LOC News
2025 Legislative Energy Concepts Update
This legislative session has seen a plethora of energy-related concepts that tackle everything from modernizing Oregon’s grid or the PUC rate setting process, to providing new energy generating options and microgrids. In addition, more investments are surfacing for programs that will help our communities become more resilient in the face of extreme weather events and human caused disasters.
Below is a list of bills that the LOC has been weighing in on.
Investments to Support Local Governments:
ODOE Pop 204: Provides an additional $25 million towards the Community Renewable Energy Grant Program (CREP) – LOC Supports
CREP was created in 2021 to provide renewable energy and resiliency planning and construction grants for local governments. The Oregon Department of Energy (ODOE) administers the program and has financed around $65 million worth of projects as of December 2024 for planning or construction purposes across the state, including many cities. Many cities have applied and have not received a grant while others have received planning grants and are ready to apply for construction grants. This funding will keep the program running through the next biennium.
SB 92: Community Solar – LOC Supports with negotiated amendment
This bill expands the community solar program to allow projects to have a nameplate capacity of 20 megawatts, whereas the current program only allows for three. Currently, those three megawatts are exempt from property taxes as was negotiated. An amendment being drafted would remove that exemption for projects greater than three megawatts, but would allow those projects to be located anywhere in the state to be used for communities anywhere in the state. The bill is waiting for the drafted amendment and then to be scheduled for a work session in the Senate Energy and Environment Committee.
Energy Resilience:
HB 2066 & HB 2065: Microgrid Package - LOC Supports
HB 2064, HB 2065, and HB 2066 were introduced to open the door to community energy resilience and microgrid development. HB 2064, which provides islanding capabilities for front-of-meter community microgrids, is being combined with HB 2066 which establishes clarity around legality, valuation, and financing of microgrids. Together these bills provide the PUC with the necessary clarity and authority that local governments need to ensure our communities can site microgrids. HB 2065 would support third-party participation in community energy planning and development. This provides an additional mechanism that local governments could use to build energy resilience for their communities through third-party support. We are waiting on final amendments, but both bills will receive a work session on April 1 in the House Climate, Energy, and Environment Committee.
HB 3170: Resilience Hubs and Networks Grant Program – LOC Supports
This bill provides additional flexibility for communities to design resilience hubs and networks to fit their unique needs and asks for an additional $10 million to continue the program. The state received more than 700 applications during the last grant cycle and could only fund 96 projects. HB 3170 has been referred to the Ways and Means Committee to consider the funding request.
Increasing Transparency and Modernizing PUC General Rate Cases:
SB 688: Performance-Based Regulations – LOC Supports
This bill asks the PUC to investigate, develop, and adopt a framework for performance-based regulations (PBRs). These are a set of potential tools that modernize the general rate setting process and decisions by public utility commissions. PBR tools can increase energy resilience and incentivize distributive energy resources, battery storage and microgrids. The bill is waiting to be scheduled for a work session in the Senate Energy and Environment Committee.
SB 88: Transparency in Rates Act – LOC Supports
The Transparency in Rates Act prohibits an electric or gas company (utility) from recovering certain costs or expenses associated with advertising, political influence activity, litigation, penalties or fines, and certain compensation from ratepayers. These activities would not be prohibited but a utility would need to utilize sources other than ratepayer funding to finance those activities. In addition, the bill creates greater transparency for what is included in rate cases. SB 88 is waiting to be scheduled for a work session in the Senate Energy and Environment Committee.
HB 3179: FAIR Energy Act – LOC Supports
The FAIR Energy Act aims to ensure that the economic impact of general rate cases is considered by the PUC when determining a regulated electric or gas utilities’ rate increase. The bill would prohibit rate increases during the coldest months of the year and provide flexibility in how rates are rolled out to avoid large rate increases at one time. HB 3179 is waiting to be scheduled for a work session in the House Commerce and Consumer Protection Committee.
HB 3546: The Power Act – LOC Supports
The POWER Act requires the Oregon Public Utility Commission to provide for a classification for large energy use facilities similar to how residential consumers, industrial consumers, or commercial consumers are classified. It would define a large energy user as an entity that uses 20 megawatts or more and is primarily engaged in providing computing infrastructure, data processing services, web hosting, and related services. Like tools used by COUs, it would allow the PUC to ensure that increased costs and energy demand from large energy users are incurred by those users instead of residential customers. The bill is waiting to be scheduled for a work session in the House Climate, Energy and Environment Committee.
HB 2985: Modifying PUC Administrative Proceedings - LOC is not taking a position
HB 2985 modifies provisions relating to the administrative proceedings of the Oregon Public Utility Commission (OPUC). The PUC’s Administrative Hearings Division is responsible for conducting hearings and writing orders for cases that fall under the agency's jurisdiction. The bill would require the PUC to respond to comments in administrative proceedings that are germane to the proceedings at hand and clarifies that certain provisions relating to contested cases do not apply to proceedings. HB 2985 is waiting to be scheduled for a work session in the House Climate, Energy, and Environment Committee.
Small Modular Reactors (SMRs):
HB 2410: SMR Demonstration Project in Umatilla County – LOC Supports
Allows the Energy Facility Siting Council (EFSC) to issue a site certificate for a small modular reactor energy facility demonstration project in Umatilla County. The bill refers the act to the people of Umatilla County to accept or reject the demonstration project in their next general election. HB 2410 is waiting to be scheduled for a work session.
SB 215 with the -1 Amendment: Would Allow Oregonians to Vote to Allow SMRs – LOC Supports
SB 215 with the -1 amendment would exempt SMRs from certain statutes related to siting of nuclear-fueled thermal power plants subject to the vote of the people. The bill is waiting to be scheduled for a work session in the Senate Energy and Environment Committee.
SB 216 with the -1 Amendment: Allows SMRs to be sited in Oregon
SB 216 with the -1 amendment would allow SMRs to be sitting in Oregon and not be subject to certain statutes related to siting of nuclear-fueled thermal power plants. The bill is waiting to be scheduled for a work session in the Senate Energy and Environment Committee.
HB 2038: ODOE Nuclear Energy Study – LOC Supports
This measure would ask the Oregon Department of Energy (ODOE) to study nuclear energy and waste disposal. Proponents and working on an amendment to ensure that the outcomes of the study are neutral in their findings. The bill is waiting to be scheduled for a work session in the House Climate, Energy, and Environment committee.
Modernizing and Updating the Grid:
HB 3336: Grid Enhancing Technology (GETs) – LOC Supports the base bill
HB 3336 requires electric companies to conduct an analysis to determine the cost-effectiveness and timetable of multiple strategies, including strategies that use GETs to increase electricity transmission capacity. It also requires electric companies to file a strategic plan for using GETs where doing so is cost-effective. GETs have the advantage of costing less than building new transmission lines to increase capacity thus reducing potential rate increases. The bill is waiting for an amendment and to be scheduled for a work session in the House Climate, Energy, and Environment Committee.
HB 3609: Scaling Distributed Power Plants – LOC Supports
HB 3609 would require electric companies to develop, consider, and plan for the incorporation of distributed power plants (DPP) into their resource mix. DPPs utilize existing solar, battery storage, electric vehicles and other infrastructure from homes and neighborhoods in times of utility need and compensating those customers for the use of their power. HB 3609 is waiting to be scheduled for a work session in the House Climate, Energy and Environment Committee.
HB 3628: Transmission Authority – LOC Opposes in its current form
This bill establishes the Oregon Electric Transmission Authority to accelerate the expansion of electric transmission capacity in Oregon. It sets up a mechanism to fund the authority and provide access to lower rates to fund new transmission development in addition to providing the power of eminent domain. The bill is waiting for amendments and to be scheduled for a work session in the House Climate, Energy, and Environment Committee.
HB 3681: Modifies Transmission Line Siting at EFSC – LOC is neutral with concerns
This bill modifies the Energy Facility Siting Council (EFSC) site certificate process. It requires the EFSC to conclude a contested case and issue a final order within 12 months. It also narrows the criteria by which the PUC reviews a petition for a certificate of public convenience and necessity for overhead transmission lines. The bill allows a high voltage transmission line designated as having statewide significance to be placed in areas zoned for exclusive farm use, among other provisions. HB 3681 has a -1 amendment and is waiting to be scheduled for a work session in House Climate, Energy and Environment committee.
Contact: Nolan Pleše, Lobbyist – nplese@orcities.org
Last Updated 3/21/25