Sustainability Law Blog

As the Oregon legislative session wrapped up June 29, numerous bills headed to the Governor's desk for signature or veto. The two most controversial bills are HB 2472b and 2940b. The first bill rolls back the Business Energy Tax Credit for large renewable energy projects by reducing the maximum available credit from 50% of eligible costs or $20 million, to 35% of eligible costs or $10 million. HB 2940b expands the list of resources eligible for credit against the state's renewable portfolio standard by allowing utilities to count biomass facilities built before 1995. Renewable energy advocates are pressuring the Governor to veto these two bills.

Several other less controversial bills also passed the Legislature, which the Governor is expected to sign. They include:

• SB 101a, which establishes a greenhouse gas emissions standard of 1,100 pounds of carbon dioxide per megawatt hour of electricity generated, a standard that effectively prohibits construction of any new coal-fired generation in the state.
• HB 2190, which eliminates the residential and business energy tax credits for hybrid gasoline-electric vehicles and instead extends the business energy tax credit to electric vehicle manufacturing facilities.
• HB 3039b, which establishes a solar power feed-in tariff pilot project. See my blog at the start of the legislative session for more information on the benefits of a feed-in tariff.

Finally, the Governor signed SB 76b, which caps at $180 million the possible exposure of PacifiCorp customers for the cost of removing four hydroelectric dams on the Klamath River as part of a tentative agreement between Oregon, California, the Department of Interior and several Indian tribes. This would result in about a $1.50 monthly increase to PacifiCorp ratepayers for about 10 years. Total dam removal costs are estimated at about $450 million.

Post authored by David Petersen, partner practicing in the Sustainability and Real Estate and Land Use Groups.