Bill Text: OR HB2893 | 2013 | Regular Session | Enrolled
Bill Title: Relating to solar photovoltaic energy systems; and declaring an emergency.
Spectrum: Committee Bill
Status: (Passed) 2013-05-28 - Chapter 244, (2013 Laws): Effective date May 28, 2013. [HB2893 Detail]
Download: Oregon-2013-HB2893-Enrolled.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
Enrolled
House Bill 2893
Sponsored by COMMITTEE ON ENERGY AND ENVIRONMENT
CHAPTER ................
AN ACT
Relating to solar photovoltaic energy systems; creating new
provisions; amending ORS 757.365; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. 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 - } { + 27.5 + }
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
Enrolled House Bill 2893 (HB 2893-A) Page 1
small commercial qualifying systems. - } The commission { - by
rule - } may { + adopt and + } adjust { - the - } { + a + }
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) 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) All prudently incurred costs associated with compliance
with this section are recoverable in the rates of an electric
company.
(11) 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) The pilot programs described in subsection (1) of this
section close to new participants on the earlier of:
(a) March 31, { - 2015 - } { + 2016 + }; 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 - } { + 27.5 + } megawatts of alternating current.
(13) 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 2. { + The amendments to ORS 757.365 by section 3 of
this 2013 Act become operative on March 31, 2014. + }
SECTION 3. ORS 757.365, as amended by section 1 of this 2013
Act, 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 27.5 megawatts of alternating
current. Qualifying systems enrolled in the pilot program may not
have nameplate generating capacity greater than 500 kilowatts.
Enrolled House Bill 2893 (HB 2893-A) Page 2
(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 may adopt and adjust a 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. { + For
purposes of attaining the goal described in this subsection, the
commission shall require 2.5 megawatts of alternating current
from the cumulative nameplate capacity of qualifying systems to
be generated by individual systems with a nameplate generating
capacity between five and 100 kilowatts. + }
(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) 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) All prudently incurred costs associated with compliance
with this section are recoverable in the rates of an electric
company.
(11) 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) The pilot programs described in subsection (1) of this
section close to new participants on the earlier of:
(a) March 31, 2016; or
(b) The date the cumulative nameplate capacity of solar
photovoltaic energy systems that have been permanently installed
Enrolled House Bill 2893 (HB 2893-A) Page 3
by retail electricity consumers under the pilot programs equals
27.5 megawatts of alternating current.
(13) 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 - }
{ + estimate the + } cost of the program to retail electricity
consumers { + and the resource value of solar energy + }.
SECTION 4. { + (1) The Public Utility Commission shall study
the effectiveness of programs that provide incentives for the use
of solar photovoltaic energy systems. As part of the study, the
commission shall:
(a) Investigate the resource value of solar energy;
(b) Investigate the costs and benefits of the programs for
retail electricity consumers and how those costs and benefits are
distributed among retail electricity consumers;
(c) Forecast the costs associated with solar photovoltaic
energy systems located in Oregon;
(d) Identify barriers within the programs to providing
incentives for the development of solar photovoltaic energy
systems; and
(e) Make recommendations for modifying the programs or
establishing new programs for the purpose of providing incentives
for the development of solar photovoltaic energy systems in a
manner that is cost effective and protects ratepayers, including
ratepayers that do not participate in the programs.
(2) The commission shall consult with the State Department of
Energy in conducting the study described in subsection (1) of
this section.
(3) On or before July 1, 2014, the commission shall report on
the results of the study, and may include recommendations for
legislation, to the interim committees of the Legislative
Assembly related to energy. + }
SECTION 5. { + Section 4 of this 2013 Act is repealed on
January 2, 2015. + }
SECTION 6. { + This 2013 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2013 Act takes effect on its
passage. + }
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Enrolled House Bill 2893 (HB 2893-A) Page 4
Passed by House April 15, 2013
.............................................................
Ramona J. Line, Chief Clerk of House
.............................................................
Tina Kotek, Speaker of House
Passed by Senate May 20, 2013
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 2893 (HB 2893-A) Page 5
Received by Governor:
......M.,............., 2013
Approved:
......M.,............., 2013
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2013
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 2893 (HB 2893-A) Page 6
