
state agency or local government to inspect, the site at any time
in order to ensure that the facility is being operated
consistently with the terms and conditions of the site
certificate and any applicable health or safety standards.
(4) The council shall establish programs for monitoring the
environmental and ecological effects of the operation and the
decommissioning of energy facilities subject to site certificates
issued prior to July 2, 1975, to ensure continued compliance with
the terms and conditions of the site certificate and any
applicable health or safety standards.
(5) Site certificates executed by the Governor under ORS
469.400 (1991 Edition) prior to July 2, 1975, shall bind
successor agencies created hereunder in accordance with the terms
of such site certificates. Any holder of a site certificate
issued prior to July 2, 1975, shall abide by the rules of the
director adopted pursuant to ORS 469.040 (1)(d) and rules of the
council adopted pursuant to ORS 469.300 to 469.563, 469.590 to
469.619, 469.930 and 469.992.
SECTION 19. ORS 469.681 is amended to read:
469.681. (1) Each petroleum supplier shall pay to the State
Department of Energy annually its share of an assessment to fund:
(a) Information, assistance and technical advice required of
fuel oil dealers under ORS 469.675 for which the Director of the
State Department of Energy contracts under ORS 469.677; and
(b) Cash payments to a dwelling owner or contractor for energy
conservation measures.
(2) The amount of the assessment required by subsection (1) of
this section shall be determined by the director in a manner
consistent with the method prescribed in ORS 469.421. The
aggregate amount of the assessment shall not exceed $400,000. In
making this assessment, the director shall exclude all gallons of
distillate fuel oil sold by petroleum suppliers that are subject
to the requirements of { - section 3a, - } Article IX { + ,
section 3a, + } of the Oregon Constitution, or ORS 319.020 or
319.530.
(3) If any petroleum supplier fails to pay any amount assessed
to it under this section within 30 days after the payment is due,
the Attorney General, on behalf of the State Department of
Energy, may institute a proceeding in the circuit court to
collect the amount due.
(4) Interest on delinquent assessments shall be added to and
paid at the rate of one and one-half percent of the payment due
per month or fraction of a month from the date the payment was
due to the date of payment.
(5) The assessment required by subsection (1) of this section
is in addition to any { - assessment required by ORS 469.421
(8), and any - } other fee or assessment required by law.
(6) As used in this section, 'petroleum supplier' means a
petroleum refiner in this state or any person engaged in the
wholesale distribution of distillate fuel oil in the State of
Oregon.
SECTION 20. { + The amendments to ORS 291.055, 469.410,
469.421 and 469.681 by sections 16 to 19 of this 2013 Act apply
to fiscal years beginning on or after the effective date of this
2013 Act. + }
SECTION 21. { + Section 47a, chapter 753, Oregon Laws 2009, is
repealed. + }
SECTION 22. Section 49, chapter 753, Oregon Laws 2009, as
amended by section 15, chapter 92, Oregon Laws 2010, is amended
to read:
{ + Sec. 49. + } Sections 42, 43, 44, 45 { - , - }
{ + and + } 46 { - and 47a - } , chapter 753, Oregon Laws
2009, are repealed January 2, 2016.
SECTION 23. ORS 319.530 is amended to read:
319.530. (1) To compensate this state partially for the use of
its highways, an excise tax hereby is imposed at the rate of
{ - 30 - } { + ___ + } cents per gallon on the use of fuel
in a motor vehicle. Except as otherwise provided in subsections
(2) and (3) of this section, 100 cubic feet of fuel used or sold
in a gaseous state, measured at 14.73 pounds per square inch of
pressure at 60 degrees Fahrenheit, is taxable at the same rate as
a gallon of liquid fuel.
(2) One hundred twenty cubic feet of compressed natural gas
used or sold in a gaseous state, measured at 14.73 pounds per
square inch of pressure at 60 degrees Fahrenheit, is taxable at
the same rate as a gallon of liquid fuel.
(3) One and three-tenths liquid gallons of propane at 60
degrees Fahrenheit is taxable at the same rate as a gallon of
other liquid fuel.
SECTION 24. { + The amendments to ORS 319.530 by section 23 of
this 2013 Act apply fuel used on or after the effective date of
this 2013 Act. + }
SECTION 25. { + (1) ORS 469A.005, 469A.010, 469A.020,
469A.025, 469A.050, 469A.052, 469A.055, 469A.060, 469A.065,
469A.070, 469A.075, 469A.100, 469A.120, 469A.130, 469A.135,
469A.140, 469A.145, 469A.150, 469A.170, 469A.180, 469A.185,
469A.200, 469A.205, 469A.210, 757.375 and 758.552 are repealed.
(2) Sections 17a, 25 and 26, chapter 301, Oregon Laws 2007, are
repealed. + }
SECTION 26. ORS 468A.280 is amended to read:
468A.280. (1) In addition to any registration and reporting
that may be required under ORS 468A.050, the Environmental
Quality Commission by rule may require registration and reporting
by:
(a) Any person who imports, sells, allocates or distributes for
use in this state electricity, the generation of which emits
greenhouse gases.
(b) Any person who imports, sells or distributes for use in
this state fossil fuel that generates greenhouse gases when
combusted.
(2) Rules adopted by the commission under this section for
electricity that is imported, sold, allocated or distributed for
use in this state may require reporting of information necessary
to determine greenhouse gas emissions from generating facilities
used to produce the electricity and related electricity
transmission line losses.
(3)(a) The commission shall allow consumer-owned utilities, as
defined in ORS 757.270, to comply with reporting requirements
imposed under this section by the submission of a report prepared
by a third party. A report submitted under this paragraph may
include information for more than one consumer-owned utility, but
must include all information required by the commission for each
individual utility.
(b) For the purpose of determining greenhouse gas emissions
related to electricity purchased from the Bonneville Power
Administration by a consumer-owned utility, as defined in ORS
757.270, the commission may require only that the utility report:
(A) The number of megawatt-hours of electricity purchased by
the utility from the Bonneville Power Administration, segregated
by the types of contracts entered into by the utility with the
Bonneville Power Administration; and
(B) The percentage of each fuel or energy type used to produce
electricity purchased under each type of contract.
(4)(a) Rules adopted by the commission pursuant to this section
for electricity that is purchased, imported, sold, allocated or
distributed for use in this state by an electric company, as
defined in ORS 757.600, must be limited to the reporting of:
(A) Greenhouse gas emissions emitted from generating facilities
owned or operated by the electric company;
(B) Greenhouse gas emissions emitted from transmission
equipment owned or operated by the electric company;
(C) The number of megawatt-hours of electricity purchased by
the electric company for use in this state, including
information, if known, on:
(i) The seller of the electricity to the electric company; and
(ii) The original generating facility fuel type or types; and
(D) An estimate of the amount of greenhouse gas emissions,
using default greenhouse gas emissions factors established by the
commission by rule, attributable to:
(i) Electricity purchases made by a particular seller to the
electric company;
(ii) Electricity purchases from an unknown origin or from a
seller who is unable to identify the original generating facility
fuel type or types;
{ - (iii) Electricity purchases for which a renewable energy
certificate under ORS 469A.130 has been issued but subsequently
transferred or sold to a person other than the electric
company; - }
{ - (iv) - } { + (iii) + } Electricity transmitted for
others by the electric company; and
{ - (v) - } { + (iv) + } Total energy losses from
electricity transmission and distribution equipment owned or
operated by the electric company.
(b) Pursuant to paragraph (a) of this subsection, a
multijurisdictional electric company may rely upon a cost
allocation methodology approved by the Public Utility Commission
for reporting emissions allocated in this state.
(5) Rules adopted by the commission under this section for
fossil fuel that is imported, sold or distributed for use in this
state may require reporting of the type and quantity of the fuel
and any additional information necessary to determine the carbon
content of the fuel. For the purpose of determining greenhouse
gas emissions related to liquefied petroleum gas, the commission
shall allow reporting using publications or submission of data by
the American Petroleum Institute but may require reporting of
such other information necessary to achieve the purposes of the
rules adopted by the commission under this section.
(6) To an extent that is consistent with the purposes of the
rules adopted by the commission under this section, the
commission shall minimize the burden of the reporting required
under this section by:
(a) Allowing concurrent reporting of information that is also
reported to another state agency;
(b) Allowing electronic reporting;
(c) Allowing use of good engineering practice calculations in
reports, or of emission factors published by the United States
Environmental Protection Agency;
(d) Establishing thresholds for the amount of specific
greenhouse gases that may be emitted or generated without
reporting;
(e) Requiring reporting by the fewest number of persons in a
fuel distribution system that will allow the commission to
acquire the information needed by the commission; or
(f) Other appropriate means and procedures determined by the
commission.
(7) As used in this section, 'greenhouse gas' has the meaning
given that term in ORS 468A.210.
SECTION 27. ORS 469A.300 is amended to read:
469A.300. { - To facilitate the creation of hydrogen power
stations using anhydrous ammonia as a fuel source to comply with
a renewable portfolio standard under ORS 469A.005 to
469A.210, - } The Public Utility Commission may allow full
recovery of costs by public utilities in prudent energy
investments related to the planning, financing, construction and
operation of hydrogen power stations. These investments may
include, but need not be limited to:
(1) Systems designed to synthesize anhydrous ammonia fuel using
electricity generated from renewable energy sources { - listed
in ORS 469A.025 - } ;
(2) Infrastructure designed to store anhydrous ammonia
generated from renewable energy sources as a nonpolluting fuel
for electricity generation and any other purpose;
(3) Energy systems designed to use anhydrous ammonia generated
from renewable energy sources as a fuel to generate electricity;
and
(4) Electronic control and management systems designed to
effectively integrate hydrogen power station processes into the
electricity transmission grid.
SECTION 28. ORS 757.365 is amended to read:
757.365. (1) The Public Utility Commission shall establish a
pilot program for each electric company to demonstrate the use
and effectiveness of volumetric incentive rates and payments for
electricity or for the nonenergy attributes of electricity, or
both, from solar photovoltaic energy systems that are permanently
installed in this state by retail electricity consumers and that
first become operational after the program begins. The cumulative
nameplate capacity of the qualifying systems enrolled in all of
the pilot programs may not exceed 25 megawatts of alternating
current. Qualifying systems enrolled in the pilot program may not
have nameplate generating capacity greater than 500 kilowatts.
(2) The commission by rule shall adopt requirements for the
pilot programs described in subsection (1) of this section. Each
electric company shall file for commission approval tariff
schedules for the pilot programs that conform to the
requirements.
(3) The commission may establish incentive rates for the pilot
programs to enable the development of the most efficient solar
photovoltaic energy systems.
(4) A retail electricity consumer participating in a pilot
program may receive payments based on electricity generated from
solar photovoltaic energy system output for 15 years from the
consumer's date of enrollment in the program, at rates or through
a rate formula in a tariff schedule established at the time of
enrollment, or at rates otherwise established at the time of
enrollment. The consumer thereafter may receive payments based
upon electricity generated from the qualifying system at a rate
equal to the resource value.
(5) The commission may adjust the tariff schedule as needed for
new pilot program participants for the purpose of meeting the
goal established in subsection (1) of this section. Once a retail
electricity consumer is enrolled in a program, the rates or rate
formula for determining payments to the consumer may not be
modified.
(6) The commission shall establish pilot programs designed to
attain a goal of 75 percent of the capacity under each program to
be deployed by residential qualifying systems and small
commercial qualifying systems. The commission by rule may adjust
the percentage goal for capacity deployed by residential and
small commercial qualifying systems based upon the costs of the
energy generated, the feasibility of attaining the goal and other
factors.
(7) The commission may establish total generator nameplate
capacity limits for an electric company so that the rate impact
of the pilot program for any customer class does not exceed 0.25
percent of the electric company's revenue requirement for the
class in any year.
{ - (8) Ownership of renewable energy certificates
established under ORS 469A.130 that are associated with renewable
energy generation under the pilot programs must be transferred to
the electric company and may be used to comply with the renewable
portfolio standard described in ORS 469A.052 or 469A.055. - }
{ - (9) - } { + (8) + } To the extent that rates paid under
a pilot program exceed the resource value, qualifying systems
participating in the pilot programs are not eligible for
expenditures under ORS 757.612 (3)(b)(B) or tax credits under ORS
469B.100 to 469B.118 or 469B.130 to 469B.169.
{ - (10) - } { + (9) + } All prudently incurred costs
associated with compliance with this section are recoverable in
the rates of an electric company.
{ - (11) - } { + (10) + } The commission shall advise and
assist the owners and operators of qualifying systems in
identifying and using grants, incentive moneys, federal funding
and other sources of noninvestment financial support for the
construction and operation of qualifying systems.
{ - (12) - } { + (11) + } The pilot programs described in
subsection (1) of this section close to new participants on the
earlier of:
(a) March 31, 2015; or
(b) The date the cumulative nameplate capacity of solar
photovoltaic energy systems that have been permanently installed
by retail electricity consumers under the pilot programs equals
25 megawatts of alternating current.
{ - (13) - } { + (12) + } The commission shall submit a
report to the Legislative Assembly by January 1 of each
odd-numbered year. The report must evaluate the effectiveness of
the pilot programs described in subsection (1) of this section
compared to the effectiveness of expenditures under ORS 757.612
(3)(b)(B) or tax credits under ORS 469B.100 to 469B.118 or
469B.130 to 469B.169 for promoting the use of solar photovoltaic
energy systems and reducing system costs. The report must also
evaluate the estimated cost of the program to retail electricity
consumers.
SECTION 29. ORS 757.370 is amended to read:
757.370. (1) On or before January 1, 2020, the total solar
photovoltaic generating nameplate capacity, from qualifying
systems generating at least 500 kilowatts, of all electric
companies in this state must be at least 20 megawatts of
alternating current with no single project greater than five
megawatts of alternating current.
(2) For the purpose of complying with the solar photovoltaic
generating capacity standard established by this section, on or
before January 1, 2020, each electric company is required to
maintain a minimum generating capacity from qualifying systems.
The minimum generating capacity for each electric company is
determined by multiplying 20 megawatts by a fraction equal to the
electric company's share of all retail electricity sales made in
this state in 2008 by all electric companies.
(3) For the purposes of ORS 757.360 to 757.380, capacity of a
solar photovoltaic energy system is measured on the alternating
current side of the system's inverter using the measurement
standards set forth by the Public Utility Commission by rule. If
the system does not use an inverter, the measurement shall be
made at the direct current level.
(4) An electric company may satisfy the solar photovoltaic
generating capacity standard established by this section with
solar photovoltaic energy systems owned by the company or with
contracts for the purchase of electricity from qualifying
systems.
(5) All costs prudently incurred by an electric company to
comply with the solar photovoltaic generating capacity standard
established by this section, including above-market costs, are
recoverable in the company's rates { - and are eligible for an
automatic adjustment clause established by the commission under
ORS 469A.120 - } .
(6) The commission may adopt rules implementing and enforcing
this section.
SECTION 30. ORS 757.522 is amended to read:
757.522. As used in ORS 757.522 to 757.536:
(1) 'Additional interest' means:
(a) The acquisition, by the holder of an interest in a
generating facility located in Oregon, of a separate interest in
that generating facility that is producing energy and is in
service for tax purposes, commercially operable or in rates on
July 1, 2010; and
(b) The renewal of an existing contract of five or more years
that includes the acquisition of baseload electricity for an
additional term of five or more years where the expected
greenhouse gas emissions profile of the contract renewal is
substantially similar to that of the previous contract.
(2) 'Annual plant capacity factor' means the ratio of the
electricity produced by a generating facility during one year,
measured in kilowatt-hours, to the electricity the generating
facility could have produced if it had been operated at its rated
capacity throughout the same year, expressed in kilowatt-hours.
(3)(a) 'Baseload electricity' means electricity produced by a
generating facility that is designed and intended, at the time a
site certificate is issued to the owner of the facility, to
provide electricity on a continuous basis at an annual plant
capacity factor of at least 60 percent.
(b) 'Baseload electricity' does not include electricity from:
(A) A qualifying facility under the federal Public Utility
Regulatory Policies Act of 1978, 16 U.S.C. 2601 to 2645; or
(B) A generating source that uses natural gas or petroleum
distillates as a fuel source and that is primarily used to serve
{ - either - } peak demand { - or to integrate energy from a
renewable energy source described in ORS 469A.025 - } .
(4) 'Construction' has the meaning given that term in ORS
469.300.
(5) 'Consumer-owned utility' has the meaning given that term in
ORS 757.600.
(6) 'Electric company' has the meaning given that term in ORS
757.600.
(7) 'Electricity service supplier' has the meaning given that
term in ORS 757.600.
(8) 'Generating facility' includes one or more jointly operated
electricity generators that use the same fuel type, have the same
in-service date and operate at the same location as described in
ORS 469.300.
(9) 'Governing board' means the legislative authority of a
consumer-owned utility.
(10)(a) 'Long-term financial commitment' means an investment in
or upgrade of a generating facility that produces baseload
electricity, or a contract with a term of more than five years
that includes acquisition of baseload electricity.
(b) 'Long-term financial commitment' does not include:
(A) Routine or necessary maintenance;
(B) Installation of emission control equipment;
(C) Installation, replacement or modification of equipment that
improves the heat rate of the facility or reduces a generating
facility's pounds of greenhouse gases per megawatt-hour of
electricity;
(D) Installation, replacement or modification of equipment
where the primary purpose is to maintain reliable generation
output capability and not to extend the life of the generating
facility, and that does not increase the heat input or fuel usage
as specified in existing generation air quality permits, but that
may result in incidental increases in generation capacity;
(E) Repairs necessitated by sudden and unexpected equipment
failure; or
(F) An acquisition of an additional interest.
(11) 'Output-based methodology' means a greenhouse gas
emissions standard that is expressed in pounds of greenhouse
gases emitted per megawatt-hour, factoring in the useful thermal
energy employed for purposes other than the generation of
electricity.
(12) 'Site certificate' has the meaning given that term in ORS
469.300.
(13) 'Upgrade' means any modification made for the primary
purpose of increasing the electric generation capacity of a
baseload facility.
SECTION 31. ORS 757.531 is amended to read:
757.531. (1)(a) An electric company or electricity service
supplier may not enter into a long-term financial commitment
unless the baseload electricity acquired under the commitment is
produced by a generating facility that complies with a greenhouse
gas emissions standard established under ORS 757.524.
(b) A generating facility complies with the greenhouse gas
emissions standard established under ORS 757.524 if the rate of
emissions of the facility does not exceed the emissions standard.
(c) In determining whether a generating facility complies with
the emissions standard, the total emissions associated with
producing baseload electricity at the generating facility are
included in determining the rate of emissions of greenhouse
gases. The total emissions associated with producing electricity
at the generating facility do not include emissions associated
with transportation, fuel extraction or other life-cycle
emissions associated with obtaining the fuel for the facility.
(2) Notwithstanding subsection (1) of this section, the
emissions standard does not apply to greenhouse gas emissions
produced by a generating facility owned by an electric company or
electricity service supplier or contracted through a long-term
financial commitment if the emissions:
{ - (a) Come from a facility powered exclusively by renewable
energy sources described in ORS 469A.025; - }
{ - (b) - } { + (a) + } Come from a cogeneration facility
in this state that is fueled by natural gas, synthetic gas,
distillate fuels, waste gas or a combination of these fuels, and
that is producing energy, in service for tax purposes,
commercially operable, or in rates as of July 1, 2010, until the
facility is subject to a new long-term financial commitment; or
{ - (c) - } { + (b) + } Come from a generating facility
that has in place a plan, as determined by the Public Utility
Commission, to be a low-carbon emissions resource, pursuant to
sufficient technical documentation, within seven years of
commencing plant operations.
(3) Notwithstanding ORS 757.524 and subsection (1) of this
section, the commission may exempt a long-term financial
commitment by an electric company or an electricity service
supplier from the greenhouse gas emissions standard if the
commission finds that the commitment is a necessary and prudent
response to:
(a) Unanticipated electricity system reliability needs; or
(b) Catastrophic events or threat of significant financial harm
that may arise from unforeseen circumstances.
(4) Notwithstanding subsection (1) of this section, an electric
company may enter into a long-term financial commitment that does
not meet the emissions standard established under ORS 757.524 if
the electric company does not seek recovery of the costs in
retail sales in this state.
(5) The commission by rule shall establish:
(a) Standards for identifying contracts for electricity for
which the emissions cannot readily be determined with any
specificity; and
(b) Emissions to be attributed to such contracts for purposes
of determining compliance with the emissions standard established
under ORS 757.524.
SECTION 32. ORS 757.533 is amended to read:
757.533. (1)(a) A governing board of a consumer-owned utility
may not enter into a long-term financial commitment unless the
baseload electricity acquired under the commitment is produced by
a generating facility that complies with a greenhouse gas
emissions standard established under ORS 757.528.
(b) A generating facility complies with the greenhouse gas
emissions standard established under ORS 757.528 if the rate of
emissions of the facility does not exceed the emissions standard.
(c) In determining whether a generating facility complies with
the emissions standard, the total emissions associated with
producing baseload electricity at the generating facility shall
be included in determining the rate of emissions of greenhouse
gases. The total emissions associated with producing electricity
at the generating facility do not include emissions associated
with transportation, fuel extraction or other life-cycle
emissions associated with obtaining the fuel for the facility.
(2) Notwithstanding subsection (1) of this section, the
emissions standard does not apply to greenhouse gas emissions
produced by a generating facility owned by a consumer-owned
utility or contracted through a long-term financial commitment if
the emissions:
{ - (a) Come from a facility powered exclusively by renewable
energy sources described in ORS 469A.025; - }
{ - (b) - } { + (a) + } Come from a cogeneration facility
in this state that is fueled by natural gas, synthetic gas,
distillate fuels, waste gas or a combination of these fuels, and
that is producing energy, in service for tax purposes,
commercially operable, or in rates as of July 1, 2010, until the
facility is subject to a new long-term financial commitment; or
{ - (c) - } { + (b) + } Come from a generating facility
that has in place a plan to be a low-carbon emission resource, as
determined by the State Department of Energy, pursuant to
sufficient technical documentation, within seven years of
commencing plant operations.
(3) The governing board may provide an exemption for an
individual generating facility from the emissions performance
standard to address:
(a) Unanticipated electricity system reliability needs;
(b) Catastrophic events or threat of significant financial harm
that may arise from unforeseen circumstances; or
(c) Long-term financial commitments between members of a joint
operating entity recognized under federal law or the joint
operating entity's predecessor organization, or with the joint
operating entity for a baseload resource that the consumer-owned
utility had an ownership interest in prior to July 1, 2010.
(4) A governing board shall report to the consumer-owned
utility's customers or members and to the State Department of
Energy information on any case-by-case exemption from the
emissions performance standard granted by the governing board.
(5) For purposes of ORS 757.522 to 757.536, a long-term
financial commitment for a consumer-owned utility does not
include agreements to purchase electricity from the Bonneville
Power Administration.
(6) The department by rule shall establish:
(a) Standards for identifying contracts for electricity for
which the emissions cannot readily be determined with any
specificity; and
(b) Emissions to be attributed to such contracts for purposes
of determining compliance with the emissions standard established
under ORS 757.528.
SECTION 33. ORS 261.253 is amended to read:
261.253. (1) A public contract entered into by a
noninvestor-owned electric utility may not contain a clause or
condition that imposes an unconditional and unlimited financial
obligation on the electric utility that is party to the contract
unless the terms and conditions of the contract are subject to
approval and are approved by the electors of the people's utility
district or city that owns the electric utility.
(2) Nothing in subsection (1) of this section is intended to
affect provisions of law requiring approval of electors for any
particular type of public contract that are in effect on October
15, 1983, or that are later enacted.
(3) Nothing in subsection (1) of this section is intended to
conflict with ORS 279C.650 to 279C.670.
{ - (4) This section does not apply to a public contract
executed in connection with: - }
{ - (a) The acquisition of renewable energy certificates; - }
{ - (b) The acquisition, construction, improvement or
equipping of, or the financing of any interest in, a renewable
energy facility; or - }
{ - (c) The acquisition or financing of any interest in
electrical capacity needed to shape, firm or integrate
electricity from a renewable energy facility. - }
{ - (5) - } { + (4) + } As used in this section:
(a) 'Public contract' includes a contract, note, general
obligation bond or revenue bond by which the people's utility
district or city or any subdivision of any of them is obligated
to pay for or finance the acquisition of goods, services,
materials, real property or any interest therein, improvement,
betterments or additions from any funds, including receipts from
rates or charges assessed to or collected from its customers.
(b) 'Unconditional and unlimited financial obligation ' means a
public contract containing a provision that the people's utility
district or city that is party to the contract is obligated to
make payments required by the contract whether or not the project
to be undertaken thereunder is undertaken, completed, operable or
operating notwithstanding the suspension, interruption,
interference, reduction or curtailment of the output or product
of the project.
SECTION 34. ORS 261.305 is amended to read:
261.305. People's utility districts shall have power:
(1) To have perpetual succession.
(2) To adopt a seal and alter it at pleasure.
(3) To sue and be sued, to plead and be impleaded.
(4) To acquire and hold, including by lease-purchase agreement,
real and other property necessary or incident to the business of
the districts, within or without, or partly within or partly
without, the district, and to sell or dispose of that property;
to acquire, develop and otherwise provide for a supply of water
for domestic and municipal purposes, waterpower and electric
energy, or electric energy generated from any utility, and to
distribute, sell and otherwise dispose of water, waterpower and
electric energy, within or without the territory of such
districts.
{ - (5) To acquire, own, trade, sell or otherwise transfer
renewable energy certificates. - }
{ - (6) - } { + (5) + } To exercise the power of eminent
domain for the purpose of acquiring any property, within or
without the district, necessary for the carrying out of the
provisions of this chapter.
{ - (7) - } { + (6) + } To borrow money and incur
indebtedness; to issue, sell and assume evidences of
indebtedness; to refund and retire any indebtedness that may
exist against or be assumed by the district or that may exist
against the revenues of the district; to pledge any part of its
revenues; and to obtain letters of credit or similar financial
instruments from banks or other financial institutions. Except as
provided in ORS 261.355 and 261.380, no revenue or general
obligation bonds shall be issued or sold without the approval of
the electors. The board of directors may borrow from banks or
other financial institutions such sums as the board of directors
deems necessary or advisable. No indebtedness shall be incurred
or assumed except for the development, purchase and operation of
electric utility facilities or for the purchase of electricity
{ - , - } { + or + } electrical capacity { - or renewable
energy certificates - } .
{ - (8) - } { + (7) + } To exercise the powers otherwise
granted to districts by ORS 271.390.
{ - (9) - } { + (8) + } To levy and collect, or cause to be
levied and collected, subject to constitutional limitations,
taxes for the purpose of carrying on the operations and paying
the obligations of the district as provided in this chapter.
{ - (10) - } { + (9) + } To make contracts, to employ labor
and professional staff, to set wages in conformance with ORS
261.345, to set salaries and provide compensation for services
rendered by employees and by directors, to provide for life
insurance, hospitalization, disability, health and welfare and
retirement plans for employees, and to do all things necessary
and convenient for full exercise of the powers herein granted.
The provision for life insurance, hospitalization, disability,
health and welfare and retirement plans for employees shall be in
addition to any other authority of people's utility districts to
participate in those plans and shall not repeal or modify any
statutes except those that may be in conflict with the provision
for life insurance, hospitalization, disability, health and
welfare and retirement plans.
{ - (11) - } { + (10) + } To enter into contracts with any
person, any public or private corporation, the United States
Government, the State of Oregon, or with any other state,
municipality or utility district, and with any department of any
of these, for carrying out any provisions of this chapter.
{ - (12) - } { + (11) + } To enter into agreements with the
State of Oregon or with any local governmental unit, utility,
special district or private or public corporation for the purpose
of promoting economic growth and the expansion or addition of
business and industry within the territory of the people's
utility district. Before spending district funds under such an
agreement, the board of directors shall enter on the written
records of the district a brief statement that clearly indicates
the purpose and amount of any proposed expenditure under the
agreement.
{ - (13) - } { + (12) + } To fix, maintain and collect
rates and charges for any water, waterpower, electricity or other
commodity or service furnished, developed or sold by the
district.
{ - (14) - } { + (13) + } To construct works across or
along any street or public highway, or over any lands which are
property of this state, or any subdivision thereof, and to have
the same rights and privileges appertaining thereto as have been
or may be granted to cities within the state, and to construct
its works across and along any stream of water or watercourse.
Any works across or along any state highway shall be constructed
only with the permission of the Department of Transportation. Any
works across or along any county highway shall be constructed
only with the permission of the appropriate county court. Any
works across or along any city street shall be constructed only
with the permission of the city governing body and upon
compliance with applicable city regulations and payment of any
fees called for under applicable franchise agreements,
intergovernmental agreements under ORS chapter 190 or contracts
providing for payment of such fees. The district shall restore
any such street or highway to its former state as near as may be,
and shall not use the same in a manner unnecessarily to impair
its usefulness.
{ - (15) - } { + (14) + } To elect a board of five
directors to manage its affairs.
{ - (16) - } { + (15) + } To enter into franchise
agreements with cities and pay fees under negotiated franchise
agreements, intergovernmental agreements under ORS chapter 190
and contracts providing for the payment of such fees.
{ - (17) - } { + (16) + } To take any other actions
necessary or convenient for the proper exercise of the powers
granted to a district by this chapter and by { - section
12, - } Article XI { + , section 12, + } of the Oregon
Constitution.
SECTION 35. ORS 261.335 is amended to read:
261.335. (1) Except as otherwise provided in subsection (2) of
this section, people's utility districts are subject to the
public contracting and purchasing requirements of ORS 279.835 to
279.855, 279C.005, 279C.100 to 279C.125 and 279C.300 to 279C.470
and ORS chapters 279A and 279B, except ORS 279A.140 and 279A.250
to 279A.290.
(2) The public contracting and purchasing requirements of ORS
279.835 to 279.855, 279C.005, 279C.100 to 279C.125 and 279C.300
to 279C.470 and ORS chapters 279A and 279B do not apply to
contracts entered into by districts { - for the acquisition,
construction, improvement or equipping of a renewable energy
facility or - } for the purchase or sale of electricity
{ - , - } { + or + } electrical capacity { - or renewable
energy certificates - } .
SECTION 36. ORS 261.348 is amended to read:
261.348. (1) Notwithstanding any other law, people's utility
districts and municipal electric utilities may enter into
transactions with other persons or entities for the production,
supply or delivery of electricity on an economic, dependable and
cost-effective basis, including financial products contracts and
other service contracts that reduce the risk of economic losses
in the transactions. This subsection does not authorize any
transaction that:
(a) Constitutes the investment of surplus funds for the purpose
of receiving interest or other earnings from the investment; or
(b) Is intended or useful for any purpose other than the
production, supply or delivery of electricity on a cost-effective
basis.
(2) Nothing in subsection (1) of this section prohibits a
people's utility district or a municipal electric utility from
entering into any transaction { - for the acquisition,
construction, improvement or equipping of a renewable energy
facility or - } for the purchase or sale of electricity
{ - , - } { + or + } electrical capacity { - or renewable
energy certificates - } .
SECTION 37. ORS 261.355 is amended to read:
261.355. (1) For the purpose of carrying into effect the powers
granted in this chapter, any district may issue and sell revenue
bonds, when authorized by a majority of its electors voting at
any primary election, general election or special election.
(2) All revenue bonds issued and sold under this chapter shall
be so conditioned as to be paid solely from that portion of the
revenues derived by the district from the sale of water,
waterpower and electricity, or any of them, or any other service,
commodity or facility which may be produced, used or furnished in
connection therewith, remaining after paying from those revenues
all expenses of operation and maintenance, including taxes.
(3) Notwithstanding subsection (1) of this section and subject
to subsection (4) of this section, any district may, by a duly
adopted resolution of its board, issue and sell revenue bonds for
the purpose of financing betterments and extensions of the
district, including { - renewable energy facilities or - } the
purchase or sale of electricity { - , - } { + or + }
electrical capacity { - or renewable energy certificates - } ,
but the amount of revenue bonds so issued shall be limited to the
reasonable value of the betterments and extensions plus an amount
not to exceed 10 percent thereof for administrative purposes.
Revenue bonds shall not be issued and sold for the purpose of
acquiring an initial utility system or acquiring property or
facilities owned by another entity that provides electric utility
service unless:
(a) The acquisition is a voluntary transaction between the
district and the other entity that provides electric utility
service; or
(b) The electors within the district have approved issuance of
the bonds by a vote.
(4) Not later than the 30th day prior to a board meeting at
which adoption of a resolution under subsection (3) of this
section will be considered, the district shall:
(a) Provide for and give public notice, reasonably calculated
to give actual notice to interested persons including news media
which have requested notice, of the time and place of the meeting
and of the intent of the board to consider and possibly adopt the
resolution; and
(b) Mail to its customers notice of the time and place of the
meeting and of the intent of the board to consider and possibly
adopt the resolution.
(5) Except as otherwise provided in this section, any
authorizing resolution adopted for the purposes of subsection (3)
of this section shall provide that electors residing within the
district may file a petition with the district asking to have the
question of whether to issue such bonds referred to a vote.
(6) If within 60 days after adoption of a resolution under
subsection (3) of this section the district receives petitions
containing valid signatures of not fewer than five percent of the
electors of the district, the question of issuing the bonds shall
be placed on the ballot at the next date on which a district
election may be held under ORS 255.345 (1).
(7) When petitions containing the number of signatures required
under subsection (6) of this section are filed with the district
within 60 days after adoption of a resolution under subsection
(3) of this section, revenue bonds shall not be sold until the
resolution is approved by a majority of the electors of the
district voting on the resolution.
(8) Any district issuing revenue bonds may pledge that part of
the revenue which the district may derive from its operations as
security for payment of principal and interest thereon remaining
after payment from such revenues of all expenses of operation and
maintenance, including taxes, and consistent with the other
provisions of this chapter.
(9) Prior to any district board taking formal action to issue
and sell any revenue bonds under this section, the board shall
have on file with the secretary of the district a certificate
executed by a qualified engineer that the net annual revenues of
the district, including the property to be acquired or
constructed with the proceeds of the bonds, shall be sufficient
to pay the maximum amount that will be due in any one fiscal year
for both principal of and interest on both the bonds then
proposed to be issued and all bonds of the district then
outstanding.
(10) Except as otherwise provided in this section, the district
shall order an election for the authorization of revenue bonds to
finance the acquisition or construction of an initial utility
system, including the replacement value of the unreimbursed
investment of an investor owned utility in energy efficiency
measures and installations within the proposed district, as early
as practicable under ORS 255.345 after filing the certificate
required under subsection (9) of this section. An election for
the authorization of revenue bonds to finance the acquisition or
construction of an initial utility system shall be held no more
than twice in any one calendar year for any district. In
even-numbered years no election shall be held on any other date
than the date of the primary election or general election.
(11) A district may issue revenue bonds under ORS 287A.150
without an election authorizing the issuance, except that revenue
bonds shall not be issued under ORS 287A.150 for the purpose of
acquiring an initial utility system or acquiring property or
facilities owned by another entity that provides electric utility
service unless:
(a) The acquisition is a voluntary transaction between the
district and the other entity that provides electric utility
service; or
(b) The electors within the district have approved issuance of
the bonds by a vote.
SECTION 38. ORS 262.015 is amended to read:
262.015. (1) Any three or more cities or people's utility
districts or combinations thereof, organized under the laws of
this state, may form a joint operating agency to plan, acquire,
construct, own, operate and otherwise promote the development of
utility properties for the generation, transmission and marketing
of electricity { - , - } { + or + } electrical capacity
{ - or renewable energy certificates - } .
(2) A joint operating agency may participate with other
publicly owned utilities, including other joint operating
agencies, or with electric cooperatives, or with privately owned
electric utility companies, or with any combination thereof, for
any purpose set forth in subsection (1) of this section, whether
such agencies or utilities are organized or incorporated under
the laws of this state or any other jurisdiction. However, no
joint operating agency may act alone or as the managing
participant to acquire, construct, own or operate utility
properties.
(3) Joint operating agencies, cities, people's utility
districts and privately owned utilities, or combinations thereof,
may participate in joint ownership of common facilities in
accordance with ORS 225.450 to 225.490 or 261.235 to 261.255.
SECTION 39. ORS 262.075 is amended to read:
262.075. (1) Each joint operating agency shall be a political
subdivision of the State of Oregon, and shall be a municipal
corporation with the right to sue and be sued in its own name.
Except as otherwise provided, a joint operating agency shall have
all the powers, rights, privileges and exemptions conferred on
people's utility districts.
(2) A joint operating agency shall have the power to acquire,
hold, sell and dispose of real and other property, within or
without this state, which the board of directors in its
discretion finds reasonably necessary or incident to the
generation, transmission and marketing of electricity { - , - }
{ + or + } electrical capacity { - or renewable energy
certificates - } . However, such an agency shall not acquire or
operate any facilities for the distribution of electricity.
(3) A joint operating agency shall have the power of eminent
domain which it may exercise for the purpose of acquiring
property; however, a joint operating agency shall not condemn any
properties owned by a publicly or privately owned utility which
are being used for the generation or transmission of electricity
or are being developed for such purposes with due diligence,
except to acquire a right of way to cross such properties in a
manner which will not interfere with the use thereof by the
owner.
(4) A joint operating agency shall have the power to enter into
contracts, leases and other undertakings considered necessary or
proper by its board, including but not limited to contracts for
any term relating to the purchase, sale, interchange, assignment,
allocation, transfer or wheeling of power with the Government of
the United States, or any agency thereof, and with any other
municipal corporation or privately owned utility, or any
combination thereof, within or without the state, and may
purchase, deliver or receive power anywhere.
(5) A joint operating agency shall have the power to borrow
money and incur indebtedness, to issue, sell and assume evidences
of indebtedness, to refund and retire any indebtedness that may
exist against the agency or its revenues, and to pledge any part
of its revenues. A joint operating agency may borrow from banks
or other financial institutions such sums on such terms as the
board considers necessary or advisable. A joint operating agency
may also issue, sell and assume bond anticipation notes,
refunding bond anticipation notes, or their equivalent, which
shall bear such date or dates, mature at such time or times, be
in such denominations and in such form, be payable in such
medium, at such place or places, and be subject to such terms of
redemption, as the board considers necessary or advisable. The
issuance and sale of revenue obligations by a joint operating
agency shall be governed by ORS 262.085.
(6) The joint operating agency may apply for, accept, receive
and expend appropriations, grants, loans, gifts, bequests and
devises in carrying out its functions as provided by law.
SECTION 40. { + Section 9, chapter 754, Oregon Laws 2009, is
repealed on the effective date of this 2013 Act. + }
SECTION 41. { + This 2013 Act takes effect on the 91st day
after the date on which the 2013 regular session of the
Seventy-seventh Legislative Assembly adjourns sine die. + }
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