Bill Text: OR HB3535 | 2011 | Regular Session | Introduced
Bill Title: Relating to energy efficiency; appropriating money; prescribing an effective date.
Sponsorship: Partisan Bill (Democrat 3)
Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB3535 Detail]
Download: Oregon-2011-HB3535-Introduced.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 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 2088
House Bill 3535
Sponsored by Representatives WITT, CANNON; Representative HOLVEY
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.
Requires State Department of Energy to adopt energy performance
rating system. Requires landlords and sellers to disclose energy
performance of buildings and units for rent or sale to
prospective tenants and buyers. Requires utilities to transfer
energy consumption data for commercial buildings to Environmental
Protection Agency and department. Requires owners of commercial
buildings to annually report energy performance of commercial
buildings to department. Becomes operative January 1, 2012.
Makes violation of disclosure and reporting requirements
subject to civil penalty. Continuously appropriates moneys
collected as penalties to department for purposes of
administration of Act.
Establishes exemption from property taxation for buildings,
structures and improvements that meet specified criteria relating
to energy efficiency. Applies to tax years beginning on or after
July 1, 2011, and before July 1, 2021.
Requires electric and natural gas utilities to prioritize
measures that increase energy efficiency and develop integrated
resource plans for the purpose of developing those measures.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to energy efficiency; creating new provisions; amending
ORS 469.080; appropriating money; and prescribing an effective
date.
Be It Enacted by the People of the State of Oregon:
{ +
ENERGY PERFORMANCE RATING SYSTEM AND ENERGY + }
{ +
EFFICIENCY DISCLOSURE AND REPORTING REQUIREMENTS + }
SECTION 1. { + As used in sections 1 to 8 of this 2011 Act:
(1) 'Asset rating' means a value that represents the energy use
of a building or unit, based on modeled energy use under
standardized weather and occupancy conditions and adjusted to
account for variances in energy consumption.
(2) 'Benchmark performance rating' means a value that
represents a building's energy use measured against energy use
best practices as determined by the United States Environmental
Protection Agency or the United States Department of Energy under
the Energy Star program.
(3) 'Building' means a residential or nonresidential building.
(4) 'Commercial building' means a building that:
(a) Is primarily used in the exchange, sale or storage of goods
or the provision of services; or
(b) Has five or more units.
(5) 'Energy performance auditor' means a person who is
certified by the State Department of Energy to assess buildings
and units under section 4 of this 2011 Act.
(6) 'Energy Star program' means the program developed by the
United States Environmental Protection Agency and the United
States Department of Energy pursuant to 42 U.S.C. 6294a.
(7) 'Greenhouse gas' has the meaning given that term in ORS
468A.210.
(8) 'Operational rating' means a value that represents the
actual energy use of a building, based on utility bill data and
other building characteristics as determined by rule by the State
Department of Energy.
(9) 'Seller' includes the real estate broker of a person who is
selling a building or unit.
(10) 'Unit' means a part of a building being rented to a tenant
or sold to a buyer for residential or nonresidential purposes.
(11) 'Utility' means a public utility, as defined in ORS
757.005, or a consumer-owned utility, as defined in ORS
757.270. + }
SECTION 2. { + (1)(a) The State Department of Energy shall
adopt an energy performance rating system for buildings and units
located in this state. The department shall use the energy
performance rating system to rate the energy performance of:
(A) Residential buildings and units for which an energy
performance report must be prepared, transmitted and disclosed
under section 5 of this 2011 Act;
(B) Commercial buildings for which an energy performance report
must be prepared, transmitted and disclosed under section 7 of
this 2011 Act; and
(C) Any other building the department deems necessary to rate
and has the resources to rate.
(b) The department shall adopt a rating system for greenhouse
gas emissions produced by buildings and units located in this
state. The department shall integrate the greenhouse gas
emissions rating system into the energy performance rating system
adopted by the department under paragraph (a) of this subsection.
(2) For residential buildings and units, the energy performance
rating system adopted under subsection (1) of this section shall
denote the residential building's or unit's asset rating and
estimated amount of greenhouse gas emissions.
(3) For commercial buildings, the energy performance rating
system adopted under subsection (1) of this section shall denote
the commercial building's operational rating and estimated amount
of greenhouse gas emissions.
(4) The department may base the energy performance rating
system for commercial buildings upon any schedule or rule
promulgated in conjunction with the Energy Star program.
(5) In calculating a building's or unit's estimated amount of
greenhouse gas emissions, the department may coordinate with
relevant state agencies. + }
SECTION 3. { + (1) The State Department of Energy shall
develop and prescribe standards for an energy performance report
for the purpose of disclosing the energy performance of
residential buildings or units pursuant to section 5 of this 2011
Act or commercial buildings pursuant to section 7 of this 2011
Act.
(2) At a minimum, an energy performance report must contain:
(a) For residential buildings and units:
(A) A numerical score that denotes a residential building's or
unit's asset rating;
(B) A numerical score that denotes the residential building's
or unit's estimated amount of greenhouse gas emissions;
(C) The estimated monthly cost of energy use for the
residential building or unit; and
(D) Any energy efficiency improvements that may be made to the
residential building or unit that would reduce the costs
described in subparagraph (C) of this paragraph; and
(b) For commercial buildings:
(A) A numerical score that denotes the commercial building's
operational rating;
(B) A numerical score that denotes the commercial building's
benchmark performance rating; and
(C) A numerical score that denotes the commercial building's
estimated amount of greenhouse gas emissions.
(3) An energy performance report prepared pursuant to section 5
of this 2011 Act must include a standardized valuation that will
enable prospective tenants and buyers to compare the residential
building or unit that is for rent or sale with other residential
buildings or units for which energy performance reports have also
been prepared.
(4) In accordance with ORS chapter 183, the department shall
adopt rules for the administration of this section, including
rules by which a landlord or seller of a residential building or
unit, pursuant to section 5 of this 2011 Act, or an owner of a
commercial building, pursuant to section 7 of this 2011 Act, may
obtain information necessary to prepare an energy performance
report. As used in this subsection, 'information' includes data:
(a) Gathered by an energy performance auditor during an
assessment of a residential building or unit pursuant to section
5 of this 2011 Act;
(b) Transferred by a utility pursuant to section 7 of this 2011
Act; or
(c) Obtained by the department under ORS 469.080. + }
SECTION 4. { + (1) For the purpose of rating the energy
performance of residential buildings and units under section 2 of
this 2011 Act, the State Department of Energy shall develop a
program under which:
(a) The department establishes certification criteria for
persons to be energy performance auditors; and
(b) Energy performance auditors assess residential buildings
and units under section 5 of this 2011 Act or for any other
purpose established by the department.
(2) To be certified, a person must:
(a) Pay any fee required by the department;
(b) Be capable of evaluating the energy performance of a
residential building or unit after examining:
(A) The foundation, roof, attic space, insulation and
ventilation system of the residential building; and
(B) The windows, appliances and heating, cooling and lighting
systems of the residential building or unit;
(c) Be familiar with cost-effective energy efficiency
improvements; and
(d) Meet any other requirement deemed necessary by the
department.
(3) An energy performance auditor certified under this section
may charge a reasonable fee, as determined by the department, to
assess a residential building or unit.
(4) In accordance with ORS chapter 183, the department shall
adopt rules for the administration of this section, including
rules that establish the procedures by which energy performance
auditors assess residential buildings or units under section 5 of
this 2011 Act. + }
SECTION 5. { + (1) Before listing a residential building or
unit or advertising that a residential building or unit is for
rent or sale, a seller or landlord shall:
(a) Have an energy performance auditor assess the residential
building or unit pursuant to the procedures adopted by the State
Department of Energy under section 4 of this 2011 Act; and
(b) Prepare for the residential building or unit an energy
performance report pursuant to the rules adopted by the
department under section 3 of this 2011 Act.
(2) Upon completing an energy performance report under this
section, a seller or landlord shall:
(a) Transmit the energy performance report to the department;
and
(b) Include with the listing of the residential building or
unit any information from the energy performance report that the
department requires to be included by rule.
(3) During negotiations for the sale or rental of a residential
building or unit, a seller or landlord shall provide a copy of
the energy performance report to any prospective buyer or tenant.
(4) A buyer or tenant that does not receive a copy of the
energy performance report before entering into a contract for the
rental or sale of a residential building or unit may rescind the
contract at any time before receiving the energy performance
report or within five days after receiving the energy performance
report, except that the buyer or tenant may not rescind the
contract after having had possession of the residential building
or unit for more than 60 days.
(5) If a buyer or tenant rescinds a contract under subsection
(4) of this section, the seller or landlord shall return to the
buyer or tenant any payment made under the contract.
(6) Notwithstanding subsection (1) of this section, a landlord
that is renting a unit for residential purposes only must have an
energy performance auditor assess the unit at least once for
every 10-year period that the landlord owns the unit.
(7) After consulting with the Housing and Community Services
Department and the Real Estate Agency, the State Department of
Energy shall adopt, in accordance with ORS chapter 183, rules for
the administration of this section. + }
SECTION 6. { + (1) Each utility located in this state shall
collect and maintain data relating to the energy consumption of
each commercial building for which the utility provides a
service. The utility shall:
(a) Maintain the data for at least 12 months from the time that
the utility collects the data;
(b) Format the data so that the data is compatible with data
collected and maintained by the federal government pursuant to
the Energy Star program;
(c) Transfer the data to the Environmental Protection Agency in
a manner specified by the agency for purposes of being assigned a
benchmark performance rating; and
(d) Transfer the data to the State Department of Energy in a
manner specified by the department.
(2) A utility may consult with the Environmental Protection
Agency and the State Department of Energy in developing methods
of maintaining and transferring data under this section. + }
SECTION 7. { + (1) For each commercial building that a person
owns that is located in this state, the person shall:
(a) Annually prepare for the commercial building an energy
performance report pursuant to the rules adopted by the State
Department of Energy under section 3 of this 2011 Act; and
(b) Disclose to a prospective buyer or tenant of the commercial
building the commercial building's benchmark performance rating.
(2) Upon completing an energy performance report under
subsection (1) of this section, a person shall transmit the
report to the department.
(3) The department shall:
(a) Adopt a schedule that prescribes the date by which a person
must transmit an energy performance report under subsection (2)
of this section;
(b) Create and maintain a database for energy performance
reports received by the department; and
(c) Post information relating to the energy performance of
commercial buildings on a website maintained by the department.
At a minimum, information posted under this subsection shall
include the numerical scores required under section 3 of this
2011 Act that denote the commercial building's operational
rating, benchmark performance rating and estimated amount of
greenhouse gas emissions.
(4) A buyer or tenant that does not receive a copy of the
commercial building's benchmark performance rating before
entering into a contract for the sale or rental of a commercial
building may rescind the contract at any time before receiving a
copy of the commercial building's benchmark performance rating or
within five days after receiving the commercial building's
benchmark performance rating, except that the buyer or tenant may
not rescind the contract after having had possession of the
commercial building for more than 60 days.
(5) If a buyer or tenant rescinds a contract under subsection
(4) of this section, the seller or landlord shall return to the
buyer or tenant any payment made under the contract.
(6) After consulting with the Housing and Community Services
Department, the Real Estate Agency and the Oregon Business
Development Department, the State Department of Energy shall
adopt, in accordance with ORS chapter 183, rules for the
administration of this section. + }
SECTION 8. { + (1) The State Department of Energy may impose a
civil penalty on a seller or landlord who violates section 5 of
this 2011 Act or a person that violates section 7 of this 2011
Act. The department shall adopt by rule the amount of the civil
penalty that may be imposed for a particular violation.
(2) All moneys collected pursuant to this section shall be
deposited in a subaccount in the State Department of Energy
Account. Moneys deposited in the subaccount under this subsection
are continuously appropriated to the department for the purpose
of administering sections 1 to 8 of this 2011 Act. + }
SECTION 9. { + (1) Sections 1 to 8 of this 2011 Act become
operative on January 1, 2012.
(2) The State Department of Energy may take any action before
the operative date specified in subsection (1) of this section
that is necessary to enable the department to exercise, on and
after the operative date specified in subsection (1) of this
section, all of the duties, functions and powers conferred on the
department by sections 1 to 8 of this 2011 Act. + }
{ +
PROPERTY TAX EXEMPTION FOR + }
{ +
ENERGY EFFICIENT BUILDINGS + }
SECTION 10. { + As used in sections 10 to 12 of this 2011 Act:
(1) 'Building' means a residential or nonresidential building.
(2) 'Commercial building' means a building that:
(a) Is primarily used in the exchange, sale or storage of goods
or the provision of services; or
(b) Has four or more units.
(3) 'Energy performance auditor' means a person who meets the
certification criteria established by the State Department of
Energy to assess buildings and units under section 4 of this 2011
Act.
(4) 'Energy Star program' means the program developed by the
United States Environmental Protection Agency and the United
States Department of Energy pursuant to 42 U.S.C. 6294a.
(5) 'Energy system' includes any heating, cooling, ventilation
or lighting system.
(6) 'Unit' means a part of a building that is rented by a
tenant or owned by a person other than the owner of the
building. + }
SECTION 11. { + (1) A building, structure or improvement is
exempt from ad valorem property taxation according to the
schedules prescribed by subsections (2) and (3) of this section
if:
(a) The building is newly constructed or renovated; and
(b)(A) For buildings other than commercial buildings, the
building is constructed or renovated to use an amount of energy
that is less than or equal to 50 million British thermal units
per annum; or
(B) For commercial buildings:
(i) The building is constructed to use an amount of energy that
is at least 40 percent more efficient than the energy efficiency
standards adopted by the Director of the Department of Consumer
and Business Services pursuant to ORS 455.505 and 455.511; or
(ii) The renovation replaces or retrofits at least two systems
related to energy use and those systems reduce the energy use of
the building by at least 40 percent.
(2)(a) Buildings other than commercial buildings qualify for
exemption under this section for:
(A) Five tax years if the building is constructed or renovated
to use an amount of energy that is less than or equal to 10
million British thermal units per annum;
(B) Four tax years if the building is constructed or renovated
to use an amount of energy that is more than 10 million British
thermal units per annum and less than or equal to 20 million
British thermal units per annum;
(C) Three tax years if the building is constructed or renovated
to use an amount of energy that is more than 20 million British
thermal units per annum and less than or equal to 30 million
British thermal units per annum;
(D) Two tax years if the building is constructed or renovated
to use an amount of energy that is more than 30 million British
thermal units per annum and less than or equal to 40 million
British thermal units per annum; or
(E) One tax year if the building is constructed or renovated to
use an amount of energy that is more than 40 million British
thermal units per annum and less than or equal to 50 million
British thermal units per annum.
(b) In addition to the schedule prescribed by paragraph (a) of
this subsection, buildings other than commercial buildings
qualify for exemption under this section for:
(A) Three additional tax years if the building actually uses an
amount of energy that is less than or equal to 25 million British
thermal units per annum; or
(B) Two additional tax years if the building actually uses an
amount of energy that is more than 25 million British thermal
units per annum and less than or equal to 50 million British
thermal units per annum.
(3)(a) Commercial buildings qualify for exemption under this
section for:
(A) Four tax years if the building is constructed or renovated
to use an amount of energy that is at least 50 percent more
efficient than the energy efficiency standards adopted by the
director pursuant to ORS 455.505 and 455.511; or
(B) Three tax years if the building is constructed or renovated
to use an amount of energy that is at least 40 percent, but less
than 50 percent, more efficient than the energy efficiency
standards adopted by the director pursuant to ORS 455.505 and
455.511.
(b) In addition to the schedule prescribed by paragraph (a) of
this subsection, commercial buildings qualify for exemption under
this section for:
(A) Three additional tax years if the commercial building
actually uses an amount of energy that is at least 40 percent
more efficient than the energy efficiency standards adopted by
the director pursuant to ORS 455.505 and 455.511; or
(B) Two additional tax years if the commercial building
actually uses an amount of energy that is at least 30 percent,
but less than 40 percent, more efficient than the energy
efficiency standards adopted by the director pursuant to ORS
455.505 and 455.511.
(4) In addition to the schedules prescribed by subsections (2)
and (3) of this section, energy systems that are installed in a
renovated building that is exempt from ad valorem property
taxation under this section qualify for:
(a) Six years of additional exemption if the energy system uses
an amount of energy that is at least 50 percent more efficient
than the replaced energy system; or
(b) Five years of additional exemption if the energy system
uses an amount of energy that is at least 40 percent, but less
than 50 percent, more efficient than the replaced energy
system. + }
SECTION 12. { + (1) In accordance with ORS chapter 183, the
State Department of Energy, in consultation with the Department
of Revenue and the Department of Consumer and Business Services,
shall adopt rules by which a person may apply for an exemption to
ad valorem property taxation under section 11 of this 2011 Act.
(2) To verify the amount of energy that a newly constructed or
renovated building is designed to use, or the actual amount of
energy that an energy system uses, the State Department of Energy
may:
(a) Reference any schedule or rule promulgated in conjunction
with the Energy Star program;
(b) Require certification by an energy performance auditor;
(c) Require certification by a professional engineer; or
(d) Notwithstanding the purposes listed in ORS 469.080 (1),
obtain and use data under ORS 469.080.
(3) To verify the actual amount of energy that a newly
constructed or renovated building uses, the department may:
(a) Require certification by an energy performance auditor;
(b) Require certification by a professional engineer; or
(c) Notwithstanding the purposes listed in ORS 469.080 (1),
obtain and use data under ORS 469.080. + }
SECTION 13. { + (1) Sections 10 to 12 of this 2011 Act apply
to tax years beginning on or after July 1, 2011, and before July
1, 2021.
(2) Notwithstanding subsection (1) of this section, a building
that qualifies for an exemption under section 11 of this 2011 Act
on or before July 1, 2021, continues to qualify for the duration
of that exemption as specified in section 11 of this 2011 Act
after July 1, 2021. + }
{ +
ENERGY EFFICIENCY MEASURES FOR + }
{ +
ELECTRIC AND NATURAL GAS UTILITIES + }
SECTION 14. { + Sections 15 to 18 of this 2011 Act are added
to and made a part of ORS chapter 757. + }
SECTION 15. { + For the purposes of sections 15 to 18 of this
2011 Act:
(1) 'Consumer-owned utility' has the meaning given that term in
ORS 757.270.
(2) 'Utility' means a public utility or consumer-owned utility
that furnishes light or heat by means of electricity or natural
gas. + }
SECTION 16. { + (1) Utilities in this state shall prioritize
measures that increase energy efficiency over:
(a) For electric utilities, the development of new generating
facilities; and
(b) For natural gas utilities, the construction of wellheads
and any other facilities that serve the primary purpose of
increasing the supply of natural gas.
(2) Each utility shall prepare an integrated resource plan.
Each integrated resource plan must:
(a) Describe the mix of resources that meet current and
projected energy needs.
(b) Identify measures that increase energy efficiency.
(c) Assess the amount of potential energy savings from known
methods of increasing energy efficiency and identify the cost of
those methods per unit of energy saved. Under this paragraph, '
known methods of increasing energy efficiency' includes
commissioning and maintenance activities designed to ensure the
durability of energy savings.
(d) Identify the risks associated with using specific resources
and implementing specific measures that increase energy
efficiency and assess the costs of using those resources and
implementing those measures in consideration of the identified
risks.
(e) Identify target dates for implementing specific measures
that increase energy efficiency over a 20-year period. Target
dates identified under this paragraph must be identified in
consideration of the following factors:
(A) Preference for use of energy efficiency to meet customers'
energy needs over other means of meeting those needs;
(B) Realistic opportunities for implementing energy efficiency
measures;
(C) The need to maintain the infrastructure used to acquire and
transmit energy or energy-producing resources; and
(D) The cost of providing energy or energy-producing resources
to utility customers.
(f) Include, at a minimum, a biennial plan of action.
(3) The Public Utility Commission may require a public utility
that is subject to this section to use a designated
nongovernmental entity to design and administer programs for
implementing measures that increase energy efficiency. + }
SECTION 17. { + (1) A public utility that is subject to
section 16 of this 2011 Act shall biennially submit an integrated
resource plan required by section 16 of this 2011 Act to the
Public Utility Commission for evaluation. In accordance with ORS
chapter 183, the commission shall adopt rules to ensure that the
plan is cost-effective and that projections related to the use of
resources or the implementation of measures that increase energy
efficiency are appropriately measured, evaluated and verified.
After reviewing submitted plans, the commission may by rule
suggest target dates for implementing measures that increase
energy efficiency.
(2) The commission shall prepare a report on the feasibility of
meeting the target dates submitted by utilities pursuant to
section 16 (2)(e) of this 2011 Act and submit the report to the
Legislative Assembly prior to February 1 of each odd-numbered
year. + }
SECTION 18. { + (1) The governing body of a consumer-owned
utility that is subject to section 16 of this 2011 Act shall
biennially update the integrated resource plan that is required
by section 16 of this 2011 Act.
(2) The governing body of a consumer-owned utility that is
subject to section 16 of this 2011 Act shall prepare a report on
the feasibility of meeting the target dates required by section
16 (2)(e) of this 2011 Act and submit the report to the
Legislative Assembly prior to February 1 of each odd-numbered
year. + }
{ +
CONFORMING AMENDMENTS + }
SECTION 19. ORS 469.080 is amended to read:
469.080. (1) The Director of the State Department of Energy may
obtain all necessary information from producers, suppliers and
consumers of energy resources { - within Oregon, and from
political subdivisions in this state, as necessary to carry - }
{ + that do business or are located in this state and from
political subdivisions of this state for the purpose of carrying
+ }out ORS 176.820, 192.501 to 192.505, 192.690, 469.010 to
469.225, 469.300 to 469.563, 469.990, 469.992, 757.710 and
757.720 { + and sections 2 and 3 of this 2011 Act + }. Such
information may include, but { + is + } not
{ - be - } limited to:
(a) Sales volume;
(b) Forecasts of energy resource requirements;
(c) Inventory of energy resources; { - and - }
(d) Local distribution patterns of information under paragraphs
(a) to (c) of this subsection { + ; and
(e) Energy usage data of utility customers + }.
(2) In obtaining information under subsection (1) of this
section, the director, with the written consent of the Governor,
may subpoena witnesses, material and relevant books, papers,
accounts, records and memoranda, administer oaths, and may cause
the depositions of persons residing within or without Oregon to
be taken in the manner prescribed for depositions in civil
actions in circuit courts, to obtain information relevant to
energy resources.
(3) In obtaining information under this section, the director:
(a) Shall avoid eliciting information already furnished by a
person or political subdivision in this state to a federal, state
or local regulatory authority that is available to the director
for such study; and
(b) Shall cause reporting procedures, including forms, to
conform to existing requirements of federal, state and local
regulatory authorities.
(4) Any person who is served with a subpoena to give testimony
orally or in writing or to produce books, papers, correspondence,
memoranda, agreements or the documents or records as provided in
ORS 176.820, 192.501 to 192.505, 192.690, 469.010 to 469.225,
469.300 to 469.563, 469.990, 469.992, 757.710 and 757.720 { +
and sections 2 and 3 of this 2011 Act + }, may apply to any
circuit court in Oregon for protection against abuse or hardship
in the manner provided in ORCP 36 C.
{ +
UNIT CAPTIONS + }
SECTION 20. { + The unit captions used in this 2011 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2011 Act. + }
{ +
EFFECTIVE DATE + }
SECTION 21. { + This 2011 Act takes effect on the 91st day
after the date on which the 2011 regular session of the
Seventy-sixth Legislative Assembly adjourns sine die. + }
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