Bill Text: OR SB427 | 2013 | Regular Session | Introduced
Bill Title: Relating to collection of public purpose charge from retail electricity consumers.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB427 Detail]
Download: Oregon-2013-SB427-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 1111
Senate Bill 427
Sponsored by Senator GEORGE (Presession filed.)
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.
Changes distribution of amounts collected as public purpose
charge by electric companies and Oregon Community Power.
Redirects moneys allocated for new cost-effective conservation
and new market transformation to school districts for energy
conservation assistance. Creates program to distribute moneys for
energy conservation assistance to school districts in areas where
public purpose charge is collected.
A BILL FOR AN ACT
Relating to collection of public purpose charge from retail
electricity consumers; creating new provisions; and amending
ORS 757.612.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) As used in this section, 'ADMw' means the
weighted average daily membership of a school district as
calculated under ORS 327.013.
(2) An electric company or Oregon Community Power shall
distribute moneys collected for school districts under ORS
757.612 (3)(b)(A) as provided in this section.
(3) At the end of each month, an electric company or Oregon
Community Power shall divide the amount of moneys collected for
distribution to school districts equally among those school
districts whose area is entirely or partially served by an
electric company that collects a public purpose charge or by
Oregon Community Power, until $100,000 to each eligible school
district has been distributed for that calendar year.
(4) After distributing moneys under subsection (3) of this
section, an electric company or Oregon Community Power shall
distribute at the end of each month any remaining moneys that may
be available for that calendar year to school districts:
(a) With a ratio of assessed value of taxable property to ADMw
in the prior fiscal year that is within the lowest two-thirds of
all school districts in this state; and
(b) Whose area is entirely or partially served by an electric
company that collects a public purpose charge or by Oregon
Community Power.
(5) The State Department of Energy shall determine which school
districts are eligible under subsection (4) of this section for a
distribution of the remaining moneys on the basis of the total
assessed value of taxable property of all school districts in
this state, as reported by the Department of Revenue for the
fiscal year preceding the calendar year in which the
distributions are made.
(6) A school district shall receive a distribution of the
remaining moneys under subsection (4) of this section in an
amount equal to the school district's ADMw multiplied by the
total amount of moneys available in that calendar year after all
distributions are made under subsection (3) of this section
divided by the total ADMw of those school districts that are
eligible for a distribution of the remaining moneys under
subsection (4) of this section.
(7) The State Department of Energy may adopt rules necessary
for the administration of this section.
(8) Prior to February 1 of each calendar year, each school
district receiving a distribution of moneys under this section
shall submit a report to the State Department of Energy
documenting the expenditures made with its distribution during
the preceding calendar year and verifying that the school
district has spent the moneys on energy conservation
measures. + }
SECTION 2. { + For calendar years 2014 and 2015, the State
Department of Energy shall review the reports submitted by school
districts under section 1 of this 2013 Act and make a written
report to the appropriate legislative interim committee not later
than October 1, 2016. The department may make recommendations for
proposed legislation to ensure compliance with section 1 of this
2013 Act. + }
SECTION 3. ORS 757.612 is amended to read:
757.612. (1) There is established an annual public purpose
expenditure standard for electric companies and Oregon Community
Power to fund { + energy conservation assistance to school
districts, + } new cost-effective local energy conservation, new
market transformation efforts, the above-market costs of new
renewable energy resources and new low-income weatherization. The
public purpose expenditure standard shall be funded by the public
purpose charge described in subsection (2) of this section.
(2)(a) Beginning on the date an electric company or Oregon
Community Power offers direct access to its retail electricity
consumers, except residential electricity consumers, the electric
company or Oregon Community Power shall collect a public purpose
charge from all of the retail electricity consumers located
within its service area until January 1, 2026. Except as provided
in paragraph (b) of this subsection, the public purpose charge
shall be equal to three percent of the total revenues collected
by the electric company, Oregon Community Power or the
electricity service supplier from its retail electricity
consumers for electricity services, distribution, ancillary
services, metering and billing, transition charges and other
types of costs included in electric rates on July 23, 1999.
(b) For an aluminum plant that averages more than 100 average
megawatts of electricity use per year, beginning on March 1,
2002, the electric company or Oregon Community Power whose
territory abuts the greatest percentage of the site of the
aluminum plant shall collect from the aluminum company a public
purpose charge equal to one percent of the total revenue from the
sale of electricity services to the aluminum plant from any
source.
(3)(a) The Public Utility Commission shall establish rules
implementing the provisions of this section relating to electric
companies and Oregon Community Power.
(b) Subject to paragraph (e) of this subsection, funds
collected by an electric company or Oregon Community Power
through public purpose charges shall be allocated as follows:
(A) Sixty-three percent for { - new cost-effective
conservation, new market transformation - } { + energy
conservation assistance to school districts as described in
section 1 of this 2013 Act + }.
(B) Nineteen percent for { + :
(i) New cost-effective conservation and new market
transformation; and
(ii) + } The above-market costs of constructing and operating
new renewable energy resources with a nominal electric generating
capacity, as defined in ORS 469.300, of 20 megawatts or less.
(C) Thirteen percent for new low-income weatherization.
(D) Five percent shall be transferred to the Housing and
Community Services Department Electricity Public Purpose Charge
Fund established by ORS 456.587 (1) and used for the purpose of
providing grants as described in ORS 458.625 (2).
(c) The costs of administering subsections (1) to (6) of this
section for an electric company or Oregon Community Power shall
be paid out of the funds collected through public purpose charges
{ + prior to making the allocations authorized by subsections
(1) to (6) of this section + }. The commission may require that
an electric company or Oregon Community Power direct funds
collected through public purpose charges to the state agencies
responsible for implementing subsections (1) to (6) of this
section in order to pay the costs of administering such
responsibilities.
(d) The commission shall direct the manner in which public
purpose charges are collected and spent by an electric company or
Oregon Community Power and may require an electric company or
Oregon Community Power to expend funds through competitive bids
or other means designed to encourage competition, except that
funds dedicated for low-income weatherization shall be directed
to the Housing and Community Services Department as provided in
subsection (7) of this section. The commission may also direct
that funds collected by an electric company or Oregon Community
Power through public purpose charges be paid to a nongovernmental
entity for investment in public purposes described in subsection
(1) of this section. Notwithstanding any other provision of this
subsection:
(A) At least 80 percent of the funds allocated for conservation
shall be spent within the service area of the electric company
that collected the funds; or
(B) If Oregon Community Power collected the funds, at least 80
percent of the funds allocated for conservation shall be spent
within the service area of Oregon Community Power.
(e)(A) The first 10 percent of the funds collected annually by
an electric company or Oregon Community Power under subsection
(2) of this section shall be distributed to school districts that
are located in the service territory of the electric company or
Oregon Community Power. The funds shall be distributed
{ + monthly + } to individual school districts according to the
weighted average daily membership (ADMw) of each school district
for the prior fiscal year as calculated under ORS 327.013. The
commission shall establish by rule a methodology for distributing
a proportionate share of funds under this paragraph to school
districts that are only partially located in the service
territory of the electric company or Oregon Community Power.
(B) A school district that receives funds under this paragraph
shall use the funds first to pay for energy audits for schools
located within the school district. A school district may not
expend additional funds received under this paragraph on a school
facility until an energy audit has been completed for that school
facility. To the extent practicable, a school district shall
coordinate with the State Department of Energy and incorporate
federal funding in complying with this paragraph. Following
completion of an energy audit for an individual school, the
school district may expend funds received under this paragraph to
implement the energy audit. Once an energy audit has been
conducted and completely implemented for each school within the
school district, the school district may expend funds received
under this paragraph for any of the following purposes:
(i) Conducting energy audits. A school district shall conduct
an energy audit prior to expending funds on any other purpose
authorized under this paragraph unless the school district has
performed an energy audit within the three years immediately
prior to receiving the funds.
(ii) Weatherization and upgrading the energy efficiency of
school district facilities.
(iii) Energy conservation education programs.
(iv) Purchasing electricity from environmentally focused
sources and investing in renewable energy resources.
(f) The commission may not establish a different public purpose
charge than the public purpose charge described in subsection (2)
of this section.
(g) If the commission directs funds collected through public
purpose charges to a nongovernmental entity, the entity shall:
(A) Include on the entity's board of directors an ex officio
member designated by the commission, who shall also serve on the
entity's nominating committee for filling board vacancies.
(B) Require the entity's officers and directors to provide an
annual disclosure of economic interest to be filed with the
commission on or prior to April 15 of each calendar year for
public review in a form similar to the statement of economic
interest required for public officials under ORS 244.060.
(C) Require the entity's officers and directors to declare
actual and potential conflicts of interest at regular meetings of
the entity's governing body when such conflicts arise, and
require an officer or director to abstain from participating in
any discussion or vote on any item where that officer or director
has an actual conflict of interest. For the purposes of this
subparagraph, 'actual conflict of interest' and 'potential
conflict of interest' have the meanings given those terms in ORS
244.020.
(D) Arrange for an independent auditor to audit the entity's
financial statements annually, and direct the auditor to file an
audit opinion with the commission for public review.
(E) File with the commission annually the entity's budget,
action plan and quarterly and annual reports for public review.
(F) At least once every five years, contract for an independent
management evaluation to review the entity's operations,
efficiency and effectiveness, and direct the independent reviewer
to file a report with the commission for public review.
(h) The commission may remove from the board of directors of a
nongovernmental entity an officer or director who fails to
provide an annual disclosure of economic interest or declare
actual or potential conflict of interest, as described in
paragraph (g)(B) and (C) of this subsection, in connection with
the allocation or expenditure of funds collected through public
purpose charges and directed to the entity.
(4)(a) An electric company that satisfies its obligations under
this section shall have no further obligation to invest in
conservation, new market transformation or new low-income
weatherization or to provide a commercial energy conservation
services program and is not subject to ORS 469.631 to 469.645 and
469.860 to 469.900.
(b) Oregon Community Power, for any period during which Oregon
Community Power collects a public purpose charge under subsection
(2) of this section:
(A) Shall have no other obligation to invest in conservation,
new market transformation or new low-income weatherization or to
provide a commercial energy conservation services program; and
(B) Is not subject to ORS 469.631 to 469.645 and 469.860 to
469.900.
(5)(a) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year
shall receive a credit against public purpose charges billed by
an electric company or Oregon Community Power for that site. The
amount of the credit shall be equal to the total amount of
qualifying expenditures for new energy conservation, not to
exceed 68 percent of the annual public purpose charges, and the
above-market costs of purchases of new renewable energy resources
incurred by the retail electricity consumer, not to exceed 19
percent of the annual public purpose charges, less administration
costs incurred under this subsection. The credit may not exceed,
on an annual basis, the lesser of:
(A) The amount of the retail electricity consumer's qualifying
expenditures; or
(B) The portion of the public purpose charge billed to the
retail electricity consumer that is dedicated to new energy
conservation, new market transformation or the above-market costs
of new renewable energy resources.
(b) To obtain a credit under this subsection, a retail
electricity consumer shall file with the State Department of
Energy a description of the proposed conservation project or new
renewable energy resource and a declaration that the retail
electricity consumer plans to incur the qualifying expenditure.
The State Department of Energy shall issue a notice of
precertification within 30 days of receipt of the filing, if such
filing is consistent with this subsection. The credit may be
taken after a retail electricity consumer provides a letter from
a certified public accountant to the State Department of Energy
verifying that the precertified qualifying expenditure has been
made.
(c) Credits earned by a retail electricity consumer as a result
of qualifying expenditures that are not used in one year may be
carried forward for use in subsequent years.
(d)(A) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year may
request that the State Department of Energy hire an independent
auditor to assess the potential for conservation investments at
the site. If the independent auditor determines there is no
available conservation measure at the site that would have a
simple payback of one to 10 years, the retail electricity
consumer shall be relieved of 54 percent of its payment
obligation for public purpose charges related to the site. If the
independent auditor determines that there are potential
conservation measures available at the site, the retail
electricity consumer shall be entitled to a credit against public
purpose charges related to the site equal to 54 percent of the
public purpose charges less the estimated cost of available
conservation measures.
(B) A retail electricity consumer shall be entitled each year
to the credit described in this subsection unless a subsequent
independent audit determines that new conservation investment
opportunities are available. The State Department of Energy may
require that a new independent audit be performed on the site to
determine whether new conservation measures are available,
provided that the independent audits shall occur no more than
once every two years.
(C) The retail electricity consumer shall pay the cost of the
independent audits described in this subsection.
(6) Electric utilities and retail electricity consumers shall
receive a fair and reasonable credit for the public purpose
expenditures of their energy suppliers. The State Department of
Energy shall adopt rules to determine eligible expenditures and
the methodology by which such credits are accounted for and used.
The rules also shall adopt methods to account for eligible public
purpose expenditures made through consortia or collaborative
projects.
(7)(a) In addition to the public purpose charge provided under
subsection (2) of this section, an electric company or Oregon
Community Power shall collect funds for low-income electric bill
payment assistance in an amount determined under paragraph (b) of
this subsection.
(b) The commission shall establish the amount to be collected
by each electric company in calendar year 2008 from retail
electricity consumers served by the company, and the rates to be
charged to retail electricity consumers served by the company, so
that the total anticipated collection for low-income electric
bill payment assistance by all electric companies in calendar
year 2008 is $15 million. In calendar year 2009 and subsequent
calendar years, the commission may not change the rates
established for retail electricity consumers, but the total
amount collected in a calendar year for low-income electric bill
payment assistance may vary based on electricity usage by retail
electricity consumers and changes in the number of retail
electricity consumers in this state. In no event shall a retail
electricity consumer be required to pay more than $500 per month
per site for low-income electric bill payment assistance.
(c) Funds collected by the low-income electric bill payment
assistance charge shall be paid into the Housing and Community
Services Department Low-Income Electric Bill Payment Assistance
Fund established by ORS 456.587 (2). Moneys deposited in the fund
under this paragraph shall be used by the Housing and Community
Services Department for the purpose of funding low-income
electric bill payment assistance. The department's cost of
administering this subsection shall be paid out of funds
collected by the low-income electric bill payment assistance
charge. Moneys deposited in the fund under this paragraph shall
be expended solely for low-income electric bill payment
assistance. Funds collected from an electric company or Oregon
Community Power shall be expended in the service area of the
electric company or Oregon Community Power from which the funds
are collected.
(d)(A) The Housing and Community Services Department, in
consultation with the advisory committee on energy established by
ORS 458.515, shall determine the manner in which funds collected
under this subsection will be allocated by the department to
energy assistance program providers for the purpose of providing
low-income bill payment and crisis assistance.
(B) The department shall investigate and may implement
alternative delivery models specified by the advisory committee
on energy, in consultation with electric companies, to
effectively reduce service disconnections and related costs to
retail electricity consumers and electric utilities.
(C) Priority assistance shall be directed to low-income
electricity consumers who are in danger of having their
electricity service disconnected.
(D) The department shall maintain records and provide those
records upon request to an electric company, Oregon Community
Power and the Citizens' Utility Board established under ORS
chapter 774 on a quarterly basis. Records maintained must include
the numbers of low-income electricity consumers served, the
average amounts paid and the type of assistance provided.
Electric companies and Oregon Community Power shall, if
requested, provide the department with aggregate data relating to
consumers served on a quarterly basis to support program
development.
(e) Interest on moneys deposited in the Housing and Community
Services Department Low-Income Electric Bill Payment Assistance
Fund established by ORS 456.587 (2) may be used to provide bill
payment and crisis assistance to electricity consumers whose
primary source of heat is not electricity.
(f) Notwithstanding ORS 757.310, the commission may allow an
electric company or Oregon Community Power to provide reduced
rates or other payment or crisis assistance or low-income program
assistance to a low-income household eligible for assistance
under the federal Low Income Home Energy Assistance Act of 1981,
as amended and in effect on July 23, 1999.
(8) For purposes of this section, 'retail electricity
consumers' includes any direct service industrial consumer that
purchases electricity without purchasing distribution services
from the electric utility.
(9) For purposes of this section, amounts collected by Oregon
Community Power through public purpose charges are not considered
moneys received from electric utility operations.
SECTION 4. { + The amendments to ORS 757.612 by section 3 of
this 2013 Act apply to public purpose charges collected on or
after January 1, 2014. + }
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