2011-2013

State of Oregon Energy Plan

The role of state government in 

energy has always been a 

subject of debate.

Some argue that the 

marketplace, if left alone, can 

solve all our energy problems. 

Others believe government 

must intervene because the 

marketplace is not perfect. 

Ideally, government’s proper 

role is to ensure that the free 

market can work.

State of Oregon First Biennial 

Energy Plan, Prepared by the 

Oregon Department of Energy, 

1985
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State of Oregon Energy Plan 2011-2013
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State of Oregon Energy Plan 2011-2013

2011-2013

State of Oregon

Energy Plan

625 Marion Street, NE

Salem, OR 97301

(503) 378-4040

1-800-221-8035 in Oregon

www.oregon.gov/energy

energyweb.incoming@ state.or.us

Photos: D.A. Black and the Oregon Department of Energy
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State of Oregon Energy Plan 2011-2013
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State of Oregon Energy Plan 2011-2013

2011-2013 Biennial Energy Plan

Table of Contents

Introduction ...................................................................7

Oregon’s Energy History...............................................9

Energy Supply and Demand.......................................19

Energy Issues Facing Oregon......................................43

Oregon’s Energy Future..............................................61

Appendix A – Energy Glossary..................................77

Appendix B – Energy Legislation..............................83

Appendix C – Success Stories...................................87

Appendix D – 2010 Tribal Report.............................91

Appendix E – Oregon Electric Utilities....................93
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State of Oregon Energy Plan 2011-2013
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State of Oregon Energy Plan 2011-2013

INTRODUCTION

Oregonians spend more than $14 billion annually on energy; 

most of that money leaves the state. 

The Oregon Department of Energy (ODOE) was established over 

35 years ago to:

• Provide leadership on energy conservation, renewable energy 

and protection of the Columbia River from radioactive waste at 

Hanford

• Engage in energy planning and siting of energy facilities

• Promote conservation and renewable energy projects through 

a variety of programs

• Research emerging energy technologies

• Provide educational and technical assistance to industry 

professionals and the public

Decisions made by the agency directly and indirectly affect the social, economic and 

environmental aspects of energy.

Oregon's population will continue to increase. A growing population translates directly to 

greater energy use. That growing demand will increase in the role of energy conservation and 

efficiency and require the siting of new energy resources.

Energy conservation is the cornerstone of Oregon energy policy. The Oregon Department of 

Energy must continue to encourage energy savings, which will reduce energy consumption and 

reliance on fossil fuels. Energy efficiency can help businesses become more competitive, while 

schools and governments can lower their operating costs, freeing up money to be spent 

elsewhere.

Oregon is rich in renewable resources. These indigenous energy sources can sustain the 

economy in tough times and enable it to grow when the economy recovers. Renewable 

resource projects, such as wind farms, create new jobs during construction and permanent 

employment when complete.

This Energy Plan will outline the history of Oregon’s energy efforts, the basics of Oregon’s 

energy supply and consumption, issues facing the State, and where we might go from here. 

There is a current, growing interest in energy issues, but it is important to understand the past 

so we can work toward a sustainable energy future.

The mission of the Oregon 

Department of Energy is to 

ensure Oregon has an 

adequate supply of reliable 

and affordable energy and is 

safe from nuclear 

contamination, by helping 

Oregonians save energy, 

develop clean energy 

resources, promote renewable 

energy and clean up nuclear 

waste.
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State of Oregon Energy Plan 2011-2013
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State of Oregon Energy Plan 2011-2013

Oregon’s Energy History

For more than 35 years, the Oregon Department of Energy has been involved in a variety of 

energy planning efforts. Documents published early in 1975, just before the Department was 

officially an agency, helped shaped its creation. One of the most well-known of these is called 

Transition, A Book on Future Energy: Nuclear or Solar?

The Transition authors outlined what they were facing at the time:

“...increasing unemployment, rising prices, increasing bankruptcies and business 

failures, wildly fluctuating interest and exchange rates, increasing foreclosures...”

“...as energy prices rose, it became apparent that the energy systems so many had taken 

for granted were almost entirely outside of our control. In fact, about 95 percent of the 

energy we use in Oregon is imported.”

When Transition was reprinted in 1977, the introduction by Governor Tom McCall read:

“Transition is a bold document. It challenges the people of this state to create their 

own future rather than having it arbitrarily imposed upon them, by special interest and 

external events.”

The establishment of the Oregon Department of Energy in 1975, it set in motion a centralized 

system for developing energy policies and plans, and gave Oregon a focused energy effort. 

Many of those policies and plans continue today, while some have been modified over time. 

The common thread is that the State of Oregon has been strategically evaluating energy use 

and supply for more than 35 years, working to give Oregonians more control of their energy 

future. 

Today

We live in a more diverse energy world. As energy issues have become increasingly complex, 

global and controversial, more people are paying attention to how we obtain and use energy.

 Development of renewable energy has expanded the list of issues facing decisionmakers. 

 Cultural, tribal, agricultural, forest, land use, wildlife and rural issues are part of 

renewable energy development. 

 Transmission line proposals involve federal agencies, tribes, farmers and ranchers.
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State of Oregon Energy Plan 2011-2013

Oregon appears to be in another time of transition. Despite decades of energy forecasts and 

plans, many are now calling for a statewide, long-term, comprehensive energy plan. What that 

may really mean is development of an energy strategy that, as Governor McCall said, will 

challenge Oregonians to create their own energy future. 

Today, that future includes everything from changes in incentive programs to an increasing 

number of renewable energy projects. Stimulated by federal funds and new technology, there 

is also heightened interest in finding more energy conservation in our homes, businesses, 

schools and industries. 

The problem is that there are no flawless energy sources 

and demand continues to increase.

As in the past, some today ask if nuclear energy is a cleaner 

alternative to fossil fuels.

Solar or Nuclear?

Transition found the nuclear power issue difficult to assess 

because:

“The growing public debate on the future of a nuclear 

fission powered economy contains factors which transcend 

the purview of science and technology. These factors have 

to do with the ethical dilemma of weighing the potential 

social and economic benefits of nuclear fission against both 

the risks of major injury and death to human populations, 

and long-term radioactive contamination of the earth.”

In Transition’s Solar Alternative chapter, the authors wrote that:

“The most desirable energy source and delivery system for the future of Oregon, and 

the World, would be permanent, indigenous, safe and reliable.”

And the conclusion reached was that:

“The solar alternative will require an unprecedented degree of public awareness and a 

strong commitment from the people of Oregon. These are not standard times, and this 

is not a standard decision.”

Not a Standard Time

Here we are again facing times and decisions that are not “standard.” Developing new energy 

plans and strategies means including a greater group of stakeholders and looking at energy 

conservation and renewable energy development as not just a way to save and generate 

energy, but also a way to create jobs, jumpstart the economy and reduce greenhouse gas 

When Oregon imports 

energy, we export 

dollars. Perfect energy 

independence would 

keep those dollars in 

Oregon.

 

Oregon Department of Energy’s 

Second Biennial Energy Plan, 

1987
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State of Oregon Energy Plan 2011-2013

The Plan is not a wish list. It 

reflects today’s realities. And, 

it recognizes that times will 

change. Change always brings 

the need for new and different 

responses and actions.

Oregon Department of Energy’s 

Second Biennial Energy Plan, 1987

emissions. It sounds like a lot to ask of one small state making up one percent of the nation’s 

population.

However, as the Oregon Department of Energy’s Sixth Annual Report indicated in 1982, 

Oregonians have been generally enthusiastic about investing in energy conservation and 

renewable energy, even when economic times are tough.

“Despite prospects of a bleak economy –at least in the short-term –Oregon 

homeowners show a strong willingness to invest in measures to control the rising costs 

of electricity, natural gas and home heating oil.”

Many of the questions and conclusions from the past serve today to give us direction as we 

again face similar challenges.
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State of Oregon Energy Plan 2011-2013

Roles of the Oregon Department of Energy

1. Energy Leadership

 Promote the vision for Oregon’s energy future, taking into account our role in 

developing energy policy, helping Oregon’s citizens, improving the environment, and 

focusing on emerging markets where partnerships are needed.

 Maximize conservation from core incentives and mandated programs. Analyze 

renewable resources to understand their technical feasibility as well as social, economic 

and environmental issues.

2. Planning

 Provide technical support and coordination in developing a long-term, statewide plan 

for energy conservation and renewable resources.

 Provide a comprehensive overview of Oregon’s energy information, programs and 

activities, and act as an Oregon energy information center. 

3. Implementation

 Target and continually update programs that work in all parts of the state, complement 

economic opportunities, and leverage Department efforts by working cooperatively

with others.

 Efficiently and effectively provide services to Oregonians including the Department’s 

incentives. 

4. Emerging Technologies and Practices

 Identify and address technological, informational, cost or other barriers to the adoption 

of selected high-promise technologies.

 Partner with others to effectively demonstrate technologies, practices and applications 

that can be readily replicated.

5. Public Education

 Provide basic education and raise awareness of key or strategic energy issues. Develop 

and maintain a comprehensive overview of statewide energy information, programs, 

activities and results.

 Form and maintain partnerships to inform Oregonians about the importance, value and 

role of energy in their lives. 

Chronologies

As a way to illustrate Oregon’s energy history and foundation, what follows are three brief 

chronologies including a look at state and national energy highlights beginning in the 1970s, the 

Business Energy Tax Credit program and a review of Oregon’s climate change efforts.
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State of Oregon Energy Plan 2011-2013

State and National Energy Highlights

1971 Oregon’s Nuclear and Thermal Energy Council is formed to ensure that nuclear and coalfired power plants met health, safety and environmental standards. 

1973 The OPEC oil embargo led to U.S. energy shortages.

1973 Governor Tom McCall establishes an emergency energy conservation program.

1975 The Oregon Department of Energy (ODOE) is created to support energy conservation 

and renewable energy, and to conduct state energy planning.

1975 The Energy Facility Siting Council (EFSC) replaces the Nuclear and Thermal Energy 

Council. ODOE was made staff to EFSC.

1977 The U.S. Department of Energy is created from a number of other federal agencies.

1977 Oregon’s Residential Energy Tax Credit (RETC) program begins by helping residents 

invest in solar energy.

1979 The Oregon Department of Energy’s Small Scale State Energy Loan Program (SELP) and 

Business Energy Tax Credit (BETC) program are passed into law. 

1980 Congress creates what is now called the Northwest Power and Conservation Council. 

The council develops regional electric power plans.

1993 The legislature directs EFSC to include in its process a special advisory group made up of 

the local government in the location of the proposed energy facility. The special 

advisory group determines whether land use goals are met. 

1997 Oregon becomes the first state in the country to adopt CO2 emission performance 

standards for new energy facilities; EFSC oversees this standard.

1999 The electric power industry in Oregon is restructured by the legislature in SB 1149. A 

three percent public purpose charge on electricity bills is established to help fund 

energy conservation and renewable energy.

1999 The net metering law is passed to allow those with small renewable energy projects to 

sell excess power back to their electric utility.

2000-2001 The West Coast energy crisis is brought on by a variety of factors including a low 

hydropower year, increased electricity demand, few power plants being built, and 

market conditions.

2001-2003 The Northwest builds about 3,350 megawatts (MW) of mainly natural-gas fired 

electricity generation, including 1,675 MW in Oregon.

2001 New state facilities are required to exceed the state energy code by 20 percent.

2005 ODOE develops Oregon’s Renewable Energy Action Plan.

2005 The Oregon legislature adopts State appliance energy efficiency standards for 11 

products that were not covered by federal standards at that time.

2006 The Renewable Energy Working Group was established to advise the State on the 

implementation of Oregon’s Renewable Energy Action Plan. The group was staffed by 

the Oregon Department of Energy.

2007 The Oregon legislature passes the Renewable Portfolio Standard, the Renewable Fuel 

Standard and creates the Global Warming Commission. The BETC expands to a 50 

percent tax credit for renewable energy projects.

2009 ODOE’s Energy Loan Program expands through HB 2626, allowing SELP to finance a 

large volume of smaller loans to individuals and to businesses for energy efficiency and 

sustainable technologies. Also, SB 79 passes to encourage more energy efficiency in 

commercial and residential buildings.
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State of Oregon Energy Plan 2011-2013

What did Oregon learn from the history of the early 1970s? A 

March 1991 Oregon Department of Energy Congressional 

Briefing highlighted these energy lessons:

Price Talks:

Through 1985, the nation made major gains in energy efficiency 

largely in response to (increasing) price.

Energy is a huge issue for the nation but a marginal issue for 

most individuals:

Most Americans are not willing to invest much today to save 

energy dollars tomorrow.

Efficiency is the cheapest, most environmentally-sound energy 

resource we have:

Energy efficiency generally goes hand-in-hand with economic 

efficiency.

Since 1975, the Oregon Department of Energy has used its programs and technical assistance to help 

move the market to more energy efficiency and to help cushion against price shocks. 

Business Energy Tax Credit

The Business Energy Tax Credit (BETC), called the longest running tax incentive program in the 

country, helps schools, tribes, non-profits, businesses, industries, farms and ranches save energy and 

invest in renewable energy. Since the program began in 1979, more than 19,000 BETCs have been 

issued; saving energy, generating electricity and helping create jobs.

From its creation until 1999, the BETC program was capped at a maximum of $40 million in tax credits 

issued per year with no more than $2 million for any one project. The 1999 legislature eliminated the 

$40 million tax credit cap and increased the amount of any single BETC to $10 million per project. In 

2007, the legislature raised the limit for renewable energy manufacturing facilities and high efficiency 

combined heat and power projects to $20 million per project. 

Perhaps the largest expansion of the program came in 2001 when the pass-through option was 

opened to non-profits, public entities, tribes and others. Until that time, those groups could not use

the Business Energy Tax Credit program because they had no tax liability. 

More recent changes have again put limitations on BETC with a program cap and implementation of a 

competitive tier system for renewable resource projects. The BETC program is also facing sunset 

dates of July 1, 2010 for renewable resource and conservation projects. Renewable energy 

manufacturing is scheduled to sunset on January 1, 2014.

“We must remember that 

every kilowatt, therm, gallon 

or barrel saved is money not 

spent on energy. Money that 

can be spent on jobs, services 

and products that provide 

meaningful benefits.”

Governor Bob Straub, 1975
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State of Oregon Energy Plan 2011-2013

Business Energy Tax Credit (BETC) Chronology

1979

The Business Energy Tax Credit program becomes law. This credit is an incentive for 

Oregon businesses to invest in energy conservation, renewable energy resources, 

rental weatherization, and less-polluting transportation fuels.

1985

The “pass-through” option begins when the legislature approves allowing investorowned utilities assume tax credits for rental housing projects in return for a cash 

payment incentive to the rental housing owners. The idea is to stimulate more rental 

housing energy conservation projects, which were infrequent during the early 80s.

1989

The legislature approves an expansion of the utility pass-through to commercial and 

industrial projects. Again, this segment of the market needed stimulation to initiate 

energy conservation projects.

1999 The legislature eliminates the program limit of $40 million in tax credits and raises the 

cap for individual projects from $2 million to $10 million per project.

2001

The Business Energy Tax Credit Pass-through Option Program expands when the 

legislature allows non-profit organizations and public entities without tax liability to 

participate in the Business Energy Tax Credit Program.

2007

The Business Energy Tax Credit increases from 35 percent to 50 percent for renewable 

energy projects, and adds tax credits for renewable energy resource equipment 

manufacturing facilities and homebuilders of high performance homes. The 

legislature also increases the limit for renewable energy facilities, renewable energy 

resource equipment manufacturing facilities and high efficiency combined heat and 

power projects to $20 million (all other projects have a $10 million cap per project).

2008

A special February session of Oregon legislature increases the maximum amount of 

BETC for renewable energy resource equipment manufacturing facility to $40 million 

per facility; the law also requires due diligence and performance contracts. 

2009

House Bill 2180 directs the Oregon Department of Energy, in consultation with the 

Public Utility Commission and the Business Development Department, to prepare a 

financial analysis of representative energy projects receiving the Business Energy Tax 

Credit (BETC). The purpose of the analysis is to identify the economic benefits and 

costs of the BETC program. 

2010

House Bill 3680 extends the renewable energy manufacturing BETC to a sunset date 

of January 1, 2014. BETC for all other projects sunsets on July 1, 2012. There is a $300 

million cap for preliminary certifications of all renewable resource projects for the 

biennium ending June 30, 2011. The tax credit for a wind projects over 10 MW is also 

reduced. The bill also imposes a tier system with criteria for awarding preliminary 

certifications for renewable resource projects.
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State of Oregon Energy Plan 2011-2013

Greenhouse Gas Emissions Reduction Efforts

Besides saving and generating energy over the years, the Oregon Department of Energy’s programs 

have also helped to reduce greenhouse gas emissions.

Oregon’s recent climate change activities are a continuation of policies and measures that the state 

has pursued since the 1980s. The main greenhouse gas (GHG) is carbon dioxide (CO2) and the other 

five include: nitrous oxide, methane, hydrofluorocarbon gases, perfluorocarbons, and sulphur 

hexafluoride. 

A Chronology of Oregon’s Climate Change Efforts

1988 The Oregon Task Force on Global Warming recommended creating a permanent 

Global Warming Management Group, reducing net greenhouse gas emissions, and 

having state agencies build climate change work into their plans and programs.

1992 Oregon adopted a benchmark to hold the state’s carbon dioxide (CO2) emissions to 

1990 levels.

1995 An Oregon Department of Energy Report on Reducing Oregon’s Greenhouse Gas 

Emissions outlined a short- and long-term climate change strategy. Some of the 

actions included capturing all cost-effective energy efficiency and renewable 

resources and increasing the efficiency of Oregon’s transportation system. 

1997 Oregon became the first state to control emissions of carbon dioxide. The Oregon 

legislature gave the Energy Facility Siting Council authority to set carbon dioxide 

emissions standards for new energy facilities. The bill came from a recommendation 

made by a seven-member task force. House Bill 3283 required developers to reduce 

the overall amount of carbon dioxide emitted from new power plants. 

2003 Governor Kulongoski joined the California and Washington governors to establish the 

West Coast Governors’ Global Warming Initiative. The Initiative provided the three 

states a forum for interstate cooperation on reducing greenhouse gas emissions. 

2004 A 28-member Advisory Group on Global Warming was appointed by the governor to 

create a climate action plan for Oregon. This diverse group of stakeholders 

completed the Oregon Strategy for Greenhouse Gas Reductions in December. The 

Strategy recommended policies and measures in several areas including Energy 

Efficiency, Electric Generation and Supply, Transportation, Biological Sequestration, 

and State Government Operations. 

2005 The Carbon Allocation Task Force in August 2005 was established to develop a carbon 

allowance program designed to meet the State’s greenhouse gas reduction goals. 

2006 Governor Kulongoski’s Executive Order on Sustainability for the 21st Century 

incorporates greenhouse gas emissions accounting into state agency decisions and 

reporting. Executive Order 06-02 calls for the Department of Administrative Services 

to coordinate an interagency team to lay the foundation for agency greenhouse gas 

inventories. 

2006 The Climate Change Integration Group (CCIG) was convened to oversee 

implementation of the recommendations from the 2004 Advisory Group; to assess the 
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State of Oregon Energy Plan 2011-2013

current state of knowledge about the sensitivity, adaptive capacity and vulnerability 

of natural and human systems to global warming; and to prepare recommendations 

about how the state can adapt to unavoidable changes. 

2007 The Governor’s carbon dioxide goals became law when the 2007 legislature passed 

HB 3543:

 By 2010, arrest the growth of Oregon’s greenhouse gas emissions (including, 

but not limited to CO2) and begin to reduce them, making measurable progress 

toward meeting the existing benchmark for CO2 of not exceeding 1990 levels.

 By 2020, achieve a 10 percent reduction below 1990 greenhouse gas levels.

 By 2050, achieve a “climate stabilization” emissions level at least 75 percent 

below 1990 levels.

That legislation also created the Global Warming Commission (GWC) and the Oregon 

Climate Change Research Institute. 

2007 The governors of the five Western states sign a joint memorandum of understanding 

to form the Western Regional Climate Action Initiative (later shortened to the 

Western Climate Initiative, or WCI). The WCI later expanded to other states and most 

of Canada.

2008 The CCIG issued their report A Framework for Addressing Rapid Climate Change in 

January 2008.

2009 The legislature passed and Governor Kulongoski signed into law further greenhouse 

gas reduction efforts. These included SB 101 to prevent new conventional coal plants, 

HB 2186 to reduce the average carbon intensity of fuels and HB 2078 that provides 

incentives for the transition to zero-emission vehicles.

2009 The Oregon Global Warming Commission issued its first report to the legislature. 

Recommendations included moving forward with the Western Climate Initiative’s 

proposed framework for cap and trade, promoting more energy efficiency and 

renewable energy, preparing for and adapting to the impacts of climate change, and 

supporting land use planning that addresses climate change.

2010 The Global Warming Commission creates its Interim Roadmap to 2020.
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State of Oregon Energy Plan 2011-2013
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State of Oregon Energy Plan 2011-2013

Energy Supply and Demand

Overview

Energy is an economic driver, one that Oregonians spend more than $14 billion on annually. Most of 

that money goes out of state. Energy expenditures are expected to rise as the population and 

demand for energy increases. Oregon’s Office of Economic Analysis says the state had about 3.8 

million residents in 2009, a number which is predicted to grow to 4.4 million in 10 years. Over the 

years, the Oregon Department of Energy has identified two main ways to recover some of the $14 

billion spent: energy conservation and efficiency, and renewable 

energy.

Conservation

Energy conservation is the foundation of Oregon’s energy policy 

and traditionally its first “fuel” of choice to meet energy demand. 

The Oregon Department of Energy (ODOE) provides information, 

evaluates new technologies and offers a variety of programs to 

assist Oregonians in conserving energy.

Since 1978, the Department’s programs have saved enough 

electricity, natural gas, oil, wood, and diesel to cut energy bills by 

$1.7 billion. Oregonians have invested in conservation projects 

such as efficient lighting, rental weatherization, alternative fuel 

vehicles and sustainable buildings.

Renewable Energy

Oregon is rich in renewable energy resources. Solar, wind, 

geothermal, small hydroelectricity projects, biomass (wood and 

organic solid waste), and wave energy, along with alternative 

fuels can provide Oregon with energy independence, rural 

community development and cleaner air. 

Many Oregon residents and businesses invest in renewable 

resources. Since 1978, ODOE’s incentive programs have led to 

the residential installation of nearly 1,700 solar electric (photovoltaic) arrays, about 2,500 geothermal 

heat pumps and more than 19,000 solar water heating systems. 

● ● ●

Energy conservation is the 

state’s resource of choice 

to meet energy demand.

Energy efficiency helps 

boost the economy by 

lowering energy bills and 

keeping energy dollars in 

the state.

Renewables are the 

preferred resources after 

conservation.

Oregon Department of Energy, 

Third Biennial Energy Plan, 1989

● ● ●
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State of Oregon Energy Plan 2011-2013

Energy Use and Trends

Energy consumption in Oregon continues to increase according the U.S. Department of Energy’s 

Energy Information Agency (EIA). 

The most current EIA data (2008) shows that total Oregon energy use (electricity, petroleum, natural 

gas) was 1,105 trillion British thermal units (Btu), up from 707 trillion Btu in 2003. That ranks Oregon, 

on a per capita basis, 38th in the country in energy consumption. Wyoming residents and businesses 

consume the most energy and New Yorkers the least. New York also has the second highest 

residential electricity rates in the United States.

The transportation sector uses the most energy in Oregon, followed by the industrial, residential and 

commercial sectors. In 2008, gasoline use made up 58 percent of that transportation energy. 

But Oregon only produces about one-third of the energy it uses. Of Oregon’s 414.8 trillion Btu 

produced, most of that is classified as renewable energy, with the majority of that being 

hydroelectricity. Texas and Wyoming are the top two energy producers in the country, with the 

sources being mainly coal and natural gas. 

Figure 1: Energy Information Administration (EIA) data illustrates the source of energy consumed in Oregon in 2008. 

Most of the energy used is petroleum. Oregon produces only about 37 percent of the energy it uses. 

Fuel Supply, Use and Pricing

Petroleum 

The August 2010 retail price of gasoline in Oregon (excluding taxes) ranked the state as having some 

of the most expensive vehicle fuel in the country. At $2.54 per gallon in Oregon, only Alaska, Hawaii 

and California were ranked higher in price. 
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State of Oregon Energy Plan 2011-2013

Petroleum prices have continued to climb and for the week ending January 24, 2011, the EIA listed 

the average nationwide retail price of gasoline at $3.11; a one-year increase of 40-cents per gallon.

Oregon has about 3.25 million registered passenger cars and trucks, which used more than 36 million 

barrels of gasoline in 2008. About 1,673 fueling outlets are located around the state; of those, 105 

stations offer alternative fuels, such as compressed natural gas, ethanol and biodiesel. 

Figure 2: EIA information shows the volatility in Oregon gasoline prices.

Oregon has few fossil fuel resources, imports 100 percent of its petroleum, and unlike other Western 

states, does not have refineries or internal crude oil resources. Oregon, along with Alaska, Arizona, 

California, Hawaii, Nevada, and Washington form a nearly self-contained system of petroleum 

production and consumption, referred to by the federal 

government as Petroleum Administration Defense District Five 

(PADD V). Although the system is relatively stable, a major 

disruption in any part of the supply and distribution chain could 

create a severe and prolonged petroleum shortage, and/or 

significant price volatility.

Petroleum Sources

Figure 3 maps the major sources and distribution of Oregon’s 

petroleum products. Four refineries in the Puget Sound area of 

Washington provide more than 90 percent of Oregon’s refined 

petroleum products. The Washington refineries transport their 

products to Oregon and Washington markets via the Olympic 

Pipeline and barges.

More than 80 percent of the crude oil the Puget Sound refineries 

export to Oregon originates in the Alaska North Slope oil fields. The 

Trans Alaska Pipeline transports crude oil 800 miles from the oil 

The State receives 

petroleum-based 

transportation and heating 

fuels from Washington 

State and northern 

California. Tanker trucks 

from California supply 

southern Oregon, while 

ships and barges deliver 

additional product from 

San Francisco to the 

Portland area.

Energy Information 

Administration
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State of Oregon Energy Plan 2011-2013

fields on the state’s northern coast to the Valdez terminal on its southern coast. From there, barges 

and tankers ship the crude oil to the Washington refineries and other destinations. 

The Western Canada Sedimentary Basin is another significant source of crude oil for the refineries. 

The remaining crude, less than five percent, comes from the continental U.S., Mexico, Indonesia or 

the Middle East.

Figure 3: Illustrates the interconnection of the source, refineries and transportation of Oregon’s petroleum. The 

majority of the crude oil comes from Alaska. 

In addition to Washington, refineries in Salt Lake City and British Columbia provide nearly 10 percent 

of Oregon’s refined petroleum products. Under normal conditions, only minor amounts arrive on 

tanker ships from California and the Pacific Rim countries of Indonesia, South Korea and Japan. 

The bulk of Oregon’s oil enters through the Port of Portland and is distributed statewide by tanker 

trucks, Columbia River barge service and the Kinder Morgan pipeline, which extends to Eugene. Some 

specialty petroleum products (jet fuel, lubricants, ultra-low sulfur diesel) enter Oregon on tankers 

from California Bay Area refineries.

In northeastern Oregon, some portion of all petroleum products enters by truck or rail from Pasco, 

Washington. The Pasco delivery station receives refined product from a pipeline that starts in Salt 

Lake City, travels through southern Idaho and crosses through northeastern Oregon along Interstate 

84. In southeastern and southern Oregon, a portion of petroleum products is trucked from Idaho and 

northern California respectively. 
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State of Oregon Energy Plan 2011-2013

Figure 4: Gasoline makes up the bulk of Oregon’s transportation fuel use.

Petroleum Shortages

The Oregon Department of Energy (ODOE) is in charge of the State’s petroleum fuel supply and 

maintains a petroleum contingency plan. A U.S. Army Corps of Engineers (Corps) lock closure 

implemented from December 2010 through March 2011 on the Columbia and Snake River system is 

being monitored by the Oregon Department of Energy. The Corps is replacing the navigation lock 

gates on The Dalles, John Day and Lower Monumental dams. Normally, fuel serving eastern Oregon 

is transported by barge from the Port of Portland to Pasco, Washington through those locks. 

ORS 176.809 authorizes the Oregon Department of Energy (ODOE) to prepare for and respond to 

potential petroleum shortages or disruptions that threaten the health and safety of Oregonians. 

Eastern Oregon communities could see some mild supply disruptions and possibly higher gasoline 

prices. But, as it did during Hurricane Katrina’s impact on the nation’s petroleum supply, ODOE is 

working with the Oregon Department of Justice to help prevent any possible price gouging at the 

pump.

Natural Gas

Oregon imports 100 percent of its natural gas. Oregon receives natural gas from British Columbia, 

Alberta, Wyoming, Colorado and New Mexico. Two connected interstate pipelines deliver the natural 

gas (Figure 5).
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State of Oregon Energy Plan 2011-2013

Figure 5: Two natural gas pipelines currently serve Oregon customers. The Williams Company pipeline and the Gas 

Transmission Northwest (GTN) pipeline owned by the TransCanada Corporation bring product from the Rocky 

Mountains and Canada. 

The Williams Company’s Northwest Pipeline brings natural gas to Portland from British Columbia and 

the Rocky Mountain region of the U.S. British Columbia gas enters the U.S. near Sumas, Washington 

and roughly follows Interstate 5. Gas from the Rocky Mountains comes into Oregon near Ontario. 

One lateral pipeline transports gas from Washougal, Washington to the Portland area and another 

from the Willamette Valley to Grants Pass. 

Natural gas from Alberta arrives in a Gas Transmission Northwest (GTN) pipeline. It enters the U.S. 

near Kingsgate, Idaho, and moves through eastern Oregon, leaving the state near Malin, before 

traveling on to California and Nevada. A lateral line transports natural gas from Klamath Falls to 

Medford. The GTN pipeline is owned by TransCanada and connects with the Williams Northwest 

pipeline at Stanfield, Oregon.

 

Three natural gas utilities serve Oregon:

 Northwest Natural serves 80 about percent of Oregon’s retail customers, including the 

Willamette Valley and the coast. 

 Avista Corporation serves parts of southern Oregon and La Grande.

 Cascade Natural Gas serves parts of central and eastern Oregon. 

Northwest Natural receives natural gas from the Williams’ pipeline. Northwest Natural owns 

underground gas storage facilities in Mist, Oregon and liquefied natural gas storage facilities in 

Newport and Portland. Northwest Natural also has contracts to use liquefied natural gas storage at 

Plymouth, Washington and underground storage at Jackson Prairie, Washington.

Avista obtains natural gas from the Williams Company’s Grants Pass lateral as well as the 

TransCanada’s GTN pipeline and the Medford lateral. Cascade customers from Madras to Chemult 

receive natural gas from TransCanada’s GTN pipeline. The Williams Northwest pipeline serves 
25

State of Oregon Energy Plan 2011-2013

Cascade customers from Umatilla to Ontario. Cascade and Avista either own or have contracts to use 

natural gas storage facilities.

Figure 6: Energy Information Administration data shows the residential price of natural gas in Oregon through 2009. 

Liquefied Natural Gas (LNG)

As part of the current and future energy mix, the U.S. is looking to import natural gas which, when 

produced overseas, must be super-cooled and liquefied for ocean transport. In its liquid state, the 

natural gas is called Liquefied Natural Gas or LNG.

It is expensive to liquefy, transport, and then convert to a gas again (regasify). Shipments of foreign 

LNG are currently being received at terminals along the eastern seaboard and in the Gulf of Mexico. 

In Oregon, there were three proposals to build LNG facilities. 

 Bradwood Landing, located near Astoria, received approval to build from the Federal Energy 

Regulatory Commission (FERC), later filing for bankruptcy in May 2010.

 Oregon LNG, proposed near Warrenton, is currently making its way through the FERC process. 

 Jordan Cove, located near Coos Bay, received FERC approval in December 2009. As of January 

2011, the project developers were proceeding and the Oregon Department of State Lands was 

reviewing a removal/fill application by the Port of Coos Bay for a slip dock.

The Oregon Pipeline Company, affiliated with Oregon LNG, proposes to build 120 miles of pipeline 

from its LNG terminal to Molalla, Oregon where it would connect to Northwest Natural’s existing 

pipeline. 

Pacific Connector Gas Pipeline, affiliated with Jordan Cove LNG, proposes to build a 230-mile pipeline 

from the proposed Jordan Cove LNG terminal near Coos Bay to the Williams Northwest pipeline near 

Myrtle Creek and on to TransCanada’s GTN line at Malin, near the California border. 

Natural Gas Pipelines

The Ruby Pipeline, approved by FERC and currently under construction, will transport domestic 

natural gas from Opal, Wyoming covering 675 miles across four states to the existing Gas 
26

State of Oregon Energy Plan 2011-2013

Transmission Northwest (GTN) pipeline near Malin, Oregon.

The Palomar Pipeline, currently making its way through the FERC process, proposes to link the GTN 

Pipeline near Madras, Oregon to the Williams Northwest Pipeline near Molalla, Oregon and a second 

phase from Molalla to Bradwood Landing. Due to the bankruptcy of Bradwood Landing LNG along 

with changing market forces, the Palomar developers are reconsidering their project.

According to the Northwest Gas Association (NGWA), the Pacific 

Northwest is home to more than 48,000 miles of natural gas 

transmission and distribution pipelines. NGWA expects natural gas 

demand to grow an average of about one percent per year.

Regulation 

The Federal Energy Regulatory Commission regulates siting of interstate 

natural gas pipelines as well as prices for the use of pipelines. The 

Oregon Energy Facility Siting Council sites and regulates large in-state 

pipelines.

The Oregon Public Utility Commission (PUC) regulates the rates 

Oregon’s natural gas utilities charge their retail customers. Wholesale 

natural gas prices are not regulated. 

Retail natural gas rates generally include pass-through of the wholesale 

cost of natural gas to retail customers. The PUC sets retail rates so utility companies have the 

opportunity to earn a fair rate of return on their investments. 

Natural gas utilities must prepare integrated resource plans for the PUC. These plans outline ways to 

meet natural gas demand, proposed pipeline expansions, new storage facilities, and energy 

conservation budgets and programs. 

Electricity

Between seven and 15 percent of Oregon's electricity is generated from natural gas. The percentage 

varies based on the amount of hydroelectricity generated annually. For example, seven percent of 

Oregon’s electricity in 2003 was natural gas-fired, compared to 15 percent in 2001. In 2005, natural 

gas-fired electricity made up about 10 percent of Oregon’s electric mix. From 2006 through 2008, 

natural gas averaged 12 percent of the mix. 

Electricity Oregon U.S Average Timeframe

Residential 9.13 cents/kWh 12.02 cents/kWh Aug. 2010

Commercial 7.57 cents/kWh 10.69 cents/kWh Aug. 2010

Industrial 5.65 cents/kWh 7.21 cents/kWh Aug. 2010

Figure 7: 2010 Oregon Electricity Prices compared to the U.S. Average—Source: Energy Information Administration 

The supply and 

price of oil are set in 

world markets. The 

State’s main role is 

to lessen Oregon’s 

vulnerability to 

severe price hikes 

and supply 

shortfalls.

Oregon Department of 

Energy’s Third Biennial 

Energy Plan, 1989
27

State of Oregon Energy Plan 2011-2013

Electricity Rates

According to the U.S. Department of Energy’s Energy Information Administration, the Oregon 

residential electric rate of 9.13 cents per kilowatt-hour (kWh) in 2010 is up from 9.04 cents per kWh 

in August 2009. Commercial rates also rose over the 12-month period to 7.57 cents per kWh, up 

from 7.39. The only decline was for industrial electric rates, which were down slightly from 5.71 

cents per kWh in 2009 to 5.65 cents per kWh in 2010.

Nationally, fossil fuel prices showed significant volatility during 2008. Between 2004 and 2008, the 

average price of fossil fuels delivered to electric plants increased a cumulative 65.7 percent. Over the 

same time period, the national average retail price of electricity increased 28 percent, from 7.6 cents 

per kWh in 2004 to 9.7 cents per kWh in 2008.

Electricity Mix

Figure 8 shows the mix of resources for Oregon's investor and consumer-owned utilities. The nuclear 

power comes to Oregon’s consumer-owned utilities through the Bonneville Power Administration 

from the Columbia Generating Station at Hanford, Washington.

Figure 8: Where Oregon gets its electricity. Oregon’s 2006-2008 fuel mix shows that electricity comes mainly from 

hydropower plus instate and out-of-state coal.
28

State of Oregon Energy Plan 2011-2013

Coal power comes from Portland General Electric’s (PGE) Boardman plant in Oregon and from plants 

in Utah, Wyoming, and Montana. Significant new wind facilities have been added since 2001, but still 

make up a small portion of the overall electricity mix.

The West depends on natural gas-fired power plants, but Renewable Portfolio Standards across the 

country mean more states are trying to meet new electricity needs with renewable energy, mainly 

wind power at this time. 

Electricity Transmission

Moving the renewable energy from the rural areas where it is generated to the load centers where it 

is needed requires transmission lines. 

There are four electric transmission projects approved and/or proposed in Oregon: 

 Big Eddy-Knight Transmission Line (BE-K), a Bonneville Power Administration (BPA) 

project, 500-kilovolt line from The Dalles, Oregon to a proposed new substation four 

miles northwest of Goldendale, Washington.

 I-5 Reinforcements Project, BPA, an approximately 70 mile-long transmission line from 

Castle Rock, Washington to a new substation near BPA’s existing Troutdale Substation.

 Boardman to Hemingway (B2H), approximately 298 miles of single circuit 500-kilovolt 

(kV) transmission line connecting the power plant near Boardman, Oregon and the 

planned Hemingway substation near Murphy, Idaho. This project, proposed by Idaho 

Power, requires the approval of the Energy Facility Siting Council.

 Cascade Crossing (CX), from Portland General Electric, is approximately 210 miles of 

single and double circuit 500-kilovolt (kV) transmission line from Boardman to Salem. 

The proposal includes three new substations, and potential upgrade of portions of the 

transmission system in the Willamette Valley. This project requires the approval of the 

Energy Facility Siting Council.

Renewable Energy Resources

The Oregon Department of Energy (ODOE) provides technical assistance and incentives for renewable 

resource projects. Large wind and other types of renewable facilities may also qualify for federal 

incentives. With the 2009 passage of the federal stimulus American Recovery and Reinvestment Act, 

energy projects across the country have received tax credits, grants and/or loan guarantees. Some of 

those beneficiaries include Oregon wind farms, biomass, solar, geothermal exploration and wave 

energy development.

Nature provides a constant supply of renewable energy resources. These usually produce fewer 

pollutants than fossil fuels. Renewable energy resources include:
29

State of Oregon Energy Plan 2011-2013

 Biomass (from plants and other organic matter) 

 Geothermal (heat from the Earth)

 Hydroelectricity 

 Solar 

 Ocean Energy

 Wind 

All renewable energy sources can be used to generate electricity. Solar, geothermal and biomass also 

can supply heat. In addition, biomass can be used to fuel vehicles.

Nationally, between 2007 and 2008, renewable energy consumption grew 10 percent to 7.367 

quadrillion Btu, which was the highest level since the U.S. Energy Information Administration (EIA) 

began keeping records in 1977. While the total U.S. energy consumption declined by 2 percent, 

primarily due to the economic recession, renewable energy's share of the U.S. market increased to 

over 7 percent.

Biomass/Biofuels/Bioenergy

Oregon has large amounts of biomass resources including agricultural residues, forest slash and mill 

residuals. For decades, Oregon has been using these resources to provide fuel for the generation of 

electricity, production of heat, and manufacturing of fuels.

Increased biomass utilization can contribute to healthy forests, 

rural jobs, and renewable energy. Using forest slash for 

bioenergy production provides an alternative to open burning. 

Finding value-added uses for agricultural residues can increase 

farm revenue and help Oregon agricultural producers find new 

markets for their products.

Bioenergy production not only creates jobs in the facilities used 

to produce renewable energy or fuel, it supports jobs in the 

production and collection of biomass, as well as in other areas 

of the supply chain. Biomass as a renewable fuel feedstock 

requires a workforce that can produce, collect, process, and 

transport the material.

In Oregon, biomass is used to produce thermal heat for the 

forest products industry, heat and electricity at wastewater 

treatment facilities and wood pellets that heat homes, schools and hospitals. The Oregon pellet 

manufacturing industry is a national leader in producing high quality engineered fuels.

Photo 1: The Harney County Hospital 

uses wood for heat.
30

State of Oregon Energy Plan 2011-2013

Biomass market development efforts include public-private collaborations 

like the Forest Biomass Working Group and the Forest Cluster Economic 

Development Team. Oregon also has an active collaboration between 

state agencies with responsibilities related to bioenergy development.

Woody Biomass

Currently, more than 45 industrial facilities use woody biomass for energy 

production. These include electricity and heat produced at forest products 

industries such as lumber and paper mills. The energy is used to generate 

electricity, provide heat for drying kilns, or generate steam used for 

industrial process applications. 

Woody biomass relies on an integrated market that allows the most value 

for the material. The higher value biomass material is used in the 

production of value-added products such as plywood or particle board, 

finished wood chips, small diameter applications and engineered fuels. 

Lower value materials are used as chipped fuel in industrial boilers to generate heat and electricity 

throughout the state.

Biogas

A growing area of the bioenergy sector is in the production and use of biogas. Biogas is produced 

through the breakdown of biomass into methane that is used to produce electricity. Methane 

produced in the wastewater treatment process is captured and used to produce heat and electricity 

in at least 29 wastewater treatment facilities around the state. 

Building on the early work by the Port of Tillamook Bay and various dairy operations, a number of 

projects are under development and construction to use manure and other agricultural wastes to 

generate electricity. These facilities address a waste management challenge while also generating 

renewable energy and reducing greenhouse gas emissions. 

Landfills are another source of biogas. Landfills in Oregon have installed methane capture systems 

and use the gas to produce electricity and where possible, capture the heat for thermal applications 

such as food processing or heating greenhouses.

 

Biomass Producer or Collector Tax Credit

The biomass producer or collector tax credit provides a per unit incentive for various biomass 

feedstocks used to produce bioenergy or biofuel. The tax credit has helped Oregon’s agricultural 

producers grow feedstock for biofuel production and has leveraged additional forest stewardship 

treatments that use the resulting biomass for energy production. 

Community Renewable Energy Feasibility Fund

The Community Renewable Energy Feasibility Fund (CREFF) has provided early stage funding to 

bioenergy projects, including proposals from the City of Sisters and Wallowa Resources. 

Energy from wood 

resources is 

important to 

Oregon’s industrial 

and residential 

sectors. Wood 

energy technology is 

well understood, 

available and 

reliable.

ODOE Sixth Annual 

Report, 1982
31

State of Oregon Energy Plan 2011-2013

Pilot Project

The Forest Products Energy Project (FPEP) is a public/non-profit collaboration to provide strategic 

financial offerings and technical support to help existing forest products companies pursue the 

identification, development, and deployment of additional renewable energy production from 

biomass. The Forest Products Energy Project Team is made up of the Oregon Department of Energy, 

Business Oregon, Energy Trust of Oregon and the Oregon Department of Forestry. The project was 

developed from the work of the Oregon Forest Cluster Economic Development Core Teams and the 

Oregon Forest Biomass Working Group.

Ethanol and Biodiesel Fuels 

Biofuels now account for a significant part of the U.S. and Oregon’s transportation fuel mix, with firstgeneration ethanol from corn starch and biodiesel from soy the predominate biofuels in the country. 

Oregon has limited ability to produce feedstock for these first-generation biofuels but has greater 

potential for producing cellulosic ethanol. Oregon also has the ability to produce alternate 

feedstocks for biodiesel and renewable diesel, and to a lesser extent, to produce biogas.

Currently in Oregon, only blends of up to 10 percent (E-10) and 85 percent (E-85) ethanol can be sold. 

These are the only blends that have Oregon-required ASTM (American Society for Testing and 

Materials) standards. Standards have yet to be developed for blends between 10 and 85 percent 

ethanol. Retail biofuel storage capacity can be a barrier to increased biofuel use in Oregon. Most 

retail stations only have two tanks available, one for unleaded regular and the other for premium, 

which they blend for a mid-grade.

Renewable Fuel Standard

Ethanol, as mandated by the EPA’s Renewable Fuel Standard (RFS2), is approaching 10 percent of 

gasoline consumption with current demand nearly 13 billion gallons per year in the U.S. The mandate 

requires 36 billion gallons of biofuel into the U.S. transportation fuel mix by 2022. To reach these 

numbers, marketing will have to include higher blends of ethanol and 

Flex-Fuel vehicles. 

In 2007, Oregon passed Renewable Fuel Standard (RFS) legislation. The 

RFS required E-10, or 10 percent ethanol, in all motor gasoline fuel sold 

in state once production capacity reached 40 million gallons per year. 

The capacity was reached in September 2007 when Pacific Ethanol 

began processing ethanol in Boardman. 

In the 2008 Special Legislative Session, a bill (Senate Bill 1079) was 

enacted allowing clear premium or premium without ethanol to be sold. 

More than one hundred retail stations in Oregon offer alternative fuels. 

Nine stations in Oregon offer 85 percent ethanol, which is 15 percent petroleum and 85 percent 

ethanol. The State’s fleet has used E-85 in their Flex-Fuel vehicles for several years with good results. 

Photo 2: B-20 biodiesel pump
32

State of Oregon Energy Plan 2011-2013

Approximately 150 million gallons of ethanol per year are consumed in Oregon. Currently, about 40 

million gallons per year are produced in Oregon.

The Oregon RFS also includes biodiesel requirements. As of October 2009 all diesel, with a few 

exceptions, must contain at least two percent biodiesel. With current demand, this equates to around 

11 million gallons per year of biodiesel. Less than half of this demand is produced in Oregon. 

Most of the biodiesel sold in Oregon comes from Mid-Western soy, however about 90 percent of the 

biodiesel produced in Oregon is processed from waste vegetable oil. When the biodiesel production 

capacity in the state reaches 15 million gallons per year, the RFS requirement will increase to B-5 or a 

five percent biodiesel blend. On February 1, 2011, the Oregon Department of Agriculture issued a 

notice to fuel dealers that the five percent minimum blending requirement will by effective April 1, 

2011.

Several public and private fleets in Oregon use higher blends of biodiesel. The State of Oregon 

Department of Administrative Services (DAS) buys B-20 for the state fleet. The City of Portland has 

used B-20 in many of their diesel vehicles since 2004. 

Research is currently underway on biofuels from a wide range of Oregon biomass products. 

ZeaChem is building a plant in Boardman that will process woody biomass into ethanol along with 

other products. Summit Natural Energy in Cornelius is processing waste agricultural products to make 

ethanol. 

Ethanol may soon be produced from ligno-cellulosic (plant material) feedstock such as woody forest 

biomass and grass or wheat straw, orchard or nursery pruning, or other agricultural plant wastes. 

Biomass-based oils, suitable for re-refining into various chemicals and transportation fuels or for use 

in certain stationary boilers, may be produced at competitive prices using various thermo-chemical 

processes.

Production Capability

Based on estimates from biomass inventory and assessment studies conducted during the past 

decade, a range of 424 to 524 million gallons of gasoline-equivalent biofuel and other alternative 

transportation fuels a year could be produced from Oregon biomass feedstocks. This represents 

approximately 20 to 24.6 percent of Oregon’s consumption of gasoline and diesel (2.172 billion 

gallons as of 2008). 

If only waste sources of biomass were used, and no crops, 182 to 282 million gallons of gasolineequivalent biofuels and compressed natural gas could be made from biomass waste in Oregon. The 

amount depends on the volume and cost of the material. This represents approximately 8 to 13 

percent of Oregon’s current consumption of gasoline and diesel. 

The variance in the low and high estimates for the first three categories in Figure 9 below (forest 

residue, agricultural residue and urban wood waste) comes from analysis of the cost to collect and 
33

State of Oregon Energy Plan 2011-2013

transport the material. At lower prices, less material can be collected, while at higher prices, more of 

the material can be collected. 

Source

Potential fuel volume produced 

(millions of gallons of gasoline 

equivalent/yr) 

Fuel from Waste

1. Forest residue

58 to 132 

(dependent on price paid)

2. Agricultural residue (corn and 

wheat only)

13 to 32 

(dependent on price paid)

3. Urban wood waste

11 to 19 

(dependent on price paid)

4. Mill residues 1

5. Orchard and vineyard prunings 6

6. Grass straw residue 33

7. Greenwaste 18

8. Mixed Waste Paper 41

9. Biogas 0

1

Total Fuel from Waste 182 to 282

Fuel from Crops

Expiring Conservation Reserve 

Program planted to biofuel feedstock 239

Existing crops 13

Total Fuel from Crops 242

Total 424 to 524

Figure 9: Potential range of low carbon fuel production from available Oregon biomass

 

1

The amount of fuel produced from biogas is 0.023 million gallons of gasoline equivalent per year. 
34

State of Oregon Energy Plan 2011-2013

Figure 10: Lower estimates of biomass availability compared with gasoline and diesel use in Oregon

Figure 11: Higher estimates of biomass availability and alternative fuel production compared with gasoline and diesel 

use in Oregon. 

Geothermal

Geothermal resources come from the natural heat of the earth; providing a constant base load 

energy from below the surface of the earth. Geothermal energy is used in Oregon to dry agricultural 

products, for aquaculture (raising fish), for space heating, to heat greenhouses, and to heat 

swimming pools at a number of spas and resorts.
35

State of Oregon Energy Plan 2011-2013

Oregon has been involved in the direct use of geothermal energy for years, but there is currently no 

commercial electricity production from geothermal. However, funding awards from the federal 

American Recovery and Reinvestment (ARRA) Program may help change that. 

Those ARRA awards include $25 million for AltaRock Energy to demonstrate an experimental 

technology at the Newberry Volcanic Monument extracting energy from geothermal systems that 

may not have enough water, $1.8 million for testing innovative exploration and drilling techniques at 

the Crump Geyser in south central Oregon, and $4.4 million for technologies to identify fault lines at 

Glass Buttes. 

Electricity Production

Most areas of high heat flow are in the Cascades, central Oregon, southeast Oregon and parts of 

northeast Oregon. These are the locations where geothermal resources are most likely to be found. 

The Oregon Department of Geology and Mineral Industries (DOGAMI) has geothermal resource maps 

available to the public showing both regional and site-specific information. DOGAMI also received 

$600,000 in ARRA funds to help develop a national geothermal data system.

Development on federal lands requires that a resource production royalty be paid to the federal 

government. In Oregon, half of the royalty payment would be paid to the state, which is obligated to 

pass at least 50 percent onto the county where the electricity was produced. However, the main 

barrier for development of geothermal electricity generation in Oregon is its cost. 

Geothermal work in the Newberry area near Bend is being conducted by AltaRock Energy and 

Davenport Newberry on what is called Enhanced Geothermal Systems (EGS). The U.S. Department of 

Energy (USDOE) is supporting EGS, which it calls “engineered reservoirs created to produce energy 

from geothermal resources that are otherwise not economical due to lack of water and/or 

permeability.” The project is on leased federal land outside the Newberry Volcanic Monument.

Geothermal experts consider the area on the flanks of Newberry Volcano, outside the Newberry 

National Volcanic Monument, to be one of the best prospects for high-temperature geothermal 

electricity production in the Pacific Northwest. To date, limited exploration drilling has measured 

temperatures up to 315 degrees Celsius (600 degrees Fahrenheit).

In 2010, U.S. Geothermal’s proposed Neal Hot Springs geothermal electricity facility received a 

USDOE conditional loan guarantee of $102.2 million. Located about 90 miles northwest of Boise, 

three production wells have been drilled and tested, with more underway for the proposed 22 

megawatt facility.

Nevada Geothermal Power has private land leases to explore Crump Geyser in Lake County. The 

company plans to drill three production wells to see if there is enough heat for a 30 megawatt facility.

The town of Paisley in Lake County is also exploring use of its geothermal resources. 
36

State of Oregon Energy Plan 2011-2013

Direct Use

Geothermal in the City of Klamath Falls has been used since the turn of the century for a variety of 

uses including heating homes, schools, businesses, swimming pools, and for sidewalk snow melt 

systems. The city also received $816,100 in ARRA funds to help construct a low temperature power 

plant.

The Oregon Institute of Technology (OIT) in Klamath Falls heats its 11-building campus with 

geothermal energy. Oregon has been a leader in geothermal energy, in part because of the longterm work of the Geo-Heat Center at OIT. The center provides geothermal information and 

technology transfer, and is internationally recognized for its work. $1 million in ARRA funds will be 

used to install a low temperature geothermal unit on campus. 

Traditionally, high-temperature geothermal resources 150 degrees C (300o F) and above can be used 

to generate power. Recent advances in technology now allow hot water as low as 88o C (190o F) to 

economically generate power. Intermediate temperature of 50 degrees C (110o F) and above can 

supply heat for industrial, agricultural and municipal applications.

Low-temperature heat pump applications 10o degrees C (50o F) and above can supply heat for 

residential and commercial building applications. Currently, about 1,900 ground-source heat pumps 

provide space and water heating for Oregon homes. 

Photo 3: Greenhouses heated with geothermal energy in the Klamath Falls area. (D.A. Black)

Hydropower

Hydropower dominates Oregon’s electricity portfolio. The Bonneville Power Administration markets 

power from 31 hydropower facilities in the Northwest, 14 of which are located in Oregon. These 

facilities account for 82 percent of all power that BPA markets. Oregon’s consumer-owned utilities 

have benefited from cheaper rates derived from the BPA power system. Hydropower is also 26 

percent and five percent of the electricity portfolio of Oregon’s two major investor-owned power 

providers, Portland General Electric and Pacific Power, respectively. 

New growth in the hydropower sector is most likely to occur in three areas: irrigation systems, 

pumped storage, and the addition of power facilities on existing dams, especially federal dams. 
37

State of Oregon Energy Plan 2011-2013

In the past two years, the Swalley Irrigation District and Central Oregon Irrigation District have each 

constructed new facilities. These projects were combined with piping upgrades to improve water 

capture. They received loans from the Oregon Department of Energy’s Small-Scale Energy Loan 

Program (SELP). 

Pumped storage is a two-pool facility where power is generated to soften load spikes, and then 

during low power demand, water is pumped back up to the higher pool to refill. As a near-battery for 

the grid, pumped storage is being considered to resolve transmission and wind integration 

challenges. Pumped storage facilities require significant upfront capital expense and siting analysis. 

Since the projects use more energy than they produce, there must usually be additional recoverable 

benefits for the project to make financial sense.

In 2008 and 2009, federal licenses 

were issued for new hydropower 

facilities on U.S. Army Corps of 

Engineers dams, Dorena Dam on the 

Row River and Applegate Dam on the 

Applegate River, a tributary of the 

Rogue. Two additional facilities are 

advancing in the licensing process, 

Wickiup Dam on the Deschutes River 

in central Oregon and Mason Dam on 

the Powder River in eastern Oregon. 

Both of these facilities are operated 

by the U.S. Bureau of Reclamation.

Figure 12: The Northwest Power and Conservation Council map of 

Columbia and Snake River dams and fish protection facilities.

Wave Energy

Oregon’s significant ocean energy potential and marine resources have made the State a leader in 

promoting wave energy development while protecting coastal communities and fisheries. 

Oregon has invested in this wave energy effort. The non-profit Oregon Wave Energy Trust (OWET) 

funds independent research and development under the state’s Oregon Innovation Council, fostering 

growth and evaluation of wave energy development potential on Oregon’s shores.

 

The National Northwest Marine Renewable Energy Center (NNMREC), one of three centers 

nationwide, was founded in 2008 to facilitate technology development, inform regulatory and policy 

decisions, and close key gaps in understanding. The Oregon State University branch is exclusively 

responsible for wave energy. Currently, the Center is developing a mobile Ocean Test Berth (MOTB) 

for deployment in 2012 off the coast of Newport. The Test Berth will give wave energy conversion 

devices a power launch pad, with the infrastructure required to test and validate devices that can be 

used across a broad swath of ocean landscape. 
38

State of Oregon Energy Plan 2011-2013

A collection of state agencies formed the foundation of a landmark settlement with Ocean Power 

Technologies (OPT) in July 2010 for the Reedsport project2. Stakeholders along with state and federal 

agencies approved resource study plans and conditional placement of 10 wave energy buoys off the 

mouth of the Umpqua River, more than two miles from shore. OPT is seeking state authorization and 

a federal license for this 10-buoy development at Reedsport. A single test buoy that OPT intends to 

pilot at this location is under construction at Oregon Iron Works. A Coos Bay barging company 

expects to tow the device for anchoring in spring 2011. 

With the Reedsport project, Oregon has built a coordinated regulatory pathway for the next 

generation of marine energy developments. In November 2009, the Land Conservation and 

Development Commission approved a new Part 5 of the Territorial Sea Plan that broadly governs 

marine renewable energy development. The hope is that by extensively mapping the current 

resource values, fishing, crabbing, and recreational activities, Oregon will be able to make more 

informed renewable energy siting decisions.

Large-scale federal grants have changed the funding landscape in Oregon. The state’s wave energy 

sector may benefit from federal grants for study-framework planning, the Reedsport project, the OSU 

Center, and other new industries and device development. 

Solar 

Solar energy is Oregon’s largest renewable energy resource. Northwestern Oregon receives roughly 

the same annual solar resources as the U.S and Europe. The eastern and southern parts of Oregon 

receive roughly the same annual solar resource as that of northern Florida.

There are three primary ways in which this energy is harvested: as direct light into buildings for light 

and heat, to heat water using roof-mounted collectors, and to convert sunlight to electricity using 

photovoltaics (PV). Each solar harvesting approach is unique in its technology and market constraints. 

Using solar directly in buildings as daylight and heat can improve occupant comfort and reduce 

energy needs by 10 to 30 percent. The life-cycle cost can be lower than conventional energy sources 

if solar is installed when the building is constructed.

Solar Electricity—Photovoltaics (PV) in the Residential Market

The residential PV market experienced significant growth in 2010. In 2007, there were 230 residential 

tax credits issued for PV systems statewide. In 2009, there were almost 400 tax credits issued. In 

2010 there will likely be more than 1,000 tax credits issued. Figure 13 demonstrates the growth in 

the number of systems installed statewide over the past five years.

 

2

FERC Project Number P-12713-002
39

State of Oregon Energy Plan 2011-2013

Figure 13: Installation of residential solar electric systems has increased in Oregon.

There are many factors that can be attributed to the expansion in the residential PV market in 

Oregon. The combination of state and federal tax credits with cash incentives offered by the Energy 

Trust of Oregon has greatly reduced the cost of these systems. Long-term support for PV installations 

within the state has allowed the local industry to expand, mature and streamline costs. There are 

currently 169 tax credit-certified solar technicians across the state installing residential solar energy 

systems. In 2007, there were 54 tax credit-certified solar technicians. The presence of large PV 

manufacturing facilities in the state, such as SolarWorld, has also raised the profile of the technology.

 

Declining System Costs

The primary factor increasing the number of PV systems installed in the state is declining system cost. 

In 2007, the average residential PV system in Oregon cost $8.04 per DC Watt. In 2010, the average 

system cost is $6.70 per DC Watt with many systems being installed for less than $6.00 per DC Watt. 

Figure 14 demonstrates the average statewide PV system cost per DC watt in the four years.

Figure 14: Shows the declining cost of residential solar electric systems.
40

State of Oregon Energy Plan 2011-2013

Solarizing Oregon

Another factor increasing the number of residential PV systems installed in Oregon have been bulk 

purchasing agreements organized by cities and neighborhood associations. These efforts commonly 

known as “solarize” programs have been organized in Portland, Beaverton, Salem and Pendleton. 

Photo 4: City of Pendleton Solarize Program

Alternative Incentive Structures

In June 2009, the Oregon legislature passed House Bill 3039 directing the Oregon Public Utility 

Commission (OPUC) to create a Volumetric Incentive Rate (VIR) pilot program, often referred to as a 

feed-in tariff. The VIR was established to evaluate the effectiveness of a performance-based 

incentive for promoting photovoltaic installations. The original law was amended with House Bill 

3690 (2010) which provided clarification on system size definitions and established the ability to 

provide an incentive for “the non-energy attributes of electricity.” 

The pilot VIR payment is limited to ratepayers in PGE, Pacific Power and Idaho Power territories. The 

program has targets to install 25 megawatts (MW) of capacity by 2015. Of this, 75 percent of the 

capacity is to be for residential and small commercial projects up to 100kW in size. The VIR was 

launched on July 1, 2010 with VIR rates set between $0.65 per kWh and $0.55 per kWh. The 

allocated capacity was reserved in less than 30 minutes. The second round was launched on October 

1, 2010 with rates reduced by 10 percent. The second round was fully allocated within 15 minutes.

The primary difference between the pilot VIR program and the state energy tax credit programs is the 

unit that is measured to calculate the value of the incentive. The Residential Energy Tax Credit (RETC) 

program provides a capacity-based incentive for photovoltaic system installations. The incentive is 

calculated on a $/watt basis based on the nameplate capacity of the PV system. The RETC incentive is 

paid out over a maximum of four years. The VIR program provides an incentive on a $/kWh basis 

based upon the actual metered energy output of the system. The VIR incentive is paid over 15 years 

and provides incentives for system longevity and performance.
41

State of Oregon Energy Plan 2011-2013

Development of the VIR program brought to light potential conflicts with the Federal Energy 

Regulatory Commission (FERC), which has jurisdiction over the rates that utilities can pay for energy. 

The creation of the VIR payment was seen as potentially violating FERC’s jurisdiction. Noting that 

issue, the OPUC created a program where participants are not allowed to sell surplus energy to the 

utilities. Instead the utilities will only provide the VIR payment for energy that is generated and 

consumed on-site. This “net metering” approach applies to systems up to 100kW in size and prohibits 

payment for surplus energy generated by a PV system over the course of a year.

Large Systems in the Volumetric Incentive Rate (VIR) Program

The pilot VIR has limited capacity for larger scale PV installations up to 500kW in size. The rates for 

the large-scale projects is determined through a Request for Proposal (RFP) and bidding process 

where project developers submit competitive rates in an attempt to win a VIR payment contract. The 

bidding process is designed to establish a VIR rate in a market-based manner.

Neither the small-scale net metering VIR nor the large scale bidding program can be considered a 

traditional “feed-in tariff.” A traditional feed-in tariff sets a rate of payment for generation and offers 

a standard contract for the purchase of the energy. This approach creates an incentive for surplus 

generation and operates without a net metering or bidding process.

Photo 5: The 419 kW DC PV array at the City of Gresham Waste Water Treatment Plant, which is currently the largest 

ground-mounted installed solar array in Oregon.

 

Oregon’s Historic Solar Connection

On April 25, 1954, two Oregonians helped invent the solar electric or photovoltaic (PV) cell and 

created a revolution in the renewable energy field. Daryl Chapin and Gerald Pearson graduated from 

Willamette University in Salem and went on to work at Bell Telephone Labs in New Jersey. Pearson 

was born in Salem in 1905.

The two men, along with Calvin Fuller, were originally searching for a solution to battery problems 

within the Bell telephone system when they discovered the solar electric cell. The scientists helped 

create the first solar cell capable of generating enough power from the sun to run everyday electrical 

equipment. 
42

State of Oregon Energy Plan 2011-2013

Wind

While wind energy in Oregon continues to be the leading electricity-producing renewable resource, it 

lags far behind conventional hydroelectricity production. By 2009, the U.S. Department of Energy’s 

Energy Information Administration reported that wind energy production in Oregon constituted 4.4 

percent of Oregon’s total net generation and over 75 percent of the total “non-hydroelectric” sources 

of renewable energy. Due to the variable nature of wind, the turbines generate, on average, about a 

third of the maximum output or capacity. 

Most of Oregon’s wind development takes place primarily in the central and eastern Columbia River 

area and in northeastern Oregon. Wind farm proposals of 105 megawatts (MW) and above go 

through Oregon’s Energy Facility Siting Council (EFSC) process. Developers of less than 105 MW may

also choose to go through EFSC, considered a one-stop process with appeals of decisions going 

directly to the Oregon Supreme Court. Of the more than 20 current operational wind farms in 

Oregon, about 75 percent have a capacity below the EFSC 105 MW threshold and were approved at 

the county land use process.

The first Oregon wind farm, Vansycle, began operating in 1998 at 25 MW. Current operational wind

projects are located mainly in Sherman, Gilliam, Morrow and Umatilla counties and offer a total 

capacity of nearly 2,100 MW. 

Oregon Wind in the News

Many articles have been written calling Oregon home to the world’s largest wind farm, Shepherds 

Flat. This is actually three separate facilities with three site certificates issued by the Oregon Energy 

Facility Siting Council. Shepherds Flat North was approved with a capacity of up to 318 megawatts 

(MW), South and Central were approved for up to 290 MW each.

Earlier in 2010, Shepherds Flat made national headlines when the Pentagon said that the proposed 

wind turbines might interfere with its radar site in Fossil. With no permit from the Federal Aviation 

Administration, there would have been no wind farms. The Department of Defense later dropped its 

opposition to the project.

Oregon added the most wind capacity (175 MW) of 

any state in the country during the third quarter of 

2010, according to a report issued by the American 

Wind Energy Association3. While Texas still leads 

in overall installed capacity, many developers there 

are waiting for additional transmission lines. 

Oregon is also home to the North American 

headquarters of wind turbine manufacturer Vestas 

and to wind farm operator Iberdrola Renewables.

Photo 6: Wind Energy in northeast Oregon (D.A. Black)

 

3

American Wind Energy Association, 3rd Quarter 2010 Market Report
43

State of Oregon Energy Plan 2011-2013

Introduction to the Issues Chapter

A number of issues are addressed in detail in this energy plan. However, not all the current energy 

discussion topics are captured, such as long-term energy planning and measuring the role of energy 

in economic development. 

Long-Term Energy Planning

Over the years, energy plans have been filled with forecasts, projections and assumptions. The 

business of forecasting in economics or energy is tricky. 

For instance, the Oregon Department of Energy’s First Biennial Energy Plan of 1985-1987 used 20-

year forecasting models for residential energy consumption. Those models accounted for 

refrigerators, freezers, televisions and lights but did not foresee computers, cell phones, iPads and 

other personal electronics. According to the International Energy Agency, sales of household 

electronic devices could triple by 2030.

The objectives of a long-term energy plan could be several:

 Reducing greenhouse gas emissions

 Green job creation through energy investments and incentives

 Greater build out of renewable energy and associated infrastructure to reduce the amount of 

coal in Oregon’s electric mix, stimulate rural community development and create energy 

independence

 Reach the goal in the Northwest Power and Conservation Council’s 6th Power Plan of meeting 

85 percent of the region’s 20-year load growth with conservation

 Developing alternative options to meet transportation needs

 Enhancing Oregon’s reputation for advancing technology through research and development

Energy as Economic Development

For about 35 years, the Oregon Department of Energy has been capturing, quantifying and reporting 

measurements of the use of energy, the cost of energy, the sources of energy, the amount that can 

be conserved, the amount of demand, and ways to save and generate more energy. Over the years, 

energy efficiency and renewable energy have been seen as ways to save energy and reduce the 

environmental impacts of energy use. 

With the economic downturn, more people have begun to look on energy as a way to generate jobs. 

Widespread energy efficiency installations could create employment among those who install 

insulation, windows, heating systems and lighting. Renewable energy develops jobs during the 

construction phases of wind farms, the installation of solar panels and the operation of biomass 

facilities. The Oregon Department of Energy will conduct a financial analysis of the Business Energy 

Tax Credit program as directed by HB 2180 (2009). 
44

State of Oregon Energy Plan 2011-2013

Emerging Issues

Ongoing federal level work is important for Oregon to track. The State is home to the only federally 

owned and operated lab, the National Energy Technology Lab (NETL) in Albany. Formerly part of the 

U.S. Bureau of Mines, the Albany Research center is known as NETL-Albany. Work there includes 

projects such as carbon dioxide sequestration by mineral carbonation, and micro-reactors for 

reforming and/or continuous reforming and separation of hydrogen for fuel cells. In December 2010, 

USDOE/NETL published the Carbon Dioxide Capture and Storage RD&D Roadmap.

The USDOE also issued its Critical Materials Strategy in December 2010. Rare earth metals and other 

materials are used in building wind turbines, solar cells, electric vehicles and energy-efficient lighting. 

China is home to more than 95 percent of the production or rare earth metals. The report looks at 

the important role these materials play in the clean energy development and examines the supply

risks over the short and long term.

Photo 7: Community Smallwood Solutions, Wallowa, (D.A. Black)

“The time has come again for bold ingenuity and leadership. We live in a world of 

dwindling energy supplies and rising costs. 

We are vulnerable. But we are not helpless.”

Governor Vic Atiyeh, New Energy Directions for Oregon, 1979
45

State of Oregon Energy Plan 2011-2013

Energy Issues Facing Oregon

Electricity Transmission and Distribution

The U.S. consists of three electricity transmission grids, the 

Western Grid, Eastern Grid and Texas. The Western Grid is under 

considerable transmission stress because of congestion in the 

regional electric transmission system. Congestion can lead to 

electricity curtailments for business and industry.

New transmission facilities and routes for transmitting energy are 

being planned to meet the growing load demand from residents 

and business, and to accommodate the dispersed locations of 

alternative energy sources. However, the public is concerned 

about the potential impacts of new transmission lines across 

Oregon. Utilities, transmission facility developers, tribes, local 

communities, and state and federal agencies that manage public 

lands and natural resources are all facing growing challenges 

associated with siting new transmission facilities. 

Transmission Line Proposals

Discussions regarding development of two major electric 

transmission lines began in 2009 when Idaho Power filed the 

Boardman to Hemingway (B2H) Notice of Intent with the Energy 

Facility Siting Council. Portland General Electric later filed their 

Notice of Intent to construct the Cascade Crossing Transmission 

Line.

These two projects are now active in the federal and State of 

Oregon decision processes and will be for several years. No major 

transmission lines have been sited or constructed in Oregon for 

several decades and there is considerable state and stakeholder 

concern about these projects and their impacts. These lines are 

proposed to allow local utilities to meet federal reliability 

requirements, provide transmission service as required by the 

Federal Energy Regulatory Commission (FERC) and have been 

indentified in Integrated Resource Plans acknowledged by the 

Oregon and Idaho Public Utility Commissions. 

Smart Grid 

The U.S. electric grid is made up of electricity generation, distribution and transmission. More than 

9,200 electric generating units are connected to about 300,000 miles of transmission lines.

Unlike water or gas, 

electricity cannot be 

stored. It must be 

generated as it is needed, 

and supply must be kept in 

balance with demand.

Furthermore, electricity 

follows the “path of least 

resistance,” so it generally 

cannot be routed in a 

specific direction.

This means generation and 

transmission operations in 

North America must be 

monitored and controlled 

in real time, 24 hours a day, 

to ensure a consistent and 

ample flow of electricity. 

NERC is responsible for 

aspects of an international 

electricity system that 

serves 334 million people, 

and has some 211,000 

miles of high-voltage 

transmission line.

From the North American Electric 

Reliability Corporation (NERC) 

website 
46

State of Oregon Energy Plan 2011-2013

According the U.S. Department of Energy (USDOE), 

investor-owned utilities own almost 80 percent of 

electricity transmission in the nation. Publicly owned 

utilities and cooperatives, along with the federal power 

agencies, such as the Bonneville Power Administration, 

make up the remainder. There are more than 140 

million electricity customers in the U.S.

In 2007, Congress identified a need to modernize the 

more than 100-year-old grid and began an effort called 

Smart Grid as part of the Energy Independence and 

Security Act. The USDOE’s Office of Electricity Delivery 

and Energy leads the Smart Grid Task Force and is 

developing policies, communication protocols and a 

framework for the grid to interact across the different 

levels of electricity generation, transmission, distribution 

and consumer use. 

A smart grid, as defined by USDOE’s National Energy 

Technology Laboratory would:

 Be self-healing from power disturbance events

 Have active participation by consumers in 

demand response 

 Operate resiliently against physical and cyber 

attack 

 Provide power quality for 21st century needs 

 Accommodate all generation and storage options 

 Enable new products, services, and markets 

Smart Grid efforts in Oregon

In Oregon, a number of utilities (investor-owned and 

consumer-owned), along with the BPA are testing smart 

grid control technologies through grants offered by the 

American Reinvestment and Recovery Act (ARRA). The 

pilot projects are underway and plan to be completed by 

2013.

Major transmission lines connect Oregon’s 

electricity grid to California and 

Washington State, allowing for large 

interstate energy transfers. One of these 

transmission systems is the Western 

Interconnection, which runs from British 

Columbia and Alberta in Canada through 

Washington, Oregon, and southern 

California to the northern part of Baja 

California, Mexico. 

The system, also known as the Pacific 

Intertie, is the largest single electricity 

transmission program in the United States 

and covers all or part of 14 states. 

Although the Pacific Intertie was originally 

designed to transmit electricity south 

during California’s peak summer demand 

season, flow is sometimes reversed 

overnight and has occasionally been 

reversed during periods of reduced 

hydroelectric generation in the Northwest. 

Nearly one-half of Oregon households use 

electricity as their main source of energy 

for home heating.

U.S. Department of Energy’s Energy 

Information Administration
47

State of Oregon Energy Plan 2011-2013

Developing Energy Resources

Energy Facility Siting Council (EFSC)

The Oregon Department of Energy (ODOE) serves as staff to the Governor-appointed and Senateconfirmed Energy Facility Siting Council (EFSC). An unprecedented number of applications and 

amendments to site certificates are being reviewed, continuing a trend that began in 2007. 

ODOE is processing more than 2,200 megawatts of proposed wind power projects, biomass-fired 

generation facilities, and gas-fired generation plants. As renewable energy project locations have 

moved beyond the dry land wheat fields of eastern Oregon, public concern has developed over land 

use, noise, scenic, wildlife and possible health issues.

The Energy Facility Siting Council will continue to balance energy demands with water supply 

conflicts, local air quality concerns and cumulative impacts from multiple projects. The increase in 

renewable energy generation projects in the Columbia Basin has raised numerous concerns about the 

possible impacts on human health, avian and bat species, and the visual landscape. 

As the Renewable Portfolio Standard generation goals are met with intermittent resources such as 

wind, it is anticipated that more natural gas-fired power plants will be proposed to provide base load 

electricity. These natural gas projects use large amounts of water; water consumption and resource 

impact concerns could be raised. 

Working with the Federal Government

ODOE’s siting staff also participates in an expanding list of Federal Energy Regulatory Commission 

(FERC) and other federal agency decision processes. Liquefied natural gas (LNG) terminal projects 

remain active, as do natural gas transmission projects. The Ruby natural gas pipeline project has 

been permitted and is in construction, the Bonneville Power Administration has proposed upgrades 

to their electric system, and the BLM and U.S. Forest Service continue to process rights-of-way 

requests for projects that cross federal lands.

The Oregon Department of Energy is also working with a wider variety of federal partners on a 

number of issues, including the U.S. Fish and Wildlife Service, BLM, U.S. Forest Service and the 

Natural Resource Conservation Service.

New Federal Partnership

A state and federal agency collaborative effort, brought together by Governor Kulongoski, is working 

on regional policy opportunities and challenges associated with sage grouse conservation, sagebrush 

habitat protection, and renewable energy development.

The partners in the Renewable Energy and Sagebrush Conservation Partnership will seek 

collaborative approaches to habitat issues. The group is also looking for ways to agree on criteria for 
48

State of Oregon Energy Plan 2011-2013

identifying areas in eastern Oregon that have potential for new energy development, as well as those 

areas with potential challenges to development. 

Other Planning Efforts

The Oregon Energy Planning Council (OEPC), formed following an Executive Order from Governor 

Kulongoski, is looking at the Energy Facility Siting Council statutes (ORS 469.300 to 469.520) to 

determine whether the statutes are adequate and sufficient to accomplish the growing demand for 

new transmission facilities, or whether amendments are needed. The OEPC issued their report to the 

Governor in December 2010.

ODOE is a member of the Western Interconnection Planning Work Group that is studying the need for 

transmission lines in the West. Besides FERC, NERC (North American Reliability Corporation) and the 

WECC (Western Electricity Coordinating Council), numerous other entities are involved in 

transmission planning. These include TEPPC (Transmission Expansion Planning Policy Committee), 

NARUC (National Association of Regulatory Utility Commissioners), WIEB (Western Interstate Energy 

Board), and CREPC (Committee on Regional Electric Power Cooperation).

Figure 15 shows how the electric grid is made of three distinct sections. Figure 16 shows the map of the North 

American Reliability Corporation. NERC has authority from the Federal Regulatory Commission to enforce electric 

reliability standards. Oregon is part of the WECC or the Western Electricity Coordinating Council.

Federal Actions

Federal Stimulus Programs, the American Recovery and Reinvestment Act (ARRA) Awards

Congress enacted, and the President signed, federal stimulus legislation in February 2009 to help 

jump-start the economy by creating and retaining jobs. The Oregon Department of Energy (ODOE) 

received four ARRA awards to pass-through during the 2009-11 biennium totaling approximately $56 

million. Besides the funds ODOE received, federal stimulus has provided funds to private businesses 

and other governments for renewable energy development and energy conservation. What follows 

are the grants ODOE applied for and received:
49

State of Oregon Energy Plan 2011-2013

 $42.1 million through the State Energy Plan (SEP), to improve energy efficiency in private and 

public buildings, including K-12 schools, colleges, universities, and state and local government 

buildings; transportation; and industry. 

 $9.5 million in Energy Efficiency and Conservation Block Grant Formula. Federal criteria 

required that at least 60 percent of the funds that the state received be distributed to the 

smaller cities and counties ineligible for a direct allocation under this program. About 40 

percent was directed at two major projects: a biomass boiler project, energy efficiency 

upgrades and a feedstock study at a rural school in Vernonia, and, a solar project in Christmas 

Valley at a military complex.

 $3.6 million through the State Energy Efficient Appliance Rebate Program (SEEARP), which

provides eligible low-income Oregon homeowners with a 70 percent instant rebate (up to 

$2,000) for energy-efficient ENERGY STAR heating systems, water heaters, refrigerators, 

dishwashers and clothes washers. ODOE partnered with the Oregon Department of Housing 

and Community Services to replace and recycle approximately 1,800 nonfunctioning or lowefficiency furnaces and heat pumps and other appliances across the state for eligible lowincome households. 

 $547,749 in Energy Assurance Grants to leverage the combined capabilities of the ODOE, 

Public Utility Commission and the Oregon Department of Geology and Mineral Industries to 

identify opportunities to improve energy resilience through the design and integration of 

distributed renewable energy investments into the existing energy network. 

These one-time awards were distributed to 300 sub-recipients in each of Oregon’s 36 counties. 

Together the awards are expected to:

 Save or produce 1,102,178 MM Btu of energy annually

 Reduce greenhouse gas emissions by 48,691 tons annually

 Retrofit more than 30 million square feet of building space

 Create or retain 555 jobs 

 Leverage $29 million in other funds

 Save more than three million gallons of water annually

The EPA and the Tailoring Rule

In 2010, the U.S. Environmental Protection Agency (EPA) released its final Greenhouse Gas (GHG) 

Tailoring Rule. When the rule was published, it became a source of interest in Oregon and the 

subject of numerous discussions, newspaper articles and editorials. The topic also raised concern 

with elected officials, industry and state agencies. 
50

State of Oregon Energy Plan 2011-2013

In January 2011, the EPA decided to defer GHG requirements for from biomass-fired carbon dioxide 

emissions for three years. The EPA will use the time to conduct further analysis of the emissions 

associated with burning biomass.

Tailoring Rule Background

The tailoring rule stems from the April 2, 2007 Supreme Court decision, Massachusetts v. EPA. In this 

case, the Supreme Court found that the EPA was required to determine, under the Clean Air Act, 

whether greenhouse gases (GHG) from motor vehicles contribute to air pollution and may endanger 

public health, or if the science is too uncertain to make a reasoned decision. 

After this decision, the EPA issued two findings. One stated that GHG are reasonably anticipated to 

endanger the public health. The second finding stated that new motor vehicles contribute to the GHG 

air pollution that threatens public health and welfare. 

On May 13, 2010, the EPA released the final Prevention of Significant Deterioration and Title V 

Greenhouse Gas Tailoring Rule, otherwise known as the GHG Tailoring Rule, under the Clean Air Act 

(CAA). This rule follows another final rulemaking, Light-Duty Vehicle Greenhouse Gas Emissions 

Standards and Corporate Average Fuel Economy Standards, which applies to light-duty vehicles 

(passenger cars, light-duty trucks, and medium duty passenger vehicles) from model years 2012 

through 2016. The rule regulates the emissions of GHG and requires those vehicles to meet an 

average emissions level of 250 grams of CO2 per mile.

Greenhouse gas regulation in the transportation sector also affected the stationary source emitters.

The EPA said stationary sources that emit GHG could be subject to the requirements of the 

Prevention of Significant Deterioration (PSD) and Title V permit programs. This meant that millions of 

new sources could have been subject to permitting requirements. The EPA issued the tailoring rule 

to “tailor” the applicability criteria that determine which sources and modifications are subject to 

GHG permitting requirements and phase in this requirement over time.

State of Oregon Regulations

The EPA has required each state to submit information that describes if the state has the authority to 

regulate GHG under its existing PSD and Title V permit programs or if they will need to conduct any 

regulatory or legislative process and what the timeline for this process would be. If a state chooses 

not to follow EPA’s approach, the state must provide information on its authority for the alternative 

approach and how the state will administer the program.

On July 29, 2010, the Oregon Department of Environmental Quality (DEQ) responded to EPA’s 

request for information saying that that the Oregon Environmental Quality Commission (EQC) cannot 

automatically adopt EPA’s approach by reference. Because the EQC rules do not automatically 

incorporate future EPA rules, DEQ will have to look at including GHG as a regulated pollutant. 
51

State of Oregon Energy Plan 2011-2013

Meeting the Challenge of Climate Change 

Oregon has been at the forefront of combating climate change for over 20 years. As an early leader 

in climate change policy and planning efforts, with comprehensive greenhouse gas reduction plans 

released in 1990 and 1995, Oregon helped to define a state’s role in addressing climate change. 

Oregon set a benchmark for itself in 1992 to hold emissions to 1990 levels. 

Oregon became the first state in the nation to regulate emissions of greenhouse gases with the 

passage of the Oregon Carbon Dioxide Emissions Standard in 1997 for newly-sited energy facilities. 

This standard helped to establish the marketplace for carbon as companies were required to help 

fund greenhouse gas reduction or removal projects called “offsets” to meet the standard. 

Some of the nation’s first carbon market companies and organizations emerged locally as a result and 

another law passed in 2001 helped facilitate a growing market for forestry offsets in the state. In 

2003 Oregon joined with Washington and California to form the West Coast Governor’s Global 

Warming Initiative, beginning a trend toward approaching climate change policy at a regional level. 

Greenhouse Gas Emissions (GHG) in Oregon 

The Oregon Department of Energy has been providing an inventory of greenhouse gas emissions in 

Oregon for more than 20 years and continues to conduct a greenhouse gas inventory for the state. 

These results show that carbon dioxide (CO2) dominates Oregon’s anthropogenic (human-caused) 

greenhouse gas emissions, typically responsible for about 85 percent of these emissions. Methane, 

nitrous oxide, and an array of fluorinated industrial gases comprise the remaining portion (in order of 

abundance, normalized to CO2). Greenhouse gas emissions in Oregon rose steadily in the 1990s to 

about 25 percent above 1990 levels but have leveled off in recent years. 

Figure 17: Illustrates the historical composition of Oregon’s greenhouse gas emissions. 
52

State of Oregon Energy Plan 2011-2013

Most of Oregon’s greenhouse gas emissions are energy-related, mirroring the CO2 proportion of 

emissions at roughly 85 percent. In terms of economic sectors of activity, the transportation of goods 

and people accounts for the largest share of emissions at about 37 to 38 percent in recent years. 

Residential and commercial activity (homes, offices, stores, municipal solid waste, etc.) is a close 

second, at around 34 percent, while the industrial sector has been stable in recent years at around 20 

percent of emissions. Agricultural activities have hovered around 8 to 9 percent recently, 

representing the smallest share of emissions in Oregon. 

Figure 18: Transportation accounts for the largest sector of GHG emissions. 

As can be seen in Figure 18, over time, the transportation sector has remained the largest sector, but 

the fastest growing sector has been residential and commercial activities. In contrast, emissions 

from the industrial sector have decreased considerably, a reflection of both the changing portfolio of 

Oregon’s economy and efficiency increases. The agricultural sector has remained relatively constant 

over time relative to the other sectors.

Oregon recently began requiring significant emitters of greenhouse gases to report their emissions to 

the Department of Environmental Quality, mirroring similar requirements now in place by the U.S. 

Environmental Protection Agency. This new source of emissions data will enhance ongoing efforts to 

track Oregon’s greenhouse gas emissions. It will also provide new challenges as state agencies will 

need to reconcile differing data and analysis frameworks.

Oregon’s Greenhouse Gas Reduction Goals

In 2004, Governor Kulongoski convened the Governor’s Advisory Group on Global Warming to make 

recommendations on reducing greenhouse gas emissions in Oregon. The final report from this 

process, the Oregon Strategy for Greenhouse Gas Reductions, has served as the cornerstone for 

greenhouse gas policy since its release. One of the key recommendations from that report, which 
53

State of Oregon Energy Plan 2011-2013

the governor endorsed, was a set of greenhouse gas reduction goals for Oregon. Those goals are to 

arrest the growth of Oregon’s greenhouse gas emissions and begin to reduce greenhouse gas 

emissions by 2010, to achieve greenhouse gas levels that are 10 percent below 1990 levels by 2020, 

and by 2050, to achieve greenhouse gas levels that are at least 75 percent below 1990 levels. These 

targets were later put into statute by the 2007 legislature.

Oregon Global Warming Commission

At the same time that the legislature put Oregon’s greenhouse gas reduction goals into law, they 

formed the Oregon Global Warming Commission (GWC) to monitor progress toward these goals, 

recommend ways to coordinate state and local efforts to reduce Oregon’s greenhouse gas emissions, 

and to develop ways to help governments, businesses and residents prepare for the effects of climate 

change. The Global Warming Commission has been meeting since early 2008 and is staffed by the 

Oregon Department of Energy. 

In its report to the legislature in 2009, the GWC reported that Oregon was on track to meet the 2010 

goal of stabilizing emissions growth. However, based on existing emission trajectories and proposed 

policies, Oregon will likely fall short of meeting the 2020 goal and, by extrapolation, will not be in a 

position to meet the 2050 goal without additional policy action. 

The GWC is currently in the process of developing a “Roadmap to 2020” plan to identify policies, 

practices, and programs that can help the state meet its 2020 and 2050 emission reduction goals. An 

interim roadmap report was adopted by the Global Warming Commission at the end of October 2010 

and a public comment process on those recommendations will take place in 2011.

State Efforts to Prepare for and Adapt to Climate Change

An increasingly important component of Oregon’s climate change policy is to prepare for the impacts 

of climate change, many of which the state is already beginning to face. In 2006, the Climate Change 

Integration Group (CCIG) was established as a follow up to the 2004 Advisory Group on Global 

Warming. Their final report, delivered to Governor Kulongoski in 2008, laid the foundation to begin 

developing a preparation and adaption strategy to climate change. 

In 2010, a collaboration of state agencies convened by the governor began putting together a 

detailed preparation and adaptation strategy, with a preliminary report issued at the end of 2010. 

This report will be supplemented by the first comprehensive report on the impacts of climate change 

by the Oregon Climate Change Research Institute. The Institute is a research section of the Oregon 

University System, put in place by the same legislation that formed the Oregon Global Warming 

Commission.

The energy sector and the Oregon Department of Energy face some unique challenges in dealing with 

the growing impacts of climate change in Oregon. The increasing average annual temperature in the 

state is shifting the demand for electricity from winter heating to summer cooling, particularly in

rapidly growing areas like the Rogue Valley and central Oregon. This trend is expected to continue 

and intensify. The change in snow melt patterns and precipitation is also starting to affect the 

region’s hydropower resources. With potentially less water and with different flow conditions, the 
54

State of Oregon Energy Plan 2011-2013

already strained hydropower resources of Oregon could face even more challenges. This has impacts 

for energy resource planning and creates the potential for relying on additional fossil-fuel resources 

to make up for lost hydropower.

Western Climate Initiative

The governors of Oregon, Washington, California, Arizona, and New Mexico formed the Western 

Regional Climate Action Initiative (later shortened to the Western Climate Initiative, or WCI) in 

February of 2007. The WCI followed in the footsteps of the West Coast Governor’s Global Warming 

Initiative by combining with a similar Arizona and New Mexico climate change partnership. In the 

short term, the WCI Partners agreed to set a regional greenhouse gas reduction goal, participate in a 

greenhouse gas registry and develop a design for a “market-based multi-sector mechanism,” such as 

cap-and-trade. In the long term, they agreed to work jointly on promoting clean and renewable 

energy, energy efficiency, regional and national climate policies favorable to the West, and climate 

change adaptation measures. There are now seven U.S. states and four Canadian provincial WCI 

Partners (see Figure 19). 

The WCI Partner jurisdictions released the Design for the WCI Regional Program in July 2010 which 

outlined a comprehensive strategy, including an emissions cap and other core policies (e.g., 

renewable energy, transportation, energy 

efficiency) to reduce greenhouse gases and spur a 

clean-energy economy. Five WCI Partner 

jurisdictions of California, New Mexico, Quebec, 

Ontario, and British Columbia currently have the 

legislative or regulatory authority to implement capand-trade in their jurisdictions and are in the 

process of putting in place administrative rules for 

the program. 

These jurisdictions comprise over two-thirds of the 

total emissions in WCI Partner jurisdictions. 

Therefore, a significant and robust carbon market 

could emerge in 2012. Oregon remains engaged in 

WCI, positioning itself to take advantage of this 

emerging carbon market and to influence climate 

change policy at the federal and regional level.

Figure 19: Western Climate Initiative Partners map

WCI Partners and Observers
55

State of Oregon Energy Plan 2011-2013

Climate Change and Transportation, House Bill 2186 and Senate Bill 1059

Transportation accounts for an increasing percentage of greenhouse gas emissions in Oregon, now 

about 38 percent of all greenhouse gas emissions, up from 34 percent reported in the 2004 A 

Framework for Addressing Rapid Climate Change. 

When energy content is taken into account, transportation is 30 percent of Oregon’s energy demand. 

To help mitigate these emissions, bills were passed in the 2009 and 2010 legislative sessions, aimed 

at reducing dependence on petroleum-based technologies in the transportation sector. 

Figure 20: About 30 percent of Oregon’s energy demand is for transportation energy

House Bill 2186, passed in 2009, authorizes the Environmental Quality Commission to adopt a low 

carbon fuel standard for vehicle fuels and other measures to reduce greenhouse gas emissions from 

vehicles. The Commission is also directed to conduct studies and make recommendations to help 

achieve the State’s statutory greenhouse gas reduction goals; namely, to reduce greenhouse gasses 

10 percent below 1990 levels by the year 2020 and 75 percent below 1990 levels by the year 2050.

Senate Bill 1059 directs the Oregon Transportation Commission to adopt a statewide transportation 

strategy to meet the state’s greenhouse gas emission reduction goals. Senate Bill 1059 also directs 

the Department of Transportation and the Department of Land Conservation and Development to 

establish guidelines for developing and evaluating alternative land use and transportation scenarios 

that may reduce greenhouse gas emissions. 

The Oregon Department of Energy and Department of Environmental Quality also have roles in the 

legislation. ODOE is working with the other agencies to estimate Vehicle Miles Traveled (VMT), the 

rate at which new vehicles will replace existing vehicles, and the carbon intensity of transportation 

fuels. The information will be used in a model to evaluate GHG emissions in the light-duty 

transportation sector through 2050.
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State of Oregon Energy Plan 2011-2013

Nuclear and Coal Power Plants 

Nuclear Power Plants

For a number of reasons (increased prices for oil and natural gas, a streamlined licensing process, and 

greenhouse gas emissions), interest in nuclear energy has been growing nationally, with several 

utilities exploring licensing and building new nuclear power plants.

Oregon voters approved an initiative in November 1980 that establishes in law limits on the licensing 

of a new nuclear power plant. The plant may be licensed only with voter approval and only if a 

permanent repository exists for disposal of high-level waste produced by the plant. Below is the text 

of the Oregon Revised Statutes established by voters:

469.595 Condition to site certificate for nuclear-fueled thermal power plant. Before issuing 

a site certificate for a nuclear-fueled thermal power plant, the Energy Facility Siting Council 

must find that an adequate repository for the disposal of the high-level radioactive waste 

produced by the plant has been licensed to operate by the appropriate agency of the federal 

government. The repository must provide for the terminal disposition of such waste, with or 

without provision for retrieval for reprocessing.

469.597 Election procedure; elector approval required. (1) Notwithstanding the provisions of 

ORS 469.370, if the Energy Facility Siting Council finds that the requirements of ORS 469.595 

have been satisfied and proposes to issue a site certificate for a nuclear-fueled thermal power 

plant, the proposal shall be submitted to the electors of this state for their approval or 

rejection at the next available statewide general election. The procedures for submitting a 

proposal to the electors under this section shall conform, as nearly as possible to those for 

state measures, including but not limited to procedures for printing related material in the 

voters' pamphlet. (2) A site certificate for a nuclear-fueled thermal power plant shall not be 

issued until the electors of this state have approved the issuance of the certificate at an 

election held pursuant to subsection (1) of this section.

Coal Power Plants

Coal power plants release sulfur dioxide, nitrogen oxides and mercury, and release carbon dioxide. In 

2009, the legislature passed a law (Senate Bill 101) that effectively prohibits utilities and energy 

service providers in Oregon from entering into new long term contracts for coal power and investing 

in new coal plants. This Emission Performance Standard (EPS) is largely identical to similar laws in 

Washington and California. 

As a result of this law it is unlikely that Oregon electricity customers will be asked to invest in or help 

support new coal facilities. In combination with Oregon’s long-standing CO2 emissions standard for 

energy facilities sited in Oregon, this law now means that Oregon is regulating CO2 emissions for 

power both generated within and imported into the state.
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State of Oregon Energy Plan 2011-2013

Carbon Dioxide Mitigation

To reduce the impact of coal burning, developers are seeking ways to sequester the carbon released 

from coal plants. Geologic sequestration involves the capture and storage of carbon dioxide to 

prevent its release into the atmosphere. The main method being considered to sequester the carbon 

dioxide is geologic storage via deep injection into saline aquifers and other structural traps.

In Oregon, since 1997, new power plants must meet Oregon’s strict carbon dioxide emission 

standards or pay a penalty in the form of emissions offsets. For a 500 megawatt coal plant, the 

penalty could be on the order of $100 million based on a 30-year operating life.

Maintaining Hanford Cleanup Progress

More than 40 years of plutonium production for America’s nuclear weapons program extensively 

contaminated the Hanford Site in southeastern Washington State. Following the end of plutonium 

production in 1989, Oregon joined with Washington State, federal and local governments, Native 

American Tribes, and citizen groups to advocate for and compel Hanford cleanup. Hanford Site 

workers are now engaged in the world’s largest environmental cleanup project. The cleanup 

encompasses more than 1,900 waste sites, ranging from small areas of surface contamination to 

million-gallon underground storage tanks containing about 53 million gallons of highly radioactive 

and chemically hazardous waste.

Columbia River

Hanford cleanup is necessary to prevent further contamination of the Columbia River, to comply with 

environmental laws and restore the damaged environment, and to eliminate or reduce risks to 

people who live in, work in, or visit the area. While significant cleanup progress has been made, 

success is still far from assured. A number of challenging technical issues remain to be solved and 

public and regulatory agreement on and acceptance of some cleanup strategies is still needed. 

Successful cleanup will require a sustained, candid dialogue and substantial agreement and 

cooperation among stakeholders, regulators and governments. It will also require significant federal 

funding for the remaining four decades or more needed to complete the work. 

Oregon’s involvement with the Hanford cleanup focuses on work needed to protect the Columbia 

River. During Hanford’s operating years, an estimated 444 billion gallons of contaminated liquids 

were disposed of, resulting in extensive contamination of the groundwater. Treatment systems are 

currently in place and are also being greatly expanded to contain and clean-up the contaminants. 

The U.S. Department of Energy, which owns and operates Hanford, is required to stop hexavalent 

chromium, a toxic chemical, from entering the Columbia River by December 2012, and stop all other 

contaminants from entering the river by December 2016. Oregon has strongly encouraged the U.S. 

Department of Energy to beat those deadlines, if possible.

Construction continues on a $12 billion dollar Waste Treatment Plant to immobilize Hanford’s most 

toxic wastes, which are currently stored in 177 underground tanks. These treatment facilities are not 
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State of Oregon Energy Plan 2011-2013

scheduled to go fully on line until 2019. Some portions of the Waste Treatment Plant may be 

operational by 2016, which might allow for treatment of some waste earlier than scheduled. Oregon 

strongly supports efforts to accelerate treatment of Hanford’s tank wastes. As long as the wastes 

remain in these aging tanks, it poses a threat to the groundwater and eventually to the Columbia 

River. 

Waste Shipments

As part of the Hanford cleanup, a specific type of radioactive waste (called transuranic) has been 

trucked to a disposal site in New Mexico. Hanford has been shipping transuranic waste to this 

disposal facility since 2000. Some waste is first shipped to a federal facility in Idaho for treatment. 

Through October 31, 2010, Hanford has sent 530 truckloads of this waste to New Mexico and Idaho. 

The waste travels along Interstates 82 and 84 in northeast Oregon. The U. S. Department of Energy 

plans to dramatically increase these shipments from Hanford in the coming year. Oregon will 

continue to ensure these shipments are conducted safely, and do not travel when the road or 

weather conditions are unsafe. 

Emergency Preparedness

The Oregon Department of Energy (ODOE) is responsible for preparing and responding to nuclear 

emergencies, handling petroleum disruptions or shortages, improving the resiliency of critical energy 

infrastructure, and preparing for emergencies related to the operation of a liquefied natural gas 

import facility. 

Nuclear Emergency Preparedness

About 26,000 Oregonians live in the communities of Boardman, Irrigon, Hermiston and Umatilla, 

which are located within the 50-mile nuclear emergency planning zone for both Hanford and the 

Columbia Generating Station nuclear power plant in Washington. A fire, explosion, or other accident 

involving Hanford’s contaminated facilities or underground waste storage tanks could cause an 

airborne release of radioactive materials. Similarly, an accident at the Columbia Generating Station 

could also cause an airborne radioactive material release. 

Oregon’s primary concern with a radioactive material release from Hanford or the Columbia 

Generating Station reaching Oregon is protecting people from consuming contaminated water or 

food products and restricting movement of these products into the marketplace. ODOE works with 

Morrow and Umatilla counties and several other state agencies to regularly test the nuclear 

emergency preparedness program. One issue of concern is the reduction of federal funding to both 

counties upon completion of the incineration of the last of the nerve agents at the Umatilla Depot. 

These funding cuts are expected to greatly reduce both counties’ overall emergency preparedness 

programs. 

Petroleum

The Oregon Department of Energy is responsible for protecting public health and safety in the event 

of a fuel crisis in Oregon. ODOE developed and maintains a statewide contingency plan in response 
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State of Oregon Energy Plan 2011-2013

to severe or long-term petroleum shortages or disruptions that impact the state. Oregon’s Petroleum 

Contingency Plan includes fuel allocation procedures to ensure adequate fuel is provided to the 

state’s emergency and essential services providers in case of a fuel shortage or crisis. The purpose of 

the plan is to provide an effective response, well coordinated with industry, governments and local 

organizations. The plan is also designed to ensure a rapid recovery of the fuel supply and distribution 

system while minimizing impacts to Oregonians. ODOE will implement the plan, as appropriate, if it 

anticipates a potential or actual fuel emergency situation in the state.

Energy Assurance

To protect public health and safety, the environment, and the region’s economy, ODOE is and has 

been working to improve the resiliency of critical energy infrastructure. This will ensure Oregon is 

prepared to respond to and recover from catastrophic events. This includes assessing seismic 

vulnerabilities of the petroleum, natural gas, and electricity infrastructures; evaluating the 

interdependencies of the energy sectors; and considering the use of renewable resources and smart 

grid technologies to supplement emergency response efforts. This work, being done in coordination 

with the Oregon Public Utility Commission, will help ensure a rapid recovery of energy systems in the 

event of an energy emergency. 

LNG

As part of its emergency preparedness obligations, the Oregon Department of Energy (ODOE) is 

responsible for protecting the health and safety of Oregonians in the event of a liquefied natural gas 

(LNG) emergency along the transport channel as well as at any potential facility. There are two 

proposed LNG import terminals in Oregon currently in the federal siting process, one near Astoria and 

the other near Coos Bay. Each is at a different stage in the process.

ODOE works with LNG developers, the U.S. Coast Guard (USCG), and local emergency response 

organizations to develop a comprehensive emergency response plan to be completed prior to 

construction. ODOE, in conjunction with the USCG, assesses waterway suitability for the 

transportation of LNG shipments. The Department also reviews facility security plans to ensure 

federal and state requirements are met; and evaluates the LNG Vessel Transit Management Plan so 

that foreign vessels follow federal and state protocols when entering LNG transit corridors in Oregon.

Natural Gas

Oregon’s gas utilities maintain emergency procedures. The utilities have systems in place to address 

interruptions. The PUC regularly visits utilities to address emergency requirements related to 

excavation-caused line breaks, leaks, storage problems, and other disruptions. 

Abandoned Uranium Mines

During the 1950s, two uranium mines were developed in Lake County in southern Oregon. The White 

King and Lucky Lass mines were abandoned in the 1960s. In the mid-1980s, the U.S. Department of 

Energy and State of Oregon completed a cooperative cleanup of the uranium mill site near Lakeview. 

The mines themselves, however, were never cleaned up.
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State of Oregon Energy Plan 2011-2013

Then-Governor Kitzhaber petitioned the U.S. Environmental Protection Agency (EPA) to list the mines 

on the National Priorities List for federal Superfund cleanup. The EPA issued a record of decision 

adding the mines to the list in September 2001. Besides the EPA, others involved include ODOE, the 

U.S. Forest Service, and the Oregon Department of Environmental Quality. 

The EPA, DEQ and ODOE negotiated a consent decree in which Kerr-McGee Corp. agreed to perform 

the cleanup work. Final site design included consolidating and stabilizing about one million tons of 

mine overburden (rock waste) and neutralizing the acidic water in the White King mine pit. The 

actual cleanup work occurred during the 2005 and 2006 construction seasons.

Following the winter of 2006-2007 corrective action was taken to repair excess erosion on the White 

King site, and “liming” of the White King pond was completed. Additional actions taken to restore 

the meadows and develop wetlands are progressing well.
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State of Oregon Energy Plan 2011-2013

OREGON’S ENERGY FUTURE

The 1975 Oregon legislature set as state goals the 

promotion of “the efficient use of energy resources” and 

the development of “permanently sustainable energy 

resources.” 

What follows is a look at some of the numbers tied to 

energy savings and renewable energy development. These 

are cumulative numbers, starting from the time these 

Oregon Department of Energy programs began in the late 

1970s. 

The numbers are a snapshot in time of energy savings and 

generation; a look at what we’ve invested. This 

“photograph” can illustrate where Oregon has been with 

its programs and where it may need to go. Oregon’s longstanding energy programs have led to national recognition 

over the years.

The 2010 U.S. Clean Energy Leadership Index issued by 

Clean Edge listed Oregon as the number two national 

leader (behind California) in clean-energy states. The 

Index evaluated states based on incentives, regulations 

and mandates; financial and human capital; and cleanenergy technology. 

In its 2010 ranking, the American Council for an Energy-Efficient Economy (ACEEE) placed Oregon 

third in the nation behind California and Massachusetts. The scoring is based on state government 

incentives, appliance efficiency standards, transportation, building codes, public benefits fund and 

combined heat and power.

2011 is the first implementation year for the Renewable Portfolio Standard (RPS). The 25 percent 

renewable energy by 2025 RPS faces its first check in when the three largest utilities in Oregon show 

that they have achieved the five percent 2011 goal. That increases to 15 percent in 2015, 20 percent 

in 2020 and 25 percent in 2025.

To promote renewable resources, 

the 1977 Legislature created a tax 

credit program for home solar, 

wind or geothermal systems. 

Hydro was added in 1979.

The BETC program began in 1980 

to encourage businesses to use 

renewables, waste heat and 

recycling. Conservation was added 

in 1983.

Oregon Department of Energy’s Third 

Biennial Energy Plan, 1989
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State of Oregon Energy Plan 2011-2013

ENERGY SAVINGS AND INVESTMENTS

Conservation is a cornerstone of Oregon’s energy policy because it is the most environmentally 

clean resource and, over the long run, it is the cheapest. The Oregon Department of Energy 

(ODOE) provides information, analyzes new technologies, and offers a variety of programs to 

encourage Oregonians to use energy more efficiently and to use renewable energy sources. 

This section describes ODOE’s conservation and renewable resource programs, including 

energy loans, and gives estimated savings and electricity generation in 2009. 

Below are the cumulative energy savings, generation, production and displacement from all 

projects completed from the start of ODOE programs in 1978 through the end of 2009.

Electricity 12.3 billion kilowatt-hours

Natural gas 275.8 million therms

Oil 13.4 million gallons

Wood and other fuels 5.7 trillion Btu

Gasoline & Diesel 20.8 trillion Btu

Biofuels 7.3 billion Btu

Altogether, the yearly energy savings and electricity generated are 105.3 trillion Btu or enough 

to meet the energy needs of about 1.5 million Oregon homes. 

BUSINESS ENERGY TAX CREDIT 

ODOE offers tax credits to businesses encouraging them to invest in energy conservation, 

renewable resources, renewable energy manufacturing, recycling, alternative fuels, 

transportation efficiency and sustainable buildings. 

The owner of a project may transfer or pass-through the tax credit to an Oregon business in 

exchange for cash payment. The project owner may be a public or non-profit institution.

The Business Energy Tax Credit (BETC) is 35 percent of the eligible cost of the project. The tax 

credit may be taken in one year for projects under $20,000. For larger projects, businesses take 

10 percent of the credit in the first and second years and five percent each year thereafter. 

The 2007 legislature increased the BETC to 50 percent for renewable energy projects, which is 

taking 10 percent per year over five years. The 2010 Legislative Special Session placed a $300 

million cap on the amount of tax credits that could be issued for renewable energy resource 

projects. Besides a cap, HB 3680 in 2010 also set up a tiered system for evaluating renewable 

energy proposals, and provided a list of selection criteria.
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State of Oregon Energy Plan 2011-2013

Number of BETCs: 19,148—since the program began

Recipients 

Commercial firms 16,067

Manufacturers 2,030

Farms and ranches 1,051

Types of investment 

Conservation 16,879

Recycling 1,082

Renewable resources 1,187

BETC Energy savings in 2009 

Electricity 3.5 billion kWh 

Natural gas 141.5 million therms 

Oil 7.9 million gallons 

Wood/other 1.9 trillion Btu

Gas/Diesel 20.4 trillion Btu

Energy produced in 2009 

Electricity 4.2 billion kWh

Biofuels energy 5.1 trillion Btu

Thermal energy 2.8 trillion Btu

Value of savings/generation in 2009 $1,067 million

Example of a school’s use of the BETC Pass-through Option:

The Klamath County School District upgraded an existing geothermal heating system at Henley 

High School. The project cost more than $96,000 and will save about $23,000 annually in 

natural gas costs. Since schools do not have tax liabilities, using the BETC pass-through option, 

Henley High School chose to pass-through the earned credit and received $24,528 in return. 

The lump sum payment helped the school pay off the cost of installing the upgrades.

RESIDENTIAL ENERGY TAX CREDIT 

As new energy-saving technologies have come on the market, the legislature has expanded the 

Residential Energy Tax Credit (RETC) to encourage their adoption. 

Highly efficient appliances, including heating ducts and certain water heating systems, were 

added in 1997. The program expanded in 2000 to include fuel cells and in late 2001 to include 

high-efficiency furnaces, boilers, heat pumps, ventilation systems and air conditioning systems. 
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State of Oregon Energy Plan 2011-2013

In 2005, the legislature increased the solar electric tax credit to $6,000, which is $1,500 taken 

over four years. In 2007, wind systems and fuel cells also went to $6,000 taken over four years; 

and very highly efficient wood and pellet stoves were added. 

On December 31, 2009 the tax credit for new gasoline-electric hybrid vehicles, such as the 

Toyota Prius, Honda Civic and Ford Escape, came to an end. However, the next generation of 

plug-in hybrid vehicles will be eligible for the tax credit. New vehicles that run on electricity or 

natural gas will continue to qualify for the alternative fuel vehicle tax credit. The change came 

as part of House Bill 2078, passed during the 2009 legislative session.

Number of RETCs: 411,926—since the program began

Renewable resource systems 

Solar water heating 19,366

Heat Pump/Water Heaters 300 

Geothermal 2,492

Solar space heating 1,716

Solar electric 1,692

Wind 53 

Hydro 20 

Appliances 

Clothes washers 206,863

Refrigerators 32,072

Dishwashers 80,046

Water heaters 5,793

Furnaces, Boilers, Air handlers 33,769

Wood and Pellet Stoves 2,512

Energy-efficient ducts 6,255

Heat pumps/air conditioning 5,964

Ventilation systems 218

Drain-water heat exchangers 24

Alt. fuel/hybrid vehicles 12,771

RETC Energy savings in 2009 

Electricity 163.7 million kWh 

Natural gas 5.4 million therms

Oil 15,698 gallons

Gas/Diesel 2.2 million gallons

Value of savings/generation in 2009 $26.1 million
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State of Oregon Energy Plan 2011-2013

STATE HOME OIL WEATHERIZATION PROGRAM

For households that heat primarily with oil, propane or wood, the Oregon Department of 

Energy’s State Home Oil Weatherization (SHOW) Program offers homeowners an Energy Audit 

Checklist and rebates for weatherization and heating measures. Oil companies doing business 

in Oregon fund the program. 

About 100,000 Oregon homes are heated with oil or propane. Most of them were built before 

energy standards were part of the building code and are often in need of weatherization and 

heating measures. Since 2004, homeowners have been able to conduct their own audits.

Energy audits: 44,093—since the program began in 1978

Loans 4,426

Loan amount $11.6 million

Rebates 15,004

Rebate amount $7.8 million

Energy savings in 2009 2.0 million gallons of oil

Value of savings in 2009 $4.2 million

ENERGY-EFFICIENT MANUFACTURED HOMES

Unlike homes and apartments built on site, manufactured homes are not subject to Oregon’s 

building code. Instead, federal law governs energy efficiency and other aspects of 

manufactured homes. ODOE worked with the manufactured home industry in the Northwest 

to build energy-efficient homes, but the effort ended in late 2009. 

Energy-efficient homes manufactured and sited since 1995: 31,589

TRANSPORTATION PROGRAM

ODOE works with business and public entities to increase use of public transit, carpools, 

vanpools, car sharing and bicycles. The Oregon Department of Energy encourages shuttle 

services and initiatives to change travel behavior, thereby saving fuel and reducing greenhouse 

gas emissions. 

Project Type Vehicle Miles Reduced (VMR)

Bicycles 7,962,850

Car Sharing 10,971,669

Commuter Pool Vehicles 56,032,915

Efficiency Truck Technology 166,705

Financial Incentive Programs 74,207,713

Telework and Travel Behavior Change 39,557,098
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State of Oregon Energy Plan 2011-2013

Transportation

 Management Associations 101,486,756

Transit Passes 525,602,333

Transit Providers 123,057,851

Transit Shuttles 3,042,316

Transportation RD&D 89,976,369

Transportation Services K-12 students 6,447,833

Other Transportation 2,000,000

RESIDENTIAL BUILDING CODES

The cheapest and most effective way to ensure a home is energy-efficient is to build it that way. 

In 1974, Oregon became the first state to include energy standards in a statewide building 

code. The standards required minimum insulation levels in ceilings, walls and floors. Before that 

time, most Oregon homes were built with little, if any, insulation. 

The energy standards have been raised several times since then. A home built today requires 

about half the energy to heat as a home built before the energy standards.

ODOE’s role is to submit recommendations to the Building Codes Division for cost-effective 

changes to the standards and provide technical help. 

Number of homes built to energy standards since 2003:

Single-family 369,638 

Multi-family 182,320

Energy savings in 2009

Electricity 1,170 million kWh 

Natural gas 87.9 million therms

Value of savings in 2009 $219.5 million

COMMERCIAL BUILDING CODES 

According to the Energy Information Administration, 40 percent of total U.S. energy 

consumption in 2008 was used in buildings. 

Building envelope along with heating, ventilation and air conditioning (HVAC) standards 

became part of the state building code for commercial buildings in 1978. The standards address 

lighting, the heat loss and gain of the building shell, and the efficiency of heating, ventilation 

and cooling systems. The standards have been raised over the years. 
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State of Oregon Energy Plan 2011-2013

Energy savings in 2009

Electricity 2.3 billion kWh 

Natural gas 19.0 million therms 

Value of savings in 2009 $198.8 million

LARGE ELECTRIC CONSUMER PUBLIC PURPOSE PROGRAM 

Under Senate Bill 1149, Portland General Electric and Pacific Power must collect a public 

purpose charge from both residential and business consumers within their service areas. The 

public purpose charge, three percent of the total electric costs on customers’ bills, went into 

effect on March 1, 2002.

Large electric consumers (over one average megawatt or 8,650,000 kilowatt-hours a year) may 

be eligible to self-direct portions of their public purpose charges. The Oregon Department of 

Energy reviews and certifies applications by large electric consumers for conservation projects 

and renewable energy resources. ODOE administers the program through an interactive 

website. 

Projects completed since 2002: 123

Energy savings in 2009

Electricity 176.1 million kWh

Value of savings in 2009 $9.4 million

ENERGY-EFFICIENT NEW STATE BUILDINGS 

An Oregon law enacted in 1990 requires that new state buildings and major renovations be as 

energy-efficient as possible, within cost-effectiveness guidelines. In response to the electricity 

crisis of 2001, legislation established a standard that is 20 percent better than the energy 

building code.

ODOE recommends energy savings measures to consider in the design and reviews the plans to 

ensure targets are achieved. Typical measures adopted include energy efficiency improvements 

for windows, lighting, controls, and heating, ventilation and air conditioning equipment. By the 

end of 2009, more than 100 state buildings had been built or renovated with energy efficiency 

measures that go beyond code requirements.

Energy-efficient new or renovated state buildings since 2001: 137

Energy savings in 2009

Electricity 46.1 million kWh 

Natural gas 1.0 million therms

Other 42.6 billion Btu 

Value of savings in 2009 $5.4 million 
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State of Oregon Energy Plan 2011-2013

ALTERNATIVE FUELS 

Vehicles that run on alternative fuels such as natural gas, biodiesel, electricity, propane, 

methanol, ethanol and hydrogen are less polluting than vehicles that burn gasoline or diesel. In 

1991, the Legislature made alternative fuel vehicles and fueling stations eligible for the Business

Energy Tax Credit. As of December 31, 2009 hybrid-electric vehicles were no longer eligible for 

the tax credit, but electric vehicles (EVs) are still eligible.

In 1997, the Legislature expanded the Residential Energy Tax Credit (RETC) to include 

alternative-fuel vehicles and fueling systems. Hybrid vehicles have rapidly increased in market 

share since being introduced in the late 1990s, and thus are no longer eligible for the RETC.

Oregon’s first commercial biofuel production facility became operational in 2005 with a small 

used cooking oil-to-biodiesel plant in Salem. Several private and public fleets use blends of 

biodiesel. The State fleet uses an E-85 blend of ethanol. 

Business energy tax credits 

Vans/trucks (propane or natural gas) 353

Buses (propane or natural gas) 298

Forklifts (natural gas) 58

Cars (natural gas or electric) 892

Fueling stations (natural gas) 38

Residential energy tax credits

New gas-electric cars 12,633

New electric vehicles 68

New natural gas vehicles 6

New propane vehicles 1

Electric conversions 22

Natural gas conversions 5

Propane conversions 14

Biodiesel conversions 3

Charging systems 19

SCHOOLS

Oregon’s electric industry restructuring law (SB 1149) sets aside funds for improving the energy 

efficiency of schools in the service areas of Portland General Electric and Pacific Power; 

education service districts administer the funds. More than 800 schools will benefit. Funds must 

first go to energy audits, then to measures recommended by those audits. The Oregon 

Department of Energy (ODOE) provides technical oversight for the energy audits and projects to 

ensure consistency statewide with the program guidelines.
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State of Oregon Energy Plan 2011-2013

For schools statewide, ODOE provides technical assistance and training for school staff and 

contractors on building highly efficient, productive and environmentally sound buildings. ODOE 

provides lists of qualified energy auditors and commissioning agents to facilitate contracting for 

energy efficiency improvements in schools. 

Buildings completed since 1997: 2,178

Total incentives: $10.6 million

Energy savings in 2009

Electricity 100.3 million kWh 

Natural gas 6.6 million therms

Oil 350,434 gallons

Other 23.2 billion Btu

Value of savings in 2009 $16.4 million

High Performance Schools

The High Performance Schools effort is being phased out for other efforts. ODOE had offered

technical assistance for the design of energy and resource efficient new school facilities. A High 

Performance School facility features energy and water efficiency measures, an enhanced 

learning environment through natural daylighting, good indoor air quality and improved 

occupant comfort. Twenty-six schools took advantage of this program.

Williams Oil Settlement

The Oregon Department of Energy (ODOE) received $1 million in Williams Settlement Funds for 

funding energy efficiency measures in Oregon K-12 public schools served by consumer-owned 

utilities. The settlement came out of an investigation by the attorneys general of Oregon, 

Washington and California. They examined allegations of price manipulation and antitrust 

violations in the Western power market during the energy crisis of 2000-01.

ODOE provided energy audits for schools and technical assistance for completing energy 

efficiency projects in 38 schools. This schools effort has ended. 

ENERGY LOANS

Approved by the voters in 1980, the State Energy Loan Program (SELP) has made more than 800 

loans, totaling nearly $500 million. These projects save or produce energy worth about $45 

million annually. SELP is a revolving loan program, designed to promote energy conservation 

and renewable energy development.

The program offers fixed-rate, long-term loans for projects that:
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State of Oregon Energy Plan 2011-2013

 Save energy

 Produce energy from renewable resources such as water, wind, geothermal, solar, 

biomass, waste materials or waste heat

 Use recycled materials to create products

 Use alternative fuels

The Loan Program serves individuals, businesses, tribes, schools, cities, counties, special 

districts, state and federal agencies, public corporations, cooperatives, and non-profits. The 

loans are funded by the sale of state general obligation bonds. Borrowers pay the costs of 

administering the program. 

SELP issues three types of bonds:

 Federally Taxable, for projects that save energy for businesses and homeowners.

 Governmental Purpose, for projects in publicly-owned and operated facilities.

 Private Activity, for private projects that use renewable resources to produce 

energy.

Loans

 SELP loans are required to be fully secured with good and sufficient collateral per ORS 

470.150. 

 Loan terms vary and are set to match the term of the bonds that funded the loans. 

 Loan interest rates are set to reflect project/borrower risk, pay the costs of issuing 

bonds, funding reserves for loan losses, and operating the loan program.

Current Program Procedures

 Detailed financial analysis of the project and the borrower. 

 Credit review information, borrower’s financial status, projections of future worth and 

stability.

 SELP energy analyst reviews feasibility, and determines if the project will meet the 

savings or income stream. 

 Staff recommends loan approval based on the soundness of the energy project and the 

borrower's ability to repay. 

 SELP's loan advisory committee must review applications of more than $100,000.

 SELP services all its loans and performs ongoing monitoring of borrowers’ financial 

strength. 

Conservation Loans

Of the 590 conservation loans made by the program through 2010, 289 have been to 

businesses, 89 to school districts, 84 to local governments and 37 to state government. Others 

receiving loans include homeowners, Oregon colleges and universities, and tribal 

governments. 

 
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State of Oregon Energy Plan 2011-2013

Renewable Resource Loans 

Through 2010, SELP made about 250 loans for renewable resource projects, including 78 for 

geothermal, 83 for solar, 42 for hydro, 26 for biomass, nine for waste heat and eight for wind.

Energy Savings and Generation through 2010:

Electricity 615.97 million kWh

Natural Gas 13.75 million therms

Oil/Diesel 3.76 million gallons

Electric Generation 502.67 million kWh

Fuel 11.98 billion Btu

Wood/Other 860.93 MMBtu

Besides loans for proven technologies, the program showcases innovation. Among the projects 

funded recently by the Energy Loan Program are:

 A $340,000 loan funded a windows retrofit project to a circa 1900s Portland industrial 

building.

 Six orchard owners took advantage of the loan program to install wind machines to 

protect more than 100 acres from frost with loans totaling more than $300,000.

 With a loan for $4.5 million, a data center in Beaverton installed energy efficiency HVAC 

units as part of their expansion project.

 Loans for deferred maintenance to Oregon University System campuses totaling more 

than $46 million since 2009.

Energy Efficiency and Sustainable Technology (EEAST) Act

HB 2626 (2009) created the Energy Efficiency and Sustainable Technology Act of 2009 (EEAST) 

as part of Oregon Revised Statute 470. EEAST provides authority to finance residential and 

commercial energy efficiency and renewable energy projects in Oregon by allowing consumers 

to repay energy loans as a line item charge on their monthly utility bill or as a part of a county 

property tax bill for loans issued by Local Improvement Districts. 

FUTURE ENERGY RESOURCES

Over the past year, with the continuing development of renewable resources, Energy Facility 

Siting Council (EFSC) members and their staff have heard concerns regarding the cumulative 

impacts of renewable energy projects. These include the need for a statewide comprehensive 

energy plan, loss of scenic views, decreased property values, reduced species populations, 

fragmentation of productive habitat, effects to human health, and the industrialization of forest 

and agriculture lands.
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State of Oregon Energy Plan 2011-2013

With the renewal of the federal production tax credit and the planned expansion of the bulk 

transmission network, the development of additional renewable energy projects seems to be 

on the horizon. Oregon’s energy landscape has been changing quickly, from a few wind turbines 

in 2000 to thousands of megawatts installed in the Columbia Basin by the close of 2010. The 

concerns mentioned above stand in contrast to the creation of construction jobs and new 

careers. Add in policy mandates to improve reliability and reduce dependence on fossil fuel 

sources and you have the beginnings of a decision-making dilemma. Among the issues, EFSC 

has heard recently:

 The rural way-of-life versus urban energy use

 Environmental trade-offs; has it become save habitat and species or save the climate?

 The value of small, distributed energy sources versus large, central power plants

 Balancing the policy of developing least cost resources with climate policy

The Energy Facility Siting Council (EFSC) Process 

EFSC makes siting decisions for large energy facilities. ODOE reviews an application for site 

certificate, coordinates the review of other state agencies and governments, and issues a 

proposed decision for public comment and EFSC consideration.

EFSC has the authority to exempt proposed developments if certain criteria are met. Highefficiency cogeneration power plants, grain-based ethanol plants and temporary power plants 

are among those EFSC has exempted from siting standards. 

The Council uses all relevant state and local criteria in making its siting decisions. In addition to 

their own standards, they apply applicable Oregon Department of Environmental Quality (DEQ), 

Department of State Lands, Oregon Department of Fish and Wildlife, Oregon Water Resources 

and local land use requirements. Only DEQ’s federally 

delegated water and air quality permits are excluded 

from EFSC review.

EFSC affords the public a single review and set of 

hearings in which to participate. Developers have one 

process for all state and local government requirements. 

A siting decision can only be appealed to the Oregon 

Supreme Court. 

New Generating Capacity in Oregon 

Since 1990, EFSC has approved applications for both 

renewable energy and fossil fuel-powered power plants. 

Those built include: Coyote Springs Power Plant, 

Hermiston Generating Plant, Hermiston Power Plant, 

Stateline Wind Plant, Klamath Generation, Klamath 

Cogeneration Plant, Port Westward, Biglow Canyon and 

Klondike III wind farm.

Photo 8: Wind farm in eastern Oregon (D.A. Black)
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State of Oregon Energy Plan 2011-2013

Wind farms approved and given site certificates include the Golden Hills, Helix, Leaning Juniper 

II, Montague and Shepherds Flat North, South and Central. 

Proposals under Review

EFSC is actively reviewing site certificates applications for renewable energy and fossil fuel 

plants. Applications for renewable energy projects have dominated the Council’s agenda for 

most of 2010, with hundreds of megawatts approved. 

At present, ODOE is reviewing applications for an additional:

 1,050 megawatts (MW) of wind generation known as Baseline and Rock Creek; Gilliam 

County

 500+ MW of Saddle Butte; Gilliam and Morrow counties

 200 MW expansion of the Helix Project; Umatilla County

 300 MW of wind called Antelope Ridge; Union County

 200 MW of wind, Summit Ridge; Wasco County

EFSC has begun review of the Klamath Bioenergy Facility, a 35 MW biomass-fired project 

proposed in Klamath County, and the Carty Generating Station a 900 MW natural gas-fired 

electricity generating facility in Morrow County. 

Also under review are two large bulk electricity transmission lines, the Boardman to 

Hemingway line (B2H) proposed by Idaho Power, and the Cascade Crossing Line proposed by 

Portland General Electric. 

Besides renewable energy development, the changing transportation landscape also effects 

electricity.

Electric Vehicles

Oregon and the nation will see changes within the transportation sector due in part to concerns 

about oil shortages, increasing petroleum prices, and climate change, along with the rise of 

more fuel-efficient vehicles. Almost every major automotive manufacturer is planning to launch 

plug-in electric vehicles (EV) in the near future, propelling a fundamental shift to more efficient 

electric drive systems.

Electricity is diverse and domestic and can be produced from several regional sources such as 

hydro, coal, natural gas, wind, nuclear and solar. Over 60 percent of the fossil fuels used in the 

transportation sector are imported from foreign countries and sold in a volatile global market. 

Electricity is produced locally and regionally and prices are generally more stable than oil or 

gasoline prices due to regulatory policy. Transportation electrification will require additional 

investment in grid reliability, but the power sector’s infrastructural backbone is available 

virtually everywhere in the U.S. 
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State of Oregon Energy Plan 2011-2013

Electric vehicles are more efficient than an 

internal combustion engine (ICE) vehicle. An EV 

can transform up to 90 percent of the energy 

content to mechanical energy. In contrast, 

today’s most efficient ICE vehicles have 

efficiency ratings of only 25 to 27 percent. 

With gasoline prices of $3.00 per gallon, the 

operating cost of an efficient gasoline engine 

car (30 mpg) is 10 cents per mile. For current 

pure electric vehicles, assuming an average 

electricity price of 10 cents per kilowatt-hour 

(kWh), operating costs are only 2.5 cents per 

mile.

Electric miles are cleaner than gasoline miles 

on a well-to wheels analysis. A well-to-wheels 

analysis studies the energy use and carbon 

emissions attributable to a vehicle from the 

time an energy source is extracted until it is 

consumed. 

Figure 21: Outlines the boundary of Oregon’s initial electric vehicle initiative

One of the biggest limitations for drivers thinking about making the transition to EVs is the 

absence of a reliable network of charging facilities to increase the range of these vehicles and 

to alleviate the fear of “running out of juice.” There are only about 400 all-electric vehicles 

registered in Oregon, but within a decade, plug-in cars could account for as much as 20 percent 

of new vehicles sold. Oregon is currently beginning to install the infrastructure to support 

these vehicles.

The U.S. Department of Energy announced in 2009 that Oregon was selected as one of seven 

test markets for the largest deployment of electric vehicles (EVs) and the associated charging 

infrastructure in history. ECOtality (formerly eTec of Phoenix), will receive $130 million in 

federal stimulus funds to study electric vehicle usage in six states and Washington, D.C. The 

project goal is to install EV charging stations and analyze their use and the behavior of EV 

drivers to guide widespread adoption throughout the country.

 

ECOtality is partnering with Nissan North America to deploy approximately 1,000 Nissan electric 

cars (called the “Leaf”) in Oregon and as many as 2,500 charging stations to be installed at 

homes and businesses that participate in the program. The grant will focus on the Portland, 

Eugene, Salem and Corvallis areas with a small number of chargers in Medford.

Deployment of EV charging infrastructure installations are expected to begin in winter of 2011. 
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State of Oregon Energy Plan 2011-2013

The Oregon Department of Transportation (ODOT) will receive $700,000 in federal State Energy 

Program (SEP) stimulus funds administered by the Oregon Department of Energy to install up to 

eight EV fast charging stations in southern Oregon from Eugene to Ashland. The initiative is 

meant to complement existing EV charging installations underway and to electrify an important 

leg of the “Green Highway” to the California border. These DC fast charges are capable of 

charging a Nissan Leaf to an 80 percent charge in 26 minutes. 

In October 2010, Governor Kulongoski and Senators Wyden and Merkley also announced that 

ODOT will also receive an additional $2 million from the TIGER II program of the U.S. 

Department of Transportation for up to 24 EV fast charging stations.

Photo 9: An electric vehicle charging station.

The Energy Past as Future

It is, and has been, Oregon’s goal to promote energy efficiency and renewable energy. The 

Oregon Department of Energy has long supported these goals for a number of reasons:

1) Energy independence through conservation and local energy sources

2) Development of rural economies

3) Building in system reliability through distributed generation

4) Reducing greenhouse gas emissions
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State of Oregon Energy Plan 2011-2013

Years of Energy Planning

While our past energy plans have looked at use, 

consumption, forecasts and scenarios, a future Oregon 

energy strategy needs to move beyond the energy world to 

include land use planning, urban design, water resources, 

affordable housing, economic development, efficient product 

procurement, and transportation. 

Even with economic uncertainties, the Oregon Department of 

Energy remains committed to working with a larger group of 

stakeholders, to help Oregon achieve its energy goals. 

Oregon, with only one percent of the U.S. population, has 

made substantial commitments to conservation and 

renewable energy for more than 35 years.

When it comes to energy choices, one small state can make a 

difference, especially when we work together.

“We must pursue mutual 

objectives that are 

consistent with state 

energy policy through 

cooperative efforts with 

utilities, local 

governments and 

others.”

Oregon Department of 

Energy, First Biennial 

Energy Plan, 1985

And...

It is the “others” we 

need to bring more fully 

into the planning 

process to help develop 

an Oregon energy 

strategy. 

Oregon Department of 

Energy Biennial Energy 

Plan, 2011
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State of Oregon Energy Plan 2011-2013

Appendix A—Energy Glossary

ARRA—The American Recovery and Reinvestment Act, also called the federal stimulus 

program. The authorizing legislation was signed on Feb. 17, 2009 and sent millions of dollars to 

states for energy efficiency, renewable energy and alternative fuel projects.

ASTM standards—Formed in 1898, the American Society for Testing and Materials (ASTM), 

develops international voluntary consensus standards. About 12,000 ASTM standards are used 

around the world to enhance safety and product quality.

Average megawatt—An aMW is 8,760 megawatt hours. This is the continuous output of a 

resource with one megawatt of capacity over a full year. 

Avoided costs—The costs the utility would incur but for the existence of an independent 

generator or other energy service option. Avoided cost rates have been used as the power 

purchase price utilities offer independent suppliers.

Base Load—The minimum amount of electric power or natural gas delivered or required over a 

given period of time at a steady rate. A facility that produces energy at a constant rate.

Biofuels—Alcohols, ethers, esters, and other chemicals made from raw biological material such 

as herbaceous and woody plants, agricultural and forestry residues, and a large portion of 

municipal solid and industrial waste.

Biomass—Organic waste from agricultural, livestock, and lumber industry products, dead trees, 

foliage, etc., and is considered a renewable energy source. Biomass can be used as fuel and is 

most often burned to create steam that powers steam turbine generators. It is also used to 

make transportation fuels like ethanol and biodiesel.

Btu—British thermal unit; the amount of heat required to raise the temperature of 

one pound of water one degree Fahrenheit under stated conditions of pressure and 

temperature (equal to 252 calories, 778 foot-pounds, 1,005 joules and 0.293 watthours). It is 

the U.S. customary unit of measuring the quality of heat, such as the heat content of fuel.

Building Envelope—Outer walls, windows, doors, etc. of a building or the building shell.

Carbon Offset—A mechanism by which the impact of emitting a ton of CO2 can be negated or 

diminished by avoiding the release of a ton elsewhere, or absorbing a ton of CO2 from the air 

that otherwise would have remained in the atmosphere. 
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State of Oregon Energy Plan 2011-2013

Carbon Sequestration—The fixation of atmospheric carbon dioxide in a carbon sink through 

biological or physical processes, such as photosynthesis.

Carbon sink—A reservoir that absorbs or takes up released carbon from another part of the 

carbon cycle. Vegetation and soils are common carbon sinks.

Cellulosic ethanol—alternative fuel made from such things as grain straw and poplars, using 

plant fibers instead of the soft starch of corn.

CO—Carbon Monoxide

CO2—Carbon Dioxide

Cogeneration—(also Combined Heat and Power)

Production of electricity from steam, heat, or other forms of energy produced as a by-product 

of another process.

cf—cubic foot; the U.S. customary unit of measurement of gas volume. It is the amount of gas 

required to fill a volume of one cubic foot under stated conditions of temperature, pressure 

and water vapor. One cubic foot of natural gas equals 1,000 British thermal units under 

standard conditions of atmosphere (one) and temperature (60 degrees Fahrenheit).

Cooperative electric association or utility—utility owned and operated by its members.

Demand—The rate at which electric energy is delivered to or by a system or part of a system, 

generally expressed in kilowatts (kW), megawatts (MW), or gigawatts (GW), at a given instant 

or averaged over any designated interval of time. Demand should not be confused with Load or 

Energy.

Deregulation—The elimination or restructuring of regulation from a previously regulated 

industry or sector of an industry.

Distillate Fuel Oil—Light fuel oils distilled during the refining process and used primarily for 

space heating, on-and-off highway diesel engine fuel (including railroad engine fuel and fuel for 

agricultural machinery), and electric power generation. 

Distribution—The delivery of electricity to the retail customer’s home or business through low 

voltage distribution lines.

DOE—U.S. Department of Energy, also called USDOE.

Electric Energy—The generation or use of electric power by a device over a period of time, 

expressed in kilowatt-hours (kWh), megawatt-hours (MWh), or gigawatt-hours (GWh).
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State of Oregon Energy Plan 2011-2013

Electric System Losses—Total electric energy losses in the electric system. Losses are primarily 

due to electric resistance within transmission system lines and transformers.

End-Use Energy—Energy consumed by end-users in the end-use sectors. 

End-Use Sector—The residential, commercial, industrial, and transportation sectors of the 

economy. 

Energy Conservation—Using less energy, either by greater energy efficiency or by decreasing 

the types of applications requiring electricity or natural gas to operate.

Energy Efficiency—Using less energy (electricity and/or natural gas) to perform the same 

function at the same level of quality. Programs designed to use energy more efficiently — doing 

the same with less. 

EPA—U.S. Environmental Protection Agency.

Federal Energy Regulatory Commission (FERC)—The Federal Energy Regulatory Commission 

regulates the price, terms and conditions of power sold in interstate commerce and regulates 

the price, terms and conditions of all transmission services. FERC is the federal counterpart to 

state utility regulatory commissions.

Fossil Fuels—Sources of energy from the earth, primarily crude oil, natural gas, and coal.

Fuel Switching—The substitution of one type of fuel for another, either temporary or 

permanent. Permanent might include someone who replaces gasoline-powered fleet vehicles 

with electric cars.

Geothermal Energy—The energy from the internal heat of the Earth, which may be residual 

heat, friction heat, or a result of radioactive decay. The heat is found in rocks and fluids at 

various depths and can be extracted by drilling or pumping. 

GWh—gigawatt-hour; the unit of energy equal to that expended in one hour at a rate of one 

billion watts. One GWh equals 1,000 megawatt-hours.

Green Tags—are created when a renewable energy facility generates electricity. Each 

certificate or tag represents all of the environmental attributes or benefits of a specific quantity 

of renewable generation. Those include the benefits that everyone receives when conventional 

fuels, such as coal, oil, or gas, are displaced.

Greenhouse gases—Greenhouse gases are water vapor, carbon dioxide, tropospheric ozone, 

nitrous oxide, methane, and chlorofluorocarbons (CFCs).
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State of Oregon Energy Plan 2011-2013

Grid—A system of interconnected power lines and generators that is managed so that power 

from generators is dispatched as needed to meet the requirements of the customers connected 

to the grid at various points. 

Investor owned utility (IOU)—Common term for a privately owned (shareholder owned) gas or 

electric utility regulated by the Oregon Public

Utilities Commission.

Interconnected System—A system consisting of two or more individual electric systems that 

have connecting tie lines and whose operations are synchronized.

Integrated Resource Plan (IRP)—A utility’s complete look at future energy demands and how it 

plans to meet them.

KV—A kilovolt equals 1,000 volts.

Kilowatt (kW)—This is a measure of demand for power. The rate at which electricity is used 

during a defined period (usually metered over 15-minute intervals). Utility customers generally 

are billed on a monthly basis; therefore, the kW demand for a given month would be the 15-

minute period in which the most power is consumed. 

Kilowatt-hour (kWh)—This is a measure of consumption. It is the amount of electricity that is 

used over some period of time, typically a one-month period for billing purposes. Customers 

are charged a rate per kWh of electricity used.

Load—An end use device or customer that receives power from an energy delivery system. 

Load should not be confused with Demand, which is the measure of power that a load receives 

or requires. 

Load Shifting—A type of load management that shifts use from peak to off-peak periods.

Liquefied natural gas (LNG)—Natural gas (primarily methane) that has been liquefied by 

reducing its temperature to -260 degrees Fahrenheit at atmospheric pressure.

Microturbines—Small, combustion turbines used for small-scale power generation. 

MW—A megawatt equals 1,000 kilowatts or 1 million watts.

MWh—megawatt-hour; the unit of energy equal to that expended in one hour at a rate of one 

million watts. One MWh equals 3,414,000 Btus.

Nameplate Capacity—The maximum rated output of an electric power plant under specific 

conditions designated by the manufacturer. It is commonly expressed in megawatts (MW).
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State of Oregon Energy Plan 2011-2013

NERC—The North American Electric Reliability Corporation is a nonprofit corporation that 

develops and maintains mandatory reliability standards for the bulk electric system. Their goal 

is to maintain and improve the reliability of the system. 

NOx—Nitrogen Oxides

PV—Photovoltaic or solar electricity

Peak Load or Peak Demand—The electric load that corresponds to a maximum level of electric 

demand within a specified time period, usually a year.

Pulping liquor—A substance primarily made up of lignin, other wood constituents, and 

chemicals that are by-products of the manufacture of chemical pulp. It can be burned in a 

boiler to produce steam or electricity through thermal generation.

Reliability—Electric system reliability has two components—adequacy and security. Adequacy 

is the ability of the electric system to supply the aggregate electric demand and energy 

requirements of the customers at all times, taking into account scheduled and unscheduled 

outages of system facilities. Security is the ability of the electric system to withstand sudden 

disturbances such as electric short circuits or unanticipated loss of system facilities. Reliability 

also refers to the security and availability of natural gas and petroleum supply, transportation 

and delivery.

Renewable Resources—Renewable energy resources are naturally replenished, but flowlimited. They are virtually inexhaustible in duration but limited in the amount of energy that is 

available per unit of time. Some (such as geothermal and biomass) may be stock-limited in that 

stocks are depleted by use, but on a time scale of decades, or perhaps centuries, they can 

probably be replenished. Renewable energy resources include biomass, hydro, geothermal, 

solar and wind. In the future they could also include the use of ocean thermal, wave, and tidal 

action technologies. 

RTO—A regional transmission organization designed to operate the grid and its wholesale 

power market over a broad region and with independence from commercial interests. An RTO 

would also have a role in planning and investing in the grid, though how it would conduct these 

activities remains unresolved. An RTO would also coordinate with other RTOs.

Ship Bunker C—A very heavy, residual fuel oil left over after other fuels have been distilled 

from crude oil. Also called No. 6 Fuel, it is used in power plants, ships and large heating 

installations.

Site Certificate—A site certificate is a consolidated license for energy facilities. "Site certificate" 

means the binding contractual agreement between the State of Oregon and the applicant, 

authorizing the applicant to construct and operate a facility on an approved site, incorporating 

all standards imposed by the council on the applicant. A site certificate brings together all state 
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State of Oregon Energy Plan 2011-2013

and local government permit requirements into a single decision by the Energy Facility Siting 

Council, a seven member citizen Commission appointed by the Governor. A decision of the 

Council is appealable only to the Oregon Supreme Court. The Oregon Department of Energy 

serves as staff to the Council. 

Substation—A facility for switching electric elements, transforming voltage, regulating power, 

or metering.

Telework—A program allowing an employee, with training, permission and the technology, to 

work part-or full-time in a location other than their employer’s main office. The alternate 

location is often the teleworker’s home. It conserves fuel, relieves traffic congestion and 

improves air quality

Therm—One hundred thousand (100,000) British thermal units (1 therm = 100,000 British 

thermal units). This is approximately the energy in 100 cubic feet of natural gas.

Transmission—Transporting bulk power over long distances.

Utility—A regulated entity that exhibits the characteristics of a natural monopoly. For the 

purposes of the electric industry, “utility” generally refers to a regulated, vertically integrated 

monopoly electric company. “Transmission utility” refers to the regulated owner/operator of 

the transmission system

Watt—The unit of measure for electric power or rate of doing work. The rate of energy transfer 

equivalent to one ampere flowing under pressure of one volt.

WECC— The Western Electricity Coordinating Council is the Regional Entity responsible for 

coordinating and promoting bulk electric system reliability in the Western Interconnection. In 

addition, WECC assures open and non-discriminatory transmission access among members, 

provides a forum for resolving transmission access disputes, and provides an environment for 

coordinating the operating and planning activities.

Wholesale Power Market—The purchase and sale of electricity from generators to resellers 

(who sell to retail customers and/or other resellers) along with the ancillary services needed to 

maintain reliability and power quality at the transmission level.
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State of Oregon Energy Plan 2011-2013

Appendix B—Energy Legislation

Summary of Energy Legislation

Passed by the 2009 and 2010 Legislative Sessions

2009

House Bill 2180

The Oregon Department of Energy was directed, in consultation with the Public Utility 

Commission and the Business Development Department, to prepare a financial analysis of 

representative energy projects receiving the Business Energy Tax Credit (BETC). The purpose of 

the analysis is to determine the extent to which each facility depends on state tax incentives for 

investment and continued operation. The purpose of the analysis is to identify the economic 

benefits and costs to the State of the BETC program. 

House Bill 2186

House Bill 2186 authorizes the Environmental Quality Commission to adopt a low carbon fuel 

standard for vehicle fuels and to adopt other measures to reduce greenhouse gas emissions 

from vehicles. The Commission is also directed to conduct studies and make recommendations 

to help achieve the State’s statutory greenhouse gas reduction goals; namely, to reduce 

greenhouse gasses 10 percent below 1990 levels by the year 2020 and 75 percent below 1990 

levels by the year 2050.

House Bill 2626

The Oregon Department of Energy’s Small-Scale Energy Loan Program was expanded under this 

bill. The agency was directed to finance smaller loans to individuals and businesses for energy 

efficiency and sustainable technologies. The Energy Loan Program may underwrite and finance 

loans administered by other entities, such as the Energy Trust, consumer-owned utilities, local 

governments and other entities. The loans can be repaid through utility financing, such as onbill financing and other methods to simplify repayment. The bill creates the program initially as 

a series of pilot projects, with the goal of broader implementation if the program proves 

successful.

House Bill 2940

The Renewable Portfolio Standard (RPS) was changed under HB 2940. It allowed older biomass 

facilities to qualify as eligible facilities that utilities could use to meet their RPS obligations. The 

bill allows up to 100 megawatts total of pre-January 1, 1995 biomass to qualify for the RPS 

under certain conditions. (January 1, 1995 is the oldest date for most types of renewable 

energy facilities to be eligible for the RPS.) If owners of more than 100 megawatts of biomass 

seek to use this provision, they must share the 100 megawatts on a proportionate basis.
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State of Oregon Energy Plan 2011-2013

House Bill 2940 also allows up to 11 megawatts of energy facilities which burn municipal solid 

waste and which were operational prior to January 1, 1995 to qualify for the RPS. In addition, 

to encourage hydrogen from renewable energy, the Public Utility Commission may allow full 

recovery of costs by investor-owned utilities for energy infrastructure and equipment using, 

synthesizing or storing anhydrous ammonia.

House Bill 3039

This legislation established the first feed-in tariff in the United States for solar photo-voltaic 

systems. The bill directed the Public Utility Commission to establish pilot feed-in tariff for each 

investor-owned utility. Qualifying systems may be up to half a megawatt in size, with the total 

cumulative capacity in the pilot stage of 25 megawatts. The pilot phase runs until 25 

megawatts are installed, or March 31, 2015, whichever is earlier. In order to further encourage 

solar energy, the solar photovoltaic energy counts double for purposes of compliance with the 

Renewable Portfolio Standard.

House Bill 3039 also includes a provision to encourage greater use of fuel cells in Oregon. 

(Three companies currently produce fuel cells in Oregon.) House Bill 3039 requires a state 

agency to include use of fuel cells to the extent possible for emergency backup and other 

critical power applications in construction and major facility renovations. The agency shall 

consider the impact on emissions and life cycle costs in its comparison of fuel cells with other 

equipment.

House Bill 3463

The renewable fuel standard for biodiesel was amended by HB 3463. It changed the trigger for 

activating the renewable fuel standard from actual production of gallons of biodiesel to 

capacity for production of biodiesel in Oregon. This change is consistent with the method of 

calculating the activation of the standard for ethanol, which took effect in 2008. All gasoline in 

Oregon must now contain at least 10 percent ethanol, except for very limited exceptions.

Senate Bill 79

The legislation encouraged energy efficiency in commercial and residential buildings. Senate 

Bill 79 established a Task Force to develop recommendations for energy performance scoring 

systems for use in new and existing commercial and residential buildings. Senate Bill 79 also 

directed the Building Code Division to adopt an optional “Reach Code” to maximize energy 

achievable efficiency. 

Senate Bill 101

Senate Bill 101 limits greenhouse gasses from new power plants located in Oregon or serving 

Oregon load from out of state. The bill requires that emissions from new power plants not 

exceed the greenhouse gas emissions of a modern natural gas power plant. This effectively 

eliminates new coal plants until carbon sequestration is commercially viable. 
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State of Oregon Energy Plan 2011-2013

Summary of Energy Legislation 

Passed by the 2009 and 2010 Legislative Sessions

2010

House Bill 3613

This legislation continued a ban on drilling for oil, gas and sulfur in Oregon’s coastal waters until 

2020.

House Bill 3633

The Renewable Portfolio Standard (RPS) was amended for electric utilities to clarify that marine 

renewable energy resources are included in the goal that one-third of Oregon’s renewable 

resources come from small-scale renewable energy projects no larger than 20 megawatts. The 

bill also directed the Department of Land Conservation and Development to conduct a study on 

how best to develop ocean wave energy and other marine renewable resources. 

House Bill 3649

HB 3649 allows up to forty average megawatts per year of low-impact hydroelectric facilities to 

qualify for the Renewable Energy Standard for electric utilities. These hydroelectric facilities 

qualify whether or not they are owned by an electric utility. The Renewable Energy Standard 

requires that 25 percent of the electric load of Oregon’s largest utilities must come from 

qualifying renewable energy by the year 2025. Smaller utilities have lower targets. The 

standard means that virtually all of Oregon’s load growth must come from renewable energy.

House Bill 3674

Another RPS amendment was for electric utilities to allow certain biomass facilities not 

previously eligible and municipal solid waste generating facilities to qualify as eligible resources 

to meet the standard. Biomass facilities in operation before January 1, 1995 and up to eleven 

megawatts of electricity from direct combustion of municipal solid waste operating before 

January 1, 1995 qualify for the Renewable Energy Standard. 

However, renewable energy certificates based on the amount of power these facilities generate 

must be banked and cannot be used for compliance with the Renewable Portfolio Standard 

until 2026. Up to nine megawatts of electricity from direct combustion of new municipal solid 

waste facilities also qualifies for the Renewable Portfolio Standard.

House Bill 3675 

HB 3675 makes a number of technical changes to the Energy Efficiency & Sustainable Loan 

Program, which was established in House Bill 2626 in 2009. The technical changes deal with 

fees, determination of adequacy of funds, on-bill financing requirements of investor-owned 

utilities and other administrative matters. The program is operated by the Oregon Department 

of Energy.
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State of Oregon Energy Plan 2011-2013

House Bill 3680

Significant changes to the Business Energy Tax Credit (BETC) were made under this legislation. 

There is a $300 million cap for preliminary certifications of all projects using renewable energy 

in the biennium ending June 30, 2011, and a cap of $150 million for the following year ending 

June 30, 2012. 

There is a $200 million cap for preliminary certifications of renewable energy manufacturing 

facilities in the biennium ending June 30, 2011, and a cap of another $200 million for the 

biennium ending June 30, 2013. HB 3680 reduced the amount of tax credit for a wind project 

over 10 megawatts to the lesser of 2.5 percent of the total cost of the facility or a maximum 

credit of $3.5 million in 2010, $2.5 million in 2011 and $1.5 million in 2012. The bill also 

imposed a number of administrative requirements, such as a competitive tiered system for 

awarding renewable energy BETCs.

The bill extended the tax credit for renewable energy manufacturing facilities to January 1, 

2014. The bill also included batteries for renewable energy storage and all-electric vehicles in 

the definition of renewable manufacturing equipment. The tax credit sunsets for all other 

projects, such as energy efficiency, direct use of renewable energy and electricity from 

renewable energy, on July 1, 2012.

House Bill 3690 

The bill made adjustments to the solar feed-in-tariff enacted by the 2009 Legislature. It 

establishes different size categories for solar photovoltaic (PV) systems and allows the Public 

Utility Commission to adjust PV in utility programs for different size categories of PV systems. 

House Bill 3691 

HB 3691 provided that a utility may recover all prudently incurred costs associated with 

meeting the Renewable Portfolio Standard, including above-market costs for renewable energy. 

The bill also allowed for recovery of all prudently incurred above-market costs for solar PV, for 

implementing the PV feed-in tariff.

House Bill 3693 

The legislation allowed that the sale of biodiesel fuel containing additives to prevent congealing 

may occur between October 1 of any year and the following February 28 without violating the 

Renewable Fuel Standard for biodiesel fuel.

Senate Bill 1059 

The Oregon Transportation Commission was directed to adopt a statewide transportation 

strategy to meet the state’s greenhouse gas emission reduction goals. Senate Bill 1059 also 

directed the Department of Transportation and the Department of Land Conservation 

Development to establish guidelines for developing and evaluating alternative land use and 

transportation scenarios that may reduce greenhouse gas emissions. The Oregon Department 

of Energy and the Department of Environmental Quality will assist the other two agencies.
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State of Oregon Energy Plan 2011-2013

Appendix C—Energy Success Stories

New Coos Bay Fire Station Adds Solar, Gets a Tax Credit

In 1956, the City of Coos Bay added a “temporary” building on to its City Hall to house Fire 

Station #1. The “temporary” facility remained a fire station for the next 54 years. 

The building was too small and poorly designed for a modern fire station. The fire chief was also 

concerned that if there had been an earthquake, the equipment (and firefighters) would be 

trapped in a pile of rubble. 

Thanks to a $6.9 million bond approved by voters in the May 2008 Presidential primary 

election, the old fire station is now closed and scheduled for demolition. A beautiful new fire 

station with twice the square footage and built for earthquake stability began operation in 

June, 2010.

“It will be LEED certified,” said Mark Anderson, deputy fire chief. “We aimed for gold and may 

get platinum.” LEED is an acronym for Leadership in Energy and Environmental Design, an 

internationally recognized sustainable “green” building certification system. Platinum is the 

highest LEED rating.

The new station has many sustainable features including: 

 A Presbyterian Church was razed to make room for the station on Elrod Street. Concrete 

from the church was used as fill; the wood floor from the church sanctuary was used 

in the new station lobby; a pew from the church is being used as lobby seating. More 

than 85 percent of the church was recycled for the new building.

 60 percent of the subcontractors were local residents.

 An electric vehicle charging station is available.

 Rainwater is captured and stored underground to water landscaping and test fire 

pumps.

 Clover provides a green patch replacing higher maintenance grass.

 The concrete is stained light to reflect the sun.

 A metal roof reflects the sun.

 There is maximum amount of natural light entering the building and numerous skylights.

 Some of the building insulation material is made with recycled blue jeans.

 The training room is used by various community groups including knitting clubs, the Red

Cross and book groups.

 There are spaces for bike parking.

 The firefighters gear is located by the water heaters to help dry them after wear and to 

keep them away them from the fumes of the fire trucks.
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State of Oregon Energy Plan 2011-2013

 There are automatic turnoffs on cooking equipment if fire fighters need to respond to 

an alarm.

 The grounds are planted with low-water landscaping materials.

 There are two solar thermal water heaters that provide up to 90 percent of the station 

needs.

 There is a 23,600 kilowatt-hour solar electric system on the roof to produce part of the 

facility’s electrical needs.

The solar system cost an 

estimated $110,994. The City 

applied for a Business Energy 

Tax Credit through the Oregon 

Department of Energy. They 

should qualify for a tax credit 

of 50 percent of eligible costs 

($55,497) that the City will 

transfer to a private entity 

with tax liability in exchange 

for a 36.821 percent cash 

payment ($40,869). The 

Energy Trust of Oregon also 

contributed a $34,650 

incentive. Kyle Electric, Inc. of 

Coos Bay installed the solar 

system. 

Coos Bay Fire Station #1

Despite being twice the space as the old station, Anderson said that the City has been told that 

their utility bills in the new fire station should remain about the same. The installation of a solar 

electric system and energy efficient measures incorporated into the new facility are responsible 

for the more efficient use of energy in the new station. 

The energy tax credit and incentives make the measures affordable for the City which has 

waited 54 long years to move from their “temporary” fire station into a permanent and longterm facility.

###
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State of Oregon Energy Plan 2011-2013

RECOVERY FUNDS TO HELP HARNEY COUNTY

SALEM - The Oregon Department of Energy awarded $377,683 in American Recovery and 

Reinvestment Act funds to five energy projects in Harney County. The funds are part of the 

State Energy Program for energy efficiency and renewable energy projects.

The five projects are expected to save an estimated 2.5 million kilowatt-hours of electricity per 

year, enough to heat 214 average Oregon homes per year.

The Harney County School District received two awards. One was for a lighting retrofit of the 

Lincoln Building in Burns that houses alternative education students, charter school offices, 

park and recreation and administration offices. The other award was for replacing windows and 

doors and installing insulation at Burns High School. 

Crane Union High School will also get energy-efficient lighting thanks to a grant as will the 

Harney County Library.

The Oregon Department of Fish and Wildlife (ODFW) office in Hines will upgrade windows, 

insulation, lighting and heating system. The office is 40 years old and has very little work done 

to it over the years. The ODFW maintenance fund is contributing $10,000 to the project in 

addition to the $20,000 award.

Harney County projects include the following:

Entity Facility Name Award 

Amount Type of Award Type of Project

Harney County Harney County 

Library

 

$70,000

State Energy 

Program Lighting

Harney County School 

Dist. Lincoln Building 76,601 

State Energy 

Program Lighting

Harney County School 

Dist. Burns High School 190,457 

State Energy 

Program

Windows, doors, 

insulat.

Harney District 1 J Crane Union High 

School

 

20,625 

State Energy 

Program

Lighting

Oregon Dept. Fish 

Wildlife ODFW Hines Office 20,000 

State Energy 

Program

Pipe replacement, 

meters

TOTAL $ 377,683

A list of all Oregon counties that received American Recovery and Reinvestment Act funds and 

amounts awarded is available at 

http://www.oregon.gov/ENERGY/Recovery/docs/County_list.pdf
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State of Oregon Energy Plan 2011-2013

###
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State of Oregon Energy Plan 2011-2013

Appendix D—2010 Government to Government Report

Key Contacts:

Bob Repine Diana Enright

Acting Director Special Assistant to the Director

Phone: (503) 378-5489 Phone: (503) 378-8278

Fax: (503) 373-7806 Fax: (503) 373-7806

bob.repine@state.or.us diana.enright@state.or.us

The mission of the Oregon Department of Energy (ODOE) is to ensure Oregon has an adequate 

supply of reliable and affordable energy and is safe from nuclear contamination, by helping 

Oregonians save energy, develop clean energy resources, promote renewable energy, and clean 

up nuclear waste.

New Opportunities

2010 has seen an increasing interest in the development of Oregon’s biomass resources for 

energy production. The Oregon Department of Energy (ODOE) has been working with the 

Confederated Tribes of the Warm Springs on their biomass project. We are also exploring other 

opportunities with Warm Spring Forest Products Industries.

Renewable energy proposals, such as wind turbine installations, have been the topic of 

discussions with other tribes.

Ongoing Efforts

Siting of Energy Infrastructure

The Oregon Department of Energy works with tribes regarding the proposed siting of new 

energy facilities and pipelines. Some of the proposals include electric transmission lines and 

wind farms. With many of these set to be located east of the Cascades, the Oregon 

Department of Energy opened a small field office in Hermiston to better serve the public in that 

area. The transmission line projects under review include Boardman to Hemingway, proposed 

by Idaho Power and Cascade Crossing from PGE.

With the proposed siting of bulk transmission lines in the state, the Department anticipates 

greater involvement and communication with the effected tribes and tribal lands, including 

coordination of decision processes between Tribal Nations, federal land managers and the 

Energy Facility Siting Council (EFSC). The Oregon Department of Energy is staff to EFSC.
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State of Oregon Energy Plan 2011-2013

Nuclear Safety and Emergency Preparedness

The Hanford Site in southeastern Washington State used to produce plutonium for nuclear 

weapons. The production process resulted in large amounts of chemical and radioactive waste. 

These wastes pose a long-term threat to the Columbia River. The Oregon Department of 

Energy (ODOE) is responsible for the technical review of the Hanford cleanup and assessment 

of potential impacts on the Columbia River and Oregon. 

The State of Oregon continues to work closely with the Confederated Tribes of the Umatilla 

Indian Reservation (CTUIR) regarding Hanford policy and technical issues. This is done under a 

Memorandum of Understanding coordinating efforts related to the Columbia River, 

groundwater protection, radioactive material transport, public information and emergency 

preparedness. 

ODOE staff consults and coordinates with CTUIR staff regularly on Hanford technical and policy 

issues. ODOE also works with the CTUIR as a member of the Hanford Natural Resource Trustee 

Council.

Incentives

The Oregon Department of Energy, through the pass-through option of its Business Energy Tax 

Credit (BETC) program, has been able to help fund both conservation and renewable energy 

tribal projects.

A conservation BETC has been awarded to the Confederated Tribes of the Grand Ronde for an 

efficient transportation project. Two tax credit applications from the Coquille Indian Tribe are 

under review. The projects would save energy for the Coquille Community Center by providing 

solar electricity and water heating. The center houses the Head Start and afterschool 

programs, along with the recreation hall for the reservation. 

Public Information and Outreach

The agency attends the Natural Resource Working Group meetings, the Government-toGovernment Summits and Tribal Information Day at the Capitol.
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State of Oregon Energy Plan 2011-2013

Appendix E—Oregon Electric Utilities
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State of Oregon Energy Plan 2011-2013
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State of Oregon Energy Plan 2011-2013