Bill Text: OR SB167 | 2011 | Regular Session | Introduced


Bill Title: Relating to energy resource supplier assessments.

Spectrum: Unknown

Status: (Failed) 2011-06-30 - In committee upon adjournment. [SB167 Detail]

Download: Oregon-2011-SB167-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 837

                         Senate Bill 167

Printed pursuant to Senate Interim Rule 213.28 by order of the
  President of the Senate in conformance with presession filing
  rules, indicating neither advocacy nor opposition on the part
  of the President (at the request of Governor John A. Kitzhaber
  for Department of Energy)

                             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 Director of State Department of Energy to make records
of moneys deposited in State Department of Energy Account
available to certain parties.
  Requires that revenues derived from energy resource supplier
assessment be used for certain activities.

                        A BILL FOR AN ACT
Relating to energy resource supplier assessments; creating new
  provisions; and amending ORS 469.120 and 469.421.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 469.120 is amended to read:
  469.120. (1) The State Department of Energy Account is
established.
  (2) All funds received by the State Department of Energy
pursuant to law shall be paid into the State Treasury and
credited to the State Department of Energy Account. All moneys in
the account are continuously appropriated to the State Department
of Energy for payment of expenses of the State Department of
Energy, the Oregon Department of Administrative Services and the
Energy Facility Siting Council.
  (3) The Director of the State Department of Energy shall keep a
record of all moneys deposited in the State Department of Energy
Account. The record shall indicate by special cumulative accounts
the source from which moneys are derived and the individual
activity against which each withdrawal is charged.
   { +  (4) The director shall make the record described in this
section available to all interested parties prior to entering an
order establishing the amount of revenues required to be derived
from the assessment described in ORS 469.421 (8). + }
  SECTION 2. 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) 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 a regular session of the Legislative Assembly or as revised by
the Emergency Board, 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  { + as related to the Energy Facility
Siting Council + } 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 a 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  { + as related to the Energy Facility Siting
Council + } and the State Department of Energy  { - , including
those enumerated in ORS 469.030 and others authorized by law, - }
 { +  described in ORS 469A.005 to 469A.210 and this chapter and
ORS chapter 470 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
 { + as related to the Energy Facility Siting Council + } and the
State Department of Energy  { - , including those enumerated in
ORS 469.030 and others authorized by law, - }   { + described in
ORS 469A.005 to 469A.210 and this chapter and ORS chapter 470 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 or by a special session of
the Legislative Assembly subsequent to the most recently
concluded regular session of the Legislative Assembly.   { +
Assessments under this subsection are subject to the following:
  (A) Except as provided in subparagraph (B) of this paragraph,
revenues derived from assessments under this subsection may be
used only to fund the activities and expenses of the Energy
Facility Siting Council, the Oregon Department of Administrative
Services as related to the Energy Facility Siting Council and the
State Department of Energy described in ORS 469A.005 to 469A.210
and this chapter and ORS chapter 470 and others authorized by
law.
  (B) + }   { - However, - }  An assessment under this
 { - section - }   { + subsection + } 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 the
close of the regular session of the Legislative Assembly  { + in
an odd-numbered year + }; 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.
  (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) 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) 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) of this section.
  (11)(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) 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 3.  { + (1) The amendments to ORS 469.120 by section 1
of this 2011 Act apply to records kept by the Director of the
State Department of Energy on or after the effective date of this
2011 Act.
  (2) The amendments to ORS 469.421 (8)(a) by section 2 of this
2011 Act apply to revenues derived from assessments paid to the
State Department of Energy on or after the effective date of this
2011 Act. + }
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