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Climate Emergency

Legislative Report - Week of 1/27

Climate Emergency Team

 

Coordinator: Claudia Keith

  • Efficient and Resilient Buildings: Bill Glassmire

  • OHA & Environmental Justice: Nancy Rosenberger

  • Environmental Rights Amendment: Claudia Keith

  • Natural Climate Solution - Forestry: Josie Koehne

  • Emergency Management: Rebecca Gladstone 

  • Transportation: Claudia Keith

  • Clean Energy & GHGE Mitigation: Greg Martin

  • Ways and Means - Budgets, Lawsuits, Green/Public Banking, Divestment/ESG: Claudia Keith

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There are now over 120 Environmental/Climate Legislative Bills posted or soon to be posted to OLIS in January and Early Feb. Some of these bills are just placeholders. At this point here are a few that have been identified as potential League policy and/or budget Climate priorities:

 

Climate Priorities

 

Public Hearing Posted – League will submit Testimony

 

HB 2966 Establishes the State Public Bank Task Force (see 2023 HB2763 , vetoed by the governor) Representative Gamba, Senator Golden, Frederick, Representative Andersen, Evans
, Jan 28 1PM, HC CCP, 2023 LWVOR Testimony

 

Other Priorities


Update to Greenhouse gas Emission Reduction Goals. Bringing back SB 1559 (2024)



Natural and Working Lands (OCAC NWL Report) (see NWL LR below)


          

 

 

Transportation package that prioritizes climate, equity, and wildlife: This package would build on the historic gains of HB 2017 (which included investments in public transit, Safe Routes to School, and vehicle electrification), to shift the focus to multimodal, safety, and climate-forward investments. This will create a system that saves money over time and builds a more resilient, equitable, and healthy future for all Oregonians. (see OCN Press Rel)

 

Energy Affordability and Utility Accountability Package*  (HB 3081, SB 88, LC 1547): Oregonians are struggling to keep up with skyrocketing utility bills in the face of ever-worsening climate impacts. HB 3081 would create an active navigator to help Oregonians access energy efficiency incentives all in one place. SB 88 limits the ability of utility companies to charge ratepayers for lobbying, litigation costs, fines, marketing, industry fees, and political spending. SB 553 LC 1547 ensures that large energy users (i.e. data centers) do not unfairly burden Oregon households. (*see OCN Press Rel)

 

                

Natural and Working Lands

 

By Josie Koehne


On Tuesday, Jan 21, the first meeting of the 2025 session in Senate Natural Resources & Wildfire Committee kicked off with an informational hearing on Farm and Forest Land Loss in Oregon presented by Hilary Foote, Farm/Forest Specialist at Department of Land Conservation and Development. She reported that although our land use laws were successful in preserving 97% of zoned farm and forest land since 1987, the figures do not reflect the many changes on the landscape. Two hundred sixty-seven farms - most of them small -  were lost, and over 600,000 acres were lost from production. Between 1984 to 1913, 172,000 acres of forest land and 182,000 acres of agricultural land were lost. There were some conversions to residential areas through the gradual expansion of the Urban Growth Boundary over the years, from farm to Forest land and vice versa, corporate land for energy production including solar, and mining.


Some of the land zoned exclusively for farm and forest is being used for non-resource use but is still being protected. As of 1994, 10,200 homes were approved in wildland forest areas representing a 7% decline in forestland; most were one-off exception requests that the counties approved.


Jim Johnson from 1000 Friends of Oregon discussed the importance of Oregon’s largely specialty crop production to the state’s economy, roughly $326,039,000, or 19% of the state’s total traded sector exports. One out of eight jobs in Oregon (12%) are agricultural-related. Population pressures on nearby land have jacked up per-acre prices for agricultural land, making it very hard for new farm start-ups and causing farmers to consolidate, buying up neighboring farms that can’t keep up with rising costs. There are loopholes in existing natural resource laws, such as replacement dwellings on land zoned exclusively for  forest and farm use; large mansions are replacing small dwellings. Some owners have only a small portion of their land in production, such as keeping a small herd of sheep, or working at home full-time, and yet they still get a farm or forest special assessment. Several bills have been introduced this session to close these loopholes or ensure that new dwellings do not encroach into sensitive areas or areas with high wildfire risk. Look out for SB 73, SB 77, SB 78 among others. Other bills put restrictions on Accessory Dwelling Units (ADUs) in wildland urban Interface (WUI).


Thursday, Jan 23 was the second meeting for this committee. The first presentation outlined four priority areas for groundwater and water right transfer policy reforms. Current processes are long outdated with a huge backlog of permits needing completion, and are not processed in a timely, consistent or orderly manner across the state. Chandra Ferrari and Geoff Huntington, Governor Kotek’s natural resource policy advisors presented.

Next, the former Senator Dembrow and the Chair of the all-volunteer Oregon Climate Action Commission (OCAC) (formerly the Global Warming Commission), Catherine MacDonald, spoke about the intent of the Natural Working Lands Fund. Catherine presented a report on the implementation of the bill which was funded by the omnibus bill HB 3409 in 2023. See our previous testimony here.


LWVOR works with the  Natural Climate Solutions Coalition (NCS) monitoring the implementation of the Natural Working Lands Fund. The legislature approved $10 million to implement the Climate Change and Carbon Plan (CCCP) which was approved by the Oregon Department of Forestry in 2021. The funds are coordinated and channeled through the Oregon Water Enhancement Board (OWEB) to the other Natural Resource agencies, the Dept of Agriculture, Oregon Fish & Wildlife and the Dept of Forestry (ODF) and are earmarked for grants for climate smart incentives. Each agency reported on their progress to date. Andrea Kreiner, Executive Director of Oregon Association of Conservation Districts ended the day’s session. Local Soil and Water Conservation districts and water boards are responsible for seeing that the grants and incentives provided by the fund are allocated to local natural working landowners and managers for various climate-smart projects and practices. She stressed the importance of the legislature appropriating continuous funds that landowners can plan for and rely upon for their work. See this video for more information.


Climate Emergency  


This week, key state agencies presented invited testimony to the House Climate, Energy & Environment Committee to explain their missions, programs, funding, and upcoming issues facing the legislature. Following are some highlights.


Oregon Department of Energy (ODOE)


View ODOE slide presentation


ODOE by the Numbers


This year is ODOE’s 50th anniversary – the agency was created in a time of energy transition not unlike the present. ODOE relishes its role as a “think tank,” publishes an annual recap of energy-related legislation and conducts studies to inform proposed legislation. ODOE’s Biennial Energy Report published in November 2024 presents “Energy 101” reports related to upcoming bills.


Some popular grant programs will have no funding going forward in 2025; these include the Solar + Storage Rebate grants, the Energy Efficient Wildfire Rebuilding program, and the Community Heat Pump Deployment program. The governor’s budget proposes to continue the Community Renewable Energy Grant program that, as of December 2024, had reserved or disbursed $41 million and had $23.7 million remaining. ODOE has awarded 94 projects in 28 counties and estimates that more than 20% of grant funds to date are serving Environmental Justice communities.


ODOE’s one-stop online resource for the state’s many available incentive programs has gone live and is in beta testing. Federal dollars are a key funding source. ODOE draws down and monitors federal funds that now total $280 million. First-round awards of Grid Resilience grants to electric utilities in March will total $18.9 million to 13 utilities in 17 counties; Home Energy Rebate grants totaling $113 million for high-efficiency home improvements, especially for low-income households, should be available later this year. County resilience planning grants, created by HB 3630, provide up to $50,000 per county to develop those plans—HB 3170 (Marsh) would change some program requirements and appropriate $10 million of the state general fund (GF).


The legislature has given ODOE a lot of new assignments in the past few years, bolstered by federal funds. The governor recommends an overall budget of $174.5 million with an operating budget of $60 million, funded by state GF, federal funds, fees from site certificate holders, and the Energy Supplier Assessment (ESA), charged to fuel providers and utilities. In 2024, ODOE assessed $7.9 million of ESA charges on $8.5 billion of gross operating revenues, equating to $1.87 per Oregonian per year. The governor’s budget would raise the ESA by 18%, driven by cost-of-living adjustments for staff and increases in state government service charges that all agencies face, but utility bills won’t necessarily go up that much because rates depend on a multitude of factors. ODOE estimates that most customers’ bills would be about 4 cents higher. Incoming federal funds could displace some state funding and serve to lower the ESA.


Rep. Anderson asked about the outlook for future federal funding in light of President Trump’s executive order freezing the disbursement of Inflation Reduction Act and Infrastructure Investment and Jobs Act funds, particularly for EV charging stations. ODOE Director Janine Benner said a large number of signed performance agreements are in place with investments targeted in many states both red and blue, making it difficult for the new administration to claw back that committed money. Benner said ODOE is cautiously optimistic that those investments will go forward as planned.


Oregon Department of Environmental Quality (ODEQ)


View ODEQ slide presentation


 ODEQ’s presentation did not address the agency’s budget request; the currently approved budget totals $753 million in all funds, 860 FTEs. Much of ODEQ’s activity is determined by the federal government (delegated by U.S. EPA) but the agency also administers state programs that predate federal environmental law. Federal funding for these activities has been stagnant or declining over the years. DEQ also generates a lot of data for other agencies’ environmental programs.


Air quality monitoring is gaining importance due to increasingly severe wildfires and the resulting particulate matter in the air.


ODEQ monitors greenhouse gas emissions and has implemented oversight programs that include the Clean Fuels Program and the Climate Protection Program (CPP). ODEQ reran the entire CPP rulemaking in 2024 to reestablish the program’s goals and mandates. New elements include a direct connection between ODEQ and the Oregon Public Utility Commission to mitigate natural gas price increases. Key manufacturing industries are now directly regulated by ODEQ, per their preference, but are exempt from CPP rules for the next 3 years as ODEQ develops rules to regulate the industries according to their carbon intensity.


ODEQ has adopted two sets of rules to implement the Plastic Pollution and Recycling Modernization Act of 2021. The Producer Responsibility Organization program is expected to go live this year.

 

Oregon Public Utility Commission (OPUC)


View OPUC slide presentation


OPUC has three full-time commissioners, no more than two of whom may be of the same political party. Chair Megan Decker’s second and final term ends March 31, 2025, so the Senate will need to confirm a new commissioner in February. Gov. Kotek has nominated her natural resources advisor, Karin Power.


OPUC determines utility rates, presides over quasi-judicial proceedings, and implements policy. OPUC receives no GF, but is funded by an assessment of 0.45% of utilities’ gross operating revenues. The commission regulates rates of investor-owned electric, natural gas, water, and telecom utilities, considering more than a thousand individual issues per year with a variety of opposing positions. 


OPUC sets rates to balance the interests of the utilities and their customers. Rates must be just and reasonable but must provide sufficient revenue for operating expenses and the capital costs of the business—otherwise the state may be argued to have taken utility property without compensation. Utilities almost never get as large a rate increase as they request—typically less than half.


OPUC staff (142 FTEs) make specific recommendations to commissioners on how to resolve issues and provide expert analysis of utility proposals and rate filings. OPUC evaluates utility filings in three major categories: Rates (general rate cases and annual cost adjustments), planning (utilities’ Integrated Resource Plans, clean energy, wildfire mitigation, and distribution system plans), and programs such as net metering, community solar, EV charging, and demand response.


 Besides the regulated utilities, participants in OPUC decision-making can include the Citizens’ Utility Board, environmental and community organizations, trade associations, energy developers and others. HB 2475 (2021) expanded OPUC’s ratemaking authority with regard to low-income customers. Groups that represent low-income and environmental justice (EJ) communities can receive intervenor funding assistance of up to $500,000 per year. OPUC’s new online comment portal makes it easier for the public to comment. Staff consolidates public comment into the record of each judicial proceeding.


OPUC’s role in climate policy has changed dramatically—the commission is much more focused on this than in the past and has staffed up to address it. Wildfire readiness has become a huge part of utility operations, overseen by OPUC’s Safety Division. Equity and energy burden is a new and important role, legislatively directed.


Rep. Osborne asked about the rate process. What’s keep utilities from gaming the system by asking for a lot more than they need? Nolan Moser, OPUC’s executive director, replied: OPUC’s rates team understands which costs are justified and which are not, and can separate the wheat from the chaff in rate filings.


Rep. Helm: The House CE&E Committee will be considering some OPUC bills with complex issues, including where the utilities’ clean energy plans stand. The committee needs to dig more deeply into OPUC’s approach before those bills arrive.


Rep. Wallan asked what is OPUC doing to ensure grid reliability? Moser said reliability is a core part of OPUC’s mission and a major focus of the Safety Division. Standards are extremely high–utilities are expected to operate all the time in all conditions. Wildfires are happening all over the country and threatening reliability and safety. Costs will go up a lot if we can’t get our hands around this problem. OPUC Commissioner Letha Tawney is well regarded as a regional wildfire expert.


Rep. Gamba asked how the utilities are doing toward meeting their HB 2021 clean energy targets. Moser: They are moving forward as best they can but have different constraints. PGE has restraints around ensuring they can procure resources in a cost-effective way. PacifiCorp is a multistate utility pulled in different policy directions—has almost the same size of Oregon’s load compared to Utah, where coal is still being used.


OPUC interprets HB 2021 language as creating a role for the commission in ensuring that the utilities review all procurement options to meet legislative intent. OPUC believes it has the authority to require a utility to issue an RFP for renewable resources—PacifiCorp has challenged that position in court.


Rep. Marsh: Huge energy load demands are coming our way. Does OPUC have the tools it needs to help utilities manage those loads without a huge rate impact on customers? Moser: OPUC needs to reevaluate that—“We’re at a moment when our previous assumptions need to be completely reimagined.”

 

Legislative Environmental Caucus Climate Priorities  


  • Performance Based Regulation for Utilities (SB 688)

  • Transmission package aiding the expedited buildout of the electrical grid and increase efficiencies in existing infrastructure

  • Enabling Changes to Electricity Rates of Large Power User Microgrids (HB 2064, HB 2065, HB 2066)

  • Hydrogen Oversight at the PUC (SB 685)


Transportation: The Caucus supports a transportation package that includes increased

funding for public transit, Safe Routes to School, an emphasis on sustaining and expanding infrastructure for multimodal transportation, and policies that align with our climate action goals, along with creating a safer transportation network for people and wildlife.

 

Schools: These policies make schools safer and more resilient by leveraging

federal funds to improve infrastructure and environmental health.

  • Transitioning to Electric School Buses (HB 2945)

  • Positions at ODE to Support Climate Resilient Schools (HB 2941)

 

Climate Protections and Policies: The climate package includes bills that have broad and long-ranging protections for Oregon’s environment and natural resources.

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