Bill Text: OR SB606 | 2013 | Regular Session | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to wave energy; and declaring an emergency.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2013-06-13 - Effective date, June 6, 2013. [SB606 Detail]

Download: Oregon-2013-SB606-Engrossed.html

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     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 2856

                           A-Engrossed

                         Senate Bill 606
                 Ordered by the Senate April 24
           Including Senate Amendments dated April 24

Sponsored by Senator ROBLAN

                             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.

    { - Requires owners and operators of wave energy facilities
and devices to remove equipment related to wave energy facilities
and devices within certain period. - }
    { - Requires Department of State Lands to remove equipment
within certain period if owner or operator fails to remove
equipment. - }
    { - Requires department to pay certain compensation to
commercial fishermen. - }
    { - Requires department to establish program by rule to
provide certain compensation to commercial fishermen. - }
    { - Establishes Wave Energy Fund. Continuously appropriates
moneys in fund to department. Specifies uses of moneys. - }
   { +  Requires owners or operators of wave energy facilities
and devices to demonstrate evidence of financial assurance for
costs of closure and post-closure maintenance of facilities or
devices.  Requires cost estimates to be prepared by qualified
person.
  Requires owners or operators of wave energy facilities and
devices to provide decommissioning plan for facility or device
prior to authorization of facility or device. Sets requirements
for decommissioning plan.
  Requires owners or operators of wave energy facilities and
devices to initiate removal of facility or device within 12
months after permanent cessation of use of facility or device and
to complete removal within two years after permanent cessation of
use, subject to certain exceptions.
  Allows Director of Department of State Lands to extend
deadlines for removing facility or device after permanent
cessation of use in certain circumstances.
  Imposes civil penalties for violation of statutory law or any
rule, order or lease adopted or issued under statutory law.
  Directs State Department of Energy to study issues related to
transmission of electricity from wave energy facilities and
devices. + }
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT

Relating to wave energy; creating new provisions; amending ORS
  274.867, 274.992 and 274.994; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 274.867 is amended to read:
  274.867. (1) In accordance with applicable provisions of ORS
chapter 183, the Director of the Department of State Lands may
adopt rules for the authorization of wave energy facilities or
devices.
  (2)   { - Unless exempted under rules adopted by the director
under this section, - }  An owner or operator of a facility or
device sited within Oregon's territorial sea, as defined in ORS
196.405, that converts the kinetic energy of waves into
electricity shall maintain cost estimates of the amount of
financial assurance that is necessary, and demonstrate evidence
of financial assurance, for:
    { - (a) The costs of closure and post-closure maintenance,
excluding the removal of anchors that lie beneath submerged lands
in Oregon's territorial sea, of the facility or device; and - }
   { +  (a) The costs of closure and post-closure maintenance of
the facility or device, excluding the costs of removing anchors,
cables or any other equipment that is not required to be removed
from beneath the submerged lands in Oregon's territorial sea
under subsection (9) of this section; and + }
  (b) Any corrective action required to be taken at the site of
the facility or device.
   { +  (3) The cost estimates required by subsection (2) of this
section must be prepared by a person qualified by experience and
knowledge to prepare such cost estimates. + }
    { - (3) - }  { +  (4) + } The financial assurance
requirements established by subsection (2) of this section may be
satisfied by any one or a combination of the following:
  (a) Insurance;
  (b) Establishment of a trust fund;
  (c) A surety bond; { +  or + }
  (d) A letter of credit  { - ; - }  { + . + }
    { - (e) Qualification as a self-insurer; or - }
    { - (f) Any other method set forth in rules adopted by the
director. - }
    { - (4) - }  { +  (5) + } In adopting rules to implement the
provisions of this section, the director may specify policy or
other contractual terms, conditions or defenses necessary to
establish evidence of financial assurance.
    { - (5)(a) The owner or operator of a facility or device
described in subsection (2) of this section must provide the
evidence of financial assurance required under this section for
closure, post-closure maintenance and corrective action at the
time operation of the facility or device is authorized. - }
   { +  (6)(a) Prior to the time that operation of a facility or
device described in subsection (2) of this section is authorized,
the owner or operator of the facility or device must provide the
director with a plan for decommissioning the facility or device
after the permanent cessation of use of that facility or device
for the conversion of the kinetic energy of waves into
electricity. The plan for decommissioning the facility or device
must include, but need not be limited to:
  (A) Information regarding the anticipated useful life of the
facility or device;
  (B) The cost estimates required by subsection (2) of this
section;
  (C) The evidence of financial assurance required by subsections
(2) and (4) of this section;
  (D) A description of the method and schedule for updating the
costs of decommissioning the facility or device;
  (E) A description of the anticipated methods that will be used
to close the facility or device, engage in post-closure

maintenance and take any corrective action required at the site
of the facility or device; and
  (F) Any other information required by the director by rule. + }
  (b) By January 31 of each subsequent calendar year, the owner
or operator of the facility or device must update the information
required under this subsection with the Department of State
Lands.
    { - (6) - }  { +  (7) + }   { - When financial assurance is
required for corrective action at the site of a facility or
device described in subsection (2) of this section, the - }  { +
An + } owner or operator shall provide evidence of financial
assurance before beginning corrective action { +  at the site of
a facility or device described in subsection (2) of this
section + }.
    { - (7) - }  { +  (8) + } An owner or operator   { - required
to provide financial assurance under this section - }  shall
establish provisions satisfactory to the director for disposing
of any excess moneys received or interest earned on moneys
received for financial assurance.
   { +  (9)(a) An owner or operator of a facility or device
described in subsection (2) of this section must initiate removal
of all equipment related to that facility or device, excluding
anchors, cables and any other equipment that lies at least one
meter beneath submerged lands in Oregon's territorial sea, within
12 months after the permanent cessation of use of that facility
or device for the conversion of the kinetic energy of waves into
electricity.
  (b) Notwithstanding paragraph (a) of this subsection, an owner
or operator of a facility or device described in subsection (2)
of this section may be required to remove anchors, cables or any
other equipment that lies at least one meter beneath submerged
lands in Oregon's territorial sea if removal is deemed necessary
by the director, in consultation with the owner or operator, and
is permitted by the applicable requirements of federal regulatory
agencies.
  (c) All equipment required to be removed under this subsection
must be removed within two years after the permanent cessation of
use of the facility or device for the conversion of the kinetic
energy of waves into electricity.
  (d) The director may extend the deadlines under this subsection
if the owner or operator of the facility or device can show good
cause and has undertaken a good faith effort to remove the
equipment as required by this subsection. + }
  SECTION 2. ORS 274.992 is amended to read:
  274.992. (1) Any person who violates any provision of ORS
274.040  { + or 274.867, + }   { - or - }  any rule, order or
lease adopted or issued under ORS 274.040 { +  or any rule
adopted under ORS 274.867 + } shall be subject to a civil penalty
in an amount to be determined by the Director of the Department
of State Lands of not more than $1,000 per day of violation.
  (2) Civil penalties under this section shall be imposed in the
manner provided in ORS 183.745.
  (3) The provisions of this section are in addition to and not
in lieu of any other penalty or sanction provided by law.
  (4) Any civil penalty recovered under this section { +  for
violation of ORS 274.040 or 274.867 or any rule, order or lease
adopted or issued under ORS 274.040 or 274.867 + } shall be
deposited in the Common School Fund for use by the Department of
State Lands in administration of ORS 274.040 { +  or 274.867 + }
and as otherwise required by law.
  SECTION 3. ORS 274.994 is amended to read:
  274.994. (1) The Director of the Department of State Lands
shall adopt by rule the amount of civil penalty that may be
imposed for a particular violation of ORS 274.040  { + or
274.867 + }.

  (2) In imposing a penalty under the schedule adopted under
subsection (1) of this section, the director shall consider the
following factors:
  (a) The past history of the person incurring a penalty in
taking all feasible steps or procedures necessary or appropriate
to correct any violation.
  (b) Any prior violations of statutes, rules, orders and leases
pertaining to submerged and submersible lands.
  (c) The impact of the violation on public interests in fishery,
navigation and recreation.
  (d) Any other factors determined by the director to be relevant
and consistent with the policy of ORS 274.040 { +  or
274.867 + }.
  (3) The penalty imposed under this section may be remitted or
mitigated upon such terms and conditions as the director
determines to be proper and consistent with the policy of ORS
274.040 { +  or 274.867 + }. Upon the request of the person
incurring the penalty, the director shall consider evidence of
the economic and financial condition of the person in determining
whether a penalty shall be remitted or mitigated.
  SECTION 4.  { + (1) The State Department of Energy shall study
issues related to the transmission of electricity from wave
energy facilities and devices.
  (2) The scope of issues to be studied may include, but is not
limited to:
  (a) Opportunities for the ownership and financing of structures
for the transmission of electricity from wave energy facilities
or devices;
  (b) Barriers to the development of structures for the
transmission of electricity from wave energy facilities and
devices;
  (c) Construction and maintenance of structures for the
transmission of electricity from wave energy facilities and
devices;
  (d) The costs and benefits of establishing consolidated
transmission capacity for multiple wave energy projects; and
  (e) Risk management and decommissioning issues related to wave
energy facilities and devices and to transmission capacity.
  (3) The department shall seek public input regarding the scope
of issues to be studied.
  (4) The department shall report the results of the study
required by this section to the interim committees of the
Legislative Assembly related to environment and natural resources
on or before November 1, 2014. + }
  SECTION 5.  { + Section 4 of this 2013 Act is repealed on
January 2, 2015. + }
  SECTION 6.  { + The amendments to ORS 274.867 by section 1 of
this 2013 Act apply to all authorizations for wave energy
facilities and devices issued on or after the effective date of
this 2013 Act. + }
  SECTION 7.  { + 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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