Bill Text: OR SB844 | 2013 | Regular Session | Enrolled
Bill Title: Relating to greenhouse gas emissions.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2013-07-03 - Effective date, January 1, 2014. [SB844 Detail]
Download: Oregon-2013-SB844-Enrolled.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
Enrolled
Senate Bill 844
Sponsored by Senator BEYER; Representatives BAILEY, READ
CHAPTER ................
AN ACT
Relating to greenhouse gas emissions.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2013 Act is added to and made
a part of ORS chapter 757. + }
SECTION 2. { + (1) As used in this section, 'emission' means
any anthropogenic gas, such as carbon dioxide, methane, nitrous
oxide, hydrofluorocarbons, perfluorocarbons and sulfur
hexafluoride.
(2) The Public Utility Commission shall establish a voluntary
emission reduction program for the purposes of incentivizing
public utilities that furnish natural gas to invest in projects
that reduce emissions and providing benefits to customers of
public utilities that furnish natural gas.
(3) As part of the emission reduction program, the commission
shall establish eligibility criteria for projects. The
eligibility criteria must include:
(a) That the public utility requesting the project be a public
utility that furnishes natural gas and that the project involve
the provision of natural gas;
(b) That the project directly or indirectly reduce emissions;
(c) That the project benefit customers of the public utility as
identified by the commission by rule or order;
(d) That the public utility, without the emission reduction
program, would not invest in the project in the ordinary course
of business;
(e) That the public utility, prior to filing an application
under subsection (4) of this section, involve stakeholders as
required by the commission by rule or order; and
(f) That the rate impact of the aggregate of all projects
undertaken by a public utility under this section not exceed an
amount established by the commission by rule or order.
(4) For each project that a public utility proposes under this
section, the public utility must file with the commission an
application. An application filed under this subsection must
include:
(a) A description of the project;
(b) The projected amount of capital and operating costs
necessary to complete and operate the project;
(c) The projected amount of reduced emissions created by the
project;
(d) The potential of the project to reduce emissions not
identified in paragraph (c) of this subsection;
Enrolled Senate Bill 844 (SB 844-A) Page 1
(e) The projected date on which the project will become
operational;
(f) A requested method, as described in subsection (8) of this
section, for recovery of costs incurred and investments made;
(g) An explanation of why the public utility, without the
emission reduction program, would not invest in the project in
the ordinary course of business;
(h) Proof of stakeholder involvement;
(i) The projected rate impact of the project;
(j) The projected aggregate rate impact of all projects
proposed by the public utility under this section and approved by
the commission for the public utility under this section;
(k) An explanation of how the public utility will provide the
commission with progress updates during the life of the project,
including updates on costs and reduced emissions associated with
the project; and
(L) Any other information required by the commission by rule or
order.
(5)(a) The commission shall establish a two-tiered process for
submitting a project proposal under the emission reduction
program. For the purpose of establishing the tiers, the
commission shall:
(A) Establish a threshold for overall project cost; and
(B) Establish a threshold for overall project cost per metric
ton of reduced emissions.
(b) If a proposed project meets both the threshold described in
paragraph (a)(A) of this subsection and the threshold described
in paragraph (a)(B) of this subsection, the project is a tier one
project subject to the requirements of subsection (6) of this
section. If a proposed project does not meet the threshold
described in paragraph (a)(A) of this subsection or the threshold
described in paragraph (a)(B) of this subsection, the project is
a tier two project subject to the requirements of subsection (7)
of this section.
(6) For tier one projects, the commission shall:
(a) Provide interested parties with an opportunity to submit
written comment in response to the proposed project;
(b) Hold a public hearing to address all submitted written
comments; and
(c) Issue a final order on the proposed project within 90 days
of receiving the application for the project, or at a later time
as authorized by the public utility.
(7) For tier two projects, the commission shall:
(a) By rule or order, provide interested parties with an
opportunity to submit testimony in response to the proposed
project and be heard; and
(b) Issue a final order on the proposed project within 180 days
of receiving the application for the project, or at a later time
as authorized by the public utility.
(8) If a final order issued under subsection (6)(c) or (7)(b)
of this section authorizes a project, the order shall specify:
(a) The type of ratepayer from whom the public utility that
submitted the project proposal may recover costs incurred and
investments made. A public utility may recover costs incurred and
investments made from a type of ratepayer under this paragraph
only if the commission makes a finding that the type of ratepayer
receives a benefit from the project. If the commission makes a
finding that more than one type of ratepayer receives a benefit
from the project, the commission shall allow recovery from each
type of ratepayer in an amount that is proportionate to the
Enrolled Senate Bill 844 (SB 844-A) Page 2
proportion of the benefit received, as determined by the
commission, by the type of ratepayer.
(b) The method by which the public utility that submitted the
project proposal may recover costs incurred and investments made
and the amount that the public utility may recover. Methods of
recovery include:
(A) Payment per unit of reduced emissions;
(B) Preapproval for inclusion in the public utility's rates of
costs prudently incurred and of investments prudently made;
(C) Return of investment and return on investment; and
(D) Any other method approved by the commission by rule or
order.
(9) For purposes related to the emission reduction program
established under this section, the commission may consider the
amount of reduced emissions created by a project or the value of
reduced emissions created by a project.
(10) The commission shall establish a rate cap for each public
utility for which a project is authorized under this section. The
rate cap must limit the cost of all of the public utility's
projects authorized under this section to an amount that does not
exceed a percentage of the public utility's revenue requirement
as identified by the commission by rule or order.
(11) The commission shall biennially conduct a study on whether
federal law or regulation or other state laws or rules provide
adequate incentives for public utilities that furnish natural gas
to invest in projects that reduce emissions in the ordinary
course of business. The commission shall report the results of a
study conducted under this subsection, and may make
recommendations for legislation, to the Legislative Assembly in
the manner described in ORS 192.245 not later than February 1 of
each odd-numbered year. + }
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Passed by Senate June 19, 2013
.............................................................
Robert Taylor, Secretary of Senate
.............................................................
Peter Courtney, President of Senate
Passed by House June 26, 2013
.............................................................
Tina Kotek, Speaker of House
Enrolled Senate Bill 844 (SB 844-A) Page 3
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 Senate Bill 844 (SB 844-A) Page 4
